Future of work spending in Asia Pacific to reach US$196.2 billion by 2026, says IDC

Joseph Tsai, DIGITIMES Asia, Taipei 0

Credit: AFP

According to a recent IDC Asia Pacific, excluding Japan, Future of Work (FoW) market forecast, 2022-2026, Asia Pacific excluding Japan FoW spending is forecasted to grow at a CAGR of 18.4% and reach US$196.2 billion by 2026.

IDC expects APeJ FoW spending to grow at an over-year rate of 19.9% in 2023 compared to 21.5% in 2022. Despite the slowdown of the growth rate, the total spending of the market continues to increase over the forecasted period.

IDC defines the FoW as a fundamental change to the work model to one that fosters human-machine collaboration, enables new skills and worker experiences, and supports a reimagined physical and borderless digital workspace.

This IDC market forecast presents spending forecasts from 2022 to 2026 for the three pillars (space, augmentation, and culture) that make up the Asia Pacific FoW market. The total spending in all three segments of the market is estimated to have reached US$99.8 billion in 2022.

With the widespread adoption of hybrid work, organizations are investing in devices and enterprise applications to foster a better workplace and improve productivity. Furthermore, tech spending is expected to accelerate due to investments in workplace augmentation to achieve better customer and employee experience.

The "robotics and drone technology" category has the largest spending in the work augmentation market accounting for more than 50% of the augmentation spending in 2023 since organizations are investing in better communication and collaboration tools for their workforce.

The "other services and materials technology" category, which primarily consists of implementing and maintaining IoT solutions and 3D printing materials, has the largest spending in the workspace market in 2023.