The enterprise ICT revenue opportunity in South Korea is expected to increase at a compound annual growth rate (CAGR) of 6.7% between 2021 and 2026, driven by the country’s advanced ICT infrastructure, widespread 5G network services coverage, increased research and development (R&D) spending, and government assisted digital initiative such as the Digital Government Master Plan 2021-2025, forecasts GlobalData, a leading data and analytics company.
GlobalData’s “South Korea Enterprise ICT Country Intelligence Report” reveals that South Korean businesses continue to embrace digital transformation through implementation of new digital technologies such as AI, cloud computing, and automation, thereby driving the demand for ICT services and products in the country.
Pragyan Tarasia, Technology Analyst at GlobalData, says: “Enterprises’ shift from legacy technology solutions to new digital technologies has accelerated IT modernization with applications and operations being moved to run on cloud environments, prioritizing scalability, agility, and security. This is likely to create a strong demand for ICT products and services from enterprises, thereby driving the enterprise ICT revenue in South Korea over the forecast period.”
Cloud computing – Enticing IT solution area for South Korea’s enterprise ICT market
According to GlobalData’s forecasts, South Korea’s cloud computing IT solutions market is set to witness 12.7% CAGR to reach $11.7 billion in 2026.
Tarasia continues: “To speed up innovation and cut expenses, businesses in South Korea are rapidly adopting cloud as their fundamental platform or switching to it. The progressive shift of enterprises is boosting the growth of the cloud computing market. Furthermore, increased investments towards implementation of cloud-hosted services to run data centers and support high-speed broadband is also expected to support the growth of South Korea’s cloud computing market over the forecast period.”
Manufacturing largest end-use vertical
GlobalData forecasts the manufacturing sector to account for a 14.6% share of the overall cumulative revenue in the overall ICT market in South Korea over the forecast period. ICT revenue from the manufacturing sector is forecast to grow at a CAGR of 6.6% to reach $12.1 billion in 2026.
Tarasia concludes: “Implementation of Industry 4.0 concept makes manufacturing sector the most attractive market for ICT in South Korea. Besides, a sheer volume of activities is forcing manufacturers to embrace a strong IT infrastructure that can deliver agility and scalability to address mission-critical workloads. As a result, the manufacturing sector will see an increase in demand for a variety of IT hardware and software solutions as production activities become more automated with IoT, robotics, and other Industry 4.0 concepts.”
