Business
Forrester: Evolving Tariff Negotiations Dampen APAC Tech Outlook
Forrester (Nasdaq: FORR) initially 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 unc
About this update from Forrester Research, Inc.
[{"type":"text","content":"The original forecast for 6.5% APAC tech spending growth is expected to be revised down by 1–2% amid rising uncertainty","length":119,"tagName":"p","attribs":{}},{"type":"text","content":"SINGAPORE, May 14, 2025 /PRNewswire/ -- Forrester (Nasdaq: FORR) initially 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.","length":669,"tagName":"p"},{"type":"image","alt":"(PRNewsfoto/Forrester)","displaySize":"","headline":null,"caption":"(PRNewsfoto/Forrester)","className":"","disableSlideshowImg":false,"size":{"original":{"width":400,"height":64,"url":"https://media.zenfs.com/en/prnewswire.com/a2f8143fb509b5aa695c77166d8b6472"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/l2mjXK12ohSNHoVChDv6PQ--/YXBwaWQ9aGlnaGxhbmRlcjt3PTcwNTtoPTExMztjZj13ZWJw/https://media.zenfs.com/en/prnewswire.com/a2f8143fb509b5aa695c77166d8b6472","width":400,"height":64}},"href":"https://mma.prnewswire.com/media/2094120/forrester_Logo.html","hrefExternal":true,"rel":"nofollow"},{"type":"text","content":"Despite global volatility, 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 — driven by strong momentum in digital infrastructure and aggressive modernization agendas.","length":506,"tagName":"p"},{"type":"text","content":"According to Forrester's Asia Pacific Tech Market Forecast, 2024 To 2028, 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...