New Zealand Data Center Storage - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The New Zealand Data Center Storage Market size is estimated at USD 0.2 billion in 2024, and is expected to reach USD 0.37 billion by 2029, growing at a CAGR of 13.15% during the forecast period (2024-2029).
Key Highlights
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, leading to a growing need for data center storage equipment.
Under Construction IT Load Capacity: The upcoming IT load capacity of the New Zealand data center market is expected to reach 350 MW by 2029.
Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 800K sq. ft by 2029.
Planned Racks: The country's total number of racks to be installed is expected to reach 35K units by 2029. Auckland is expected to house the maximum number of racks by 2029.
Planned Submarine Cables: There are close to 8 submarine cable systems connecting New Zealand, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Hawaiki Nui, which stretches over 25,000 Kilometers with landing points from Christchurch, New Zealand; Dunedin, New Zealand land; and Invercargill, New Zealand.
New Zealand Data Center Storage Market Trends
IT & Telecommunication Segment to Hold Major Share in the Market
In 2022, in the Speedtest global ranking, New Zealand ranked eighth in the OECD countries for the percentage of fiber connections to total fixed connections and 18th in fixed-line broadband speed. Furthermore, the New Zealand government aims to have 100% fiber take-up by 2032 through its second phase of the national scheme.
Under the initial phase, which ended in 2022, 87% of the population had direct access to fiber connectivity. The implementation of such broadband development plans would greatly improve service quality and network availability for all clients, which will stimulate internet services in the country and accelerate the expansion of data centers, thereby increasing the demand for data center storage devices.
The majority of New Zealanders own a smartphone. In 2022, smartphone penetration in the country was expected to be around 92%. In 2021, post-paid mobile phone connections accounted for the country's vast majority of mobile subscriptions. The increase in data consumption via smartphones is contributing to an increase in the number of data centers, thereby increasing the demand for data center storage devices.
With the growth of data-intensive technologies, cloud computing, and digital services, businesses are generating and processing larger amounts of data. Data centers must scale their storage infrastructure to accommodate this increased workload. This may include adding flash storage and drives to existing data centers or building new data centers. The increase in the number of data centers is directly related to the demand for storage devices in IT infrastructure. As the number of data centers increases, more storage devices are required to meet the growing computing needs.
The country is expected to improve its broadband speeds over the years. The New Zealand Government has devised various strategies to improve the digital infrastructure in the country. The website Cable.co.uk creates a global broadband speed league each year based on data collected internationally by the Measurement Lab (M-Lab). This league ranks average download speeds on fixed broadband connections. Due to the increase in digitization bus,inesses are moving to cloud data storage, increasing the demand for data center services. As a result, the use of data center storage is increasing in the country.
The country has witnessed increased speeds of 4G and 5G over the years, peaking at 66 Mbps and 431 Mbps by 2029, for 4G and 5G, respectively. The continued increase in the use of smartphones with increasing adoption of 5G networks among users, increased data traffic, and increased e-commerce has given the telecommunications sector its dominance. It will have a positive impact on the growth of data center storage market in the country.
Hybrid Storage Expected To Hold Significant Share
The combination of on-premises and cloud storage solutions is known as data center hybrid storage. This approach takes advantage of the best of both environments and provides the flexibility to store and manage data on-premises and in the cloud.
The move to the public cloud is shaking the historical IT shackles and ensuring some difficult conversations are being had about how and when to make this move. The growing familiarity with and knowledge of cloud environments, along with a greater awareness of the opportunity to operate mixed environments, is giving organizations more options when making decisions about workload locations.
Around 74% of New Zealand organizations believe that they maintain a very high level of maturity in managing cloud and infrastructure environments. This was a 10-point rise over 2020, indicating organizations have greater experience with managing modern, cloud-based infrastructure. Further, businesses are moving from the public cloud to hybrid IT. The companies are growing businesses and providing adequate customer service, and hence, the requirement of storing and processing intense data creates the need for hybrid storage.
The market witnessed increasing investments from large corporations. To meet the growing connectivity, investments are increasing, such as AWS announcing the AWS Asia-Pacific (Auckland) Cloud Region, which is expected to go live in 2024. The hyper-scale operator, Microsoft, announced the opening of cloud regions in 2022. Moreover, businesses are increasingly relying on hybrid infrastructure and cloud capabilities as they seek flexibility, scalability, and remote work capabilities. The data traffic is also increasing, and thereby, the need for storage for businesses seeks importance and, thus, increasing market value for hybrid storage solutions.
Hybrid storage helps to effectively utilize storage, reduce overall storage footprint, and optimize storage management. The growing demand for agile, cost-effective, and flexible computing is driving the demand for hybrid storage.
Several service providers are deploying advanced storage solutions to ensure data availability and access in hybrid clouds. The companies are offering optimized hybrid storage systems. For example, HPE GreenLake, an updated app and data product, also introduced platform upgrades and new cloud services in 2022. Therefore, this product portfolio is adopted by large enterprises with large data storage capacities. This demands hybrid storage in the country.
New Zealand Data Center Storage Industry Overview
The New Zealand data center storage market exhibits moderate fragmentation, with major players holding a significant share. Key contributors include Dell Inc., Hewlett Packard Enterprise, Hitachi Vantara LLC, Kingston Technology Company Inc., and Lenovo Group Limited. These companies employ strategic collaborative initiatives to expand their market share and enhance profitability.
In September 2023, Pure Storage appointed Westcon-Comstor as its latest distributor in Australia, extending its existing agreements in New Zealand, Singapore, Indonesia, Malaysia, China, Hong Kong, and the Philippines. This partnership aims to accelerate the adoption of FlashStack, a software-defined hybrid cloud infrastructure from Pure and Cisco, integrating compute, network, and storage.
In October 2023, Dell Technologies upgraded its PowerFlex software-defined infrastructure platform to support customers in continuously modernizing the data center storage experience. Dell PowerFlex 4.5 features an expanded range of supported operating systems, enhanced alerting capabilities, a single-capacity namespace, and unified storage pool management.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
Key Highlights
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, leading to a growing need for data center storage equipment.
Under Construction IT Load Capacity: The upcoming IT load capacity of the New Zealand data center market is expected to reach 350 MW by 2029.
Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 800K sq. ft by 2029.
Planned Racks: The country's total number of racks to be installed is expected to reach 35K units by 2029. Auckland is expected to house the maximum number of racks by 2029.
Planned Submarine Cables: There are close to 8 submarine cable systems connecting New Zealand, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Hawaiki Nui, which stretches over 25,000 Kilometers with landing points from Christchurch, New Zealand; Dunedin, New Zealand land; and Invercargill, New Zealand.
New Zealand Data Center Storage Market Trends
IT & Telecommunication Segment to Hold Major Share in the Market
In 2022, in the Speedtest global ranking, New Zealand ranked eighth in the OECD countries for the percentage of fiber connections to total fixed connections and 18th in fixed-line broadband speed. Furthermore, the New Zealand government aims to have 100% fiber take-up by 2032 through its second phase of the national scheme.
Under the initial phase, which ended in 2022, 87% of the population had direct access to fiber connectivity. The implementation of such broadband development plans would greatly improve service quality and network availability for all clients, which will stimulate internet services in the country and accelerate the expansion of data centers, thereby increasing the demand for data center storage devices.
The majority of New Zealanders own a smartphone. In 2022, smartphone penetration in the country was expected to be around 92%. In 2021, post-paid mobile phone connections accounted for the country's vast majority of mobile subscriptions. The increase in data consumption via smartphones is contributing to an increase in the number of data centers, thereby increasing the demand for data center storage devices.
With the growth of data-intensive technologies, cloud computing, and digital services, businesses are generating and processing larger amounts of data. Data centers must scale their storage infrastructure to accommodate this increased workload. This may include adding flash storage and drives to existing data centers or building new data centers. The increase in the number of data centers is directly related to the demand for storage devices in IT infrastructure. As the number of data centers increases, more storage devices are required to meet the growing computing needs.
The country is expected to improve its broadband speeds over the years. The New Zealand Government has devised various strategies to improve the digital infrastructure in the country. The website Cable.co.uk creates a global broadband speed league each year based on data collected internationally by the Measurement Lab (M-Lab). This league ranks average download speeds on fixed broadband connections. Due to the increase in digitization bus,inesses are moving to cloud data storage, increasing the demand for data center services. As a result, the use of data center storage is increasing in the country.
The country has witnessed increased speeds of 4G and 5G over the years, peaking at 66 Mbps and 431 Mbps by 2029, for 4G and 5G, respectively. The continued increase in the use of smartphones with increasing adoption of 5G networks among users, increased data traffic, and increased e-commerce has given the telecommunications sector its dominance. It will have a positive impact on the growth of data center storage market in the country.
Hybrid Storage Expected To Hold Significant Share
The combination of on-premises and cloud storage solutions is known as data center hybrid storage. This approach takes advantage of the best of both environments and provides the flexibility to store and manage data on-premises and in the cloud.
The move to the public cloud is shaking the historical IT shackles and ensuring some difficult conversations are being had about how and when to make this move. The growing familiarity with and knowledge of cloud environments, along with a greater awareness of the opportunity to operate mixed environments, is giving organizations more options when making decisions about workload locations.
