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2024-06-18 09:11

Forrester: APAC Tech Spend To Grow 7% Annually, Reaching US $876 Billion In 2027

Spending in AI-augmented software and services will outpace other IT categories

HONG KONG, June 18, 2024 /PRNewswire/ -- Forrester's (Nasdaq: FORR) Asia Pacific Tech Market Forecast, 2023 To 2027 reveals that technology spending in Asia Pacific (APAC) will remain robust and grow by a Compounded Annual Growth Rate (CAGR) of 6.4% to 7.4% per year from 2024 to 2027, reaching US $876 billion in 2027.

Over the next few years, software spending will continue its rapid growth, followed by spend on IT services, communications equipment, and computer equipment. The share of software purchases will climb from 26.4% in 2024 to 30% of total tech spend in 2027, outpacing the other IT categories due to demand generated by AI and AI-augmented enterprise software and services.

In 2024, Forrester projects tech spend growth across countries in the Asia Pacific to be: 

  • 4% in Australia. Reaching nearly A$73.5 billion (approximately US$49 billion), Australia's digital growth is heavily influenced by sustainability efforts and the local services economy, which has remained strong.
  • 7.2% in China. Tech spending in China will hit ¥1,847 billion (approximately US$261.9 billion) in 2024. China's efforts around governing AI risks and introducing regulation will contribute to this growth.
  • 10.8% in India. Estimated to reach ₹4,492 billion (approximately US$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.
  • 5.6% in Singapore. In 2024, tech spending will grow to S$24.2 billion (approximately US$18 billion). "The Silicon Valley of Asia" remains a stable regional hub for technology talent and innovation.
  • 8.1% in the rest of Southeast Asia. Tech spending in six major Southeast Asian economies (Indonesia, Malaysia, Philippines, Thailand, Taiwan region, and Vietnam) will hit US$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."

Resources: 

  • Read Forrester's Asia Pacific Tech Market Forecast, 2023 To 2027 report (client access required). 
  • Learn more about Forrester's Asia Pacific Tech Market Forecast, 2023 To 2027, in this blog post. 
  • Discover how Forrester supports IT leaders and how to get the most out of emerging technologies being deployed.
  • Register to attend Forrester's live webinar to learn about the top 10 emerging technologies for 2024 in Asia Pacific.

About Forrester 
Forrester (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We help leaders across technology, customer experience, digital, marketing, sales, and product functions use customer obsession to accelerate growth. Through Forrester's proprietary research, consulting, and events, leaders from around the globe are empowered to be bold at work — to navigate change and put their customers at the center of their leadership, strategy, and operations. Our unique insights are grounded in annual surveys of more than 700,000 consumers, business leaders, and technology leaders worldwide; rigorous and objective research methodologies, including Forrester Wave™ evaluations; more than 100 million real-time feedback votes; and the shared wisdom of our clients. To learn more, visit Forrester.com.

source: Forrester

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