ICT market in Apac to hit $154B in 2008--IDC

ICT market in Apac to hit $154B in 2008--IDC


By Erwin Oliva
INQUIRER.net


MANILA, Philippines -- The information and communications technology (ICT) market in Asia Pacific excluding Japan is expected to reach $154 billion in 2008 and grow at a rate of 10 percent over 2007, market analyst IDC said.

IDC said China and India will continue to contribute close to half of the region's total ICT spending next year.

India is also expected to become the fastest growing economy worldwide in terms of overall ICT spending in 2008 over 2007.

Next year, government spending in ICT is also seen to increase due to "digital inclusion" initiatives and new demands from a more tech-savvy population, Graeme Muller, head of IDC's Asia Pacific predictions committee, said in a statement.

IDC noted that China and India will experience "double digital growth" next year.

"GDP growth rates in China and India are forecasted to range between 9 and 10 percent for both countries in 2008. Increasingly, the small and medium business segment in these two countries is adopting more IT solutions as a strategic business differentiator," IDC said.

Meanwhile, IDC said that "green IT" will emerge more in Asia Pacific in 2008.

"With increasing concerns over global warming and climate changes, the focus has turned to green technologies and environmental protection in the ICT industry. It is not surprising that while corporate social responsibility is an important reason for companies to adopt green IT, the underlying motivation is that of cost savings," the analyst said.

IDC stressed that "the greenness of ICT vendors is going to become more important as purchasing criteria for end-user organizations."

The ongoing "political risk" in emerging markets in Asia Pacific will not hamper ICT growth, IDC said.

IDC has also predicted that the combined ICT spending in the ASEAN ICT market would exceed India, and would become a significant market for ICT investments in 2008.

IDC's predictions for 2008 drew upon latest IDC research and inputs from more than 900 analysts worldwide.