Finance sector cements dominance over Philippines ICT market

GlobalData says the sector will hold the top end use position through 2029.

The banking, financial services and insurance (BFSI) sector will have the largest end-use vertical for the Philippines’ ICT market in terms of revenue share and will remain so throughout the forecast period.

According to GlobalData, the BFSI will contribute an estimated 14% of the total cumulative revenue from 2024 to 2029.

The broader technology market is projected to grow from $21.3b in 2024 to $35b by 2029.

Enterprise ICT spending in the Philippines is set for strong expansion, with revenue expected to increase at a compound annual growth rate (CAGR) of 10.4% during 2024 to 2029, driven primarily by rising demand for IT services, especially cloud computing.

Amongst the three IT infrastructure segments — hardware, software, and services — the IT services segment is anticipated to see the highest cumulative revenue growth over the forecast period. 

The high revenue contribution from IT services is primarily due to high demand and adoption of cloud computing and consulting and integration services.

“Cloud computing services especially accounted for over 23% of the Philippines’ total ICT services revenue in 2024 and will remain the leading ICT service segment through 2029,” Pragyan Tarasia, Technology Analyst at GlobalData, said in the report.

“This momentum will be supported by government’s Cloud First Policy, acceleration in digital transformation initiatives, and the subsequent increase in the adoption of cloud infrastructure amongst the public and private establishments,” Tarasia added.