Defence in New Zealand - Industry Market Research Report

Well-Guarded: Increased Government Funding Has Supported Industry Expansion

The Defence industry operates through the New Zealand Defence Force (Te Ope Katua o Aotearoa), or NZDF. The NZDF is a public entity that is funded through annual appropriations agreed in Parliament. The level of funding that the NZDF has received from the New Zealand Government (Te Kawanatanga o Aotearoa) has increased over the past five years, with government operations expanding in the South Pacific since the release of its Strategic Defence Policy Statement 2018. Industry revenue is expected to grow at an annualised 2.1% over the five years through 2021-22, to $3.1 billion, due to this increase in funding. This trend includes an anticipated decline of 0.7% in the current year. In addition to the direct funding received for annual operations, the NZDF also benefits from the capital investment funding decided in the annual Vote Defence Force, although this funding is not included as industry revenue.

The Defence industry represents the operations of the New Zealand Defence Force (Te Ope Katua o Aotearoa), or the NZDF, which is a public entity. The NZDF includes the New Zealand Army (Ngati Tumatauenga), Royal New Zealand Air Force (Te Tauaarangi o Aotearoa) and the Royal New Zealand Navy (Te Taua Moana o Aotearoa). The industry excludes private firms that provide outsourced services for the New Zealand Defence Force.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.