New Zealand Cloud Computing Market by Service Model, Deployment Model, Subscription Model, Enterprise Size, End User – Industry Analysis, Size and Forecast, 2019-2032

New Zealand Cloud Computing Market Growth and Performance

• In 2024, the New Zealand cloud computing market size is expected to achieve a market value of US$ 2.74 billion.
• This market in New Zealand is projected to register a compound annual growth rate (CAGR) of 8.81%, resulting in a forecasted market value of US$ 4.95 billion by the end of 2031.

New Zealand Cloud Computing Market Outlook

The New Zealand cloud computing market is undergoing a transformative phase, driven by increasing digital adoption, strategic infrastructure investments, and a growing focus on sustainability. With the launch of Microsoft’s first hyperscale cloud region in the country, New Zealand has achieved a major milestone in its digital transformation journey. This development underscores the market commitment to leveraging technology for enhanced efficiency, security, and scalability. The New Zealand cloud computing market growth is evident in the expanding contribution of cloud services to the national economy. Public cloud adoption in New Zealand is expected to add NZD 21 billion (approximately USD 13.8 billion) to the economy by 2026, creating 134,000 new jobs. In 2022 alone, public cloud services contributed NZD 23.9 billion, accounting for nearly 6% of the country’s GDP. As businesses increasingly transition to cloud platforms, this trend is anticipated to accelerate, positioning New Zealand as a hub for digital transformation in the region.

New Zealand Cloud Computing Market Trends

Several key factors are driving the New Zealand cloud computing market trends, including the improved broadband networks, industry mergers, and talent expansion.

Advancements in Broadband Infrastructure

New Zealand’s Ultra-Fast Broadband (UFB) network offers competitive speeds compared to Australia’s National Broadband Network (NBN), with higher upload speeds and fewer service outages. The reliability of the UFB network further facilitates cloud adoption, enabling businesses to operate seamlessly on cloud platforms. With continuous improvements in broadband infrastructure, New Zealand is poised to accelerate its digital transformation and support a growing number of tech-driven enterprises.

Strategic Mergers in the Telecommunication Sector

The merger of 2degrees and Vocus NZ has created New Zealand’s third-largest telecom provider, with an annual turnover exceeding $1 billion. This consolidation is expected to enhance competition in the telco space and improve service offerings for cloud-based businesses. As these companies come together, they bring a wealth of experience and resources that will likely drive innovation and efficiency in the sector, benefiting both consumers and enterprises alike.

Expansion of Cloud Talent and Workforce

Datacom, one of New Zealand’s leading IT service providers, is planning to hire 400 professionals across various technical roles, including cloud engineers, cybersecurity experts, and system architects. Microsoft is also investing in digital skills training, aiming to equip 100,000 New Zealanders with AI and cloud expertise by 2027. These efforts by key industry players underscore the commitment to expanding the talent pool and enhancing the nation’s capabilities in cloud computing. Moreover, such initiatives are expected to bolster New Zealand's position as a hub for technological innovation and digital transformation.

New Zealand Cloud Computing Market Competitive Landscape

The New Zealand cloud computing market competitive landscape is characterized by the presence of both global and local players. While hyperscale providers such as Microsoft Azure, AWS, and Google Cloud dominate the market, local providers like Spark NZ and Catalyst Cloud are gaining traction by offering specialized solutions with an emphasis on data sovereignty and cost-effectiveness.

• Dragonfly Data Science leverages cloud computing to run AI/ML algorithms efficiently, utilizing both AWS and Catalyst Cloud. Their analysis found Catalyst Cloud to be 43% cheaper and 32% faster than AWS for specific workloads.
• Tohu Media prioritizes data sovereignty by using locally hosted AI models on Catalyst Cloud, ensuring compliance with New Zealand’s legal framework, particularly concerning M?ori data protection.

The New Zealand cloud computing market development will be shaped by continued investments in hyperscale infrastructure, increased adoption of multi-cloud strategies, and a strong focus on sustainable computing. With New Zealand’s commitment to carbon-free electricity and water-free cooling technologies in its data centers, the cloud industry is poised for responsible and scalable growth. As more enterprises shift towards cloud-based solutions to drive innovation and operational efficiency, the New Zealand cloud computing market is expected to sustain its upward trajectory, reinforcing its position as a key player in the Asia-Pacific cloud ecosystem.

New Zealand Cloud Computing Market Developments

• Major players in New Zealand cloud computing market have adopted a range of strategic approaches, incorporating mergers and acquisitions, collaborations, and regional expansions. For instance, in January 2024, Evergreen Services Group acquired the business and assets of Lancom Technology, a leading provider of technology, software development & cloud computing services based in Auckland, New Zealand. The acquisition will extend Evergreen Services Group's resources and capabilities to help clients in New Zealand.
• In addition, in November 2023, Accenture entered the New Zealand market with the Solnet acquisition, an IT services provider renowned for its extensive technology consulting expertise, particularly within the New Zealand government and various private sectors. Through this acquisition, the company aims to expand Cloud First's capabilities in Aotearoa, New Zealand.

New Zealand Cloud Computing Market Scope