It’s Only Common Sense: Stop Chasing New Customers and Start Keeping the Ones You Have
Driving Innovation: Inner Layer Alignment Methods in PCB Production
Trouble in Your Tank: Metallizing Flexible Circuit Materials—Mitigating Deposit Stress
2025 ASEAN IT Spending Growth Slows to 5.9% as AI-Powered IT Expansion Encounters Post-Boom Normalization
June 26, 2025 | IDCEstimated reading time: 1 minute
According to the IDC Worldwide Black Book: Live Edition, IT spending across ASEAN is projected to grow by 5.9% in 2025 — down from a robust 15.0% in 2024. This deceleration reflects a normalization in infrastructure growth following last year’s extraordinary surge in server and storage spending, alongside softer device upgrading cycles. While macroeconomic headwinds such as persistent inflation, rising tariffs, and broader economic uncertainty continue to pressure enterprise confidence, these are not the sole cause of the downturn.
"Most businesses across ASEAN are focused on safeguarding critical IT investments, even as they face a more challenging economic climate," says Vinayaka Venkatesh, senior market analyst, Data & Analytics, IDC Asia/Pacific. "Areas such as AI, advanced analytics, cybersecurity, and IT optimization remain top priorities. However, with ongoing tariff uncertainties and trade tensions clouding the outlook, organizations will remain selective with their IT spending — balancing near-term caution with the need to advance long-term digital transformation," he added.
Despite these headwinds, ASEAN’s digital modernization continues, underpinned by structural demand for AI-centric infrastructure and software. Device spending is experiencing a modest rebound, supported by product refresh cycles and preemptive purchases ahead of new tariffs. Infrastructure spending surged in 2024, with server and storage investments more than doubling (+108%) as organizations expanded AI-ready data centers. While growth in this segment is expected to normalize, strong demand for compute capacity to support AI workloads and analytics-driven operations will sustain elevated infrastructure outlays into 2025 and beyond.
Software remains the most consistent growth engine. IDC projects mid-teens growth for 2025, as enterprises deepen adoption of AI-powered applications, cloud-native solutions, and advanced data platforms to accelerate innovation and improve agility. IT services, meanwhile, are growing at a more measured pace. Demand for cloud migration, managed services, and cybersecurity remains solid, though enterprises are increasingly focused on high-impact, cost-efficient outcomes amid a backdrop of cautious spending.
Share on:
Testimonial
"In a year when every marketing dollar mattered, I chose to keep I-Connect007 in our 2025 plan. Their commitment to high-quality, insightful content aligns with Koh Young’s values and helps readers navigate a changing industry. "
Brent Fischthal - Koh YoungSuggested Items
Teramount Raises $50M to Address Growing Demand for AI Infrastructure Optical Connectivity
07/31/2025 | PRNewswireTeramount, the leader in scalable fiber-to-chip interconnect solutions for AI, data centers and advanced computing, today announced it has raised $50 million in financing led by new investor Koch Disruptive Technologies (KDT). Existing investors Grove Ventures and several new strategic investors, including AMD Ventures, Hitachi Ventures, Samsung Catalyst Fund and Wistron, joined the round.
Alphabet Boosted by AI, Cloud Demand as Spending Needs Jump
07/24/2025 | I-Connect007 Editorial TeamGoogle’s parent company, Alphabet Inc., said that demand for artificial intelligence products boosted its quarterly sales, and now requires an extreme increase in capital spending to keep up in the AI race, Bloomberg reported. For 2025, the company stated its capital expenditure will be $85 billion—$10 billion more than previously forecast.
Worldwide Server Market Value Will Reach 366 billion in 2025, Representing a 45% Growth Compared to 2024
06/30/2025 | IDCAccording to the International Data Corporation (IDC) Worldwide Quarterly Server Tracker, the server market reached a record $95.2 billion dollars in market value during the first quarter of the year, showing the highest quarterly growth rate ever with 134.1% increase compared to Q1 2024.
L3Harris Receives Contract to Develop Next-Generation Security Processor for US Government
06/02/2025 | L3Harris TechnologiesL3Harris Technologies has been awarded a contract by the U.S. government to develop a next-generation security processor to secure communication devices across the globe.
2025 COMPUTEX Compal Unveils 'The Race is On' Strategy During Forum Session
05/23/2025 | Compal Electronics Inc.As AI models and computing density continue to grow at an exponential rate, the data center industry is entering a new era where cooling capacity has become the next competitive threshold.