Forrester: APAC Tech Spend To Grow 7% Annually, Reaching US $876 Billion In 2027
Forrester's
Asia Pacific Tech Market Forecast, 2023 To 2027 reveals that technology
spending in Asia Pacific (APAC) will remain robust and grow by a Compounded
Annual Growth Rate (CAGR) of 6.4% to 7.4% per year from 2024 to 2027, reaching
US $876 billion in 2027.
Over
the next few years, software spending will continue its rapid growth, followed
by spend on IT services, communications equipment, and computer equipment. The
share of software purchases will climb from 26.4% in 2024 to 30% of total tech
spend in 2027, outpacing the other IT categories due to demand generated by AI
and AI-augmented enterprise software and services.
In
2024, Forrester projects tech spend growth across countries in the Asia Pacific
to be:
4%
in Australia. Reaching nearly A$73.5 billion (approximately US$49 billion),
Australia's digital growth is heavily influenced by sustainability efforts and
the local services economy, which has remained strong.
7.2%
in China. Tech spending in China will hit ¥1,847 billion (approximately
US$261.9 billion) in 2024. Despite slowing economic growth and trade
restrictions, China's efforts around governing AI risks and introducing
regulation will contribute to this growth.
10.8%
in India. Estimated to reach ₹4,492 billion (approximately US$54.5 billion) in
2024, India's domestic tech economy continues to enjoy strong growth due to an
all-round digitization push from the central and state governments.
5.6%
in Singapore. In 2024, tech spending will grow to S$24.2 billion (approximately
US$18 billion). "The Silicon Valley of Asia" remains a stable
regional hub for technology talent and innovation.
8.1%
in the rest of Southeast Asia. Tech spending in six major Southeast Asian
economies (Indonesia, Malaysia, Philippines, Thailand, Taiwan region, and
Vietnam) will hit US$74 billion in 2024. Uptick in digital consumption spurred
by large Millennial and Gen Z populations, favorable policy environments, and
investments from tech giants will accelerate digital innovation.
"While
challenges such as regulatory environments, global economic conditions, and
talent shortages in the region present hurdles, overall, the APAC market is
well-positioned for tech growth," said Leslie Joseph, principal analyst at
Forrester. "As the region continues to grow in importance in the tech
world, new opportunities offered by the explosion of AI and the increased
demand for cloud can be significant revenue and growth drivers for firms."
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