Software - New Zealand

New Zealand

Revenue in the Software market is projected to reach US$2.24bn in 2024.
Enterprise Software dominates the market with a projected market volume of US$0.94bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 5.36%, resulting in a market volume of US$2.76bn by 2028.
In global comparison, most revenue will be generated in the United States (US$353.50bn in 2024).

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

Definition:

In general, software is defined as a set of instructions written as programming code to execute specific tasks on a computing device. The Software market covers a wide range of software products and solutions that are publicly sold by various companies. Most software solutions in this market are designed for professional use, but some can also be suitable for personal use. They can also range from basic productivity tools such as word processors and spreadsheets to complex software solutions such as project management tools, graphic design software, and enterprise resource planning software.

Products in the Software market can be obtained in two ways: as on-premises software that is sold via a transactional license or a subscription and as cloud-based software (software as a service/ SaaS) that is most frequently sold as a subscription.

Structure:

The market contains four markets that are based on the functionality of the software:

Productivity Software refers to application software that supports activities such as producing documents, spreadsheets, drawings, and presentations. This market includes Administrative Software, Collaboration Software, Office Software, Creative Software, and Construction and Design Software.
Enterprise Software refers to all software that supports essential large-scale business activities such as enterprise resource management, customer management, and supply chain activities. This market includes Enterprise Resource Planning Software, Customer Relationship Management Software, Business Intelligence Software, Supply Chain Management Software, Content Management Software, and Other Enterprise Software.
Application Development Software refers to software and tools that help the overall application development process.
System Infrastructure Software refers to software that provides the base framework for operating and managing organizational processes and services on hardware devices.

Additional Information:

The Software market comprises revenue and revenue change as the key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. 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 this market include Microsoft, Adobe, SAP, Oracle, and Salesforce.

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Analyst Opinion

New Zealand, known for its stunning natural beauty and adventure tourism, has been experiencing a steady growth in its software market.

Customer preferences: New Zealanders have always been early adopters of technology, and the software market is no exception. The country's tech-savvy population has been instrumental in driving the demand for software solutions. With the rise of e-commerce, cloud computing, and big data, businesses in New Zealand are increasingly turning to software solutions to streamline their operations and gain a competitive edge.

Trends in the market: One of the major trends in the software market in New Zealand is the growing demand for cloud-based software solutions. This trend is in line with the global shift towards cloud computing, which offers businesses greater flexibility, scalability, and cost-effectiveness. Another trend is the increasing use of artificial intelligence and machine learning in software solutions. These technologies are being used to automate processes, improve customer experience, and gain insights from vast amounts of data.

Local special circumstances: New Zealand has a relatively small population and economy compared to other developed countries. This has created a unique market for software solutions, with a focus on niche industries such as agriculture, tourism, and education. The country's remoteness and geographic isolation have also contributed to the development of innovative software solutions that address the unique challenges faced by businesses in New Zealand.

Underlying macroeconomic factors: The New Zealand government has been actively promoting the growth of the country's technology industry. This has included initiatives to attract foreign investment, support start-ups, and improve digital infrastructure. The country's stable political environment, low corruption levels, and ease of doing business have also made it an attractive destination for software companies. Additionally, the Covid-19 pandemic has accelerated the adoption of digital technologies in New Zealand, creating new opportunities for software providers. In conclusion, the software market in New Zealand is thriving, driven by the country's tech-savvy population, the growing demand for cloud-based and AI-powered solutions, and the government's support for the technology industry. The unique market conditions in New Zealand have also created opportunities for innovative software solutions tailored to niche industries.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises, except for the Enterprise Software segment, in which consumer (B2C) spending is not considered. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, level of digitization, GDP sector composition, and observed level of software piracy. 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 is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

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 is considered at a country-specific level.