Total spending on technology will grow by 9.3 per cent
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India’s tech spending will grow at 13.4 per cent in 2026, down slightly from 13.7 per cent in 2025, according to Forrester’s Asia Pacific Tech Market Forecast, 2026 To 2030.
As Asia Pacific’s fastest-growing market, India is being propelled by rapid cloud adoption and data localisation rules that are driving onshore infrastructure investment. Software investment is also rising as vendors embed AI capabilities into renewal pricing, while domestic enterprise demand continues to be the primary driver of India’s double-digit tech spending growth.
Forrester estimates that the APAC region will spend over $437 billion on acquiring new technology between 2025 and 2030. Total spending on technology will grow by 9.3 per cent, driven by investments in software, services, communications equipment and tech outsourcing, but cost pressures, regulatory fragmentation, tariffs, energy shocks, uneven regional growth, and talent shortages will reduce the real impact of that investment.
Across Asia Pacific, computer equipment will see the strongest growth at 13.7 per cent, boosted by hyperscalers’ investments in AI-optimized data centres and higher hardware prices tied to global component shortages. Software spending will grow 10.7 per cent, with adoption of agentic AI accelerating and vendors incorporating AI-enhanced capabilities into renewal pricing.
“India’s double‑digit technology spending growth is being propelled by a combination of cloud acceleration, regulatory clarity, and strong domestic demand,” said Ashutosh Sharma, Vice President and Research Director at Forrester. “With data localisation shaping infrastructure strategies and enterprises expanding AI‑ready platforms, the priority now is to digitise processes beyond core systems and build scalable data foundations. CIOs that balance compliance requirements with investments in automation and AI‑enabled capabilities will be best positioned to capture this next phase of growth.”
Tech spending is projected to grow 8.6 per cent in Australia, 10.7 per cent in China, and 6 per cent in Singapore in 2026. Across Southeast Asia, growth is expected at 12.5 per cent in Indonesia, 9.5 per cent in Malaysia, 12.3 per cent in the Philippines, 6.8 per cent in Thailand, and 15.4 per cent in Vietnam.
“Asia Pacific’s technology spending momentum remains strong, but the headline growth numbers mask a more complex reality,” said Frederic Giron, VP and Senior Research Director at Forrester.
“CIOs across the region are grappling with software inflation, hardware volatility, and increasing regulatory divergence that directly impact modernisation plans. The conflict in the Middle East adds a new macro headwind — sustained energy cost inflation will compress GDP growth across oil-dependent countries in Asia. The CIOs in those markets should expect IT budgets to come under pressure if the conflict lengthens. To navigate this environment, leaders must shift to highly targeted investments — prioritising automation, AI-enhanced platforms, and modernisation initiatives that deliver measurable productivity gains,” he added.
Published on March 26, 2026
