Asia Pacific businesses are expected to spend $1.4 trillion on information and communications technology (ICT) in 2025, according to a report from the International Data Corp. (IDC). The report projects a 5.8% compound annual growth rate through 2028, as companies focus on technology investments that deliver clear returns and strengthen their operations.
IDC, a market intelligence firm, noted that businesses in the region are adjusting their technology strategies to match changing economic conditions. While ICT spending remains steady, companies are now prioritizing efficiency and resilience over rapid expansion.
“Asia Pacific businesses are entering a new phase of technology adoption,” said Mario Allen Clement, associate research manager, Data and Analytics, IDC. “The emphasis is no longer solely on acquiring the latest technologies, but on strategically deploying solutions that address specific business challenges and drive measurable outcomes. We’re seeing a move towards pragmatic investments that enhance productivity and a stronger focus to improve customer experience.”
According to IDC, the top 10 fastest-growing industries make up nearly 80% of total ICT spending in the region. Many businesses are investing in digital transformation, artificial intelligence (AI), and cybersecurity to strengthen their digital operations. Organizations are looking to improve efficiency and customer experience despite ongoing challenges such as trade restrictions, geopolitical tensions, and cybersecurity risks.
Companies of all sizes are increasing their ICT investments. Large businesses are focusing on innovation and streamlining operations, while mid-sized businesses are turning to data analytics, AI, and machine learning to scale their operations. Smaller businesses and home-based enterprises are also investing more in productivity tools, seeking cost-effective and flexible solutions.
IDC expects this trend of ICT investment to continue, as businesses adapt to a changing digital environment and prioritize technologies that support growth and stability.