Overview
New Zealand has an advanced digital infrastructure when it comes to network coverage, 5G deployment, and internet speeds, ranking in the top 20 countries globally for fixed broadband speed and top 40 for mobile performance (Source: 2023 Inclusive Internet Index and Speedtest Global Index). New Zealand is rich and competitive in fintech, health IT, digital and creative technologies. The sector is New Zealand’s third largest export sector with revenue of over $8.7B a year while the Gross domestic product (GDP) of the information media and telecommunication industry in New Zealand in 2022 was worth almost $6B. New Zealand’s information, communications and technology (ICT) sector comprises around 7,500 organizations. Most multinational brands are distributed in New Zealand.
The New Zealand Government recognizes ICT as an important component to increasing local productivity and enhancing innovation. Co-operation between the New Zealand government, banks, and the tech sector has led to an environment of clustering and knowledge sharing. (In May 2022, Microsoft New Zealand announced a new initiative to encourage Software-as-a-Service/SaaS startups in New Zealand.) A record $450m was invested in New Zealand tech companies in 2022 across 154 deals, up 8.2% from 2021 (Source: New Zealand Technology Investment Report). After a couple of years of record deal activity, 2023 is seeing New Zealand’s startup investment market resetting to pre-pandemic levels but with the long-term trend showing clear growth, according to Young Company Finance deal data. Software remains the most funded sector, receiving 45% of total funding, followed by Deeptech which attracted 34% of total funding. Among Deeptech verticals, Cleantech received the most funding with 72%, followed by Health Tech 13% and Space Technology 12% (Source: New Zealand Angel Association). Since 2016, the fastest growing part of New Zealand’s diverse tech sector is the digital technologies sector, which has been growing at an annual compound growth rate of 10.4%.
New Zealand is an ideal testbed for ICT goods and services reflecting a population receptive to new technologies.
Table: IT Sector Data
|
|
2019 |
2020 |
2021 |
2022 (Estimated) |
|
Total Local Production (Estimated) |
300.0 |
300.0 |
300.0 |
300.0 |
|
Total Exports |
213.7 |
215.9 |
228.7 |
230.0 |
|
Total Imports |
1713.4 |
1608.8 |
1987.7 |
2000.0 |
|
Imports from the US |
74.5 |
62.4 |
72.0 |
75.0 |
|
Total Market Size |
1799.7 |
1692.9 |
2059.0 |
2070.0 |
|
Exchange Rates |
1.45 |
1.42 |
1.41 |
1.55 |
Unit: USD Millions
Source: Global Trade Atlas (GTA)
Leading Sub-Sectors
- ICT: Consumer Technology including Wearables and WiFi Connected Smart Devices
- ICT: Gaming and Networked Entertainment
- ICT: Artificial Intelligence/Robotics
- ICT: Customer Data Platforms
- ICT: Digital Health
Opportunities
New Zealand’s internet connectivity to the world is mainly via the Southern Cross Cable. Southern Cross’ monopoly on the U.S. route was broken in July 2017, when the US$445 million Hawaiki Cable between New Zealand, Australia, and the U.S. went live. Hawaiki Cable’s entry into the market provides consumers with a direct high-speed broadband connection between the United States and New Zealand creating new opportunities for American exporters of rich digital content, as well as suppliers of supporting products and services.
In early 2022, Space-X launched satellites allowing faster broadband internet to New Zealand’s rural and remote communities without the need for a fiber connection. In 2023, Space-X reached an agreement with cell phone operator One New Zealand (formerly Vodafone NZ) to use the Starlink satellites to provide cell coverage to 100% of New Zealand from late 2024. The technology will be initially for text and multimedia messaging services but will later extend to voice and data service. As well in 2023, global satellite provider Lynk and New Zealand telecommunications company 2degrees announced a trial of technology that enables customers to connect from areas outside of terrestrial mobile coverage. Improved speeds for New Zealand’s rural/remote communities offer increased opportunities for a variety of services including entertainment services. Online video streaming subscription is popular in New Zealand with many consumers turning to on demand TV, away from traditional methods. The three top sources are Netflix, Disney+, and Amazon Prime.
Within digital technologies, future focus areas for New Zealand include Game development, Data Driven Innovation and AI.
Resources
Trade event:
The New Zealand Tech Alliance hosts TechWeek annually in May. TechWeek is an independent platform for the technology sector.
The Aotearoa New Zealand AI Summit is held in September.
New Zealand Government agencies active in this sector include:
New Zealand private organizations active in this sector: