Discover the latest breaking news for CIOs as Forrester’s Asia Pacific Tech Market Forecast unveils a staggering 5.8% growth in tech spend, reaching $732 billion in 2023.
In a recent report by Forrester, it has been revealed that Asia Pacific’s technology expenditure is set to experience a remarkable surge, with an anticipated growth of 5.8% to reach an impressive $732 billion in 2023. The region’s digital transformation is being propelled by the escalating adoption of cloud services, with software and services accounting for a significant 74% of the projected growth. Furthermore, software spending is predicted to maintain an impressive compound annual growth rate of 10.3% through 2027.
Despite formidable challenges such as post-pandemic supply chain fragility, a shortage of skilled professionals in science, technology, and engineering, and uncertainties surrounding China’s economic recovery pace, Asia Pacific’s tech spend is projected to grow at a robust rate of 6.8% to 7.3% annually from 2024 to 2027. The forthcoming year, 2023, is expected to witness the following regional tech spend growth rates:
Australia: The tech spending in Australia is estimated to increase by 6.3% in 2023, reaching nearly A$70 billion. This surge will be heavily influenced by renewed sustainability efforts and the thriving local services economy, fostering significant digital growth in the country.
China: Forrester forecasts a substantial 7.4% growth in tech spending in China, amounting to ¥1.7 trillion in 2023. The nation’s relentless focus on technology innovation will be instrumental in propelling industrial modernization, with generative AI driving significant tech investments across major industries.
India: Tech spending growth in India is anticipated to be the highest in the region, soaring to ₹3.9 trillion in 2023, representing a remarkable growth rate of 10.1%. Strong governmental support for ongoing digitalization initiatives will continue to bolster investments in building a robust national digital infrastructure.
Singapore: In 2023, Singapore’s tech spending is predicted to reach S$22.17 billion, registering a growth rate of 4.6%. Renowned as the “Silicon Valley of Asia,” the city-state remains a steadfast regional hub for technology talent and innovation, with the government allocating substantial budgets towards pioneering initiatives.
Rest of Southeast Asia: The five major Southeast Asian economies, including Indonesia, the Philippines, Thailand, Vietnam, and Malaysia, are projected to witness a combined tech spending of nearly $47 billion in 2023. Among them, Indonesia, Vietnam, and the Philippines are expected to demonstrate the highest growth rates of 9.3%, 9.3%, and 8.1%, respectively, contributing to the region’s overall 7.9% growth.
Leslie Joseph, principal analyst at Forrester, emphasized, “Asia Pacific currently accounts for 75% of global GDP growth. While we anticipate APAC tech spend growth to increase even further, it’s crucial that countries and businesses invest in the right technologies to continue to benefit from growing digital and cloud infrastructure.”
This remarkable surge in technology expenditure presents unprecedented opportunities for Chief Information Officers (CIOs) across the region. As the digital landscape evolves rapidly, CIOs are poised to play a pivotal role in harnessing the power of innovative technologies, driving transformation, and propelling their organizations towards success in the digital era.