New Zealand Data Center Networking Market Size
| 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 |
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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 Market Trends
IT & Telecommunication Segment Holds the Major Share.
- The growth of 4G and 5G download speeds, 5G smartphones, coupled with affordable data packs, is projected to drive data consumption among the populace, thereby positively impacting the Indonesian data center market. The increase in smartphone sales from 2016 to 2022, resulting in a rise in average screen time from 45 minutes to 5 hours, has been influenced by the convenience offered by various digital apps. These apps rely on either cloud or data centers to provide services, consequently elevating data center usage and networking solutions, thereby bolstering the market.
- There has been a recent surge in migration to the cloud as companies adapt to more flexible digital workplaces, meeting the rising online demand and remote work requirements. As the foundation of digital transformation, cloud services are predominantly based in data centers. This transition to enterprise cloud solutions propels the growth of the domestic data center market, subsequently increasing the market value of data center networking equipment.
- COVID-19 significantly increased data traffic per smartphone, with OTT consumption rising by 35% from February to April 2020, leading to over 3 hours of average online streaming during the pandemic. This surge in data consumption necessitates improvements in existing data centers and the construction of new ones to meet the escalating demand for data storage and processing. Consequently, data center usage and networking devices' utilization in data centers increase, positively impacting the market.
- Factors such as increasing internet penetration, heightened social network usage, improved automation technology, smart city initiatives, and AI implementation across industries drive investments in data centers.
- Moreover, the growing demand for internet services in Indonesia prompts companies to establish new networks. For instance, in September 2022, Indonesian operator Indosat Ooredoo Hutchison (IOH) announced the launch of a fiber-to-the-home (FTTH) service, branded Indosat HiFi, to cater to the escalating demand for high-speed home internet access. With the internet being a primary requirement for smooth data center operations, coupled with the rise in average broadband speed, especially FTTx, and improvements in digital infrastructure in the eastern region, data center construction projects are expected to focus more on the country during the forecast period. As the number of data centers increases, so does the demand for data center networking in the country.
Ethernet Switches Holds Largest Market Share
- Data center Ethernet switches play a vital role in facilitating efficient and high-speed data transfer within a data center environment. They establish crucial connections between servers, storage devices, and other network equipment, supporting gigabit and multigigabit Ethernet, including 10GbE, 25GbE, 40GbE, 100GbE, and beyond.
- In the global context, sustainability concerns are on the rise, and New Zealand is no exception. The energy-efficient features of Ethernet switches significantly contribute to the overall energy effectiveness of data centers, aligning with sustainability objectives.
- New Zealand is witnessing robust business growth and an increased demand for data, mirroring global trends. Ethernet switches enable scalability, allowing data centers to expand and adapt to evolving requirements without compromising performance.
- The country's digitalization drive and increasing Internet penetration, which saw a 0.8% year-over-year growth from 2022 to 2023 with a user base of 4.99 million, signify the growing need for faster connectivity. The proliferation of 4G and 5G networks, reaching speeds of 66 Mbps and 431 Mbps, respectively, by 2029, reflects the technological advancements. Notably, Vodafone recorded the highest average 5G download speed at 253.8 Mbps for users with compatible devices between January and March 2022. Moreover, the burgeoning e-commerce sector amplifies the demand for storage facilities, consequently driving the need for more data centers and, in turn, Ethernet switches.
- Market leaders prioritize updating network devices to meet escalating demands. For instance, in July 2023, Broadcom introduced the software-programmable Trident 4-X7 Ethernet switch ASIC to cater to the surging need for 400G connectivity in enterprise data centers, aligning with the increasing bandwidth requirements.
New Zealand Data Center Networking Industry Overview
The anticipated surge in DC construction projects across the country is set to significantly boost the demand for New Zealand's Data Center Networking Market in the forthcoming years. This market is moderately consolidated, featuring key players such as Cisco Systems Inc., Juniper Networks Inc., Arista Networks Inc., VMware Inc., and Dell Inc. These leading entities, holding substantial market shares, are actively focused on enlarging their regional customer base.
In April 2023, IBM enhanced its capabilities within a wider spectrum of data centers by introducing new single-frame and rack-mounting configurations for the IBM z16 and IBM LinuxONE 4. These innovations, powered by IBM's Telum processor, offer clients adaptable solutions tailored to the demands of the digital economy while prioritizing sustainability and high efficiency in data centers.
New Zealand Data Center Networking Market Leaders
Cisco Systems Inc.
Arista Networks Inc.
VMware Inc
Huawei Technologies Co. Ltd.
Dell Inc.
*Disclaimer: Major Players sorted in no particular order
New Zealand Data Center Networking Market News
- June 2023: Cisco's Nexus 9800 Series modular switches expanded the Cisco Nexus 9000 Series portfolio by introducing a new chassis architecture that accommodates a combination of first-generation line cards and fabric modules. This design enables scalability from 57 Tbps up to 115 Tbps. The line cards now support 400GE or 100GE ports and higher speeds, each of which can be accommodated in the chassis' line card slots.
- March 2023: Arista Networks unveiled the Arista WAN Routing System, a comprehensive solution amalgamating three new networking offerings. This system encompasses carrier/cloud-neutral internet transit capabilities, enterprise-class routing platforms, and the CloudVision Pathfinder Service, aimed at simplifying and enhancing customer-wide area networks. It is designed to provide the architecture, functionalities, and infrastructure necessary for the modernization of federated and software-defined wide-area networks."
New Zealand Data Center Networking Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand of Clolud Computing Capabilities Drives the Market Growth
4.2.2 Adoption of Green Practices in Data Centers Drives the Market Growth
4.3 Market Restraints
4.3.1 High Cost of Installation and Maintenance
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
5.1 By Component
5.1.1 By Product
5.1.1.1 Ethernet Switches
5.1.1.2 Routers
5.1.1.3 Storage Area Network (SAN)
5.1.1.4 Application Delivery Controller (ADC)
5.1.1.5 Other Networking Equipment
5.1.2 By Services
5.1.2.1 Installation & Integration
5.1.2.2 Training & Consulting
5.1.2.3 Support & Maintenance
5.2 End-User
5.2.1 IT & Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media & Entertainment
5.2.5 Other End-Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Cisco Systems Inc.
6.1.2 Arista Networks Inc.
6.1.3 VMware Inc
6.1.4 Huawei Technologies Co. Ltd.
6.1.5 Dell Inc.
6.1.6 NEC Corporation
6.1.7 IBM Corporation
6.1.8 HP Development Company, L.P.
6.1.9 Broadcom Corp
6.1.10 Schneider Electric
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
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.
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| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End-Users |
New Zealand Data Center Networking Market Research 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.
Who are the key players in New Zealand Data Center Networking Market?
Cisco Systems Inc., Arista Networks Inc., VMware Inc, Huawei Technologies Co. Ltd. and Dell Inc. are the major companies operating in the New Zealand Data Center Networking Market.
What years does this New Zealand Data Center Networking Market cover, and what was the market size in 2023?
In 2023, the New Zealand Data Center Networking Market size was estimated at USD 0.06 billion. The report covers the New Zealand Data Center Networking Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the New Zealand Data Center Networking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
New Zealand Data Center Networking Industry Report
Statistics for the 2024 New Zealand Data Center Networking market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. New Zealand Data Center Networking analysis includes a market forecast outlook to for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
