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Moderate growth in APAC tech spending for 2016

Anuradha Shukla | Feb. 5, 2016
Region will experience a growth of 4.5% in 2016, says Forrester.

There will be moderate growth for tech spending in Asia Pacific, according to a new report by Forrester.

The report predicts regional tech spending as a whole to experience moderate growth of 4.5% in 2016 and 2017 to reach US$693 billion and US$727 billion respectively.

While India, China, and some ASEAN countries will grow twice as fast, other nations (Australia, Japan and Hong Kong) in mature markets will go slow during this period.

China is expected to overtake Japan as the largest regional tech market, and India will move to the third position.

Forrester's forecast includes telecom services, which has the largest share of the tech market (US$196 billion) and computer equipment, the next largest segment (US$142 billion).

Win, serve, and retain customers

Businesses will focus their spending on business technology (BT) and this will help their firms win, serve, and retain customers.

Most APAC markets don't exhibit the maturity and economic stability to embrace the BT agenda when compared to the US.

Despite the above mentioned fact BT spending in APAC will grow about four times faster than IT spending in 2016 and 2017.

Forrester predicts the global tech market in constant currency terms will continue growing modestly throughout 2016 and 2017 at 4.5% and 4.7%, respectively.

Although traditional information technology (IT) spending will continue to dominate total tech spending, total BT spending will reach US $827 billion worldwide by 2017.

 

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