Southeast Asia - IT Spending Market by Type and Geography - Forecast and Analysis 2023-2027

Southeast Asia IT Spending Market Forecast 2023-2027

The Southeast Asia IT Spending Market size is forecast to increase by USD 33.64 million, at a CAGR of 8.44%,  between 2022 and 2027. The growth of the market depends on several factors, including the increased adoption of mobility solutions in Southeast Asia, the rise of IoT solutions, and the proliferation of data. IT can be defined as an integrated platform consisting of hardware, software, and services. Organizations have IT departments, which are responsible for storing, safeguarding, processing, transmitting, and retrieving information. IT enables a smooth flow of information across an organization.IT helps for a smooth flow of information across organizations. IT departments manage all IT-related software, services, and solutions. It also helps in integrating and streamlining processes, which facilitates a smooth flow of organizational information. IT is required to develop a secure cyber environment, maintain a uniform flow of information, and help to increase the revenue generation of an organization over a long period of time. They also bolster organizations to align their business processes with different technologies and improve overall efficiency.

What will be the size of the Market During the Forecast Period?

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Market Segmentation 

This Southeast Asia IT spending market report extensively covers market segmentation by type (hardware, services, and software). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Market Dynamics 

The market is driven by the region's rapid adoption of emerging technologies such as artificial intelligence and blockchain. SMEs and key sectors like healthcare and financial services are investing significantly in cybersecurity services to protect their data. However, challenges include the shortage of IT talent and ensuring the dependability and comprehensiveness of data. To address these, there's a trend towards vendor analysis and synthesis of primary information. Despite diverse data points, stakeholders seek summation of data for informed decision-making amidst dynamic IT spending players and enterprises.

Key Market Driver

One of the key factors driving the market growth is the proliferation of data.  There is a significant generation of data from various sources including the Internet, mobile devices, and social media. As a result, several organizations are facing challenges with the increasing volume, variety, and velocity of data such that it has become difficult to efficiently analyze and manage large databases.

Moreover, inaccurate data generated from different sources offer wrong information and predictions about consumer behavior, consumer buying patterns, and other information utilized for key decision-making processes. However, organizations are able to transform unstructured and semi-structured data into structured and meaningful data with the advent of big data analytics technology. Hence, such factors are positively impacting the Southeast Asia - IT spending market. Therefore, it is expected to drive the Southeast Asia IT spending market growth during the forecast period.

Significant Market Trends

A key factor shaping the market growth is the increased adoption of bring your own device (BYOD). There is a growing popularity of enterprise mobility across the corporate world due to the preference of employees to use their tablets, smartphones, and portable computers at work. BYOD essentially requires specific management and IT service delivery frameworks for offering an electronically secure and productive work environment. 

Moreover, there is an increasing focus by companies to offer the correct mobile devices to their employees. The main purpose of the implementation of BYOD  is to offer a cost-effective solution, mobility to employees, and enhanced productivity. Hence, such factors are positively impacting the Southeast Asia - IT spending market. Therefore it will drive the market growth during the forecast period.

Major Market Challenge 

System integration and interoperability issues are one of the key challenges hindering market growth. There is an increasing adoption of advanced technology across various industries, including BFSI, telecom, and public sector firms, resulting in problems of system integration and interoperability. It has become essential to offer unified IT solutions that can be smoothly integrated with the IT infrastructure of organizations.

Moreover, another factor that can significantly contribute to an increase in cost and reduced operational efficiency is technical glitches. The main cause of system integration and interoperability is the updation of merging IT infrastructure with acquired companies. Hence, such factors can negatively impact the market, which in turn will hinder the market growth during the forecast period.

Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Customer Landscape

Market Segmentation By Type

The IT services market is propelled by various factors, including the growing demand for cybersecurity services amidst rising concerns over data breaches and cyber threats. SMEs in the region are increasingly investing in emerging technologies such as artificial intelligence and blockchain to enhance their competitive edge. The healthcare sector and financial sector are significant contributors to IT spending, leveraging technology to improve patient care and financial services. IT talent is in high demand, driving investments in training and development programs. Market players focus on vendor analysis to identify reliable partners and ensure data comprehensiveness and dependability. Enterprises across various industries are key stakeholders, influencing the direction of IT spending in the region. 

