New Zealand Tech Exports Generated NZ$11.5 Billion In Revenue In FY2022, Up 9.1% On The Previous Year
AUCKLAND, 18 November 2022 – Technology companies grew nine times faster than the general New Zealand economy in the past year, according to the annual Technology Investment Network (TIN) Report launched last night.
TIN Head of Research Alex Dickson says:
“Beyond resilience, Kiwi tech companies are competing and winning overseas in a time of global economic uncertainty and there’s a growing sense of confidence in the sector and by those invested in it.
By the numbers, we see our tech companies supporting much-needed export diversity, productivity, and income assurance as New Zealand plots a path to recovery. Tech companies added more than a billion dollars of revenue growth and $960 million in export growth to the country’s economy over the last year.
The sector’s breadth of export destinations, ability to absorb shocks and avoid conflict with climate goals is a major asset in this regard. On its current trajectory, tech exports will hit $20.5B by 2027, but challenges like attracting, training, and maintaining skilled talent remain an obstacle.”
Total revenue for the TIN200 companies – the top 200 NZ tech export companies ranked by revenue -- reached $15.117B – up 9.0% or $1.247B on last year.
With average annualised revenue growth of 10.6% between 2017 and 2022, TIN200 companies expanded nine times faster than the general New Zealand economy this year, delivering sustainable growth and profitability during a period of economic uncertainty.
Driven by a 9.1% increase in exports, the TIN200 group of technology companies remains New Zealand’s second biggest export earner, generating a record $11.495B – or 14% of the country’s total export revenue – and making technology New Zealand’s second biggest offshore earner for a consecutive year.
Now in its 18th year, the TIN Report has become a critical reference for benchmarking the performance of New Zealand’s 200 largest globally-focused technology companies, categorised according to the primary sectors of Biotech, ICT (Information and Communication Technologies) and High-Tech Manufacturing.
Tech growth shifts New Zealand’s centre of economic gravity
Job growth in the New Zealand tech sector continues to accelerate despite the labour crunch and shortages of onshore expertise. Total employee numbers grew 10.9% to 62,718 globally, driven predominantly by job creation in the ICT sector.
The report found that the growth in high-paying tech jobs at home is having a profound effect on the domestic economy with an additional $264m coming into the country in wages.
Collectively, TIN200 companies invested $1.770B in Research and Development over the past year, up 18.6%, reflecting the need to continually innovate and absorb the changes brought about by a rapidly evolving world.
Robust growth across sectors, markets and regions
ICT was the primary TIN200 growth driver in 2022, registering a 15.1%, or $860m increase in revenue, contributing 66.7% of total TIN200 growth.
Of this primary sector, the Fintech, Software Solutions and Communication Solutions industries subsectors have posted strong growth of 17.3% ($316m), 25.6% ($214m) and 20.3% ($86m), respectively.
The report also found that New Zealand tech companies are breaking ground as exports contribute greater earnings with 76% of total TIN200 revenue earned offshore in the past year. The total value of exports to Asia hit $1.05B, nearly double that earned two years ago. Australia, the largest tech export market, grew by 11.9% with turnover of more than $4B, exceeding domestic sales of $3.6B this year.
Auckland remains the powerhouse of New Zealand’s tech sector accounting for 55% of all TIN200 revenue earned. This year, companies in Otago/Southland region grew by 26%, or $103m, while the Canterbury/Upper South Island region reached $1.1B in total revenue for the first time.
Copies of the 2022 TIN Report, which is sponsored by New Zealand Trade and Enterprise (NZTE), Absolute IT, BNZ, NZX, Tātaki Auckland Unlimited and GD1, can be ordered here.