New Zealand B2B IT Forecast and Outlook 2024

Digitalisation and off-premises cloud migration drive a 11.6% total IT services CAGR through FY28.

David Kennedy · Venture Insights2 July 2024Period: FY248 min read

11.6%↑

Total IT services revenue CAGR (FY23-28)

NZ$4.1B↑

Forecast Cloud market revenue (FY28)

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Abstract

This report examines the growth and key drivers of the New Zealand IT market, comprising unified communications and contact centres (UC&CC), cloud services, and cybersecurity. It identifies business digitalisation, the shift to off-premises cloud services, and government policies as primary growth catalysts. Despite a revised GDP growth forecast suggesting slower IT growth in FY24 and early FY25, the report anticipates recovery by FY26, forecasting a total market value of NZ$5.3 billion by FY28.

Key Takeaways

The New Zealand B2B IT market is forecast to reach NZ$5.39 billion by FY28, representing a robust 11.6% CAGR from FY23.
Cloud computing remains the dominant growth engine, expected to reach NZ$4.06 billion by FY28 with a 13.6% CAGR.
Cybersecurity spending is resilient, projected to grow at 7.6% CAGR to reach NZ$915 million by FY28, driven by rising domestic fraud and international tensions.

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Frequently Asked Questions

The B2B IT market is projected to reach NZ$5.39 billion by FY28, maintaining a strong 11.6% CAGR despite a 2024 GDP growth forecast of just 0.1%. While macroeconomic headwinds have delayed some projects, a significant recovery is expected by FY26 as business digitalisation remains a priority.

Cloud computing is the primary engine of the market, forecast to reach NZ$4.06 billion by FY28 with a 13.6% CAGR. Cybersecurity spending also shows high resilience, with a projected 7.6% CAGR that will bring the total segment value to NZ$915 million.

The UC&CC market is undergoing a structural transition where cloud and hosted solutions are growing at 8.4% annually. This shift is directly cannibalizing legacy infrastructure, with premise-based solutions forecast to decline by 10.3% per year through FY28.

Large enterprises are the dominant buyers, accounting for 65% of the cybersecurity market and 58% of the cloud market. Service providers should focus their high-touch professional services on this segment to capture the bulk of the NZ$5.39 billion total market opportunity.

New Zealand B2B IT Forecast and Outlook 2024

Abstract

Key Takeaways

Frequently Asked Questions

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