Asia Pacific’s technology spending is projected to increase by 9.3% in 2026, reaching over $437b between 2025 and 2030, according to Forrester’s latest forecast. This growth is driven by investments in software, services, communications equipment, and tech outsourcing. However, escalating costs and regulatory challenges are expected to dampen the real impact of these investments.
Computer equipment is anticipated to experience the strongest growth at 13.7%, fuelled by hyperscalers’ investments in AI-optimised data centres and rising hardware prices due to global component shortages. Software spending is set to grow by 10.7%, with the adoption of AI-enhanced capabilities accelerating.
Country-specific projections reveal varied growth rates. Australia’s tech spending is expected to rise by 8.6%, reaching nearly $70b (A$110b) in 2026, despite software prices increasing at five times the rate of general inflation. In China, tech spending is forecasted to grow by 10.7%, driven by significant AI infrastructure investments from Alibaba and ByteDance, although traditional enterprise IT spending may slow due to weak domestic demand.
India, the fastest-growing market in the region, is projected to see a 13.4% increase in tech spending, propelled by cloud adoption and data localisation rules. Singapore’s growth is pegged at 6%, hindered by a talent shortage in AI development.
Southeast Asia is also expected to see robust growth, with Vietnam leading at 15.4%, followed by Indonesia at 12.5%, and the Philippines at 12.3%. The region’s digital economy is shifting from user acquisition to monetisation, with digital services income reaching $11b in 2024.
Frederic Giron, Forrester’s VP and senior research director, noted that whilst the region’s tech spending momentum remains strong, challenges such as software inflation, hardware volatility, and regulatory divergence pose significant hurdles. He advised CIOs to focus on targeted investments in automation and AI-enhanced platforms to navigate these challenges effectively.
