IDC Reports ASEAN IT Spending to Grow 5.9 Percent in 2025
IT spending in ASEAN is expected to grow by 5.9% in 2025, according to the latest IDC Worldwide Black Book: Live Edition. This is a marked slowdown from the strong 15.0% growth recorded in 2024. The moderation in growth comes as the region’s infrastructure sector stabilizes after an exceptional spike in server and storage spending last year, combined with slower device replacement cycles.
The report notes that macroeconomic challenges such as inflation, higher tariffs, and ongoing economic uncertainty are weighing on enterprise confidence across ASEAN. However, these factors are not the only contributors to the slowdown. Many businesses are actively working to protect essential IT investments despite the more difficult environment. Investments in areas such as artificial intelligence, analytics, cybersecurity, and IT optimization continue to be prioritized. Still, the uncertain outlook around tariffs and global trade tensions means organizations are being more selective in their IT budgets, balancing immediate caution with the long-term need for digital transformation.
Despite these pressures, digital modernization in ASEAN is ongoing. There is continued demand for infrastructure and software that supports artificial intelligence. Spending on devices is seeing a small recovery, aided by product refresh cycles and preemptive buying ahead of possible new tariffs. Infrastructure investment surged in 2024, with server and storage spending more than doubling as businesses built out AI-ready data centers. While growth in this area is expected to stabilize, the need for more computing power to run AI and analytics will keep infrastructure investment higher than in previous years.
Software remains the strongest area of growth, with IDC projecting growth in the mid-teens for 2025. Enterprises are increasing their use of AI-powered applications, cloud-native tools, and advanced data platforms to drive innovation and become more agile. Growth in IT services is more moderate, but there is steady demand for cloud migration, managed services, and cybersecurity. Companies are now seeking IT solutions that offer the greatest impact at the lowest cost, reflecting a more careful approach to spending.
