Philippines ICT - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Philippines ICT Market size is estimated at USD 24.92 billion in 2024, and is expected to reach USD 45.67 billion by 2029, growing at a CAGR of 12.88% during the forecast period (2024-2029).

Key Highlights

• The ICT market is growing rapidly across the country due to increasing spending on hardware and software services. IT investments are growing, and the demand for the ICT market is expected to grow significantly over the next five years. According to the International Trade Administration, Philippine software and software service sales will reach USD 95 million by 2025. Such factors underscore the growth of the country's ICT market.
• Significant growth in private and public investments, increasing consumer spending, and rising demand for cloud services drive the ICT market in the Philippines. In addition, the growing need for greater agility and flexibility in the IT infrastructure drives the need to adopt cloud technology. Such factors positively drive the demand for ICT in the country and are expected to shape the market's future over the forecast period.
• Key players in the ICT market are increasing their spending on system infrastructure maintenance while investing in development, modernization, and enhancement projects. Globalization in this region and the growing need for adopting advanced technologies such as Cloud, IoT, and artificial intelligence are boosting the growth of the market.
• Cyberattacks are expected to continue to rise over the next five years. Advancements in IT operations are expected to prevent cyberattacks in the ICT market. The cloud-based platform and enterprise software provide real-time data, creating greater value for the business, especially in providing remote access. Over the past few years, in the Philippines, Microsoft has launched new offerings and expanded its security services under a new category known as Microsoft Security Experts for large enterprises.
• The modernization of IT infrastructure across various sectors, the adoption of advanced technologies to increase operational efficiency in businesses, and growing advancements in the country's telecom sector will shape the future of the Philippine ICT market. In addition, the launch of new software and hardware by market vendors and growing cloud adoption in the country are expected to foster the growth of the market over the forecast period.

Philippines ICT Market Trends

The Rise in Telecommunication Services is Expected to Drive Market Growth

• The growth in the telecom industry can be attributed to the increasing population and the rising adoption of mobile phones that support 3G, 4G, and 5G services across the country. The telecommunication services in the country majorly include voice, data, and other services provided by the telecom service providers, such as PLDT, Globe Telecom, etc., to support the digital transformations of various industries. Telecommunication services contribute significantly to the growth of the overall ICT market.
• The country is witnessing advancements in emerging technologies, such as augmented reality (AR), virtual reality (VR), artificial intelligence, and machine learning. Such emerging technology trends are expected to escalate the need for better network connectivity requirements in businesses across the country in the coming years and drive the demand for telecommunication services.
• The accelerated rollout of 5G services by major market vendors is positively influencing the demand for telecommunication services in various business sectors. For instance, according to the data from Viavi Solutions, as of April 2023, 105 cities in the Philippines had 5G network coverage, an increase from 98 cities in April 2022.
• In April 2024, Globe Telecom, a major player in the Philippine telecom sector, announced a significant expansion of its 5G network. The company added 41 new 5G sites in the Visayas and Mindanao regions in 2023. By the end of 2023, Globe had bolstered its 5G presence to reach a total of 894 sites. Globe also broadened its 5G roaming alliances, collaborating with 156 partners spanning 82 countries. Such developments are expected to support the growth of telecommunication services in the Philippines over the forecast period.

The IT & Telecom Segment is Expected to Gain Significant Traction Over the Forecast Period

• The IT & telecom segment is expected to positively influence the growth of the ICT market in the Philippines. The growing digital transformation across the country's IT & telecom sector, coupled with the growing rollout of 5G by telecom market vendors, is significantly driving the demand for IT services.
• The telecom sector in the country is rapidly transitioning from 3G/4G services to 5G services, owing to increasing efforts from the country's major telecommunication operators. The telecom authority is making significant investments to boost the coverage of broadband networks in the country. Hardware solutions are expected to witness substantial growth as the country's telecom operators speed up 5G rollouts, which would drive the demand for hardware components to upgrade the passive infrastructure of telecom towers in the country.
• The information and communication sector in the Philippines is witnessing robust growth, propelling the demand for ICT components, including hardware, software, and IT services. In addition, the country's IT sector is growing rapidly with the increasing presence of global market vendors, adoption of advanced technologies, and launch of data centers, coupled with increasing cloud migration in the IT business, driving the ICT market in the country.
• Data from The Philippine Statistics Authority (PSA) revealed that the sector contributed around USD 12.92 billion in GVA, marking a consistent upward trend over recent years. According to the data, the GVA generated from the IT & telecom sector in the Philippines rose significantly from USD 11.52 billion in 2021 to USD 12.92 billion in 2023.

Philippines ICT Industry Overview

The Philippine ICT market is fragmented, with many players operating in it. Several key players in the ICT market are constantly making efforts to bring advancements. A few prominent companies are entering into collaborations and expanding their footprints in developing regions to consolidate their positions in the market. Major market players include Accenture PLC, Cisco Systems, Globe Telecom, and IBM Corporation.

• May 2024: Converge ICT Solutions Inc. partnered with South Korea's NAVER Cloud Corp. to explore the potential of the expanding cloud market in the Philippines. Both companies signed a Memorandum of Understanding (MoU) outlining their intention to explore collaborations utilizing NAVER Cloud's innovative solutions. The aim is to tailor cloud solutions that meet the unique needs of Philippine consumers and businesses through discussions and engagements between the two parties.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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