Forrester Forecasts Moderate Growth In Asia Pacific Tech Spending For 2016; China Overtakes Japan To Become The Largest Regional Tech Market
Forrester predicts no boom or bust for tech spending in Asia Pacific, but moderate growth. Regional tech spending as a whole is expected to experience moderate growth of 4.5% in 2016 and 2017 to reach US$693 billion and US$727 billion, respectively. India, China, and some ASEAN countries will grow twice as fast, while mature markets like Australia, Japan, and Hong Kong will put a drag on regional growth.
Despite more conservative tech spending from CIOs than in recent years, China will overtake Japan as the largest regional tech market, with India moving into the number three spot (when including telecommunications spending) and South Korea and Australia rounding out the top five.
For the first time, Forrester’s forecast includes telecom services ($196 billion), which has the largest share of the tech market. Computer equipment is the next largest segment ($142 billion), followed by communications equipment ($110 billion), software ($105 billion), and tech consulting and systems integration services ($69 billion).
Forrester believes that businesses will focus their spending on business technology (BT) that helps their firms win, serve, and retain customers. Most Asia Pacific markets do not yet have the maturity and economic stability to embrace the BT agenda to the extent that Forrester has seen in the US; however, BT spending in Asia Pacific will grow about four times faster than IT spending will in 2016 and 2017.
Also, learn more about Forrester’s forecasts for China, India, and Australia.