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Forrester forecasts that Asia Pacific will invest more than $437 billion in new technology between 2025 and 2030, with overall tech spending in the region expected to grow at an annual rate of 9.3%.
The growth will be driven by continued investments in software, IT services, communications equipment, and outsourcing. However, the real impact of this spending is likely to be tempered by multiple headwinds, including rising software costs, hardware price volatility, regulatory fragmentation, tariffs, energy-related disruptions, and ongoing talent shortages.
Among key segments, computer equipment is projected to see the fastest expansion, growing at 13.7% as hyperscale cloud providers ramp up investments in AI-focused data centers amid global component shortages. Software spending is expected to rise by 10.7%, supported by the rapid adoption of agentic AI and the increasing integration of AI features into enterprise software pricing.
Country-level trends reveal varied growth patterns across the region. Australia’s technology spending is expected to grow by 6% in 2026, reaching nearly A$110 billion, significantly outpacing its projected economic growth. In China, spending is forecast to rise by 7%, with AI infrastructure investments surpassing $70 billion, driven by major initiatives from companies such as Alibaba and ByteDance, alongside government-led industrial digitization efforts.
India, identified as the fastest-growing market in the region, is expected to see 4% growth in 2026, fueled by rapid cloud adoption, data localization requirements, and strong domestic enterprise demand. Meanwhile, Singapore’s 6% growth outlook is anchored in AI transformation initiatives and hyperscaler expansion, though talent shortages remain a key constraint.
Across Southeast Asia, growth remains robust, with countries such as Vietnam, the Philippines, and Malaysia leading the way. The region’s digital economy is increasingly shifting from user acquisition to monetization, supported by advancements such as cross-border QR payment systems and the continued adoption of Industry 4.0 technologies.
Frederic Giron noted that while headline growth remains strong, enterprises are navigating a complex environment shaped by inflationary pressures, regulatory divergence, and geopolitical risks. He added that sustained increases in energy costs, particularly in oil-dependent economies, could further strain IT budgets if global conflicts persist.
As a result, technology leaders across the region are being urged to adopt a more focused investment approach, prioritizing automation, AI-driven platforms, and modernization initiatives that deliver measurable productivity gains rather than broad-based spending.
The growth will be driven by continued investments in software, IT services, communications equipment, and outsourcing. However, the real impact of this spending is likely to be tempered by multiple headwinds, including rising software costs, hardware price volatility, regulatory fragmentation, tariffs, energy-related disruptions, and ongoing talent shortages.
Among key segments, computer equipment is projected to see the fastest expansion, growing at 13.7% as hyperscale cloud providers ramp up investments in AI-focused data centers amid global component shortages. Software spending is expected to rise by 10.7%, supported by the rapid adoption of agentic AI and the increasing integration of AI features into enterprise software pricing.
Country-level trends reveal varied growth patterns across the region. Australia’s technology spending is expected to grow by 6% in 2026, reaching nearly A$110 billion, significantly outpacing its projected economic growth. In China, spending is forecast to rise by 7%, with AI infrastructure investments surpassing $70 billion, driven by major initiatives from companies such as Alibaba and ByteDance, alongside government-led industrial digitization efforts.
India, identified as the fastest-growing market in the region, is expected to see 4% growth in 2026, fueled by rapid cloud adoption, data localization requirements, and strong domestic enterprise demand. Meanwhile, Singapore’s 6% growth outlook is anchored in AI transformation initiatives and hyperscaler expansion, though talent shortages remain a key constraint.
Across Southeast Asia, growth remains robust, with countries such as Vietnam, the Philippines, and Malaysia leading the way. The region’s digital economy is increasingly shifting from user acquisition to monetization, supported by advancements such as cross-border QR payment systems and the continued adoption of Industry 4.0 technologies.
Frederic Giron noted that while headline growth remains strong, enterprises are navigating a complex environment shaped by inflationary pressures, regulatory divergence, and geopolitical risks. He added that sustained increases in energy costs, particularly in oil-dependent economies, could further strain IT budgets if global conflicts persist.
As a result, technology leaders across the region are being urged to adopt a more focused investment approach, prioritizing automation, AI-driven platforms, and modernization initiatives that deliver measurable productivity gains rather than broad-based spending.
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