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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.
