New Zealand's aerospace sector has experienced significant growth, expanding by 53% between 2020 and 2024, according to government officials. Speaking at the New Zealand Aerospace Summit, Space Minister Judith Collins confirmed the industry's value increased from NZ$1.75 billion to NZ$2.68 billion, outpacing the global average. The government plans to further this expansion through a national space strategy, with a focus on defense-related capabilities.
Key Takeaways
- New Zealand's space sector grew 53% from 2020 to 2024, reaching a value of NZ$2.68 billion.
- This growth rate exceeds the global industry average of 40.6% for the same period.
- The government aims to double the country's space and advanced aviation sectors by 2030.
- A significant portion of future growth is expected to come from NZ$9 billion in new defense funding over the next four years.
- Challenges for the industry include access to domestic capital and a shortage of specialized workers.
Government Reports Rapid Industry Expansion
The New Zealand government has highlighted substantial progress in its plan to develop a robust national aerospace industry. During an address on October 8 in Christchurch, Space Minister Judith Collins detailed the sector's rapid expansion. She stated that the industry's value surged by 53% over the last four years, a figure that surpasses the global growth rate.
This progress aligns with a national space strategy introduced a year ago. The strategy's primary objective is to double the size of New Zealand's space and advanced aviation industries by the year 2030. Collins, who also serves as the country's defense minister, expressed confidence in the nation's competitive position.
"It’s really good when we’re beating everyone else," Collins remarked, referencing the industry's performance compared to international benchmarks.
By the Numbers
New Zealand's space sector grew from NZ$1.75 billion (US$1.01 billion) in 2020 to NZ$2.68 billion (US$1.54 billion) in 2024. This 53% increase is notably higher than the global space industry's growth of 40.6% during the same timeframe.
Defense Investment to Drive Future Growth
A key element of the government's plan involves significant investment in military space capabilities. Collins emphasized that space is now considered a strategic domain essential for modern defense operations. This view is central to a defense modernization strategy released in April.
The strategy allocates NZ$9 billion in new funding over the next four years for military enhancements. A portion of this investment is designated for space-related systems. These targeted investments will focus on several critical areas:
- Intelligence, surveillance, and reconnaissance (ISR) systems
- Secure communications networks
- Navigation and precision targeting
To provide a clear roadmap, Collins announced that a specific plan for the defense space sector will be released within the next six months. "It will set out how we will grow and sustain a space industry that supports defense capability and contributes to innovation and export opportunities," she explained. This initiative is also intended to help develop capabilities for a future "national space mission."
New Zealand's National Space Strategy Goals
The government's overarching strategy aims to advance regulatory reforms, increase trade and investment, build a skilled aerospace workforce, and promote innovation alongside developing national space capabilities.
Leveraging Geographic and Regulatory Advantages
New Zealand's unique geography is a significant asset for its aerospace ambitions. Collins pointed to the country's low population density and access to uncongested airspace as key advantages. "We don’t have any near neighbors. We have an environment where we can have the high cadence of launches, which not many others can do," she said in an interview.
The government is also working to create a favorable regulatory environment. Officials at the summit discussed recent updates to regulations for aerospace activities, including streamlined licensing for experimental vehicles. This has directly benefited companies like Dawn Aerospace, a New Zealand-based firm that has conducted test flights of its Aurora suborbital spaceplane in the country.
The minister also credited the industry's reputation for innovation, citing the success of figures like Peter Beck, founder of Rocket Lab. She noted that Rocket Lab's achievements have positioned New Zealand as the third-ranked country globally for successful vertical launches.
Addressing Challenges and Public Perception
Despite the positive growth trajectory, industry leaders acknowledge existing challenges. A primary concern raised at the conference was the limited access to domestic capital, which often forces companies to seek funding from international investors for later-stage growth.
Another significant hurdle is the shortage of a workforce with the specific skills required by the aerospace sector. In response, the government is implementing initiatives to attract talent. Collins mentioned programs to simplify the process for "highly qualified" international space professionals to work in New Zealand, alongside the development of new aerospace training programs at local universities.
The government also recently formed Invest New Zealand, a dedicated agency tasked with boosting foreign investment in domestic companies. This agency aims to help bridge the funding gap identified by industry stakeholders.
The summit also drew public attention in the form of protests. A small group gathered outside the venue, with some expressing opposition to perceived military applications of New Zealand's space technology. Collins addressed the protests, describing the participants as "usual suspects" and asserting that the aerospace industry enjoys strong public support due to its economic potential. "When they realize how big it is, what the wages are, what the opportunities are, they’re very excited," she concluded.