Market Size of New Zealand Data Center Networking Industry
Study Period | 2018 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 0.07 Billion |
Market Size (2029) | USD 0.15 Billion |
CAGR (2024 - 2029) | 13.43 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
New Zealand Data Center Networking Market Analysis
The New Zealand Data Center Networking Market size is estimated at USD 0.07 billion in 2024, and is expected to reach USD 0.15 billion by 2029, growing at a CAGR of 13.43% during the forecast period (2024-2029).
- The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
- Under Construction IT Load Capacity: The IT load capacity of the data center market in New Zealand may grow steadily and reach 350 MW by 2029.
- Under Construction Raised Floor Space: The country's total raised floor area is expected to reach 0.8 million sq. ft by 2029.
- Planned Racks: The country's total number of installed racks may reach 36,870 units by 2029. Auckland is expected to house the maximum number of racks by 2029.
- DC Facilities: The growing demand for cloud and colocation services in New Zealand has boosted investments by Microsoft, AWS, and other hyper-scale service providers. Auckland is New Zealand's premier data center hub, hosting approximately 50% of the country's data centers.
- Leading Market Player: The company operates four data centers in the country, one each in Auckland, Wellington, Christchurch, and Hamilton. The Kapua facility at Hamilton, the biggest data center, provides colocation services across an IT load capacity of 14 MW on a floor space area of 30,000 sq. ft.
- An increasing need for data storage has resulted in an upsurge in the number of data centers nationwide. Additionally, energy represents around 40% of the operational costs of a data center; it is also becoming increasingly important for data centers to focus on energy efficiency. To improve energy efficiency as a cost-saving measure, key players focus on developing a green standard for data centers in New Zealand, which results in increasing the demand for Infrastructure management. Hence, such factors are expected to drive market growth during the forecast period.
New Zealand Data Center Networking Industry Segmentation
Data center networking refers to the set of technologies, protocols, and hardware used to connect physical and network-based devices and manage the network infrastructure, storage, and processing of applications and data. Data center networking is very critical for 100% uptime of data centers. In the current web-connected world, business workloads are executed on single computers, hence leading to the need for data center networking. Networks provide servers, clients, applications, and middleware with a standard plan to stage the execution of workloads and also to manage access to the data produced.
The New Zealand data center networking market is segmented by product (ethernet switches, routers, storage area network (SAN), application delivery controllers (ADC), and other networking equipment), by services (installation & integration, training & consulting, and support & maintenance), and by end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
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End-User | |
IT & Telecommunication | |
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Other End-Users |
New Zealand Data Center Networking Market Size Summary
The New Zealand Data Center Networking Market is poised for significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from local players. The market is characterized by a steady expansion in IT load capacity, raised floor space, and the number of installed racks, with Auckland emerging as the primary hub for data centers. The rise in data consumption, fueled by the proliferation of 4G and 5G networks and the growing e-commerce sector, is further propelling the demand for data center networking solutions. Key players in the market are focusing on enhancing energy efficiency and developing green standards to meet the rising operational costs associated with energy consumption in data centers.
The market landscape is moderately consolidated, with major players like Cisco Systems Inc., Juniper Networks Inc., Arista Networks Inc., VMware Inc., and Dell Inc. actively expanding their regional presence. These companies are prioritizing the development of advanced networking solutions to accommodate the increasing bandwidth requirements and scalability needs of data centers. Innovations such as Cisco's Nexus 9800 Series modular switches and Arista Networks' WAN Routing System are indicative of the technological advancements shaping the market. As New Zealand continues to witness robust digitalization and internet penetration, the demand for data center networking is expected to rise, supported by the ongoing construction of new data centers and the enhancement of existing facilities.
New Zealand Data Center Networking Market Size - Table of Contents
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1. Market Dynamics
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Increasing Demand of Clolud Computing Capabilities Drives the Market Growth
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1.2.2 Adoption of Green Practices in Data Centers Drives the Market Growth
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1.3 Market Restraints
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1.3.1 High Cost of Installation and Maintenance
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1.4 Value Chain / Supply Chain Analysis
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1.5 Industry Attractiveness - Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Assessment of COVID-19 Impact
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2. MARKET SEGMENTATION
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2.1 By Component
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2.1.1 By Product
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2.1.1.1 Ethernet Switches
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2.1.1.2 Routers
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2.1.1.3 Storage Area Network (SAN)
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2.1.1.4 Application Delivery Controller (ADC)
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2.1.1.5 Other Networking Equipment
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2.1.2 By Services
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2.1.2.1 Installation & Integration
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2.1.2.2 Training & Consulting
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2.1.2.3 Support & Maintenance
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2.2 End-User
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2.2.1 IT & Telecommunication
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2.2.2 BFSI
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2.2.3 Government
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2.2.4 Media & Entertainment
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2.2.5 Other End-Users
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New Zealand Data Center Networking Market Size FAQs
How big is the New Zealand Data Center Networking Market?
The New Zealand Data Center Networking Market size is expected to reach USD 0.07 billion in 2024 and grow at a CAGR of 13.43% to reach USD 0.15 billion by 2029.
What is the current New Zealand Data Center Networking Market size?
In 2024, the New Zealand Data Center Networking Market size is expected to reach USD 0.07 billion.