New Zealand Ict Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

New Zealand Ict Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The New Zealand ICT Market is expected to grow at a CAGR of 7.2% over the next five years. The growth of the market is anticipated to increase owing to the increased spending on items and services related to information technology. Businesses are shifting from IT ownership to IT services and investing more in cloud technology than on-premises technology.

• With its excellent digital infrastructure, New Zealand is among the top 20 nations in the world for network coverage, 5G rollout, and internet speeds. Fintech, health IT, digital, and creative technologies are flourishing in New Zealand and are highly competitive. According to the International Trade Administration (ITA) report, ICT is New Zealand's third-largest export sector and comes with an annual export income of approximately USD 8.7 billion. There are over 7,500 firms in the ICT industry of New Zealand, and it is where most global brands are distributed.
• ICT is the key to the New Zealand government's strategy to boost innovation and local production. Collaboration between the banks, the ICT industry, and the New Zealand government created a congregated and information-sharing atmosphere. Notably, with a 63% increase in the total funds spent from 2020 to 2021, New Zealand start-ups witnessed significant growth in the number of deals completed and the amount of capital invested.
• New Zealand is relaxing its border limitations for ICT professionals to entice the greatest digital talent from across the world to the island country. The leader in these border exclusions is NZTech, the government-funded marketing organization created to promote New Zealand technology to the global market. As confirmed by the chief executive of the firm, the country needs a technology workforce since the digital economy of New Zealand is growing. Also, the nation could witness a further upsurge in demand for skilled people in the tech industry.
• New Zealand is rapidly moving toward digital health. The current year's health sector reforms in New Zealand have highlighted data and digital as one of five critical shifts necessary to support consumer-driven health and give customers access to secure, high-quality, and practical services. The transition to more standardized and contemporary online platforms would help health workers function more efficiently every day, improve patient continuity of treatment, and reduce medical mistakes.
• New Zealand's ICT sector witnessed stable growth even during the critical times of the COVID -19 pandemic. The negative impact of the pandemic on business investment activity was minimized by backing from the past investments in digital transformation by government and other enterprises in the country. Starting from the time of the pandemic, big data and analytics combined with other technology, such as the internet of things (IoT), artificial intelligence (AI), and mobile network traffic data, is becoming a big area of focus, particularly for government agencies and healthcare providers.

• Exports of ICT services are associated with computer and communications services (including telecommunications, postal, and courier services), information services (computer data and news-related service transactions), and others. According to the annual Technology Investment Network (TIN) report, the growth of technology businesses in New Zealand grew nine times that of the country's overall economy. By the facts, IT businesses are helping New Zealand create a path for recovery by promoting productivity, variety in exports, and income security.
• A significant strength in this respect is the sector's diversity of export markets, resilience to shocks, and capacity to avoid conflict with climate goals. If things continue as they are, technology exports of the country are expected to reach NZD 20.5 billion (USD 12.8 billion) by 2027. With 14% of all export income in New Zealand coming from technology, it is currently the second highest-earning sector behind dairy. Despite pandemic lockdowns, the sector's growth remained strong, with 31 firms reporting revenue of NZD 100 million (USD 62.6 million) or more, including four firms that exceeded NZD 1 billion (USD 630 million).
• A recent economic analysis highlights that United States plays a crucial role as an export market, which may be an indication of New Zealand's powerful digital economy. This export includes both software licenses and computer services. As per the country's Trade and Export Growth Minister, United States is New Zealand's third-largest trade partner overall and is currently the nation's top destination for services, taking in more than 22% of all service exports.
• The New Zealand technology industry significantly contributes to the country's GDP, exports, and employment. Despite the labor scarcity and lack of onshore knowledge, job growth in New Zealand's digital sector is accelerating. Global total employment increased by 10.9% to 62,718 employees, mostly due to job growth in the ICT industry. The upsurge in high-paying IT employment at home is having a significant impact on the national economy.
• As per the Statistics New Zealand report, over USD 1 billion worth of ICT products and services were exported from New Zealand last year.

• The world was turned upside down by COVID-19. However, it also accelerated the health-tech revolution and drew significant investment across nations. It is no surprise that New Zealand's healthcare sector has grown to be one of the biggest and fastest-growing sectors in the global economy. Owing to the factors such as an aging population, the demand for individualized treatment, privacy, digitalization, and value-based care, New Zealand's health technology expanded steadily during the last five years.
• New Zealand's interim national health plan highlights digital platforms' role in enabling the health system to deliver greater care in homes and communities. The government of New Zealand is dedicated to "growing the options" for individuals to utilize digital technologies to access and use their health information, schedule appointments, get phone and video consultations, and use devices to monitor their health at home. Computers, cell phones, patient portals, and clinical equipment with digital capabilities are some of these options for remote health monitoring.
• New Zealand plans to increase transparency and digital access to primary care in the digital health domain. An interim national health strategy was introduced after the New Zealand government combined 20 previous District Health Boards into two public health agencies, Te Whatu Ora and Te Aka Whai Ora. The government made its most significant health investment to date in the Budget of this year, totaling NZD 11.1 billion (USD 6.5 billion). This includes NZD 600 million (USD 400 million) for the health system's data, digital infrastructure, and competence.
• Digital health has an important role to play and was crucial to the COVID-19 response, with the introduction of the NZ COVID Tracer app, My Vaccine Pass, automated access to COVID test data, and the rapid use of telehealth or virtual care in the country. Digital is a fundamental tool for creating an omnichannel healthcare delivery system that integrates online and in-person treatment and gives people the power to manage their own health.
• According to the Commonwealth Fund and OECD research, New Zealand was placed in the 8th position in the overall ranking of its healthcare system performance in a last year's study of selected high-income nations. Five performance metrics were used to determine the overall rating, including administrative effectiveness, equity, access to care, and care process and results.

The New Zealand ICT market is fragmented, with many players operating in the market. Several key players in the ICT market are in constant efforts to bring advancements. A few prominent companies are entering into collaborations and expanding their footprints in developing regions to consolidate their positions in the market. The major player in this market includes IBM New Zealand Ltd, Amazon New Zealand Pty Ltd, Spark New Zealand Limited, and Vodafone New Zealand Limited.

In September 2022, Vodafone NZ announced that it came into an alliance with Nokia to drive network innovation with 6G and 5G-Advanced. This agreement would focus on developing cutting-edge use cases for customers, companies, and industries. Through innovation-focused collaboration, Nokia and Vodafone NZ's 30-year partnership has been expanded, laying the groundwork for 6G in the future.

In August 2022, Auckland Transport (AT) declared that it shifted all its computing to Microsoft, as it constructs a sizable data center for cloud services in Auckland. In an agreement with AT, Microsoft commits to respond to incidents on the road more quickly. Using resources more wisely, along with maintaining the security of the transport network, is the focus of this agreement.

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support