Report ID: PMRREP34690
Number of Pages: 165
Format: PPT*, PDF, EXCEL
Industry: IT and Telecommunication
Published Date: July-2024
The Asia Pacific IT Services market is estimated to reach a valuation of US$410 Bn by the year 2031, at a CAGR of 11%, during the forecast period 2024-2031.
Key Highlights of the Market
|
Market Size (2024) |
US$365 Bn |
|
Market Size (2031) |
US$410 Bn |
|
Forecast Growth Rate (CAGR 2024 to 2031) |
11% |
|
Historical Growth Rate (CAGR 2018 to 2023) |
8.2% |
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The primary factor driving the market is the increasing demand for cloud-based services. Around 97% of businesses in the Asia Pacific region have either adopted or are intending to adopt at least two cloud infrastructure providers, and 35% are using four or more, according to a study commissioned by Oracle that involved 1,500 enterprises.
To reduce capital expenditure and optimize operations, an increasing number of organizations are adopting Infrastructure as a Service (IaaS) in place of maintaining on-premises data centres. Furthermore, it is anticipated that Software as a Service (SaaS) will experience steady growth by 2031, as the model assists organizations in the transformation of applications into scalable modules and the optimization of their processes and operations.
The growth of the Asia Pacific IT services market is anticipated to be driven by the widespread use of digital payments and the introduction of advanced technologies such as AI, cloud computing, and blockchain technology in the end-user industries over the next five years.
In recent years, the healthcare IT market has been significantly influenced by the increasing popularity of remote healthcare and wearable devices in this sector. The primary market trends in wearable connected devices include the growing demand for wearable devices that address pain management, the increasing use of wearables for cardiovascular disease management, and other factors.
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In 2019, the Asia Pacific IT services market laid the foundations for its subsequent expansion. The APAC region benefited from a growing adoption of cloud computing, cybersecurity solutions, and digital infrastructure upgrades.
Countries such as China, India, Japan, and Australia emerged as key contributors, leveraging their large consumer bases and expanding enterprise ecosystems. The years 2022 and 2023 marked a period of sustained expansion and innovation in the market.
Businesses increasingly invested in advanced technologies such as AI, IoT, and blockchain to gain competitive advantages and improve service delivery.
The Asia Pacific region witnessed continued growth in outsourcing services, digital consulting, and IT project management as enterprises sought to optimize costs and enhance agility.
Throughout the period from 2019 to 2023, the market evolved dynamically, driven by technological advancements, regulatory changes, and shifting consumer preferences.
Looking ahead, the market is poised for further growth, fuelled by the rise of digital transformation initiatives, the proliferation of smart devices, and the increasing adoption of cloud-based solutions.
Key sectors such as finance, healthcare, retail, and government are expected to lead the demand for IT services, presenting lucrative opportunities for the Asia Pacific IT service market companies.
Digital Transformation Initiatives
Businesses and governments alike are on the verge of embarking on ambitious digital transformation journeys across the Asia Pacific region. This shift in paradigm is being driven by the necessity to improve client experiences, increase operational efficiency, and maintain competitiveness in an economy that is becoming increasingly global.
In order to modernize old systems, implement cloud computing solutions, and incorporate advanced analytics to harness big data for strategic decision-making, organizations are actively investing a significant amount of money in information technology services.
Expansion of Cloud Computing
Cloud computing has become a fundamental element of digital transformation initiatives in the Asia Pacific IT services market. Organizations are progressively transferring their infrastructure and applications to cloud platforms to attain scalability, adaptability, and cost-effectiveness.
The use of cloud services is motivated by the necessity for remote work capabilities, solutions for disaster recovery, and the capacity to utilize advanced technologies like AI and machine learning without substantial initial expenditures in IT infrastructure.
Increased Focus on Cybersecurity
Due to the increasing danger posed by various threats and the need to comply with regulations, enterprises in the Asia Pacific region have made cybersecurity a top concern. The increasing occurrence of cyberattacks and data breaches has raised awareness regarding the significance of strong cybersecurity measures.