Around 74% of New Zealand organizations believe that they maintain a very high level of maturity in managing cloud and infrastructure environments. This was a 10-point rise over 2020, indicating organizations have greater experience with managing modern, cloud-based infrastructure. Further, businesses are moving from the public cloud to hybrid IT. The companies are growing businesses and providing adequate customer service, and hence, the requirement of storing and processing intense data creates the need for hybrid storage.
The market witnessed increasing investments from large corporations. To meet the growing connectivity, investments are increasing, such as AWS announcing the AWS Asia-Pacific (Auckland) Cloud Region, which is expected to go live in 2024. The hyper-scale operator, Microsoft, announced the opening of cloud regions in 2022. Moreover, businesses are increasingly relying on hybrid infrastructure and cloud capabilities as they seek flexibility, scalability, and remote work capabilities. The data traffic is also increasing, and thereby, the need for storage for businesses seeks importance and, thus, increasing market value for hybrid storage solutions.
Hybrid storage helps to effectively utilize storage, reduce overall storage footprint, and optimize storage management. The growing demand for agile, cost-effective, and flexible computing is driving the demand for hybrid storage.
Several service providers are deploying advanced storage solutions to ensure data availability and access in hybrid clouds. The companies are offering optimized hybrid storage systems. For example, HPE GreenLake, an updated app and data product, also introduced platform upgrades and new cloud services in 2022. Therefore, this product portfolio is adopted by large enterprises with large data storage capacities. This demands hybrid storage in the country.
New Zealand Data Center Storage Industry Overview
The New Zealand data center storage market exhibits moderate fragmentation, with major players holding a significant share. Key contributors include Dell Inc., Hewlett Packard Enterprise, Hitachi Vantara LLC, Kingston Technology Company Inc., and Lenovo Group Limited. These companies employ strategic collaborative initiatives to expand their market share and enhance profitability.
In September 2023, Pure Storage appointed Westcon-Comstor as its latest distributor in Australia, extending its existing agreements in New Zealand, Singapore, Indonesia, Malaysia, China, Hong Kong, and the Philippines. This partnership aims to accelerate the adoption of FlashStack, a software-defined hybrid cloud infrastructure from Pure and Cisco, integrating compute, network, and storage.
In October 2023, Dell Technologies upgraded its PowerFlex software-defined infrastructure platform to support customers in continuously modernizing the data center storage experience. Dell PowerFlex 4.5 features an expanded range of supported operating systems, enhanced alerting capabilities, a single-capacity namespace, and unified storage pool management.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
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 Expansion of IT Infrastructure to Increase Market Growth
4.2.2 Increased Investments in Hyperscale Data Centers To Increase Market Growth
4.3 Market Restraints
4.3.1 High Initial Investment Cost To Hinder Market Growth
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 Storage Technology
5.1.1 Network Attached Storage (NAS)
5.1.2 Storage Area Network (SAN)
5.1.3 Direct Attached Storage (DAS)
5.1.4 Other Technologies
5.2 Storage Type
5.2.1 Traditional Storage
5.2.2 All-Flash Storage
5.2.3 Hybrid Storage
5.3 End-User
5.3.1 IT & Telecommunication
5.3.2 BFSI
5.3.3 Government
5.3.4 Media & Entertainment
5.3.5 Other End-Users
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Dell Inc.
6.1.2 Hewlett Packard Enterprise
6.1.3 Hitachi Vantara LLC
6.1.4 Kingston Technology Company Inc.
6.1.5 Lenovo Group Limited
6.1.6 Fujitsu Limited
6.1.7 Oracle Corporation
6.1.8 Seagate Technology LLC
6.1.9 DataDirect Networks Inc.
6.1.10 Overland Tandberg
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
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 Expansion of IT Infrastructure to Increase Market Growth
4.2.2 Increased Investments in Hyperscale Data Centers To Increase Market Growth
4.3 Market Restraints
4.3.1 High Initial Investment Cost To Hinder Market Growth
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 Storage Technology
5.1.1 Network Attached Storage (NAS)
5.1.2 Storage Area Network (SAN)
5.1.3 Direct Attached Storage (DAS)
5.1.4 Other Technologies
5.2 Storage Type
5.2.1 Traditional Storage
5.2.2 All-Flash Storage
5.2.3 Hybrid Storage
5.3 End-User
5.3.1 IT & Telecommunication
5.3.2 BFSI
5.3.3 Government
5.3.4 Media & Entertainment
5.3.5 Other End-Users
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Dell Inc.
6.1.2 Hewlett Packard Enterprise
6.1.3 Hitachi Vantara LLC
6.1.4 Kingston Technology Company Inc.
6.1.5 Lenovo Group Limited
6.1.6 Fujitsu Limited
6.1.7 Oracle Corporation
6.1.8 Seagate Technology LLC
6.1.9 DataDirect Networks Inc.
6.1.10 Overland Tandberg
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
