Asia Pacific IT spending forecast to hit USD36bn by 2020

IT spending in the manufacturing sector in the Asia Pacific, ex-Japan, is forecast to reach USD36bn by 2020, a compounded annual growth rate of 5.34% from 2016. The Asia/Pacific (excluding Japan) IT Spending Guide 2016-2020 by International Data Corporation (IDC) measures investments on systems integration, IT outsourcing, application development/deployment, ERM, networking equipment and security at Asia Pacific level across 14 countries and 13 key industries. The forecast showed that spending on IT services will hit over USD14bn by 2020 while software-related spending is expected to grow 6.91%CAGR for the same period and reach over USD12bn. Manufacturing-related initiatives, specifically in China, India and the ASEAN countries, will lead to increases in technology spending to as much as USD29bn by 2020, accounting for or nearly 80% of the region’s IT spending.