22 Jul 2021
Asia/Pacific* ICT Spending to Grow at 7.1% in 2021 Driven by Digital Shift Across Industries, IDC Reports
SINGAPORE, July 22, 2021 – The all-pervasive digital shift by Asia/Pacific* enterprises to attain digital resiliency has helped ICT spending grow by over 7.1% to reach $950 billion in 2021 and is expected to reach $1.1 Trillion by 2025, according to the latest release of Worldwide ICT Spending Guide Industry and Company Size. Digital resiliency refers to the ability of an organization to rapidly adapt to business disruptions by leveraging digital capabilities to restore business operations and capitalize on the changed conditions.
In anticipation of multiple waves of infections, enterprises revisited and upgraded their business plan. This helped industries evolve and look towards better offerings, thereby improving customer satisfaction, which will continue post-pandemic. Multiple sectors have already begun their infrastructure as business models changed throughout the year, pushing a relatively large spend in innovating current offerings and undergoing the digital journey.
"Organizations are bracing themselves to have a smooth transition post-pandemic. As vaccinations gather pace in the region, organizations across industries will focus their efforts to have a hybrid business model," said Mario Allen Clement, Senior Market Analyst, IT Spending Guide, IDC Asia/Pacific. "Innovative products and customer satisfaction will be key to continued operations," he added.
Source: Worldwide ICT Spending Guide Industry and Company Size (June, V2 2021)
Professional Services expect the highest year-on-year growth within the Distribution and Services sector right through the forecast period. The digital journey across the Professional Services sector has remote working as one of its priorities and has continuously invested in upgrading for faster operations. Personal and Consumer Services follow with second-highest growth compared to all other verticals as countries have started to allow travelers with utmost caution. Therefore, leisure and business travel activities show the highest growth in 2021 after a complete slowdown.
"Financial, Infrastructure, Transportation and Media sectors realized improved operational efficiency, customer satisfaction, and innovation in services post their digital transformation investment," said Vinay Gupta, Research Director, IT Spending Guide, IDC Asia/Pacific. "This, in turn, de-risked their business from further disruptions," he added.
Very Large Businesses (1000+ employees) continue to hold the largest market throughout the forecast – it contributes to almost half of the ICT spending with expected growth of 7% year-on-year for 2021. As per IDC's 2021 Future Enterprise Resilience and Spending Survey (Wave 5), these enterprises will shift or add close to 45% of their technology budget to either address COVID-triggered business change or make the organization more competitive.
Worldwide ICT Spending Guide Industry and Company Size is IDC's flagship all-in-one data product capturing IT spending across more than 100 technology categories and 53 countries. This IDC Spending Guide will provide a granular view of the market for IT spending from a country, industry, company size, and technology perspective. This comprehensive database delivered via pivot table format or IDC's custom query tool allows the user to easily extract meaningful information about various technology markets and industries by viewing data trends, relationships and making data comparisons across more than 3 million data points.
*Note: Asia/Pacific excluding Japan
About IDC Spending Guides
IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships.
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International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.
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