The Asia Pacific tech market will grow at 4.5% in both 2014 and 2015, according to a newly released report by Forrester analysts Andrew Bartels and Frederic Giron.
This year, the tech market in the region will be US$516 billion, and this equals to the value of Western and Central Europe tech market.
This amount accounts for about one-quarter of the global tech market spending. Although the growth is predicted in this region, it will be unevenly spread across different nations.
Forrester predicts all the Asia Pacific economies to grow by about 2.5% in local currency terms adjusted for inflation in 2013, 2014, and 2015 due to this uneven growth pattern.
This growth is much slower than the growth rates of more than 4% in 2006, 2007, or 2010.
Fastest growth regions
Both China and India are predicted to grow by 7% or more. Japan that remains the largest tech market in the region (US$211 billion) and Australia are forecasted to grow by 2% to 3%.
At US $125 billion, China is the second largest tech market in the Asia Pacific region.
The fastest growth in Asia Pacific will be in the software and service segment (6%). Growth in computer and communications equipment will rise by 4% to 5%.
Forrester has projected tech purchases to rise by the rates of 4.5% in 2014 and 4.6% in 2015 indicating the moderate average overall economic growth in the Asia Pacific region.
More developed nations including Australia, New Zealand, Singapore, and South Korea will invest in a variety of software to automate business processes and add analytics to get better business results.
Although the IT outsourcing market in most Asian countries is small, it will grow by 6% in 2014, especially in Japan.