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

Market Overview

The New Zealand ICT market is growing steadily while its mix changes quickly. Connectivity revenue is close to flat, yet software, cloud, data centre and AI-related services are expanding, and operators are reshaping themselves around infrastructure sales, cost cuts and new satellite and enterprise offers.

Three forces are shaping the market: a government push for light-touch, adoption-led artificial intelligence; slow public sector migration to cloud, with a Microsoft-commissioned report in October 2025 finding that 67% of government systems are not hosted in cloud; and a wave of data centre investment around Auckland.

In July 2025 the Ministry of Business, Innovation and Employment released the national AI strategy. In January 2026 Spark completed the sale of 75% of its data centre business to Pacific Equity Partners, and in August 2026 Spark began a review of its cloud and IT services.

Key Market Trends and Insights

• Flat connectivity revenue: Spark reported adjusted revenue of NZD 3,700 million for the year to June 2026, unchanged on the prior year, while its mobile service revenue rose 1.1% to NZD 998 million.
• Software export scale: Xero reported operating revenue of NZD 2.8 billion for the year to March 2026, up 31%, and launched an AI agent builder called XeroForce.
• Data centre build-out: TenPeaks Data Centres operates 23 MW of IT capacity across 11 facilities and holds a development pipeline of more than 130 MW, mostly around Auckland.
• Government cloud gap: A report commissioned by Microsoft in October 2025 estimated that accelerating public cloud adoption by five years could save NZD 1.1 billion by 2030.

New Zealand ICT Market Size and Forecast

The market is moving from connectivity-led revenue towards software, cloud and managed services built around artificial intelligence. Telecommunications services lead in value because every household and business buys mobile and broadband, while IT services and software supply most enterprise and government projects. Cloud and data centre services and public cloud advance fastest as workloads leave ageing on-premises systems and AI demand lifts compute needs. Energy and utilities buyers grow quickly on billing and grid software. Auckland remains the largest region, and Wellington grows quickest on government cloud migration. Satellite connectivity, local data centre capacity and operator restructuring point to a durable change in the mix of spending rather than a cyclical lift.

Key Takeaways: New Zealand ICT Market

Software and Cloud Offset Flat Connectivity

Revenue is on course to expand by about 69% across the decade, from USD 10.70 billion in 2025 to USD 18.10 billion in 2035 at a 5.4% CAGR. Spark's adjusted revenue was unchanged at NZD 3,700 million, so new growth comes from software, cloud and services.

Public Cloud and Data Centres Lead Growth

Telecommunications Services hold the largest share, but Cloud and Data Centre Services grow at an estimated 10.5% CAGR and Public Cloud at an estimated 11.2% CAGR through 2035. Spark said public cloud revenue grew about 20% in the year to June 2026, and TenPeaks plans to invest more than NZD 3 billion in its pipeline.

Operators Restructure Around Infrastructure and AI

New Zealand's largest operators are selling or reviewing non-core assets while adding satellite and AI services. Buyers gain more specialised data centre and cloud suppliers, but also face supplier change.

• Spark completed the sale of 75% of its data centres on 30 January 2026
• One NZ extended satellite service to data in February 2026
• Spark's review of cloud and IT services is due by the end of 2026

New Zealand ICT Market Report Summary

Key Insight

Demand is shifting from connectivity towards software, cloud and AI services as agencies and companies modernise legacy systems. Auckland leads, and Wellington grows fastest on government cloud migration.

Key Trends in the New Zealand ICT Market

The New Zealand ICT market is being reshaped by AI-led automation, satellite connectivity, public cloud growth and government pressure to leave legacy systems.

September 2026 - One NZ Cuts Service Provisioning from 10 Days to 10 Minutes Using AI

• One NZ said on 16 September 2026 that AI-driven automation cut its service provisioning time from 10 days to 10 minutes.
• The operator is positioning itself as an AI-led business, lowering its own costs and building skills it can apply to corporate customers.
• Automation of this kind lowers operator costs and may shift enterprise spending from connectivity towards AI integration work.

