According to a new IDC report, ICT spending in the Asia Pacific region is projected to grow 4.9% to US $ 924 billion this year and to exceed US $ 1 trillion by 2024.
Analysts say accelerating digital adoption after the pandemic was a key driver, and lifting the blockade across the region stimulated consumer demand and strengthened forecasts of IT spending.
Further economic recovery has come in the form of vaccines, which have already begun to be deployed in some countries in the region. According to IDC, the growing number of businesses accelerating digital transformation and the overall improvement in services are also driving technology spending. The supply chain has also improved, which can boost production and supply in the market.
“Government agencies in the region have launched various initiatives to revive the economy, allowing companies to indirectly allocate budgets to improve both product delivery and digital adoption,” IDC said. Mario Allen Clement, Senior Market Analyst for Customer Insights and Analytics at IT Spending Guidies, said.
According to IDC, the banking and telecommunications industry, excluding the consumer industry, contributed the highest (29%) of total ICT spending in 2021 and is expected to grow at 5.9% in 2021. I will.
Advances and improvements in customer interaction, as well as a broader workforce, are now the focus of the banking industry.
Meanwhile, the telecommunications industry is expected to grow 6.6% in 2021. Supply chain resumption is a major factor in improving the performance of the telecommunications industry, as reliance on stock imports from China is gradually returning to normal.
“As the number of COVIDs increases, available vaccines help governments and the general public prepare in advance,” said Ashutosh Bischt, Senior Research Manager for Customer Insights and Analytics at IDC IT Spending Guides. Says.
“Economic indicators across the region suggest a recovery across the sector, as most of the sector has reached pre-COVID production levels.”
According to IDC, very large enterprises (more than 1000 employees) continue to maintain the largest market throughout the forecast, contributing almost half of ICT spending, excluding the consumer segment.
Improving operational efficiency and targeting business resilience have proven to be the biggest factors that enable very large businesses to recover quickly. Since then, the SMB segment has gained attention in multiple countries in the region to regain business momentum in 2021.
APAC’s IT spending will increase by almost 5% in 2021 — IDC
Source link APAC’s IT spending will increase by almost 5% in 2021 — IDC