New Zealand 5G Core Market Report Size Share Growth Drivers Trends Opportunities & Forecast 2025–2030

New Zealand 5G Core Market Overview

• The New Zealand 5G Core Market is valued at USD 1.1 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for high-speed internet, the proliferation of IoT devices, and the need for enhanced mobile broadband services. The expansion of 5G infrastructure has been supported by significant investments from telecommunications companies and government initiatives aimed at improving digital connectivity across the country.
• Auckland, Wellington, and Christchurch are the dominant cities in the New Zealand 5G Core Market. Auckland leads due to its status as the largest city and economic hub, with 82.95% data center capacity share and multiple cable landing stations, while Wellington benefits from being the political center, attracting investments in technology and innovation. Christchurch is also emerging as a key player, with ongoing urban development and a focus on smart city initiatives that leverage 5G technology.
• The Telecommunications Act 2001 (as amended) issued by the New Zealand Ministry of Business, Innovation and Employment establishes the regulatory framework governing telecommunications infrastructure deployment and spectrum allocation. This legislation streamlines the approval process for 5G infrastructure development, promotes fair access to network resources, and encourages competition among service providers, ultimately benefiting consumers and businesses alike.

New Zealand 5G Core Market Segmentation

By Network Type:The network type segmentation includes Private LTE, Private 5G (Standalone), and Hybrid LTE/5G. The Private 5G (Standalone) segment is currently dominating the market due to its ability to provide dedicated, high-speed connectivity tailored for specific enterprise needs. This segment is particularly favored by industries requiring low latency and high reliability, such as manufacturing and healthcare. The increasing adoption of Industry 4.0 practices and enterprise digitalization is further propelling the demand for Private 5G solutions.

By Spectrum Type:The spectrum type segmentation encompasses Licensed Spectrum, Unlicensed/Shared Spectrum, and Local/Private Spectrum Allocations. The Licensed Spectrum segment is leading the market, primarily due to its exclusive rights and higher reliability for service providers. This segment is crucial for ensuring quality of service and is preferred by major telecommunications companies for deploying robust 5G networks. The regulatory framework in New Zealand supports the allocation of licensed spectrum, further enhancing its market position.

New Zealand 5G Core Market Competitive Landscape

The New Zealand 5G Core Market is characterized by a dynamic mix of regional and international players. Leading participants such as Spark New Zealand Limited, One New Zealand Group Limited (formerly Vodafone New Zealand), 2degrees Network Limited, Chorus Limited, Nokia Corporation, Telefonaktiebolaget LM Ericsson, Huawei Technologies Co., Ltd., Cisco Systems, Inc., Samsung Electronics Co., Ltd. (Samsung Networks), NEC Corporation, Fujitsu Limited, ZTE Corporation, Thales Group, Infinera Corporation, Ciena Corporation contribute to innovation, geographic expansion, and service delivery in this space.

New Zealand 5G Core Market Industry Analysis

Growth Drivers

• Increased demand for high-speed connectivity:The demand for high-speed connectivity in New Zealand is projected to rise significantly, with the number of mobile broadband subscriptions expected to reach 6 million in the future. This surge is driven by the increasing reliance on digital services, with the average internet speed in New Zealand reaching 150 Mbps in the future, up from 50 Mbps in the past. Enhanced connectivity is essential for supporting remote work, online education, and streaming services, thereby propelling the 5G core market.
• Expansion of IoT applications:The Internet of Things (IoT) market in New Zealand is anticipated to grow to 1.5 billion NZD in the future, driven by the proliferation of connected devices. With over 2 million IoT devices expected to be deployed, sectors such as agriculture, healthcare, and transportation are increasingly adopting IoT solutions. This expansion necessitates robust 5G infrastructure to support real-time data processing and communication, thereby acting as a significant growth driver for the 5G core market.
• Government initiatives supporting 5G deployment:The New Zealand government has committed 200 million NZD to enhance digital infrastructure, including 5G deployment, as part of its Digital Strategy in the future. This funding aims to improve connectivity in urban and rural areas, facilitating the rollout of 5G technology. Additionally, the government’s focus on fostering innovation and digital transformation is expected to accelerate the adoption of 5G services, further driving market growth.

Market Challenges

• High infrastructure costs:The deployment of 5G infrastructure in New Zealand is associated with substantial costs, estimated at around 1.5 billion NZD for the initial rollout phase. These costs encompass the installation of new base stations, fiber optic networks, and necessary upgrades to existing infrastructure. Such financial burdens can deter smaller telecommunications companies from entering the market, potentially limiting competition and slowing down the overall growth of the 5G core market.
• Regulatory hurdles:Navigating the regulatory landscape poses significant challenges for 5G deployment in New Zealand. The Telecommunications Act requires compliance with various standards and regulations, which can delay the approval process for new infrastructure projects. Additionally, the need for spectrum allocation and licensing can create bottlenecks, hindering timely market entry for new technologies and services, thus impacting the growth of the 5G core market.

New Zealand 5G Core Market Future Outlook

The future of the New Zealand 5G core market appears promising, driven by technological advancements and increasing consumer demand for high-speed connectivity. As the government continues to invest in digital infrastructure, the rollout of 5G services is expected to accelerate, particularly in urban areas. Furthermore, the integration of edge computing and the rise of private 5G networks will enhance service delivery across various sectors, positioning New Zealand as a leader in 5G technology adoption in the Asia-Pacific region.

Market Opportunities

• Development of smart cities:The push towards smart city initiatives in New Zealand presents a significant opportunity for the 5G core market. With an estimated investment of 600 million NZD in smart infrastructure in the future, cities can leverage 5G technology to enhance urban services, improve traffic management, and optimize energy consumption, thereby driving demand for advanced connectivity solutions.
• Expansion into rural areas:The New Zealand government aims to improve connectivity in rural regions, with a target of connecting 99% of the population in the future. This initiative opens up opportunities for 5G deployment in underserved areas, enabling access to high-speed internet and fostering economic growth. The expansion into rural markets can significantly enhance the overall reach and impact of 5G services across the country.