Market Trends of Asia-Pacific IT Services Industry
This section covers the major market trends shaping the Asia-Pacific IT Services Market according to our research experts:
Growing Demand for Cloud Services
- The IT services market is gaining traction with advanced technology, such as cloud computing. Artificial intelligence is also extending its application across the end-user segment, fueling market growth over the next five years. For Instance, Keppel Data Centers Holding (Keppel DC) has announced a collaboration with AsiaPac Technology (AsiaPac, a wholly-owned subsidiary of M1 Limited), which will offer Keppel DC's clients access to hybrid and multi-cloud services effectively and rapidly support their business's changing needs.
- Increased cloud adoption will result in a higher volume of data generation and, as a result, a higher need for data storage and processing. For Instance, Alibaba Cloud has pledged to invest USD 1 billion in enhancing ecosystem capabilities while displaying new products and comprehensive customer support for complete services.
- Philips launched the HealthSuite System of Engagement with new AI capabilities to accelerate the digitalization of healthcare. HealthSuite System of Engagement is a comprehensive set of capabilities leveraging intelligence in dynamic workflows, securely harnessing the power of data across the health continuum. New HealthSuite AI capabilities include cloud-based managed AI workflow and DICOM interoperability in a secure environment. Such initiatives in the healthcare sector would drive more demand for the IT services market.
- During the COVID-19 pandemic and post-COVID-19 scenario, most people preferred the work-from-home model, thus creating more demand for cloud-based services. Key players in the market are now concentrating on expanding their cloud computing services that support 5G networks.
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India is Expected to Register Significant Market Growth During the Forecast Period
- The growing adoption of cloud computing in India, increasing internet penetration, data center construction, government regulations for data generated in the country, and growing investment by foreign players are some of the major factors driving the demand for the IT services market in India.
- According to the National Broadband Plan conceived by the Federal Communications Commission (FCC) in India, the healthcare industry can save around USD 700 billion in the next 15-20 years with remote patient monitoring technology. Such advancement in the healthcare industry will create new growth opportunities for the IT services market.
- The growing adoption of cloud-based solutions and services for the storage of critical information of customers and the increasing number of cyberattacks are driving the demand for cloud-based services in the BFSI segment. For Instance, Oracle offers a local cloud in India to drive growth in the banking sector. Oracle has clients such as Axis Bank, ICICI Bank, Federal Bank, Kotak Mahindra Bank, and SBI Card.
- Data center construction is growing in India and thus increases demand for the IT services market. For Instance, Microsoft plans to construct its fourth data center in India at Hyderabad, Telangana, which will be operational by the end of 2025. The corporation intends to invest over Rs 15,000 crore over 15 years in building this data center.
- According to NASSCOM, the data center construction investment is growing, and by 2025 data center construction investment is expected to reach USD 4.6 billion. Such investment activities would create more demand for the IT services market over the next five years.
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