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Publication date: 24 Mar 2024

IDC: Asia/Pacific Businesses Prioritize ICT Budgets, Surpassing USD1.3 Trillion in 2023


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From Spending Spree to Spending Smartly: Asia/Pacific Businesses Surpass $1.3 Trillion ICT Budget Despite Uncertainties

SINGAPORE, 25 March 2024 – Recent data from the IDC Worldwide ICT Spending Guide: Enterprise and SMB by Industry reveals that the total ICT Spending in the region has surged past the $1.3 trillion mark in 2023 and is expected to grow at a robust compound annual growth rate (CAGR) of 4.6% by the end of 2027. Businesses across the Asia/Pacific region are strategically investing in technology to not just survive but thrive amidst looming global economic uncertainties.

Organizations within Asia/Pacific are redefining their spending priorities, shifting away from traditional hardware investments towards cloud services, automation, and sustainability initiatives; this strategic reallocation of resources underscores a pivotal shift from mere expenditure to smart, future-oriented investments in technology.

"As global uncertainties persist, Asia/Pacific's strategic tech investments demonstrate a clear message: embracing innovation is not a luxury, but a necessity for survival and sustained growth,” says Mario Allen Clement, Associate Research Manager, Data & Analytics, Asia/Pacific. “Those who navigate these challenges and leverage technology effectively will be best positioned to weather the storm and emerge as leaders in the new digital landscape," he added.

The top 10 Fastest growing industries in the Asia/Pacific region now account for almost 20% of the total ICT spending market, driven by factors such as product innovation, data proliferation, and supportive government policies. Sectors like Software and Information Services are experiencing significant growth, propelled by increasing demand for digital solutions and evolving regulatory landscapes. These sectors’ internal teams become the first testbed for any new technologies they plan to offer their potential customers.

Rising healthcare demand, customized value-based care, digital health adoptionand regulatory requirements are fueling healthcare payer IT spending in Asia/Pacific. Within the Capital market, spending is surging due to economic growth in the region such as tech innovation,digitalization, sustainability and talent. While challenges like infrastructure gaps and affordability persist, embracing technology is becoming a key weapon for navigating the uncertainties and emerging stronger as global pressure builds.

“2024 onwards, as regional growth steadily aligns with pre-pandemic levels and IT budgets demonstrate resilience, we anticipate a boost in economic performance. Strategic investments in IT and AI innovation will play pivotal roles, outpacing GDP growth and enhancing productivity”, says Vinay Gupta, Research Director, Data & Analytics, Asia/Pacific. “This era of IT budget optimization but increased investment in Gen-AI and related innovation underscores the criticality of technology in competitive strategy and business planning for sustainable success," he added.

Large businesses (500-999) and Very Large Businesses (1000+) in Asia/Pacific are boosting their ICT spending, which is forecast to grow at 7.1% Year-on-Year (YoY) compared to 2022, This is mainly led by software solutions and industries embracing digital transformation. SMB and SOHO ICT market is thriving, projected to grow at 4.3% YoY compared to 2022. This dynamism is fueled by rapid digitization, government support, and affordable cloud solutions. However, affordability, limited IT expertise, and cybersecurity threats pose challenges, particularly for SOHOs. Despite these hurdles, mobile wallets, digital payments, and AI adoption signal promise for the future.

The Worldwide ICT Spending Guide Enterprise and SMB by Industry 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.


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.

For more information about IDC's Spending Guides, please contact Vinay Gupta at

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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, IT benchmarking and sourcing, 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 Follow IDC on Twitter at @IDCAP   and LinkedIn. Subscribe to the IDC Blog  for industry news and insight.