The enterprise information and communications technology (ICT) market in Singapore is expected to grow at a compound annual growth rate (CAGR) of 16.3%, driven by a vibrant tech ecosystem with thriving startup scenario, well developed communications infrastructure, and positive IT investment sentiment among enterprises in the country, forecasts GlobalData, a leading data and analytics company.
According to GlobalData’s Singapore Enterprise ICT Country Intelligence Report, the ICT market in Singapore is projected to grow from $66.6 billion in 2023 to $141.5 billion in 2028, aligning well with the positive investment sentiment among enterprises. GlobalData’s 2024 ICT customer insight 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.
Among 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.
Samrat Volam, Technology Analyst at GlobalData, says: “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.
GlobalData forecasts the BFSI sector to continue to dominate the Singapore’s ICT market, accounting for 13.3% of cumulative revenue from 2023 to 2028.
Samrat adds: “The BFSI sector in Singapore is undergoing a significant transformation through the integration of advanced ICT solutions. By adopting technologies such as robotic process automation (RPA), chatbots, and cloud-based platforms, financial institutions are enhancing operational efficiency, minimizing manual errors, and enabling enhanced customer experiences.”
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.
Samrat concludes: “Both large enterprises and micro, small & medium enterprises (MSME) are keen on investing in ICT. However, the fastest revenue growth for ICT will come from MSME segment that is set to witness a 17% CAGR over the forecast period. This growth is driven by increasing adoption of cloud-based solutions, digital payment platforms, and cybersecurity services as MSMEs modernize their operations to remain competitive. Government-led initiatives, such as grants and subsidies offered by the Infocomm Media Development Authority (IMDA) and Enterprise Singapore, are also catalysing digital transformation within this segment.”
