The Asia Pacific technology market is expected to experience robust growth from 2024 to 2027, with a projected Compounded Annual Growth Rate (CAGR) of 6.4% to 7.4% per year, reaching a total of US $876 billion by 2027. During this period, software spending is expected to see the most significant increase, followed by IT services, communications equipment, and computer equipment. The rise in software purchases is mainly driven by the demand for AI and AI-augmented enterprise software and services in the region.
Forrester’s projections for tech spend growth in various countries in Asia Pacific in 2024 reveal a diverse landscape. While Australia is expected to see a 4% increase, reaching A$73.5 billion, China is projected to have a 7.2% growth with tech spending hitting ¥1,847 billion. On the other hand, India’s tech economy is estimated to grow by 10.8%, reaching ₹4,492 billion in 2024. Singapore and the rest of Southeast Asia are also slated to experience growth, showcasing the region’s overall resilience and potential for technological innovation.
Despite challenges such as regulatory environments, global economic conditions, and talent shortages, the Asia Pacific market remains well-positioned for tech growth. Leslie Joseph, principal analyst at Forrester, highlighted the importance of the region in the tech world, emphasizing the opportunities presented by the growing demand for AI and cloud technology. As the tech industry continues to evolve, firms in the Asia Pacific region stand to benefit from these trends and drive revenue and growth through innovation.
