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Data Processing and Web Hosting Services in New Zealand - Market Research Report (2015-2030)

Varis Desai Varis Desai Melbourne, Australia Last Updated: September 2025 ANZSIC J5921NZ

Revenue

$939.2m

2025-26

$939.2m

Past 5-Year Growth

Profit

$XX.Xm

Employees

1,627

Businesses

342

Wages

$XXX.Xm

Data Processing and Web Hosting Services in New Zealand industry analysis

Growth in ecommerce, cloud computing and data processing capabilities have propelled a digital transformation, rapidly expanding the Data Processing and Web Hosting Services industry. The pandemic accelerated this transformation as government departments, enterprises and small businesses alike transitioned online and began a swift uptake of cloud platforms. This trend significantly boosted demand for data processing and web hosting services, spurring double-digit revenue growth for the industry in 2021-22 and 2022-23. Although web hosting remains the industry’s primary revenue source, advancements in natural language processing through AI, cybersecurity and big data analytics have driven surging demand for data processing services. Large corporations and government agencies have prominently supported this shift.

Trends and Insights

  • Growth in ecommerce, cloud computing and data processing capabilities has rapidly expanded the industry. The digital transition has heightened demand for data processing and web hosting services from government agencies, enterprises and small businesses.
  • Businesses’ ongoing shift to online operations, initially spurred by the pandemic, has continued to boost demand for web hosting services. Rising internet usage and cloud computing adoption have meant that robust web hosting solutions are vital.
  • Auckland is home to approximately half of all industry service locations in New Zealand, supported by its strong infrastructure and labour supply. Major players like Datacom and Spark New Zealand have established data centres in Auckland, highlighting the region’s prominence.
  • Entrants face hefty start-up costs. However, leasing server capacity from major players’ data centres has proven to be a cost-effective way for industry entrants to avoid steep upfront capital investments.
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Competitors

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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has grown at a CAGR of 6.9 % over the past five years, to reach an estimated $939.2m in 2025.

Trends and Insights

Supply chain disruptions, hardware shortages and inflation have raised costs, while clients cut additional services

  • Supply chain disruptions and increased demand have intensified industry operators’ cost pressures over the past five years. The Russia-Ukraine conflict and the pandemic have caused hardware shortages – with the latter causing a global semiconductor shortage – which have weighed on costs since 2021. Consultancy.com.au stated in 2023 that New Zealand companies were losing approximately $1.7 billion annually because of shipping delays, an impact which was felt in the Data Processing and Web Hosting services industry. These delays persist to date.
  • Additional trends and insights available with purchase
Data Processing and Web Hosting Services in New Zealand
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Market size is projected to grow over the next five years.

Trends and Insights

Easing inflationary pressures will support long-term investments in industry services

  • The ongoing proliferation of cloud computing will make it harder for downstream industry clients to ignore, as it offers efficient data processing and web hosting.

Biggest companies in the Data Processing and Web Hosting Services in New Zealand

Company
Market Share (%)
2026
Revenue ($m)
2026
Datacom
147.6
IBM New Zealand
122.6
Spark NZ
108.6

To view the market share and analysis for all 3 top companies in this industry, view purchase options.

Products & Services Segmentation

Data Processing and Web Hosting Services in New Zealand
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Web hosting and Data processing. Web hosting is the largest segment of the Data Processing and Web Hosting Services in New Zealand.

Trends and Insights

Businesses’ expanding online presence is propelling web hosting services forwards

  • Web hosting services include application hosting, audio and visual media streaming, and application service provision.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Industry operators provide electronic data processing or hosting services. These operators provide specialised hosting activities including web hosting, streaming services or application hosting; provide application service provisioning; or provide general time-share mainframe facilities to customers.

What's included in this industry?

Products and services covered in the Data Processing and Web Hosting Services industry in New Zealand include Web hosting and Data processing.

Companies

Companies covered in the Data Processing and Web Hosting Services industry in New Zealand include Datacom, IBM New Zealand and Spark NZ.

Purchase this report to view all 3 major companies in this industry.

Related Terms

Related terms covered in the Data Processing and Web Hosting Services industry in New Zealand include data processing, hosting and big data.

Industry Code

ANZSIC 2006

ANZSIC 5921 - Data Processing and Web Hosting Services in New Zealand

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Growth in ecommerce, cloud computing and data processing capabilities has rapidly expanded the industry. The digital transition has heightened demand for data processing and ...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Businesses’ ongoing shift to online operations, initially spurred by the pandemic, has continued to boost demand for web hosting services. Rising internet usage and cloud com...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Auckland is home to approximately half of all industry service locations in New Zealand, supported by its strong infrastructure and labour supply. Major players like Datacom ...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Entrants face hefty start-up costs. However, leasing server capacity from major players’ data centres has proven to be a cost-effective way for industry entrants to avoid ste...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2020-2025
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Major companies are looking towards new technology for growth. The focus is shifting towards AI expertise, capability and data centre upgrades, which are at the forefront of ...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Datacom's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of IBM New Zealand's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Spark NZ's performance by revenue, market share and profit margin from 2019 through 2025

Detailed analysis

  • Description and key data for Datacom, and factors influencing its performance in the industry
  • Description and key data for IBM New Zealand, and factors influencing its performance in the industry
  • Description and key data for Spark NZ, and factors influencing its performance in the industry

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Capital expenditure on computer software has continued to gain momentum. State-of-the-art technology is vital, and advancements are constantly implemented across all economic...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The shift towards cloud services by government agencies and businesses, combined with subscription models, has increased customer retention and created consistent revenue stre...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Data Processing and Web Hosting Services industry in New Zealand in 2025?

The market size of the Data Processing and Web Hosting Services industry in New Zealand is $939.2m in 2025.

How many businesses are there in the Data Processing and Web Hosting Services industry in New Zealand in 2025?

There are 342 businesses in the Data Processing and Web Hosting Services industry in New Zealand, which has grown at a CAGR of 8.4 % between 2020 and 2025.

How may import tariffs affect the Data Processing and Web Hosting Services industry in New Zealand?

The Data Processing and Web Hosting Services industry in New Zealand is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Data Processing and Web Hosting Services industry in New Zealand?

The Data Processing and Web Hosting Services industry in New Zealand is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Data Processing and Web Hosting Services industry in New Zealand grown or declined over the past 5 years?

The market size of the Data Processing and Web Hosting Services industry in New Zealand has been growing at a CAGR of 6.9 % between 2020 and 2025.

What is the forecast growth of the Data Processing and Web Hosting Services industry in New Zealand over the next 5 years?

Over the next five years, the Data Processing and Web Hosting Services industry in New Zealand is expected to grow.

What are the biggest companies in the Data Processing and Web Hosting Services industry in New Zealand?

The biggest companies operating in the Data Processing and Web Hosting Services industry in New Zealand are Datacom, IBM New Zealand and Spark NZ

What does the Data Processing and Web Hosting Services industry in New Zealand include?

Web hosting and Data processing are part of the Data Processing and Web Hosting Services industry in New Zealand.

Which companies have the highest market share in the Data Processing and Web Hosting Services industry in New Zealand?

The company holding the most market share in the Data Processing and Web Hosting Services industry in New Zealand is Datacom.

How competitive is the Data Processing and Web Hosting Services industry in New Zealand?

The level of competition is high and increasing in the Data Processing and Web Hosting Services industry in New Zealand.

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in New Zealand include:

  • Statistics New Zealand
  • New Zealand Company Register
  • Ministry of Business, Innovation & Employment

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.

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