Forrester’s forecast predicts robust technology spending growth in the Asia Pacific region, with a CAGR of 6.4% to 7.4% from 2024 to 2027, reaching USD 876 billion by 2027. Software spending, driven by AI and enterprise services, will lead this growth, with significant contributions from countries like China, India, and Southeast Asian economies.
11 June 2024 – Forrester’s latest Asia Pacific Tech Market Forecast for 2023 to 2027 projects robust technology spending in the Asia Pacific (APAC) region. The report predicts a Compound Annual Growth Rate (CAGR) of 6.4% to 7.4% from 2024 to 2027, with tech spending expected to reach USD 876 billion by 2027.
The forecast highlights that software spending will lead this growth, followed by investments in IT services, communications equipment, and computer equipment. The share of software purchases is anticipated to rise from 26.4% in 2024 to 30% of total tech spending in 2027, driven by demand for AI and AI-augmented enterprise software and services.
Forrester’s 2024 projections for tech spend growth across APAC countries include:
- Australia: 4% growth, reaching nearly AUD 73.5 billion (approximately USD 49 billion). Digital growth is influenced by sustainability efforts and a robust local services economy.
- China: 7.2% growth, with tech spending reaching CNY 1,847 billion (approximately USD 261.9 billion). Growth is driven by AI risk governance and regulatory measures despite economic challenges.
- India: 10.8% growth, projected to reach INR 4,492 billion (approximately USD 54.5 billion), fueled by extensive digitization initiatives by the government.
- Singapore: 5.6% growth, reaching SGD 24.2 billion (approximately USD 18 billion), maintaining its status as a regional tech hub.
- Southeast Asia: 8.1% growth across Indonesia, Malaysia, Philippines, Thailand, Taiwan, and Vietnam, with spending reaching USD 74 billion, supported by digital consumption, favorable policies, and investments from tech giants.
“Despite challenges such as regulatory environments, global economic conditions, and talent shortages, the APAC market is well-positioned for tech growth,” said Leslie Joseph, principal analyst at Forrester. “As the region’s significance in the tech world increases, opportunities from AI expansion and rising cloud demand can drive significant revenue and growth.”
