Singapore ICT market to grow to $190.3b by 2028

The market is expected to grow at a CAGR of 16.3%.

The enterprise information and communications technology (ICT) market in Singapore is expected to grow at a compound annual growth rate (CAGR) of 16.3% to $190.3b (US$141b), driven by a vibrant tech ecosystem with a thriving startup scenario, well-developed communications infrastructure, and positive IT investment sentiment amongst enterprises in the country, a forecast report by forecasts GlobalData revealed.

The survey also indicates that 92.6% of the key enterprise ICT decision-makers from the country reported an increase in their enterprise ICT budgets for 2024 compared to the previous year.

Amongst the three IT infrastructure segments—hardware, software, and services—the services segment is anticipated to see the highest cumulative revenue growth over the forecast period.

“The cloud services market in Singapore is expected to grow at a CAGR of 24,8% over the forecast period, driven by the robust adoption of public cloud platforms and enterprise-grade solutions. Government policies, including initiatives encouraging the use of public cloud services in national systems, have significantly bolstered this expansion. Key sectors such as BFSI, energy, and IT are leading this adoption, leveraging cloud services to modernize infrastructure and enhance service delivery,” Samrat Volam, Technology Analyst at GlobalData, said.

The report also forecasts the BFSI sector to continue to dominate Singapore’s ICT market, accounting for 13.3% of cumulative revenue from 2023 to 2028.

Furthermore, the swift uptake of “PayNow” and digital payments within the fintech space is establishing the BFSI sector as a major driver of ICT market growth.