New Zealand Cybersecurity Market Size, Share and Outlook - Growth Analysis Report and Forecast Trends (2026-2035)

Market Overview

The New Zealand cybersecurity market is expanding because the threat is local, costly and increasingly visible. Government agencies, large companies and household users now report incidents through a single national centre, which has made the scale of loss easier to measure and harder for boards to ignore.

Three forces are shaping demand: scam and credential theft that reached households and small firms; a national strategy and regulatory agenda that raise minimum standards for critical infrastructure and personal data; and local cloud and network investment that lets providers keep traffic inside the country.

In February 2026 the government published its Cyber Security Strategy to 2030, and in May 2026 a new Privacy Act rule on indirectly collected personal information began. In October 2025 Fortinet opened its first Auckland secure access point of presence.

Key Market Trends and Insights

• Persistent incident volume: The National Cyber Security Centre recorded 1,129 incidents in the second quarter of 2026, with 92 needing specialist technical support, so demand for response services stays steady.
• Costly scams and fraud: Direct losses reported to the centre reached NZD 5.6 million in the first quarter of 2026 and NZD 2.7 million in the second, mostly from individuals and fraud.
• Boardroom attention: A business survey released in March 2026 found 44% of large organisations had suffered a successful attack, and one in three would consider paying a ransom.
• Policy tailwind: The government consulted on critical infrastructure measures from 27 February to 19 April 2026, signalling a minimum standard of cyber risk management for operators.

New Zealand Cybersecurity Market Size and Forecast

The market is moving from perimeter hardware towards cloud-delivered controls, identity protection and managed detection services that smaller teams can afford. Security software holds the largest share of spending, while managed services grow fastest as organisations struggle to hire analysts. Network security remains the biggest category, and cloud security advances quickest as local hyperscale regions open. Government and public sector buyers lead by value, and healthcare strengthens as clinical systems digitise. Auckland remains the largest region by a wide margin, and Canterbury grows quickest as new software and security firms build teams there. Regulation, insurance expectations and visible losses point to durable spending growth rather than a one-off response, although tight skills and cautious technology budgets will keep buyers selective.

Key Takeaways: New Zealand Cybersecurity Market

Visible Losses Keep Security Budgets Growing

Revenue is on course to expand by about 126% across the decade, from USD 840.00 million in 2025 to USD 1,899.23 million in 2035 at an 8.5% CAGR. The government puts annual cybercrime losses at around NZD 1.6 billion, and reported losses of NZD 5.6 million in the first quarter of 2026 kept the issue on boardroom agendas.

Managed and Cloud Security Lead Growth

Security Software holds the largest share, but Managed Security Services and Cloud Security grow fastest through 2035. Fortinet's Auckland access point of October 2025 and Kordia's partnership with WitFoo in February 2026 show providers building local detection capacity that keeps data inside New Zealand.

Regulation Raises the Floor for Every Buyer

Policy is shifting from guidance towards enforceable minimum standards, which widens the buyer base beyond large enterprises. Spending is expected to broaden to mid-sized firms and operators of essential services.

• Cyber Security Strategy to 2030 published in February 2026
• Critical infrastructure consultation closed on 19 April 2026
• Privacy Act indirect collection rule effective 1 May 2026

New Zealand Cybersecurity Market Report Summary

Key Insight

Rising scams, tighter privacy rules and local cloud capacity are lifting spending on managed services and cloud controls. Auckland leads by value, while Canterbury grows fastest.

Key Trends in the New Zealand Cybersecurity Market

The New Zealand cybersecurity market is being shaped by persistent incident volumes, visible financial losses, a new privacy notification duty and growing business concern about ransom demands.

August 2026 - NCSC Reports 1,129 Incidents and NZD 2.7 Million in Direct Losses for Second Quarter

• The National Cyber Security Centre said on 20 August 2026 that 92 of the 1,129 incidents needed specialist technical support, up from 77 in the previous quarter.
• Direct losses fell 52% from NZD 5.6 million, yet unauthorised access alone cost about NZD 1.3 million.
• Rising malware scams and QR code phishing favour awareness training, email filtering and endpoint tools for smaller organisations.

