Technology spending in the Asia-Pacific region is predicted to reach $876 billion from 2024 to 2027, according to research firm Forrester.
Forrester’s Asia Pacific Tech Market Forecast, 2023 To 2027, also said Asia-Pacific tech spending will remain robust and grow by a compounded annual growth rate (CAGR) of 6.4% to 7.4% per year from 2024 to 2027.
The report said over the next few years, software spending will continue its rapid growth, followed by investments on IT services, communications equipment, and computer equipment.
In terms of spending, the share of software purchases will climb from 26.4% in 2024 to 30% of total tech spending in 2027. This will outpace the other IT categories due to demand generated by AI and AI-augmented enterprise software and services.
In 2024, Forrester also projected technology spending growth across countries in the Asia-Pacific.
In Australia, spending will increase 4% reaching nearly A$73.5 billion (approximately $49 billion). Australia’s digital growth is heavily influenced by sustainability efforts and the local services economy, which has remained strong.
Tech spending in China will hit ¥1,847 billion (approximately $261.9 billion) in 2024, amid slowing economic growth and trade restrictions. China’s efforts around governing AI risks and introducing regulation will contribute to this growth, Forrester said.
Tech spending will rise 8% in India and is estimated to reach ₹4,492 billion (approximately $54.5 billion) in 2024. India’s domestic tech economy continues to enjoy strong growth due to an all-round digitization push from the central and state governments.
Spending will rise 6% in Singapore in 2024 growing to S$24.2 billion (approximately $18 billion). “The Silicon Valley of Asia” remains a stable regional hub for technology talent and innovation.
Tech spending will rise 1% for the rest of Southeast Asia and tech spending in six major Southeast Asian economies (Indonesia, Malaysia, Philippines, Thailand, Taiwan, and Vietnam) will hit $74 billion in 2024.
Uptick in digital consumption spurred by large Millennial and Gen Z populations, favorable policy environments, and investments from tech giants will accelerate digital innovation.
“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.”
