India’s Tech Spending To Grow 8% In 2024, Highest In APAC: Forrester Research
Over the next few years, software spending will continue its rapid growth, followed by spending on IT services, communications equipment and computer equipment.
India’s domestic tech economy continues to enjoy strong growth due to an all-round digitisation push from the central and state governments. In 2024, the country’s tech spending growth is expected to be 8% and estimated to reach Rs 4,492 billion (approximately $54.5 billion), according to a recent report by research and advisory firm Forrester.
Forrester’s Asia Pacific Tech Market Forecast, from 2023 to 2027, also showed that technology spending in Asia Pacific will remain robust and grow by a compounded annual growth rate of 6.4% to 7.4% per year from 2024 to 2027, reaching $876 billion in 2027.
Over the next few years, software spending will continue its rapid growth, followed by spending on IT services, communications equipment and computer equipment. The share of software purchases will climb from 26.4% in 2024 to 30% of total tech spend in 2027, outpacing other IT categories due to demand generated by artificial intelligence and AI-augmented enterprise software and services.
In 2024, Forrester projects tech spending growth across other countries in the Asia Pacific to be:
6% In Singapore: Tech spending will grow to $18 billion, with Singapore remaining a stable regional hub for technology talent and innovation.
4% In Australia: Reaching nearly $49 billion, Australia’s digital growth is influenced by sustainability efforts and the local services economy, which has remained strong.
2% In China: Tech spending in China will reach approximately $261.9 billion in 2024. Despite slowing economic growth and trade restrictions, China’s efforts around governing AI risks and introducing regulation will contribute to this growth.
1% In Rest Of Southeast Asia: Tech spending in six major Southeast Asian economies (Indonesia, Malaysia, Philippines, Thailand, Taiwan and Vietnam) will hit $74 billion in 2024. Uptick in digital consumption spurred by large millennial and Gen Z populations, favourable policy environments and investments from tech giants will accelerate digital innovation.
“While challenges such as regulatory environments, global economic conditions and talent shortages in the region present hurdles, overall, the APAC market is well-positioned for tech growth,” said Leslie Joseph, principal analyst at Forrester. “As the region continues to grow in importance in the tech world, new opportunities offered by the explosion of AI and the increased demand for cloud can be significant revenue and growth drivers for firms.”