June 2026 - NCSC Responds to Three Highly Significant Incidents in First Quarter

• The centre said on 22 June 2026 that it handled three highly significant incidents, the first of that severity for several years.
• Direct losses rose 76% to NZD 5.6 million, with individuals bearing NZD 5.2 million and phishing the most reported type at 437 incidents.
• Severe incidents raise demand for incident response retainers and tested recovery plans among larger organisations.

May 2026 - Privacy Act Indirect Collection Rule Takes Effect

• The Office of the Privacy Commissioner confirmed that information privacy principle 3A came into force on 1 May 2026.
• Organisations collecting personal information from third parties must tell the person what was collected, why and who receives it.
• Mapping data flows and tightening vendor controls adds work for data security and governance specialists.

March 2026 - Kordia Survey Finds 44% of Large Organisations Suffered a Successful Attack

• Kordia's New Zealand Business Cyber Security Report, covered on 25 March 2026, surveyed 247 leaders of large organisations.
• The share reporting a successful attack fell from 59% a year earlier, but one in three said they would pay a ransom.
• Persistent exposure and weak ransom resolve keep demand strong for backup, detection and response services.

Key Insight

Steady incident volumes, large individual losses and new privacy duties are pushing organisations toward managed detection, identity controls and tested recovery, while ransom pressure remains a board concern.

Recent Market Developments in the New Zealand Cybersecurity Market

Recent developments, presented from the most recent, show provider restructuring, a national strategy, ownership change at a leading integrator and local network security investment.

August 2026 - Spark Reports Falling IT Services Revenue and Reviews Non-Core Businesses

• Spark said on 20 August 2026 that IT services revenue fell 10.3% to NZD 104 million and cloud revenue was flat at NZD 233 million.
• A strategic review of cloud and IT services is due to finish in the first half of its next financial year.
• Any sale or partnership could move managed security work to specialist providers.

February 2026 - Accenture Completes Acquisition of CyberCX

• The acquisition of CyberCX, announced in August 2025, closed on 27 February 2026, with terms undisclosed.
• CyberCX has about 1,400 professionals and runs security operations centres across Australia and New Zealand.
• Global backing could add depth in threat intelligence and large enterprise delivery for New Zealand clients.

February 2026 - Government Publishes Cyber Security Strategy to 2030

• The Department of the Prime Minister and Cabinet released the strategy in February 2026, with a foreword by the Prime Minister.
• It promises a single incident reporting service, stronger minimum standards for agencies and a regulatory regime for critical infrastructure.
• Post-quantum readiness work and options to require protection of held personal information widen the long-term buyer base.

October 2025 - Fortinet Opens Auckland Secure Access Service Edge Point of Presence

• Fortinet launched its first local FortiSASE point of presence on 21 October 2025, hosted in the AWS Auckland region.
• Traffic stays inside New Zealand, supporting data sovereignty, and the site is aimed particularly at small and medium-sized businesses.
• Fortinet said its New Zealand team had grown by more than 30% over two years as it expands training.

Key Insight

A national strategy, restructuring at telecommunications providers, ownership change at a leading services firm and local access points show suppliers positioning for regulated, cloud-based security demand.

New Zealand Cybersecurity Industry Segmentation

The Expert Market Research’s report on the New Zealand Cybersecurity Market offers a detailed analysis of the market based on the following segments.

Market Breakup by Component

• Security Software
• Managed Security Services
• Professional Services
• Hardware and Appliances
• Others

Security Software leads on value, in our estimate, because licences and subscriptions for endpoint, identity and cloud controls sit in almost every budget. Managed Security Services grow fastest, as Kordia's February 2026 arrangement with WitFoo to offer shared detection and analytics shows providers packaging monitoring for customers that cannot staff a round-the-clock team. Professional Services cover consulting, testing and incident response, supported by the three highly significant incidents the centre handled in early 2026. Hardware and Appliances include firewalls and secure gateways, a mature category now shifting towards cloud-delivered access such as Fortinet's October 2025 Auckland launch.

