Forrester’s initial projections indicate that technology spending in the Asia Pacific (APAC) region is expected to grow by 6.5% in 2025, reaching US$722 billion, up from US$678 billion in 2024.
However, the looming threat of tariff negotiations is a significant concern. It is anticipated that these negotiations will escalate technology costs, disrupt supply chains, and consequently, dampen overall IT investments. This could potentially result in a 1-2 percentage point decrease in growth.
“Asia Pacific’s tech spending growth continues to demonstrate the region’s commitment to leveraging technology to build resilience and drive innovation in an uncertain global climate,” said Frederic Giron, VP and senior research director at Forrester, “but the immediate economic headwinds and heightened uncertainty stemming from the new tariffs are likely to influence the pace, prioritisation, and funding of technology initiatives in the coming months.”
APAC tech outlook
Forrester’s Asia Pacific Tech Market Forecast, 2024 To 2028 reveals that the software market will grow 10.4% in 2025. AI and cloud services dominate the demand.
The IT services category is expected to grow by 6%, driven by rising demand for hybrid cloud solutions, cybersecurity consulting, and system integration to manage the increasing complexity of regulations.
As the market faces these uncertainties, it is crucial for Business and tech leaders to engage in comprehensive scenario planning. This will enable them to anticipate various outcomes and develop adaptive strategies that ensure organisational resilience, as Giron advises.