The hardware segment is estimated to witness significant growth during the forecast period. One of the main factors that is significantly contributing to the growth of this segment is the rapid growth in the use of mobile devices, such as smartphones and tablets. In addition, there is an increase in demand for phones equipped with VoLTE and 4G due to the increasing adoption of voice-over long-term evolution (VoLTE)(a standard for high-speed wireless communication for cellphones) and 4G standards by network providers.

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The hardware segment was the largest segment and was valued at USD 26.85 million in 2017. Furthermore, the emergence of 5G services in the region will further fuel the demand for 5G-equipped mobile phones. In addition, there is an increase in investments by several telecommunication operators in in 4G and 5G infrastructure. For example, in January 2021, Nokia Corp. and M1 Ltd. partnered with 5G standalone Core to drive Singapore's 5G ecosystem. Hence, such investments are significantly fuelling the growth of this segment. The rising growth of the processing power in smartphones also played a crucial role in the decline of PC sales. Several complicated activities were carried out at ease with enhanced processing power, which comprises gaming and photo editing done on portable devices rather than on PCs. Hence, such factors are fuelling the growth of this segment, which in turn will drive the Southeast Asia IT spending market growth during the forecast period.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Accenture Plc: The company offers IT spending, such as Digital Transformation Consultation and Technology Advisory Services to optimize clients technology investments.    

Acer Inc: The company offers IT spending such as Acer Business Solutions including laptops, desktops, and displays for businesses. 

Alphabet Inc: The company offers IT spending such as Google Cloud Services and Workspace to enhance businesses digital infrastructure. 

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Apple Inc.
• ASUSTeK Computer Inc.
• Broadcom Inc.
• Capgemini Service SAS
• Cisco Systems Inc.
• Cognizant Technology Solutions Corp.
• Dell Technologies Inc.
• HCL Technologies Ltd.
• Hewlett Packard Enterprise Co.
• Infosys Ltd.
• International Business Machines Corp.
• Lenovo Group Ltd.
• Microsoft Corp.
• Oracle Corp.
• Samsung Electronics Co. Ltd.
• SAP SE
• Tata Consultancy Services Ltd.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Type Outlook 
  • Hardware
  • Services
  • Software
• Geography Outlook
  • Southeast Asia
    • Malaysia
    • Singapore
    • Thailand
    • Indonesia
    • Rest of Southeast Asia

Market Analyst Overview 

The market is witnessing significant growth, driven by the healthcare sector, financial sector, hospitality sector and tourism sector leveraging technology to enhance services and efficiency. B2G enterprises, B2B enterprises, and B2C enterprises are key players, contributing to the region's GDP through technology spending and investments in IT services. With the rise in internet users, there's a surge in demand for outsourcing services and IT associations facilitating collaboration and knowledge sharing. Comprehensive research methodologies, including quantitative and qualitative research, ensure data comprehensiveness and thoroughness, guiding vendor selection and strategic decisions.

As the market accelerates, promotions and profit opportunities emerge, reflecting the dynamic nature of market facets and the evolving landscape of technology adoption in Southeast Asia. Further, the vendor selection methodology plays a crucial role in navigating the dynamic landscape. Decision-makers rely on quantitative research to analyze data comprehensively and ensure the thoroughness of research of their assessments. As the market continues to evolve, characterized by rapid advancements and shifting trends, this approach facilitates an agile response to an accelerating market. By embracing quantitative research methodologies, stakeholders gain valuable insights into market dynamics, enabling informed decisions and effective vendor selection strategies to meet the evolving needs of the Southeast Asian IT landscape.

Market Scope
Report Coverage	Details
Page number	147
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.44%
Market growth 2023-2027	USD 33.64 million
Market structure	Fragmented
YoY growth 2022-2023(%)	7.4
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Accenture Plc, Acer Inc., Alphabet Inc., Apple Inc., ASUSTeK Computer Inc., Broadcom Inc., Capgemini Service SAS, Cisco Systems Inc., Cognizant Technology Solutions Corp., Dell Technologies Inc., HCL Technologies Ltd., Hewlett Packard Enterprise Co., Infosys Ltd., International Business Machines Corp., Lenovo Group Ltd., Microsoft Corp., Oracle Corp., Samsung Electronics Co. Ltd., SAP SE, and Tata Consultancy Services Ltd.
Market dynamics	Parent market growth analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the market  size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Southeast Asia
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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