Market Breakup by Security Type

• Network Security
• Endpoint Security
• Cloud Security
• Identity and Access Management
• Others

Network Security leads, in our estimate, because firewalls, secure gateways and email filtering are the first controls most organisations buy, as seen in Fortinet's Auckland access point of October 2025. Cloud Security grows fastest as local hyperscale regions open and workloads move off premises. Endpoint Security remains essential against malware scams that the centre said were rising in August 2026. Identity and Access Management gains from credential theft, with phishing the most reported incident type in the first quarter of 2026. Others include data protection, application security and email authentication tools.

Market Breakup by End-Use Industry

• Government and Public Sector
• Banking and Financial Services
• Healthcare
• Telecommunications and IT
• Retail and Others
• Others

Government and Public Sector leads, in our estimate, because the February 2026 strategy sets stronger minimum standards for agencies and critical infrastructure consultation closed in April 2026. Banking and Financial Services spend heavily to counter scams and fraud, which accounted for the largest share of incidents in the second quarter of 2026. Healthcare grows fastest as clinical records digitise and the Privacy Act indirect collection rule began in May 2026. Telecommunications and IT buyers include Spark and One NZ, which sell protection to business customers. Retail and Others cover e-commerce, transport and utilities.

Market Breakup by Region

• Auckland
• Wellington
• Canterbury
• Waikato
• Rest of New Zealand
• Others

Auckland dominates, in our estimate, as the home of most head offices, banks and telecommunications operators, and the site of Fortinet's October 2025 access point; it grows at an estimated 8.1% CAGR through 2035 from a large base. Canterbury is the fastest-growing region at an estimated 9.4%, as WitFoo moved its global growth base to Christchurch in early 2026. Wellington grows at 8.8% on government demand. Waikato grows at 8.6%, and Rest of New Zealand at 8.3%.

Competitive Landscape in the New Zealand Cybersecurity Market

Competition combines local integrators, telecommunications operators, a state-owned provider and global security vendors selling through partners. Entry barriers include analyst skills, trusted local operations centres, data residency expectations, vendor certifications and relationships with government and large enterprise buyers.

Datacom

Datacom is an Auckland-based technology services group with security operations centres, consulting and managed security offerings for government and enterprise clients across New Zealand and Australia. For the year ended March 2025 it reported revenue of NZD 1.48 billion and 5,375 full-time staff, and said New Zealand customers had paused key technology projects. Its scale, government relationships and local data centres make it a primary integrator for regulated buyers.

Kordia

Kordia is a state-owned Auckland-based communications and cybersecurity company that provides managed security, penetration testing and security monitoring. In February 2026 it partnered with WitFoo to give customers lower-cost security analytics and shared attribution of coordinated attacks across businesses. Its annual New Zealand Business Cyber Security Report, released in March 2026, found 44% of large organisations had suffered a successful attack in the previous twelve months.

CyberCX

CyberCX is a Melbourne-headquartered cybersecurity services firm with security operations centres across Australia and New Zealand and about 1,400 professionals. Accenture announced in August 2025 that it would acquire the company and completed the deal on 27 February 2026. In New Zealand it offers managed security, testing, advisory and incident response, with a cloud practice that supports hyperscale adoption and data residency requirements.

Fortinet

Fortinet is a Sunnyvale, California-based vendor of firewalls, secure networking and cloud security, sold in New Zealand through channel partners and distributors. On 21 October 2025 it launched its first local FortiSASE point of presence in Auckland, hosted in the AWS Auckland region, so customer traffic stays inside the country. It said its New Zealand team had grown by more than 30% in two years.

Other players operating in the New Zealand cybersecurity market include Spark, One NZ, Palo Alto Networks, Cisco, and WitFoo, alongside regional resellers, specialist testing firms, identity vendors, managed service providers and cloud platform suppliers serving government agencies, banks, health providers and small businesses across New Zealand.

Key Insight

Competition rests on trusted local operations, analyst depth, data residency and vendor partnerships rather than price alone, while acquisitions and reviews of non-core units may reshape positions.