Asia Pacific ICT spending is forecast to grow by over 3.8 percent in 2022 and is expected to reach $1.4 Trillion by 2026 with a compounded annual growth (CAGR) of 5.2 percent by the end of 2026, according to the IDC report on IT spending.
Consumer technology spending in Asia Pacific will face slow down in 1H2022. Enterprise technology spending, including service providers, remained strong.
“ICT Spending in the region has moved from exuberant growth last year to that of strategic growth,” says Vinay Gupta, Research Director, IT Spending Guides, IDC Asia Pacific. “Technology budgets are stable as of now. However, leaders will place greater scrutiny on technology investments as they represent a much larger share of spend and also to allow them sustainable business growth.”
The chart shows the difference in 2022 technology spending growth between the January and July releases of Worldwide ICT Spending Guide Enterprise and SMB by Industry. Consumer-driven sectors such as personal and consumer services, wholesale, construction, and retail have slowed down due to rising inflation or lockdowns to control infection spread, depending upon the geography in question.
Industries with lesser dependence on consumer discretionary spending or which provide essential services are showing stable technology investment. These include banking, insurance, telecommunication, securities, investment, and professional services.
Education is expected to grow slower in 2023 as IT investments may be stalled due to excess and sudden spending in 2021, followed through in 2022. Wholesale is expected to have a higher bounce back as budgets focus on improving omnichannel selling, growing commerce ecosystems, expanding into global markets, inventory transparency, and automation.