Asia Pacific cloud spending to reach $219.3Bn by 2027
SINGAPORE, SINGAPORE – The Asia Pacific region is witnessing an unprecedented surge in public cloud and software investments, defying global economic uncertainties.
According to the IDC Worldwide Software and Public Cloud Services Spending Guide, public cloud services spending in the region is projected to reach a staggering $219.3 billion by 2027, with on-premises and other investments accounting for an additional 30%.
Digital transformation fuels cloud adoption
This remarkable growth, with a compounded annual growth rate (CAGR) of 14.2% by 2027, highlights the region’s strategic focus on digital transformation and technological innovation.
Businesses are increasingly adopting cloud environments for their agility, scalability, and cost-effectiveness, driven by the demand for data analytics, cybersecurity, and AI solutions.
Mario Allen Clement, Associate Research Manager, Data and Analytics at IDC Asia/Pacific, emphasizes the significance of this dual-pronged growth:
“As Asia Pacific strategically invests in public cloud and software, a message rings clear: Innovation is not a choice but a necessity for weathering global uncertainties and emerging as digital leaders. Those who harness technology effectively will be best positioned to shape the region’s bright digital future.”
Overcoming barriers to cloud adoption
While challenges such as data security, network limitations, lack of internal expertise, desire for control, and upfront costs persist, cloud providers are actively addressing these concerns.
By boosting security, improving network infrastructure, offering training and support, providing hybrid/multi-cloud options, and implementing flexible pricing models, providers are paving the way for increased cloud adoption across the region.
Top industries driving cloud growth
The top 10 industries capturing 60% of the total market in Asia Pacific include:
- Software and Information Services
- Banking
- Telecommunications
- Industrial and Other Manufacturing
- Federal/Central Government
- Retail
- High Tech and Electronics
- State/Local Government
- Education
- Automotive
Despite challenges like affordability and infrastructure gaps, the Asia Pacific region is embracing the cloud at an unprecedented rate.
This strategic shift, driven by diverse industries and supported by governments and providers, positions the region for sustainable growth and a competitive edge in the global digital landscape.
In-depth market intelligence
The IDC Worldwide Software and Public Cloud Services Spending Guide provides a comprehensive analysis of public cloud computing purchases across 28 industries, five company sizes, eight regions, and 47 countries.
This industry-leading research aims to help IT decision-makers understand the industry-specific scope and direction of public cloud services spending.
