The enterprise information and communications technology (ICT) market in the Philippines is expected to grow at a compound annual growth rate (CAGR) of 10.9 percent, driven primarily by IT services, specifically cloud computing and business process outsourcing (BPO) segments, according to GlobalData, a leading data and analytics company.
GlobalData’s Philippines Enterprise ICT Country Intelligence Report shows the country’s ICT market size will increase from $20.9 billion in 2023 to $34.9 billion in 2028, reflecting positive ICT investment sentiment among businesses.
This aligns with findings from GlobalData’s 2024 ICT customer insight survey, which revealed that 85.4 percent of respondents—key ICT decision-makers in their respective enterprises—confirmed an increase in their enterprise ICT budgets in 2024 compared with the previous year.
Among 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.
This is largely attributed to high demand and adoption of cloud computing services and the strong presence of BPO services, both of which are projected to account for nearly 40 percent of the ICT revenue in the country by 2028.
“The Philippines continues to be the preferred destination for BPO services, largely due to its cost-effective labor, skilled and English-proficient workforce,” said Samrat Volam, technology analyst at GlobalData.
“The government’s support through favorable policies and incentives, such as tax holidays and duty-free importation, further strengthens the country’s appeal for IT and IT-enabled services, including BPO services,” said Volam.
GlobalData expects the banking, financial services and insurance (BFSI) sector to be the largest end-use vertical for the Philippines’ ICT market in terms of revenue share, a position it will maintain throughout the forecast period, contributing an estimated 12.8% percent of the total cumulative revenue from 2023 to 2028.
“The BFSI sector in the Philippines is driving substantial growth in the ICT market through the adoption of advanced technologies and digital transformation initiatives,” Volam said.
“The rise of fintech solutions and mobile banking has increased the demand for robust ICT infrastructure and cybersecurity measures. Additionally, the government’s push for digital payments and the establishment of digital banking licenses and a unified QR code payments infrastructure [QRPh] is further accelerating this trend,” he said.
While both large enterprises and micro, small and medium enterprises (MSMEs) are actively investing in ICT, the MSME segment is expected to lead in revenue growth, with a projected CAGR of 12 percent over the forecast period.
“Initiatives like ‘The MSME Development Plan 2023-2028’ that are aimed at boosting the agility and resilience of MSMEs in a dynamic business environment drive growth,” Volam said.
“The plan emphasizes the adoption of technologies such as cloud computing, artificial intelligence, and the internet of things, supported by funding mechanisms like government subsidies, low-interest loans, and fintech collaborations to drive ICT implementation,” he said.
