According to research by GlobalData, this growth is attributed to significant revenue contributions from cloud computing, the Internet of Things (IoT), and artificial intelligence (AI), alongside robust demand from the manufacturing, retail, banking, financial services, and insurance (BFSI) sectors.
The company’s recent ICT Customer Insight Survey highlights a robust spending trend, with 92.1% of enterprises reporting increased ICT budgets for 2024 compared to the previous year.
Driving this growth is the IT services segment, which is anticipated to play a pivotal role in Indonesia’s enterprise ICT market. The segment is forecast to grow at a CAGR of 15.3%, reaching USD 48.1 billion by 2028. Notably, 53.2% of surveyed enterprises plan to allocate higher budgets to IT services in 2024 than in 2023, underscoring the segment’s critical role in the country’s digital transformation.
The manufacturing industry is poised to remain the largest revenue-generating, end-use vertical for Indonesia’s ICT market throughout the forecast period. GlobalData projects that manufacturing will account for 12.5% of the cumulative revenue from 2023 to 2028.
The IoT will dominate IT solution revenues, driven by increasing demand for sensor technologies and connected systems across manufacturing, defense, and agriculture. These technologies enable real-time monitoring, improving operational efficiency and security.
Meanwhile, artificial intelligence (AI) is set to be the fastest-growing IT solution segment, with revenues projected to expand at a remarkable CAGR of 49.2% from 2023 to 2028. Rising demand for AI-powered applications in logistics, HR, education, cybersecurity, and customer service is fueling this rapid growth.
