When we think about New Zealand’s economy, we don’t think about its growing technology sector, instead, we perceive it to be heavily reliant on the dairy industry. Yes, the dairy sector contributes the most to the country’s economy but experts believe that the rate at which the tech industry is growing (12% per year), will outstrip the dairy industry in five to six years.
New Zealand’s tech industry is advanced and diverse. It is successfully competing on the global stage because of its constant innovation. The sector covers wireless infrastructure, digital content, payments, geospatial, agriculture technology, telecommunications, and health IT. In 2016, the tech exports of the country soared to $950 million. New Zealand’s tech exports are excelling globally and the local digital sector has played a vital role in the country’s productivity
Let’s have a look at some of the subsectors of the tech industry that have contributed to the country’s economy.
The Fintech sector in New Zealand is growing at an average rate of 33% over the last couple of years and it is expected to grow more exponentially in the coming years. Although the country has a small population of 5 million, its consumer market is made up of highly educated people. This is one of the main factors that make FinTech a robust proposition in New Zealand.
Another factor of FinTech’s success is that the banks who had a reputation for providing good services started to launch a good deal of digital services. Therefore, people were quick to adopt this technology. According to multiple sources, New Zealand is one of the emerging FinTech Hubs and one of the top FinTech destinations in the Asia-Pacific region. This is because of the country’s good business environment and transparency across financial services.
The gambling industry is growing rapidly in New Zealand as the prevalence of online gambling mushrooms. The revenues of casinos continue to skyrocket in the country as they look to adopt the latest technologies to boost their efficiency and customer satisfaction. One of the recent technologies put to test was the facial-recognition system that is being used to scan faces and identify problem gamblers. Problems gamblers are those addictive gamblers who endanger the financial well-being of their families. Many casinos are also accepting cryptocurrency payments which have led to faster and more efficient payment collection. Casinos are leveraging software development to:
- Provide improved graphics to capture customer attention
- Compile huge amounts of data to know more about players’ behaviors, accurately predict their experience and give personalized recommendations
- Gamify with better visuals, fun and competitive gaming features, tournaments, leaderboards, etc.
With these value additions, there is a growing interest among people to gamble. But consumers are also very particular about their gambling experience and most of them check casino reviews in New Zealand before going to a casino.
BioTech is one of the largest sectors in the country. New Zealand’s BioTech companies export to more than 60 countries including the US, Europe, and Australia. Following are the strengths of the BioTech sector:
- Large animal-based biotechnologies
- Extensive know of plant-based biotechnologies
- Specialization in biomedical science and drug discovery
- Bio-processing technologies and bio-manufacturing
- Excellent bio-control, biosecurity, and bioremediation
Because of these strengths, New Zealand has gained the following benefits:
- Strong intellectual capital in biological sciences
- Quality research and development which can be delivered at a cost of up to 40% lower than international levels.
- A fertile BioTech environment
- Graphic isolation and quarantine standards that provide safety and security
Agriculture technology has played a significant role in New Zealand’s economy as it has increased the quality, productivity, and sustainability across the entire value chain of production and supply. This sector is also important to the wider economy as a significant amount of its manufacturing and services are dependent on the productivity of the primary sector. Along with increasing productivity, agriculture technologies will also play a central role in driving more efficient land use and management for better environmental outcomes. New Zealand’s AgriTech exports amounted to approximately $1.5 billion last year and it has the potential to grow significantly. Following are some of the reasons why the country should continue to invest in the sector:
- Improving sustainability and productivity
- Growing high-value exports
- Contribution to global challenges
New Zealand has made huge progress in the technology sector and at this pace, it will soon be among the top 10 major players on the global stage.