IT spending in Asia Pacific to grow 4.4% in 2023 vs 3.8% in 2022

Despite prevailing uncertainties, IT spending in the Asia Pacific region is expected to grow by 4.4 percent in 2023, surpassing the 3.8 percent growth recorded in 2022.
China robotics marketAccording to Vinayaka Venkatesh, Senior Market Analyst at IDC IT Spending Guides, Customer Insights & Analysis, enterprise budgeted spending is currently robust. Enterprises are either maintaining their planned investments or increasing their budgets for the coming year.

Consumer IT spending, which encompasses purchases of mobiles, tablets, PCs, wearables, and peripherals, is projected to decline by 2.1 percent in 2023 in the Asia Pacific region, an improvement from the 2.6 percent decline experienced in 2022.

The slowdown in consumer spending in the Asia Pacific region is primarily attributed to a drop in smartphone shipments, which account for 72 percent of the consumer market. This decline is attributed to factors such as higher inflation and an economic slowdown.

Enterprises and service providers are expected to experience steady growth, with a rate of 9.8 percent in 2023, on par with the growth seen in 2022. However, the consumer spending slowdown in the Asia Pacific region has spread to commercial segments, impacting devices such as PCs and peripherals.

China remains a key player in the Asia Pacific region, contributing 51 percent of the overall market share. The country’s economic outlook has significantly improved since its reopening in the fourth quarter of 2022.

Consequently, the Chinese market has witnessed rapid growth in 2023, with a growth rate of 12.9 percent compared to 6.5 percent in 2022 for the enterprise and service provider segments, IDC report said.