Asia Pacific enterprise tech spending led by semiconductor players

Asia Pacific will contribute more than half of a 1.7ppt nominal growth acceleration in global US$-measured tech spending in 2025. In real terms, regional spending growth is set to slow to 7.6% from 10.2% in 2024. Still, the growth is faster than in Europe (4.3%) and Americas (5.1%).

What you will learn:

• Fastest growth among economies in the region in 2025 will be in Taiwan, South Korea, and China. Across all three economies, the largest purchases of devices are from manufacturers of electronic and optical products, illustrating that much of the device purchase is used in production, rather than for final consumption. Asia’s role as a large producer of electronics means its spending on this area of enterprise tech often reflects demand elsewhere and is highly cyclical.
• Tech spend in Australia, Japan, and India reflects final demand rather than intermediate consumption. Growth in Australia and Japan are driven by spending on communication, IT services, internet, and cloud computing. In India, digitalisation plays a substantial role, with telecommunication spending accounting for a significant share of future growth. Moreover, split between capital and operating expenditure suggests India is ramping up digital investment.
• The prominent role of device spending and the sector’s cyclicality mean Asia’s tech spending is highly exposed to risks. If the speed of AI adoption proves slower than expected, demand for semiconductors could be suppressed. Meanwhile, uncertainties over US-China rivalry could disrupt supply chains, which would hit China harder but impact the entire region.