As a result, businesses are allocating resources to IT services that provide extensive cybersecurity solutions, such as identifying threats, evaluating vulnerabilities, and responding to incidents, to protect their digital assets and uphold customer confidence.
Data Privacy and Regulatory Challenges
Data privacy and regulatory challenges represent a critical restraint for the Asia Pacific IT services market. As digital transformation accelerates across the region, concerns about data security, privacy breaches, and regulatory compliance have intensified.
The Asia Pacific region comprises diverse countries with varying levels of data protection regulations and cybersecurity laws. This regulatory fragmentation poses challenges for multinational corporations (MNCs) and IT service providers operating across different jurisdictions.
Compliance with multiple regulatory frameworks increases complexity and operational costs. Several countries in the Asia Pacific, including China, India, and Vietnam, have implemented or proposed data localization laws.
These regulations mandate that certain types of data must be stored within national borders, which can restrict the cross-border flow of data and impose additional compliance burdens on businesses.
The General Data Protection Regulation (GDPR) in Europe has also influenced data protection standards globally, including in Asia Pacific. Organizations that handle the data of European citizens must comply with GDPR requirements, which involve implementing stringent data protection measures and reporting obligations.
Heightened awareness among consumers regarding data privacy has led to increased scrutiny of how organizations collect, use, and store personal data.
Any perceived mishandling of consumer data can result in reputational damage and legal repercussions for IT service providers.
Digital Transformation
Digital transformation remains a primary driver of growth in the Asia Pacific IT services market. As industries across the region continue to embrace digitalization, there are significant opportunities for IT service providers to offer transformative solutions that enhance operational efficiency, improve customer experiences, and drive business agility.
IT services tailored to specific industries such as finance, healthcare, retail, manufacturing, and government are in high demand. Solutions that integrate AI, IoT, blockchain, and cloud computing can help organizations streamline processes, optimize supply chains, and innovate product offerings.
Governments in the Asia Pacific are investing heavily in smart city initiatives and digital infrastructure projects. IT service providers can capitalize on opportunities to deploy IoT sensors, AI-powered analytics, and cybersecurity solutions to create sustainable, efficient urban environments.
Emerging Technologies
Asia Pacific is a hotbed of innovation and entrepreneurship, offering opportunities for IT service providers to collaborate with start-ups and enterprises in developing and commercializing emerging technologies.
Blockchain technology is being explored for applications beyond cryptocurrency, including supply chain transparency, secure digital identities, and decentralized finance (DeFi).
IT service providers can partner with organizations to implement blockchain solutions that enhance trust, transparency, and efficiency in transactions.
The rollout of 5G networks in the Asia Pacific is set to accelerate the adoption of IoT devices and applications.
Asia Pacific IT service providers can capitalize on opportunities to deploy IoT solutions that leverage high-speed connectivity for smart manufacturing, connected vehicles, and smart city initiatives.
Reactive IT Services segment accounts for 55% of the market share.
|
Market Segment by Approach |
Market Value Share 2023 |
|
Reactive IT Services |
55% |
Based on approach, the Asia Pacific IT Services market is further segmented into reactive IT services and proactive IT services, where the former dominates the market share.
These services are projected to experience a substantial CAGR throughout the projection period. Organizations are increasingly investing in reactive IT services to prevent revenue and productivity losses caused by downtime, which is driving the expansion of this segment.
In 2023, the proactive IT services sector had a significant market share and is expected to experience the highest growth rate throughout the forecast period. Proactive IT services assist firms in maximizing the efficiency of their IT resources and operations, strengthening security measures, and enhancing the overall customer experience.
Furthermore, these services have a crucial function in maintaining adherence to regulatory laws and maximizing cost efficiency. The anticipated advantages linked to this segment are projected to stimulate the demand for the IT services over the forecast period.
