Enterprise IT spending on security, cloud, and data centers is set over the next two years, however increased cybersecurity concerns will continue to drive steady enterprise IT spending growth across Asia, according to a pair of new analyst reports.

Gartner estimates that overall worldwide IT spending will increase 4% this year to $4.4 trillion, with an accelerated 5.5% growth to nearly $4.7 billion in total spend in 2023. That yearly increase will be down from the 9.5% surge witnessed in 2021.

The forecast growth is connected to enterprises needing greater flexibility in their operations. 

“CIOs are accelerating IT investments as they recognize the importance of flexibility and agility in responding to disruption,” Gartner VP John-David Lovelock said in a statement. “As a result, purchasing and investing preference will be focused in areas including analytics, cloud computing, seamless customer experiences, and security.”

The software market will see the biggest surge over the next two year, with spend increasing nearly 10% in 2022, and a further 12% in 2023. IT services will also see robust growth, with investments increasing 6.8% this year, and 8.5% in 2023.

“CIOs anticipate having the financial and organizational ability to invest in key technologies throughout this year and next,” Lovelock said. “Some IT spending was on hold in early 2022 due to the Omicron variant and subsequent waves, but is expected to clear in the near-term."

Specific to cybersecurity, GlobalData forecasts Singapore enterprises will increase their spending at a 9.8% compound annual growth rate (CAGR) between 2020 and 2025, hitting $2.3 billion in yearly investments by mid-decade. Similar to other markets, that surge is on the back of enterprises adjusting to a post-pandemic work environment that includes a hybrid workforce, greater cloud migration, and heightened security threats.

GlobalData Analyst Saurabh Daga also noted strong support from that country's government. Singapore's Cyber Security Agency late last year announced plans to invest in research and development, products, and capabilities within government agencies and enterprises, and cybersecurity workforce training. Last summer, Singapore announced a $37.2 million research program targeted at artificial intelligence (AI) and cybersecurity, having previously committed $719 million over a three-year period to enhance data and security capabilities.

A recent IBM report found that Asia was the most targeted region last year for cyberattacks, experiencing more than one-quarter of the cyberattacks IBM observed globally.  

“In the past year, Singapore witnessed ransomware attacks on some of its major businesses, including Tokio Marine Insurance Singapore and Swire Pacific Offshore,” Daga said in a statement. “Growing exposure to ransomware threats will therefore be a key driver for increased spending on IT security.”