Capital expenditure on computer software in New Zealand - Data and Analysis (1987-2034)

IBISWorld forecasts capital expenditure on computer software to rise by 5.9% in 2026-27 to $12.32 billion. Growth has slowed compared to 2025-26, as the reserve bank has entered a tightening cycle, with two rate rate rises in July and September 2026 bringing the official cash rate to 2.75%, and a further one to three rate rises expected before the end of the 2026-27 financial year. Rises in the cash rate make it more expensive to borrow and invest in developing new software, capital expenditure activity. Spending is still supported by investments in cybersecurity amid rising threats and AI application development, which is driving continued growth.Over the past five years, the productive applications of software have expanded. Businesses have shifted operations to online channels, developed cloud applications and have invested heavily in productivity software including spending on the development of AI applications. Cybersecurity threats have also increased and gained prominence through major attacks, including the ransomware attacks on the Waikato District Health Board, in 2021, and the Manage My Health portal, in 2026. which compromised healthcare systems and sensitive patient data. These attacks have highlighted the risks to operations and brands if not managed effectively, driving increased spending on cybersecurity software. Overall, IBISWorld forecasts capital expenditure on computer software to increase at a compound annual rate of 7.5% over the five years through 2026-27.