Asia Pacific tech spending to grow 9.3% in 2026: Forrester
SINGAPORE, SINGAPORE — Technology spending in the Asia Pacific region is set to surge by 9.3% in 2026, driven by investments in software, services, communications equipment, and outsourcing, according to a new forecast by Forrester Research.
However, rising costs, regulatory fragmentation, and talent shortages may blunt the real impact of these investments.
Country-level growth highlights Asia Pacific opportunities
Forrester estimates that the region will spend more than US$437 billion on new technology between 2025 and 2030.
Computer equipment is expected to see the fastest growth at 13.7%, fueled by hyperscalers’ investments in AI-optimized data centers and higher hardware prices linked to global component shortages.
Software spending is projected to increase 10.7% as vendors embed AI capabilities into contract renewals.
Individual countries are showing varied growth trends. Australia’s technology spending is expected to rise 8.6% to nearly A$110 billion (US$70.6 billion), outpacing the country’s projected 2.2% GDP growth.
China will see 10.7% growth, with AI infrastructure investments exceeding US$70 billion, led by Alibaba, ByteDance, and the Ministry of Industry and Information Technology’s industrial digitalization initiatives.
India, the region’s fastest-growing market, is projected to expand 13.4%, driven by cloud adoption, onshore infrastructure, and rising domestic enterprise demand. Singapore, meanwhile, will grow at 6%, constrained by talent shortages despite strong AI transformation and hyperscaler expansion.
Southeast Asia is also poised for strong growth, with Indonesia at 12.5%, Malaysia 9.5%, the Philippines 12.3%, Thailand 6.8%, and Vietnam 15.4%.
The region’s digital economy is shifting from user acquisition to monetization, with digital services income reaching US$11 billion in 2024, 2.5 times higher than in 2022.
Cross-border QR payment interoperability and Industry 4.0 adoption are accelerating financial digitization and industrial modernization across the region.
Challenges and strategic implications
“Asia Pacific’s technology spending momentum remains strong, but the headline growth numbers mask a more complex reality,” said Frederic Giron, VP and senior research director at Forrester in a press release.
“CIOs across the region are grappling with software inflation, hardware volatility, and increasing regulatory divergence that directly impact modernization plans. The conflict in the Middle East adds a new macro headwind — sustained energy cost inflation will compress GDP growth across oil-dependent countries in Asia. The CIOs in those markets should expect IT budgets to come under pressure if the conflict lengthens,” Giron added.
For the outsourcing industry, the forecast underscores opportunities for IT service providers to play a strategic role in modernization.
Companies seeking to navigate rising costs and regulatory hurdles may increasingly turn to specialized outsourcing partners for AI integration, cloud deployments, and automation initiatives.
As Forrester notes, leaders must prioritize investments that deliver measurable productivity gains — an area where skilled outsourcing firms are well-positioned to add value across the Asia Pacific.
