India seen among top tech spenders in APAC this year

India is projected to be among the top spenders on technology in the Asia-Pacific (APAC) region this year, a report said.

Tech spending in India will grow at 8%, with total spending expected to reach ₹4,492 billion (about $54.5 billion) in 2024, according to Forrester’s Asia Pacific Tech Market Forecast: 2023-27. 

India’s domestic tech economy continues to enjoy strong growth due to an all-round digitization push from the central and state governments, it said. 

Technology spending in the APAC region will remain robust and grow at a compound annual rate of 6.4-7.4% per year from 2024, reaching $876 billion by 2027, according to the estimates. 

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 said. 

Besides India’s 8% growth, Singapore will grow at 6% to $18 billion in 2024. While Australia and China are expected to record a growth of 4% and 2%, respectively, the rest of Southeast Asia will record a 1% growth in  tech spending.

Tech spending in six major Southeast Asian economies (Indonesia, Malaysia, Philippines, Thailand, Taiwan, and Vietnam) will hit $74 billion in 2024. 

“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.”