APAC IT spending growth slows amid rising costs

Despite the expected growth in APAC IT spending through 2030, rising costs and regulatory pressures are likely to diminish its real impact. According to Forrester, companies across the region will spend more than $437 billion on technology, with annual growth of 9.3%. However, this headline growth masks deeper challenges affecting enterprise purchasing power and return on investment. 

Cost inflation is a major constraint. Software pricing is rising as vendors embed AI capabilities into contracts, while hardware volatility and supply chain disruptions are increasing infrastructure costs. At the same time, geopolitical tensions and energy shocks are adding new pressure, particularly in oil-dependent economies where rising energy costs may slow GDP growth. 

Regulatory fragmentation is also reshaping the market. Data sovereignty rules, tariffs, and local compliance requirements are forcing companies to rethink deployment strategies and invest more heavily in localised infrastructure. This is particularly evident in markets like India, where data localisation drives cloud and data center expansion. 

Despite these challenges, growth remains uneven across the region. China’s IT spending is projected to grow 10.7%, driven by large-scale AI infrastructure investments, while India leads with 13.4% growth due to strong domestic demand and cloud adoption. Southeast Asia is also expanding तेजी, with countries like Vietnam and Indonesia seeing double-digit growth. 

• Rising software and hardware costs are reducing real IT value  

• Regulatory and geopolitical pressures are reshaping investment strategies  

• Growth is strongest in India and Southeast Asia  

• AI and automation remain priority investment areas  

The shift for CIOs is clear. Rather than broad spending increases, organizations must prioritize targeted investments in AI, automation, and modernization that deliver measurable productivity gains. In 2026, APAC IT spending growth will depend not just on how much companies invest, but how effectively they manage cost, risk, and regional complexity. 

 

Source: 

https://www.itnews.asia/news/rising-costs-and-regulations-will-put-a-dampener-on-apac-it-growth-624798