Gartner: APAC IT spend to grow 5.5 percent in 2014

The region's tech expenditure is expected to hit US$767 billion next year, as companies gear up to tap opportunities created by a "Digital Industrial Economy", according to Gartner.

IT spending in the Asia-Pacific region is forecast to rise 5.5 percent in 2014 to reach US$767 billion and hit US$933 billion in 2017, according to Gartner research.

APAC IT spend is forecast to grow 5.5 percent in 2014 to reach US$767 billion.

Much of the budget will be shaped to address the opportunities being created by a digital world, said Peter Sondergaard, senior vice president at Gartner and global head of Research in a press release.

"This results in every budget being an IT budget ; every company being a technology company; every business is becoming a digital leader; and every person is becoming a technology company. This is resulting in the beginning of an era: the Digital Industrial Economy," explained Sondergaard.

He added the Digital Industrial Economy will be built on the foundations of the " Nexus of Forces ", which includes a confluence and integration of cloud, social collaboration, mobile and information, and the Internet of Everything.

"Digitalization exposes every part of your business and its operations to these forces. It is how you reach customers and constituents; how you run your physical plant; and how you generate revenue or deliver services. Enterprises doing this today are setting themselves apart and will collectively lead the new Digital Industrial Economy," said Sondergaard.

In China , spending is forecast to grow 6.7 percent in 2013 and accelerate to 8.7 percent growth in 2014, mainly powered by the expanding middle class. Major IT drive will come from the automation of health, banking, government, communications and manufacturing, and wiill represent the greatest opportunities for technology vendors in the next five years, according to Gartner.

Connected devices to drive revenue opportunities

The total economic value add for the Internet of Things will be US$1.9 trillion dollars in 2020, benefiting a wide range of industries, such as healthcare, retail, and transportation, forecasts Gartner.

It noted that in 2009, there were 2.5 billion connected devices with unique IP addresses to the Internet, most of these were devices people carry such as cell phones and PCs. In 2020, the number will rise to 30 billion devices, which will mostly be products such as jewelry and clothing.

"In the technology and telecom sectors, revenue associated with the Internet of Things will exceed US$309 billion per year by 2020," said Sondergaard.

Earlier this month, IDC forecasted the Internet of Things technology and services to be a US$8.9 trillion market in 2020 with 212 billion connected products.