IBISWorld Platform
Answer any industry question in minutes with our entire database at your fingertips.
Private capital expenditure on machinery and equipment in New Zealand - Data and Analysis (1988-2033)
IBISWorld forecasts private capital expenditure on machinery and equipment to inch upwards by 0.5% in 2025-26 to $16.86 billion. This expansion reflects businesses expanding their operations and investing in new equipment, thanks to a lower cost of borrowing from successive cash rate cuts by the Reserve Bank of New Zealand up to November 2025, when the cash rate declined from 5.5% to 2.25%. These recent interest rate cuts have also spurred stronger demand conditions for some firms, further encouraging investment. However, persistent labour shortages have made some companies more hesitant with large-scale capital upgrades.The government has played a crucial role in encouraging private investment in machinery and equipment through policies like tax incentives, grants and infrastructure development. For example, New Zealand's R&D tax incentive offers a 15% tax credit on eligible R&D expenditures up to $120 million, which took effect from the beginning of the 2020 tax year, has been helping spur investment in new machinery and equipment. This was also supplemented by other government R&D programs, like the New to R&D co-funding program for small-to-medium enterprises which commenced in 2024-25.Since 2020-21, private capital investment has been recovering from the period of intense uncertainty experienced during the COVID-19 pandemic. As supply chains normalised, businesses moved quickly in 2022-23 to undertake large-scale capital upgrades, catching up on projects deferred in earlier years. When input inflationary pressures intensified and consumer sentiment weakened, firms pulled back on spending, driving the sharp fall in investment recorded in 2023-24. Despite this setback, private capital expenditure on machinery and equipment has still risen to sit above its 2020-21 level. Overall, IBISWorld forecasts private capital expenditure on machinery and equipment to grow at a compound annual rate of 2.1% over the five years through 2025-26.
Unlock the most recent data and analysis
Curious about what drives these trends? IBISWorld's analyst coverage on the private capital expenditure on machinery and equipment includes detailled analysis on the current performance, outlook and industries affected.
Private capital expenditure on machinery and equipment
1988-2033
Estimated Value in 2026
$XX
2021-26 CAGR XX%
2025-26 Change XX%
Forecast Value in 2033
$XX
2026-33 CAGR XX%
2026-27 Change XX%
This report analyses private capital expenditure on machinery and equipment. The data is measured in terms of gross fixed capital formation, which encompasses the outlays of private producers on durable fixed assets like buildings, motor vehicles, plants and machinery. The data is sourced from Statistics New Zealand (Tatauranga Aotearoa). The data is presented in financial years and measured in billions of seasonally adjusted, constant 2009-10 dollars deflated using chain volume measures.
Access this data your way
IBISWorld Industry Reports are available in multiple formats to fit seamlessly into your workflow.
API Data Delivery
Feed trusted, human-driven industry intelligence straight into your platform.
Integrations
Streamline your workflow with IBISWorld’s intelligence built into your toolkit.
Industries related to this market
Explore industries with similar markets, supply chains, and economic drivers to gain broader context and insights.
Related Industries
| Industry | Country | Last 5-yr CAGR | Forecast 5-year CAGR | Revenue |
|---|---|---|---|---|
| Agricultural and Construction Machinery Wholesaling in New Zealand |
|
XX% | XX% | $XX |
| Computer and Computer Peripheral Wholesaling in New Zealand |
|
XX% | XX% | $XX |
| Industrial and Mining Machinery Wholesaling in New Zealand |
|
XX% | XX% | $XX |
| Agricultural Machinery Manufacturing in New Zealand |
|
XX% | XX% | $XX |
| Customs Agency and Freight Forwarding Services in New Zealand |
|
XX% | XX% | $XX |
| Non-Ferrous Metal Product Manufacturing in New Zealand |
|
XX% | XX% | $XX |
| Heavy Machinery and Scaffolding Rental and Hiring in New Zealand |
|
XX% | XX% | $XX |
| Medical, Surgical and Scientific Equipment Manufacturing in New Zealand |
|
XX% | XX% | $XX |
| Engineering Consulting in New Zealand |
|
XX% | XX% | $XX |
| Electrical Services in New Zealand |
|
XX% | XX% | $XX |
Your industry answers engine
When the stakes are high, you need intelligence that cuts through the noise—wherever you work.
Frequently Asked Questions
What was the private capital expenditure on machinery and equipment in New Zealand in 2026?
The private capital expenditure on machinery and equipment in New Zealand in 2026 was $16.86 billion.
How has the private capital expenditure on machinery and equipment in New Zealand changed in 2026?
The private capital expenditure on machinery and equipment in New Zealand grew by 2.13% in 2026.
What was the forecast growth rate of private capital expenditure on machinery and equipment in New Zealand over the next five years?
IBISWorld’s data and analysis on private capital expenditure on machinery and equipment in New Zealand includes forecasted growth rates over the next five years.
Cut through the noise with intelligence you can trust
