The total ICT spending in the Asia Pacific (APAC) region has surged to more than $1.3 trillion in 2023. It is expected to grow by the end of 2027 at a compound annual growth rate (CAGR) of 4.6%, according to recent data from the IDC Worldwide ICT Spending Guide: Enterprise and SMB by Industry.
"As global uncertainties persist, Asia/Pacific's strategic tech investments demonstrate a clear message: embracing innovation is not a luxury, but a necessity for survival and sustained growth,” says Mario Allen Clement, IDC’s associate research manager, Data & Analytics at Asia/Pacific.
Drivers for growth
Around 20% of the total ICT spending market comes from the top 10 fastest-growing industries in APAC.
In the Software and Information Services, product innovation, data proliferation, supportive government policies, increasing demand for digital solutions, and evolving regulatory landscapes drive market growth.
Within the Healthcare Sector, rising healthcare demand, customised value-based care, digital health adoption, and regulatory requirements propel IT spending.
Economic growth in Asia Pacific brought by tech innovation, digitalisation, sustainability, and talent caused the surge in ICT spending within the Capital Market.
IT budget optimisation
Vinay Gupta, research director of Data & Analytics at IDC Asia/Pacific, said he anticipates a boost in economic performance in the region from 2024 onwards due to the resilience of IT budgets and sustained growth in the region aligning with pre-pandemic levels.
“Strategic investments in IT and AI innovation will play pivotal roles, outpacing GDP growth and enhancing productivity. This era of IT budget optimisation but increased investment in Gen-AI and related innovation underscores the criticality of technology in competitive strategy and business planning for sustainable success," he added.
