According to Forrester's Asia Pacific Tech Market Forecast, 2023 to 2027, technology spending in Asia Pacific (APAC) will grow by a Compound Annual Growth Rate (CAGR) of 6.4% to 7.4% per year from 2024 to 2027, reaching US $876 billion.
“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.”
Tech spending growth
In 2024, Forrester projects tech spend growth to be 4% in Australia, reaching nearly A$73.5 billion (approximately US$49 billion), heavily influenced by sustainability efforts and the local services economy; 7.2% in China to hit ¥1,847 billion (approximately US$261.9 billion) in 2024 with the national efforts around governing AI risks and introducing regulation as its main drivers; and 10.8% in India, which is estimated to reach ₹4,492 billion (approximately US$54.5 billion) in 2024, driven by the support of central and state governments for digitisation.
Forrester projects Singapore’s tech spending to grow by 5.6% in 2024, reaching S$24.2 billion (approximately US$18 billion) and 8.1% in six major Southeast Asian economies, including Indonesia, Malaysia, Philippines, Thailand, Taiwan, and Vietnam. Forrester projects it will reach US$74 billion in 2024 due to large Millennial and Gen Z populations, favourable policy environments, and investments from tech giants.
