IDC: Digital Technology Spending by Asia/Pacific* Organizations to Grow at 5X the Economy in 2024

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• Michael De La Cruz  Email: mdelacruz@idc.com
• Miguel Carreon  Email: mcarreon@idc.com

Digital Business Strategies Predictions in Asia/Pacific* for 2024 and Beyond Revealed by IDC

SINGAPORE, 14 March 2024 – In a recent FutureScape report, IDC FutureScape: Worldwide Digital Business Strategies 2024 Predictions — Asia/Pacific (excluding Japan) Implications, IDC predicts that in 2024, digital spending growth will outpace that of the region’s economy. As Asia/Pacific excluding Japan (APeJ) CEOs increasingly leverage technology to compete in the digital-first economy, organizations that have invested in digital technology will continue to do so, even in the face of budget impacts such as inflation. At the same time, companies that have fallen behind will spend on digital technology to catch up to their competitors.

According to IDC CEO Sentiments Survey 2023, 84% of APeJ CEOs planned to increase technology budget in 2023 despite ongoing macro uncertainties. Digital spending will be driven by initiatives that strengthen the digital foundation for business transformation, new business and operating models, and coupled with GenAI-enabled products, services, and experiences:

• Proliferation of Digital Business Models: By 2025, 40% of organizations will be selling to, engaging with, or provisioning on-demand services through digital ecosystems to enable new business models powered by AI Everywhere capabilities.

• Digital Business Platforms as the Enterprise’s Digital Foundation: In 2028, organizations with established digital business platforms will have 50% higher digital market share with greater abilities to track ROI and execute digital revenue initiatives.

• GenAI-enabled Products and Services: By 2027, 50% of enterprises will have mastered the use of GenAI to co-develop digital products and services leading to double the revenue growth compared with their competitors.

The explosion of GenAI foretells what IDC sees as the age of AI everywhere. Digital capabilities will increasingly determine competitive advantages. Organizations that master data, AI, and GenAI are better poised to deliver personalized experiences at scale, leverage their business ecosystems in real-time, and innovate at a faster rate. To this end, IDC digital transformation (DX) spending guide projects that technology spending in the same region to grow by 18.9% in 2024. Separately, APEJ’s GDP is projected to grow by 4.2% in 2024.

The elevation of digital to the boardroom agenda also foretells shifting technology priorities and roles within the C-suite:

• Growth in Digital Revenue: By 2027, 80% of CEOs will assert that their C-Suite technology leader’s primary function should be to invest in digital-first initiatives to deliver on digital revenue targets.

• New Digital KPIs. By 2027, 30% of enterprises will develop new KPIs that are directly tied to digital business outcomes through the application of advanced analytics and AI.

• Emergence of Chief AI Office: By 2026, the proliferation of data from GenAI and other key digital initiatives will result in 20% of the A2000 organizations introducing or elevating the role of chief AI officer to the C-suite. AR/VR engineering and training: By 2028, half of large businesses will use prompt engineering to prototype AR/VR simulations, reducing development time from weeks to hours and creating precision training.

"APeJ CEOs, concerned with sustained business competitiveness, are leading business transformation together with their C-Suites. The demand for digital experiences from customers, employees, partners, and suppliers has shifted to an expectation. Companies looking to sustain and grow are seeking digital revenue streams while looking to digitize operations to reduce costs and increase efficiency," says Lawrence Cheok, Associate Research Director, APJ Digital Business Strategies Research, IDC Asia/Pacific.

In the ever-evolving digital landscape, the IDC Future Enterprise Awards 2024 seeks nominations for leaders excelling in digital business transformation. A pivotal opportunity to highlight industry innovation. NOMINATE NOW.

Each year, IDC releases its top technology predictions at worldwide, regional and country level through its IDC FutureScape R eports  and gives a crystal ball view of what is ahead for the rapidly changing IT industry. These predictions have been used to shape the strategies and business objectives of technology leaders and business executives in the next 1-5 years. All the predictions stated here cover Asia/Pacific implications.

Catch an on-demand replay of IDC's 2024 Predictions presentation that will be available as part of a series of FutureScape webinars addressing the IT Industry, AI and Automation, Digital Business, CIO Agenda, and Emerging Technologies. If you would like to attend any of these webinars, register and learn more HERE.

Asia/Pacific Japan FutureScape Reports come with a complimentary report that provides specific recommendations for tech vendor sales and marketing leaders. Leverage on IDC insights to better understand clients’ priorities and enhance your storytelling and go to market plans, access the IDC FutureScape: Worldwide Digital Business Strategies 2023 Predictions — Asia/Pacific (Excluding Japan) Implications: Positioning for Success — Opportunities for Tech Sales and Marketing Leaders market presentation HERE.

For more information about IDC FutureScape and other resources, please visit our regional FutureScape site. For sales inquiries on the IDC FutureScape framework and reports, please contact your IDC account manager or Tessa Rago at trago@idc.com. For media queries, please contact Michael de la Cruz at mdelacruz@idc.com   or Miguel Carreon mcarreon@idc.com.

*Asia/Pacific excluding Japan

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About IDC FutureScape

IDC FutureScape reports are used to shape IT strategy and planning for the enterprise by providing a basic framework for evaluating IT initiatives in terms of their value to business strategy now and in the foreseeable future. IDC's FutureScape reports are comprised of a set of decision imperatives designed to identify a range of pending issues that CIOs and senior technology professionals will confront within a typical five-year business planning cycle.

About IDC

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 1,300 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 @IDCAP and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

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