While gold's glitter partly dimmed toward the last few months of 2011, a study released Wednesday predicted that diamond and gemstone mining will be strong industries in Australia in 2012.

Business information research firm IBISWorld forecast a 37 per cent rise in revenue to $800 million for the diamond and gemstone mining industry. The rebound would end five years of decline in the industry due to low production, poor prices and the high Australian dollar.

Besides the diamond mining industry, other sectors expected to soar in 2012 are online education, car building, online retail and biotechnology, IBISWorld General Manager for Australia Karen Dobie disclosed.

"There's a general acknowledgement of a need to maintain higher education levels throughout one's career and finding the time is becoming harder," IBISWorld Senior Analyst Craig Shulman explained the selection of online education as a winner.

On the opposite end, expected to suffer are the steelmaking industry and the cut flower sector.

The study said iron and steel manufacturing would suffer a 15 per cent dip in revenue to $7.8 billion as the majority of the demand for steel products will come mainly from construction which is not very strong, Shulman said. Although the mining and rail sector is performing well, its demand for steel is only 15 per cent of the market.

The cut flower industry is expected to contract by 4.3 per cent in 2012 on top of falling sales for the past decade due to reduced consumer spending and flower sales through bulk-buying in supermarkets and convenience stores which have lower wholesale prices.

Another victim of technology is the pulp, paper and paperboard manufacturing industry expected to register a 3.7 per cent decline in revenues to $3.1 billion as Aussies buy less of printed books and more of iPads and e-readers.

In 2011, the industries which hit it big were organic farming, video games, electricity distribution, motor cycle dealing and domestic aviation.

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