August 2026 - Spark Reports Public Cloud Growth of About 20% and Starts Review of Cloud and IT Services

• Spark announced on 20 August 2026 that public cloud revenue grew about 20% while private cloud declined, leaving total cloud revenue flat at NZD 233 million.
• The operator said a strategic review of non-core areas, including cloud and IT services, should finish in the first half of its next financial year.
• Buyers are moving workloads to hyperscalers, which pressures private cloud and may reshape managed services suppliers.

February 2026 - One NZ Extends Satellite Service to Data and WhatsApp Calling

• One NZ said on 2 February 2026 that its satellite service now covers data, including apps and WhatsApp calling, after 10 million texts were sent.
• By 20 October 2026 the satellite network had carried 20 million text messages since its launch.
• Spark said in February 2026 that it planned its own satellite text and calling service this year, which widens rural coverage competition.

October 2025 - Microsoft-Commissioned Report Finds 67% of Government Systems Outside Cloud

• Microsoft New Zealand published the report on 21 October 2025, ranking the country sixteenth in the world for digital government.
• It estimated that bringing public cloud adoption forward by five years could save NZD 1.1 billion by 2030 and unlock NZD 2.3 billion in AI productivity gains.
• The findings add pressure on agencies to leave on-premises systems, which benefits cloud suppliers.

Key Insight

Artificial intelligence automation, satellite coverage and fast public cloud growth are the main structural forces, while ageing government systems and operator restructuring remain the main sources of execution risk.

Recent Market Developments in the New Zealand ICT Market

Recent developments, presented from the most recent, show systems integrator results, utility software acquisitions, new data centre investment and the closing of a major data centre sale.

July 2026 - Datacom Reports Revenue of NZD 1.58 Billion and Expands Data Centres

• Datacom announced on 8 July 2026 that revenue rose to NZD 1.58 billion from NZD 1.48 billion, while net profit after tax fell to NZD 20 million.
• It acquired a data centre in East Auckland and now operates five data centres in New Zealand, with 5,935 staff across 32 locations.
• Heavier capital spending on infrastructure squeezed profit and signals confidence in hosted services demand.

May 2026 - Gentrack Reports Half-Year Revenue of NZD 110.1 Million and Announces Two Acquisitions

• Gentrack reported on 18 May 2026 that group revenue was NZD 110.1 million, with recurring revenue up 12% to NZD 85.3 million.
• Its May 2026 acquisitions of DTP and Factor add AI capability for airports and energy forecasting for utilities.
• The company holds no external debt and kept a medium-term growth target above 15% a year.

March 2026 - TenPeaks Launches with a Pipeline of More Than 130 MW

• TenPeaks Data Centres launched on 4 March 2026 to serve cloud and AI customers, with 23 MW of IT capacity across 11 facilities.
• In February 2026 it said it plans to invest more than NZD 3 billion in its development pipeline, centred on three Auckland campuses.
• Spark remains a 25% shareholder and key colocation partner, keeping the operator close to enterprise buyers.

January 2026 - Spark Completes Sale of 75% of Its Data Centre Business to Pacific Equity Partners

• Spark announced completion on 30 January 2026 at an enterprise value of up to NZD 705 million, including earn-out payments.
• Initial cash proceeds of NZD 453 million are being used to reduce group debt.
• The deal turns a telecom asset into a stand-alone infrastructure investment, drawing new capital.

Key Insight

Systems integrator results, utility software acquisitions and a new stand-alone data centre operator show suppliers positioning for cloud, AI and recurring software revenue through the forecast period.

New Zealand ICT Industry Segmentation

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

Market Breakup by Offering

• IT Services
• Software
• Telecommunications Services
• Cloud and Data Centre Services
• Hardware and Devices
• Others

Telecommunications Services lead on value, in our estimate, as Spark's mobile service revenue rose 1.1% to NZD 998 million in the year to June 2026, and One NZ added satellite data in February 2026. IT Services follow, with Datacom reporting revenue of NZD 1.58 billion in July 2026. Software grows steadily, helped by Xero's May 2026 operating revenue of NZD 2.8 billion and Gentrack's 12% recurring revenue growth. Cloud and Data Centre Services grow fastest at an estimated 10.5% CAGR through 2035, as TenPeaks launched in March 2026 with a pipeline above 130 MW. Hardware and Devices grow slowly, with One NZ offering the latest iPhone range from September 2026.

