Overview of the Report
The New Zealand Space and Advanced Aviation Sector Economic Survey, conducted by Deloitte Access Economics in collaboration with Space Trailblazer for the Ministry of Business, Innovation & Employment (MBIE), provides an updated economic analysis of the space sector and the first comprehensive estimate for the advanced aviation sector. The report aims to inform government initiatives aligned with the New Zealand Space and Advanced Aviation Strategy, which sets a goal to double the size of these sectors by 2030 through innovation, economic growth, scientific advancement, and enhanced global leadership.
Key Takeaways
- New Zealand's space sector has experienced rapid growth, outpacing global trends, and now contributes significantly to the economy while supporting thousands of jobs.
- The advanced aviation sector, newly quantified in this report, shows strong potential for expansion and overlaps with the space sector in areas like innovation and international connectivity.
- Both sectors are characterized by high levels of research and development (R&D), export-oriented activities, and a skilled workforce, positioning New Zealand for further international competitiveness.
- The government's strategy emphasizes doubling the sectors' size by 2030 to boost export revenue, high-quality employment, R&D, and foreign direct investment.
Main Findings and Growth Trends
- The space sector has grown 53% since 2019 (from $1.75 billion to $2.47 billion in the 2024 financial year), with an average year-on-year growth of 8.9%. This surpasses the global space sector's growth of 40.6% over the same period.
- The advanced aviation sector is estimated for the first time, highlighting its emerging role and synergies with the space sector.
- Both sectors demonstrate higher export shares and R&D intensity compared to the broader New Zealand economy, making them key drivers of innovation and international engagement.
Economic Contributions and Statistics
The report quantifies the direct and indirect impacts of these sectors on New Zealand's economy. Below is a summary table of key economic metrics for the 2024 financial year:
| Sector | Annual Economic Contribution (NZD) | Direct FTE Jobs | Indirect FTE Jobs | Total FTE Jobs |
|---|---|---|---|---|
| Space | $2.47 billion | 7,000 | 10,000 | 17,000 |
| Advanced Aviation | $0.48 billion | 2,000 | 1,700 | 3,700 |
| Combined | $2.95 billion | 9,000 | 11,700 | 20,700 |
These figures include direct contributions from sector activities and indirect effects through supply chains and related industries.
The sectors' combined contribution represents a substantial portion of New Zealand's high-tech economy, with potential for further growth amid global demand for space technologies and advanced aviation solutions like drones and unmanned systems.
Sector Characteristics
- Innovation and Connectivity: The sectors are highly innovative, with strong international ties. They focus on areas such as space manufacturing, applications, and advanced technologies like electric vertical takeoff and landing (eVTOL) aircraft and unmanned systems.
- Workforce and Exports: They employ a productive, highly skilled workforce and generate higher export earnings relative to other industries.
- Overlaps: There is significant overlap between space and advanced aviation, particularly in R&D and technology applications, which enhances efficiency and growth potential.
Recommendations and Future Outlook
- The analysis serves as a baseline to measure the impact of future government initiatives, such as regulatory support, investment in infrastructure, and international partnerships, to achieve the 2030 doubling goal.
- Future growth is expected to be driven by global trends like the expanding space economy (projected to reach US$1.8 trillion by 2035) and increasing adoption of advanced aviation technologies.
New Zealand's agile regulatory environment and entrepreneurial focus position it well to capture a larger share of these opportunities, potentially leading to increased high-value exports, job creation, and foreign investment.
- Emphasis should be placed on collaboration across government, industry, and education to address challenges like talent shortages and supply chain dependencies.
