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APeJ’s education sector tech spending to reach US$11.8 billion by 2020

Adrian M. Reodique | Sept. 28, 2017
Artificial intelligence, mobile, cloud computing, and Internet of Things are expected to push the growth.

Credit: Storyblocks 

Technology spending on the education sector in the Asia Pacific excluding Japan (APeJ) region will grow at a compound annual growth rate (CAGR) of 3.86 percent to reach US$11.8 billion by 2020, up from US$9.8 billion in 2015 .

According to IDC Asia/Pacific (excluding Japan) Education Sector IT Forecast, 2015-2020, the growth will be pushed by several technologies such as artificial intelligence, mobile, cloud computing, and Internet of Things (IoT)

"Developments in artificial intelligence and mobility solutions through the growth of big data and analytics (BDA) technologies will likely boost personalisation in education e-services. Also, innovative deployments of Internet of Things (IoT) technologies are expected to increase overall campus strategic operational effectiveness," said Shreyashi Pal, market analyst, IDC Government and Education Insights Asia Pacific.

"Central education organisations will leverage the cloud to further all-of-organisation agendas in cost savings and operational efficiencies through increased cloud-related IT consolidation and shared services initiatives," added Jaideep Thyagarajan, senior market analyst at IDC Australia.

For this year, IDC expects China's education sector to account for the highest technology spending in the region, followed by Australia, India, and Korea. These countries are also likely to spend most on hardware, software, and IT services.

Meanwhile, Indonesia's education sector has recorded the highest CAGR on technology spending with an estimated 8 percent. It is followed by China (7 percent), Thailand (5 percent), Philippines and South Korea (both with 4 percent).   

In terms of technology areas where schools spend the most, hardware (e.g. desktop and portable PCs) is forecasted to remain as a critical investment component especially in Australia, India, South Korea, and China.

IDC also pointed software and IT application as areas where educational institutions spend their technology budgets on.  

"The strategic use of IT in increasingly personalised curricula, blended learning environments, collaborative ecosystems, as well as Smart Campus initiatives for operational excellence are expected to lead to new technological sourcing, and management and accountability models to cater to the diverse needs of individual learners, teaching staff and campus administrative teams," explained Gerald Wang, head of IDC Government and Education Insights Asia Pacific. 


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