Market Breakup by Deployment Model

• On-Premises
• Private Cloud
• Public Cloud
• Hybrid and Edge
• Others

On-Premises leads on value, in our estimate, because the report published in October 2025 found 67% of government systems are not hosted in cloud. Private Cloud is under pressure, as Spark said in August 2026 that private cloud revenue declined. Public Cloud grows fastest at an estimated 11.2% CAGR through 2035, with Spark's public cloud revenue up about 20% in the same announcement. Hybrid and Edge benefits from sovereignty needs and from satellite and rural connectivity, with One NZ's 20 million satellite texts by October 2026.

Market Breakup by End-Use Industry

• Government and Public Sector
• Financial Services
• Retail and E-commerce
• Energy and Utilities
• Healthcare
• Others

Government and Public Sector leads, in our estimate, with a national AI strategy published in July 2025 and a cloud migration backlog highlighted in October 2025. Financial Services is a mature buyer of managed services and security, while Retail and E-commerce depends on payments, cloud commerce and small business software such as Xero. Energy and Utilities grows fastest at an estimated 7.0% CAGR through 2035, as Gentrack's May 2026 acquisition of Factor adds energy forecasting. Healthcare grows on digital records and AI tools, and Others include education, transport and agriculture.

Market Breakup by Region

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

Auckland dominates, in our estimate, as headquarters of Spark, One NZ and Datacom and the site of three TenPeaks development campuses announced in February 2026, and it grows at an estimated 5.3% CAGR through 2035 from a large base. Wellington is the fastest-growing region at an estimated 6.1%, driven by government cloud and AI adoption. Canterbury grows at 5.6%, with One NZ installing rooftop solar at its central Christchurch data centre in March 2026. Waikato grows at 5.5% on regional hosting and agricultural technology, and Rest of New Zealand at 4.7%.

Competitive Landscape in the New Zealand ICT Market

Competition combines national operators, a home-grown systems integrator, exporting software companies and global hyperscalers. Entry barriers include network and data centre assets, security accreditation, and scarce skilled staff.

Spark New Zealand

Spark New Zealand, headquartered in Auckland, provides mobile, broadband, cloud, IT services and digital services to consumers, businesses and government. On 20 August 2026 it reported adjusted revenue of NZD 3,700 million and said public cloud revenue grew about 20%. It completed the sale of 75% of its data centres to Pacific Equity Partners in January 2026 and began a review of cloud and IT services.

One NZ

One NZ, headquartered in Auckland, is a mobile and broadband operator serving consumers and enterprises, with a satellite service run with SpaceX. In February 2026 it added satellite data and WhatsApp calling, and on 16 September 2026 it said AI cut provisioning time from 10 days to 10 minutes. Nick Judd became chief executive on 31 August 2026, succeeding Jason Paris.

Datacom

Datacom, headquartered in Auckland, is a New Zealand-owned IT services, cloud and data centre group operating across New Zealand and Australia. On 8 July 2026 it reported revenue of NZD 1.58 billion, net profit after tax of NZD 20 million and 5,935 employees. It acquired a data centre in East Auckland and now runs five in New Zealand.

Xero

Xero, headquartered in Wellington, sells cloud accounting, payments and small business software in New Zealand and overseas. On 14 May 2026 it reported operating revenue of NZD 2.8 billion, up 31%, and adjusted EBITDA of NZD 757.4 million. It also announced XeroForce, an AI agent builder.

Other players operating in the New Zealand ICT market include Gentrack, TenPeaks Data Centres, Microsoft New Zealand, Fujitsu New Zealand, and 2degrees, alongside regional integrators, managed service providers, software vendors, resellers and specialist security firms supplying technology to households, businesses and government across New Zealand.

Key Insight

Competition rests on network and data centre assets, security credentials, government relationships and partner ecosystems rather than price alone, while restructuring and asset sales are reshaping supplier positions.