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 2024-2029, driven primarily by rising demand for IT services, especially cloud computing. Supported by policy push and enterprise investment, this growth reflects a clear shift toward digital operations across industries, led by the BFSI sector, reveals GlobalData, a leading intelligence and productivity platform.
GlobalData’s Philippines Enterprise ICT Country Intelligence Report reveals that the ICT market size in Philippines will grow from $21.3 billion in 2024 to $35 billion in 2029, in line with the positive ICT investment sentiment seen among enterprises.
This is put into perspective by the findings from GlobalData’s 2025 ICT customer insight survey*, which reveals that a majority 95.5% of respondents (who are the key ICT decision makers in their respective enterprises) confirmed that there has been an increase in their enterprise ICT budgets in 2025 as compared to 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. The high revenue contribution from IT services is primarily due to high demand and adoption of cloud computing and consulting and integration services.
Pragyan Tarasia, Technology Analyst at GlobalData, says: “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. 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 among the public and private establishments. Advances in connectivity, growing presence of global cloud providers, and expanding data center infrastructure are also driving cloud adoption in the country.”
BFSI is the largest end-use vertical
GlobalData forecasts 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 and will remain so throughout the forecast period, contributing an estimated 14% of the total cumulative revenue from 2024 to 2029.
Tarasia adds: “The BFSI sector in the Philippines is driving substantial growth in the ICT market through the uptake of cloud computing, core banking software, AI, and cybersecurity to enhance operational efficiency, improve customer experience, and strengthen security. Additionally, the rapid expansion of digital banking, fintech platforms, and real-time payment systems is strengthening this trend.”
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 11.6% over the forecast period.
Tarasia concludes: “The Philippine government is strengthening support for MSMEs through the MSME Development Plan 2023–2028, a strategic roadmap designed to build agility and resilience in an innovation-led global economy. In addition, the 2025 National Budget earmarks $16 million (PHP924 million) to accelerate the adoption of innovative technologies that improve competitiveness, efficiency, and product quality, further spurring ICT implementations across the MSME sector.”
*GlobalData’s ICT Customer Insight Survey carried out during H1 2025 highlights survey responses related to ICT investment priorities and budget allocations by enterprises in the Philippines.
