Total ICT spending in Asia Pacific has surpassed the $1.3 trillion mark in 2023, IDC report said.
Total ICT spending in Asia Pacific is expected to achieve a compound annual growth rate (CAGR) of 4.6 percent through 2027. This surge in spending reflects a strategic response by businesses in the region to navigate global economic uncertainties through technology-driven innovation, the recent findings from the IDC Worldwide ICT Spending Guide: Enterprise and SMB by Industry said.
A shift in spending priorities is evident among Asia Pacific organizations, as they transition from traditional hardware investments towards cloud services, automation, and sustainability initiatives. This strategic reallocation of resources signifies a move towards future-oriented investments aimed at fostering resilience and growth in the face of evolving challenges.
According to Mario Allen Clement, Associate Research Manager of Data & Analytics, Asia Pacific, the region’s strategic tech investments send a clear message: embracing innovation is no longer a luxury but a prerequisite for survival and sustained growth. Clement emphasizes that effective utilization of technology will position businesses to emerge as leaders in the evolving digital landscape.
The top 10 fastest-growing industries in the Asia Pacific region command nearly 20 percent of the total ICT spending market, driven by factors such as product innovation, data proliferation, and supportive government policies. Sectors like Software and Information Services are experiencing notable growth, fueled by rising demand for digital solutions and evolving regulatory frameworks.
In healthcare, increased demand for customized value-based care, digital health adoption, and regulatory compliance is driving IT spending among payers in the region. Similarly, the Capital market is witnessing a surge in spending fueled by economic growth, tech innovation, digitalization, sustainability efforts, and talent acquisition.
Looking ahead, Vinay Gupta, Research Director of Data & Analytics, Asia/Pacific, anticipates a boost in economic performance as IT budgets showcase resilience and align with pre-pandemic levels. Gupta emphasizes the pivotal role of strategic investments in IT and AI innovation, which are expected to outpace GDP growth and enhance productivity.
The report highlights significant growth in ICT spending among large businesses (500-999) and very large businesses (1000+), projected to grow at a Year-on-Year (YoY) rate of 7.1 percent in 2023 compared to 2022. This growth is primarily driven by investments in software solutions and digital transformation initiatives. Meanwhile, the SMB and SOHO ICT market is thriving, with a projected YoY growth rate of 4.3 percent in 2023 compared to 2022, supported by digitization, government initiatives, and affordable cloud solutions.
Despite challenges such as affordability, limited IT expertise, and cybersecurity threats, promising trends like mobile wallets, digital payments, and AI adoption signal a bright future for the Asia Pacific ICT landscape, underlining the pivotal role of technology in shaping competitive strategies and ensuring sustainable success.
