Data Center - New Zealand

New Zealand

Revenue in the Data Center market is projected to reach US$1.10bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$0.68bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.52%, resulting in a market volume of US$1.47bn by 2028.
In global comparison, most revenue will be generated in the United States (US$99.16bn in 2024).

Key regions: United States, Germany, India, Japan, China

Definition:

The Data Center market is a critical segment of the technology industry focusing on supplying and managing physical infrastructure necessary for hosting and operating IT systems, primarily servers, storage, and network equipment. This market spans from traditional in-house data centers to sophisticated facilities offered by specialized providers, covering services like hosting, shared data center facilities, and managed data center solutions. It targets a diverse client base, ranging from small businesses to large enterprises, offering flexible, scalable solutions for their IT infrastructure needs. This sector is integral to the efficient functioning and security of IT operations in various organizations.

Structure:

The Data Center market is structured in three markets based on the services model provided by the companies.

The Server market covers the resources and services related to servers, integral for hosting websites, managing databases, and supporting cloud computing.
The Storage market covers the resources and services related to data storage systems, crucial for archiving, data backup, and ensuring data recovery.
The Network Infrastructure market covers the resources and services related to network hardware essential for ensuring connectivity, data transmission, and network security.

Additional Information:

The Data Center market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Market values represent revenues paid to primary vendors at the manufacturer price level either directly or through distribution channels (excluding VAT). Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in the Data Center market include companies such as Dell, HPE, Huawei, and Ericsson.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center market in New Zealand has been experiencing significant growth in recent years.

Customer preferences: Customers in New Zealand are increasingly demanding high-quality and reliable data center services. They are looking for data centers that can provide them with secure and scalable infrastructure to support their growing digital needs. In addition, customers are also placing a strong emphasis on energy efficiency and sustainability in their data center choices. They are seeking data centers that are environmentally friendly and have implemented green initiatives to reduce their carbon footprint.

Trends in the market: One of the key trends in the New Zealand data center market is the increasing adoption of cloud services. As more businesses in the country embrace digital transformation, there is a growing need for cloud-based solutions to support their operations. This has led to a rising demand for data center services that can provide the necessary infrastructure to host cloud applications and services. Another trend in the market is the growing importance of edge computing. With the proliferation of Internet of Things (IoT) devices and the need for real-time data processing, there is a need for data centers that are closer to the end-users. Edge data centers, which are located closer to the point of data generation, can provide low-latency and high-speed connectivity, enabling faster and more efficient data processing.

Local special circumstances: New Zealand is known for its geographical isolation and natural disasters such as earthquakes. This has led to the development of data centers that are built to withstand seismic activities and other potential hazards. Data center providers in the country have invested in robust infrastructure and disaster recovery capabilities to ensure the continuity of their services even in the face of natural disasters.

Underlying macroeconomic factors: The growth of the Data Center market in New Zealand can be attributed to several underlying macroeconomic factors. The country has a strong and stable economy, which has attracted both domestic and international businesses to establish their presence in the country. This has fueled the demand for data center services to support their operations. Furthermore, the New Zealand government has been actively promoting digital innovation and technology adoption. This has created a favorable environment for the growth of the data center market, as businesses are encouraged to invest in digital infrastructure to drive their growth and competitiveness. In conclusion, the Data Center market in New Zealand is experiencing significant growth due to customer preferences for high-quality and reliable data center services, the increasing adoption of cloud services, and the growing importance of edge computing. The local special circumstances, such as the need for seismic-resistant infrastructure, further contribute to the development of the market. The underlying macroeconomic factors, including a strong and stable economy and government support for digital innovation, have also played a significant role in driving the growth of the market.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.