Spending on IT in the Asia-Pacific region, excluding Japan, is expected to grow by about 4.9% and reach US$924 million (A$1.2 billion) this year, and US$1 trillion by 2024, the technology analyst firm IDC says.
Consumer demand had grown due to the lifting of lockdowns necessitated by the COVID-19 pandemic, it said, and as vaccine rollouts gathered pace, economic activity was expected to pick up.
The IDC post said quicker adoption in businesses that were moving towards digitisation and improvements in offerings were lifting technology spending. Additionally, supply chains, affected by the pandemic, were gradually improving in the Asia-Pacific, leading to a rise in production and more supply to the global market.
In January, another analyst firm, Gartner, predicted that global spending on IT would rise by 6.2% in 2021 year-on-year and reach US$3.9 trillion.
“Government bodies within the region have launched various initiatives to revive the economy, indirectly allowing enterprises to allocate budgets to improve both product offerings and digital adoption,” said Mario Allen Clement, senior market analyst for IDC IT Spending Guides, Customer Insights and Analysis.
IDC said businesses in the personal and consumer services sector would see the biggest bump in 2021 as tourism was a major earner in the Asia-Pacific region.
The next best performer is expected to be the construction sector.
“With COVID numbers on the rise, available vaccines are helping governments and the public to be prepared well in advance," said Ashutosh Bisht, senior research manager for IDC IT Spending Guides, Customer Insights and Analysis.
"The economic indicators across the region suggest a bounce-back across the sectors, as a majority of sectors have reached their pre-COVID level production levels.”
The IDC note said the banking and telecommunications industry, apart from the consumer segment, would make up the biggest (29%) portion of the spending in 2021. Banking is expected to show 5.9% growth while telecommunications spend is forecast to be higher, at 6.6%.
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