ICT spending in AsPac reaches $1.3 T in 2023

Information and communications technology (ICT) spending in Asia and the Pacific reached the $1.3 trillion mark in 2023, as companies increased their investments on automation and cloud to survive and thrive in the digital era.

Based on figures from the International Data Corp. (IDC), business spending for ICT services in Asia and the Pacific hit the $1.3 trillion level last year, highlighting the region’s growing reliance on new technologies.

From here on, the IDC projects ICT spending in the region to grow by an average of 4.6 percent until 2027.

Between 2022 and 2027, the IDC expects ICT investments to grow the quickest in software and information (9.5 percent); health care (8.6 percent); and capital markets (8.2 percent). Further, it anticipates technology spending to rise by an average of 7.9 percent in agriculture; 7.7 percent in retail; and 7.6 percent in telecommunications.

The IDC also sees ICT upgrades in mining, government, science and media down the line. All in all, these industries will lay the bedrock for a digital future in Asia and the Pacific.

Similarly, the IDC said organizations in the region are forced to raise their ICT budgets driven by factors like product development, policy automation and data management.

For instance, in software and information, companies are betting on research and development to come up with new solutions that could be offered to various markets.

In the field of health care, the IDC said providers are compelled to customize medical services to respond to the evolving demand in the pandemic aftermath.

IDC data and analytics research director for Asia and the Pacific Vinay Gupta said these changes would create new opportunities for businesses in the region. In turn, he believes ICT spending will go up as companies reach for these gains.

“From 2024 onward, 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 artificial intelligence innovation will play pivotal roles, outpacing [economic] growth and enhancing productivity,” Gupta said.

In 2023, the IDC flagged the Philippines as one of the slowest economies in Asia and the Pacific to adopt the use of generative artificial intelligence (AI).

Recently, the world has seen a spike in the use of generative AI, viewed by some as the future of industries for its ability to produce images, texts and videos in an instant.