Forrester’s report predicts strong growth in India’s tech spending. India’s tech spending is expected to jump 10.8% this year, reaching ₹4.49 lakh crore (roughly $54.5 billion). This is the highest growth rate in the Asia Pacific (APAC) region.
A global market research firm released a report titled “Asia Pacific Tech Market Forecast, 2023 To 2027”. The report highlights that spending on AI-powered software and services will surge ahead of other IT categories.
“Estimated to reach ₹4,492 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,” the report said.
Forrester report predicts continued strong growth in tech spending across Asia Pacific (APAC). The report forecasts a Compound Annual Growth Rate (CAGR) of 6.4% to 7.4% per year from 2024 to 2027, reaching $876 billion by 2027. This growth will be driven by several factors, including increased adoption of artificial intelligence (AI) and other emerging technologies.
“Over the next few years, software spending will continue its rapid growth, followed by spending 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,” the report added.
China is expected to lead the region in tech spending growth, with an anticipated increase of 7.2% to reach $261.9 billion. Other notable performers include Singapore (5.6% growth to $18 billion), Australia (4% growth to $49 billion), and the rest of Southeast Asia (8.1% growth).
“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,” Joseph added.
A Forrester report predicts it will reach $74 billion in 2024 for the six major economies: Indonesia, Malaysia, Philippines, Thailand, Vietnam, and (incorrectly listed) Taiwan. This surge is fueled by a tech-savvy young population (Millennials and Gen Z), government support for digital initiatives, and investments by major tech companies. These factors will speed up the development of new technologies in the region.
China’s tech spending is also rising despite its economy slowing down and facing trade challenges. The report explains that China’s focus on managing the risks of Artificial Intelligence (AI) and implementing regulations will help its tech sector grow.
