{"id":355118,"date":"2025-05-18T18:31:30","date_gmt":"2025-05-18T13:01:30","guid":{"rendered":"https:\/\/www.technologyforyou.org\/?p=355118"},"modified":"2025-05-18T18:31:30","modified_gmt":"2025-05-18T13:01:30","slug":"forrester-evolving-tariff-negotiations-dampen-apac-tech-outlook","status":"publish","type":"post","link":"https:\/\/www.technologyforyou.org\/forrester-evolving-tariff-negotiations-dampen-apac-tech-outlook\/","title":{"rendered":"Forrester: Evolving Tariff Negotiations Dampen APAC Tech Outlook"},"content":{"rendered":"<p><strong><span style=\"font-size: 14pt;\"><i>The original forecast for 6.5% APAC tech spending growth is expected to be revised down by 1\u20132% amid rising uncertainty<\/i>\u00a0<\/span><\/strong><\/p>\n<p><b><span data-contrast=\"auto\">SINGAPORE, May 14, 2025<\/span><\/b><span data-contrast=\"auto\">\u00a0\u2014\u00a0<\/span><span data-contrast=\"none\">Forrester<\/span><span data-contrast=\"auto\">\u00a0initially projected that technology spending in the Asia Pacific (APAC) region would grow by 6.5% in 2025 to reach US$722 billion, up from US$678 billion in 2024 and on par with the growth experienced last year. The imposition of broad-based tariffs by the US, however, is expected to increase technology costs, disrupt supply chains, and dampen overall IT investments across the region. As a result, initial tech spending forecasts now appear optimistic, with heightened uncertainty expected to lower growth by 1 or 2 percentage points, depending on specific country exposure and IT spending categories.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Despite\u00a0<\/span><span data-contrast=\"none\">global volatility<\/span><span data-contrast=\"auto\">, adoption of AI and cloud will continue at a rapid pace and fuel robust spending growth on software and IT services in Asia. India and Vietnam, for example, were initially projected to see tech spending grow by 11% and 10%, respectively. Although these figures may soften under the weight of tariff-related disruptions, both countries are still expected to outperform the regional average \u2014 driven by strong momentum in digital infrastructure and aggressive modernization agendas.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:6,&quot;335551620&quot;:6}\">\u00a0<\/span><\/p>\n<p><strong>According to Forrester\u2019s\u00a0<i>Asia Pacific Tech Market Forecast, 2024 To 2028<\/i><\/strong><span data-contrast=\"auto\"><strong>,<\/strong> the software market is set to grow 10.4% in 2025, with AI and cloud services dominating demand. Growth is especially pronounced in Southeast Asian economies, where digital transformation programs are advancing rapidly. Meanwhile, the\u00a0<\/span><span data-contrast=\"none\">IT services<\/span><span data-contrast=\"auto\">\u00a0category is expected to grow by 6%, propelled by rising demand for hybrid cloud solutions, cybersecurity consulting, and system integration to manage increasing regulatory complexity. While these forecasts were established prior to the latest tariff developments, Forrester believes that the fundamental drivers of growth \u2014 AI, cloud, and digital infrastructure \u2014 remain intact.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><strong>In 2025, Forrester\u2019s optimistic projections of tech spending growth across countries in Asia Pacific are as follows:\u00a0<\/strong><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"5\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">6.6% in Australia.<\/span><\/b>\u00a0<span data-contrast=\"auto\">Totaling nearly A$79 billion (approximately US$52.4 billion) in 2025, investments in cybersecurity, generative AI, and cloud solutions will drive tech spending growth in Australia.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"6\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">7.7% in China.<\/span><\/b><span data-contrast=\"auto\">\u00a0With government initiatives set to boost consumption, bolster economic recovery, and improve technological self-reliance, China\u2019s\u00a0<\/span><span data-contrast=\"auto\">tech spending will reach RMB 1.9 trillion (approximately US$264 billion) in 2025.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"7\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">11% in India.<\/span><\/b>\u00a0<span data-contrast=\"auto\">Fueled by strong enterprise investments, the government\u2019s push for digitalization, and a surge in venture capital funding, India\u2019s tech spending is expected to reach \u20b95 trillion (approximately US$59 billion) in 2025.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"8\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">5.6% in Singapore.<\/span><\/b><span data-contrast=\"auto\">\u00a0With AI rapidly gaining traction across key sectors and the government\u2019s implementation of the Digital Connectivity Blueprint to improve Singapore\u2019s digital infrastructure, the city-state\u2019s tech spending is expected to reach S$25.5 billion (approximately US$19 billion) in 2025.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"5\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;multilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"9\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Strong in Southeast Asia.<\/span><\/b><span data-contrast=\"auto\">\u00a0T<\/span><span data-contrast=\"auto\">ech spending in 2025 will grow by 8.5% in Indonesia, 7.2% in Malaysia, 9.4% in the Philippines, 7.7% in Thailand, and 10% in Vietnam, totaling approximately US$69 billion. The strong growth is due to Southeast Asian governments actively promoting digitization and a growing focus on cybersecurity, with AI playing a key role in enhancing threat detection and online safety.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">\u201cAsia Pacific\u2019s tech spending growth continues to demonstrate the region\u2019s commitment to leveraging technology to build resilience and drive innovation in an uncertain global climate,\u201d said <strong>Frederic Giron, VP and senior research director at Forrester,<\/strong> \u201cbut the immediate economic headwinds and heightened uncertainty stemming from the new tariffs are likely to influence the pace, prioritization, and funding of technology initiatives in the coming months. Business and tech leaders must engage in comprehensive scenario planning to anticipate various outcomes and develop adaptive strategies that ensure organizational resilience.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The original forecast for 6.5% APAC tech spending growth is expected to be revised down by 1\u20132% amid rising uncertainty\u00a0 SINGAPORE, May 14, 2025\u00a0\u2014\u00a0Forrester\u00a0initially projected that technology spending in the Asia Pacific (APAC) region would grow by 6.5% in 2025 to reach US$722 billion, up from US$678 billion in 2024 and on par with the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":22419,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[37377],"class_list":{"0":"post-355118","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-technology","8":"tag-forrester-evolving-tariff-negotiations-dampen-apac-tech-outlook"},"_links":{"self":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts\/355118","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/comments?post=355118"}],"version-history":[{"count":0,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts\/355118\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/media\/22419"}],"wp:attachment":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/media?parent=355118"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/categories?post=355118"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/tags?post=355118"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}