India to clock highest growth in tech spending in 2024 in APAC: Report

India’s technology spending is set to surge by 8% this year, marking the highest growth rate in the Asia Pacific (APAC) region, according to Forrester’s ‘Asia Pacific Tech Market Forecast, 2023 to 2027’. Projected to reach approximately US$ 54.5 billion, this growth is attributed to robust digitization efforts led by central and state governments. Across APAC, technology spending is expected to witness a compound annual growth rate (CAGR) of 6.4% to 7.4% annually from 2024 to 2027, eventually reaching US$ 876 billion by 2027. Software investments will continue accelerating, followed by expenditures in information technology (IT) services, communications equipment, and computers. The share of software purchases is forecasted to rise from 26.4% in 2024 to 30% of total technology spending by 2027, fuelled by increasing demand for artificial intelligence (AI) and AI-augmented enterprise software and services.

Following India, Singapore anticipates the second-highest growth in technology spending in APAC this year, projected at a 5% increase to US$ 18 billion. Meanwhile, Australia’s tech spending is forecasted to grow by 4% and China by 2%, with China boasting the largest absolute technology spending in APAC at US$ 261.9 billion. Moreover, in 6 major Southeast Asian economies, including Indonesia, Malaysia, Philippines, Thailand, Taiwan, and Vietnam, technology spending is poised to hit US$ 74 billion in 2024, representing a 1% growth. The region's potential for tech growth is substantial, albeit challenged by regulatory environments, global economic conditions, and talent shortages, which necessitate innovative solutions for sustained progress and development.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.