Artificial Intelligence & Machine Learning segment dominates the market with 60% of the market share.
|
Market Segment by Technology |
Market Value Share 2023 |
|
Artificial Intelligence & Machine Learning |
60% |
Based on technology, the Asia Pacific IT services market is further sub-segmented into AI & ML, and Big Data Analytics. The former maintains a dominant position in the market.
The ability of AI & ML to analyse large datasets, extract meaningful insights, and improve decision-making is driving enterprises to adopt AI & ML to optimize operations and enhance customer experience.
In 2023, big data analytics had a major portion of the market and is expected to experience a substantial CAGR throughout the forecast period. Data manipulation by both companies and public entities is becoming more widespread in the region.
Following the pandemic outbreak, public organizations in Southeast Asia adopted the utilization of big data, as reported by the Asian Development Bank. This enabled them to effectively handle and analyse large datasets, transforming them into important insights.
China Leads the Way in IT Services Adoption
In 2023, China had a strong presence in the Asia Pacific IT services market and is projected to see significant growth at a high CAGR throughout the forecast period.
The rapid expansion of AI in the country is a crucial driver of the nation's market growth. Stanford University's AI Index rated the country among the top three nations for global AI vibrancy in 2021.
The AI Index evaluates developments in the field worldwide using many parameters, including development, research, and economy, among others.
India Emerges as a Lucrative Market
In 2023, the Indian market accounted for 19.0% of the market share in the Asia Pacific IT services industry. It is projected to experience the highest growth rate among all countries during the forecast period.
The nation is now observing notable advancements in the field of artificial intelligence. Invest India estimates that the value of the Indian AI market will reach US$10 Bn by 2031.
Additionally, the Indian Brand Equity Foundation, an initiative by the Ministry of Commerce and Industry, predicts that the revenue generated by India's public cloud services market will see a healthy CAGR
February 2024
Sabre GLBL Inc. announced the introduction of PowerSuite Cloud in the Asia Pacific region. The company's solution, available in other areas, allows for the automation of operations, the acquisition of real-time business information, and the enhancement of client services.
February 2024
PT Telkom Indonesia (Persero) Tbk., a government-owned corporation, and Huawei Technologies Co., Ltd. unveiled a comprehensive package specifically designed for small and medium-sized businesses in the area.
November 2023
Huawei Technologies Co., Ltd., and PT XL Axiata Tbk. jointly introduced the iMaster NCE Network Digital Map for commercial use. The product primarily facilitates traffic optimization, enhances bandwidth efficiency, and provides automatic load balancing, among other advantages.
The Asia Pacific IT services market is characterized by robust competition and dynamic growth opportunities, driven by technological advancements and increasing digital transformation initiatives across industries.
Key players in the market are continuously innovating and expanding their service portfolios to cater to diverse client needs and capitalize on emerging market trends.
Alongside global giants, there are numerous regional and local IT service providers that cater to niche markets and local business needs. These players often possess strong knowledge of local regulations, cultural nuances, and customer preferences, giving them a competitive advantage in specific geographic areas.
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Attributes |
Details |
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Forecast Period |
2024 – 2031 |
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Historical Data Available for |
2018 – 2023 |
|
Market Analysis |
US$ Billion for Value |
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Key Countries Covered |
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Key Companies Profiled |
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Pricing |
Available upon request |
By Approach
By Technology
By Deployment
By End Use
By Region
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The market is estimated to exhibit a CAGR of 11% during the forecast period.
The Asia Pacific IT Services market is segmented based on approach, technology, deployment and end use.
Avaya, Cisco Systems Inc., DXC Technology Company, Fortinet Inc., Hewlett Packard Enterprise Development are some of the major key companies in the market.
IT & telecom are the dominant end use segment.
Some of the leading companies in this industry are IBM Corp, Avaya, Cisco Systems Inc., DXC Technology Company, Fortinet Inc., and Hewlett Packard Enterprise Development LP.
