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RESEARCH, ANALYSIS & TRENDS

Despite headwinds, ICT spending

grows by 3.8% in Asia Pacific

mained strong. The ongoing supply chain constraints,
geopolitical tensions, rising inflation, weakening of local
currencies against the US dollar, and a resurgence of
infections in pockets continue to impede economic re-
covery post-COVID-19. Tightening monetary policy to
manage rising inflation in the region is driving an in-
creased risk of economic slowdown and poses solid
headwinds for ICT spending growth in the next 18
months.

"ICT Spending in the region has moved from exuberant
growth last year to that of strategic growth," says Vinay
Gupta, Research Director, IT Spending Guides, IDC
According to the latest release of IDC, Worldwide Asia/Pacific. "Technology budgets are stable as of now.
ICT Spending Guide Enterprise and SMB by However, leaders will place greater scrutiny on technol-
Industry, spending is expected to grow by over ogy investments as they represent a much larger share
3.8% in 2022, reaching $1.4 Trillion by 2026 with of spend and also to allow them sustainable business
a compound annual growth rate (CAGR) of 5.2% growth," he adds.
by the end of 2026.
Asia/Pacific is home to a mixed bag of countries. Sin-
Consumer technology spending in Asia/Pacific is hit, gapore, South Korea, India, Thailand and Taiwan are,
with growth slowing in 1H2022. However, enterprise e.g., net importers of energy and commodities and are
technology spending, including service providers, re- facing the brunt of increased imported inflation due to

September 2022: Mobile Marketing 5