According to analyst firm Forrester, in 2019 and beyond, Australian firms will invest in technologies, primarily cloud, automation, and AI, that will help them accelerate the delivery of new value for customers.
The Forrester report observes that tech spending in the Asia Pacific has grown significantly in recent years, but will wane in 2019 as “conditions could become stormy in 2020”, with growth of the APAC tech market forecast to slow to 4%.
China is forecast to spend US$256 billion on tech goods and services in 2019, cementing its position as the region’s largest tech market, while India is the fastest growing.
“Discerning chief information officers will continue to accelerate their firms’ business technology investments to help the brand differentiate and keep the revenue engine chugging,” Forrester forecasts.
Additional market forecasts from the Forrester report include:
- Global tech market growth will slow to 4.5% in 2019 and 3.8% In 2020. Slowing economic growth in most countries will cause global tech market growth to slow from the 5% pace of 2018, with India, China, and the US seeing the strongest growth.
- Software and services will post the fastest growth in Asia Pacific. As their tech markets mature, APAC tech purchases will start to shift towards the software and services categories, with software and services purchases growing by 5-7%. Hardware spending strengthened in 2018, but demand will soften in 2019 and 2020, with growth slowing to 4%, while telecom and hardware maintenance spending growth will be more modest.
- Cloud and business technology will grow faster but remain relatively small. Most Asia Pacific markets are not mature enough to support cloud solutions or make the most of business technology (BT). While the various permutations of the public cloud services market — cloud platform services, middleware, and applications — will grow from $18 billion in 2018 to $24 billion in 2020, cloud adoption in AP still lags that of the US and Europe. BT tech purchases in AP will grow by 4% to $104 billion in 2019 and by 5.5% to $110 billion in 2020 – slightly faster than overall tech spending in the region.