Philippines ICT Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 8.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Philippines ICT Market Analysis
The Philippine ICT market revenue is expected to grow at a CAGR of 8.0% over the next five years. Global leaders like Accenture, Cisco Systems, Globe Telecom, IBM, and Dell Technologies dominate the Philippine ICT market. The ICT market across the country is growing rapidly due to increased spending on hardware and software services.
- The ICT sector includes both the IT and Telecom markets. IT investments are growing, and the demand for the ICT market is expected to grow significantly over the next five years. According to the International Trade Administration, Philippine software and software service sales will reach USD 95 million by 2025.
- According to Oracle, IT hiring activity in August 2022, the Philippines recorded a 7.23% share, an increase of 22.09% compared with July 2022. This indicates that the IT sector is growing.
- For instance, in March 2022, Microsoft launched its Microsoft for Startups Founders Hub to empower startups' ambitions and fuel innovation to drive economic and societal progress for Asia and beyond. Such initiatives from the key players in the ICT market will help startup IT companies to enter the Philippine ICT market to develop new hardware, software, and services.
- Cyberattacks are expected to continue to rise over the next five years. Advancements in IT operations will prevent the ICT market from cyberattacks. The cloud-based platform and enterprise software provide real-time data, creating greater value for the business, especially in providing remote access. For instance, Microsoft launched its new offering and expanded services for security under a new service category known as Microsoft Security Experts for large enterprises.
- While the COVID-19 epidemic influenced the Philippine ICT market by deploying new technologies to increase efficiency, robotic process automation, big data, artificial intelligence, machine learning, blockchain, cloud computing, the internet of things, cybersecurity, and augmented/virtual reality are accelerating the growth of the Philippine ICT market.
Philippines ICT Market Trends
This section covers the major market trends shaping the Philippines ICT Market according to our research experts:
Growing demand for Cloud Technology
- Significant growth in private and public investment, upward consumer spending, and demand for cloud service drive the ICT industry in the Philippines. For instance, Snowflake, a cloud-native data company, partnered with Globe Telecom to enter the country.
- The need for greater agility and flexibility in the IT infrastructure drives the need to adopt cloud technology. For instance, Microsoft introduced its new security solution, Microsoft Sentinel, to help customers strengthen visibility and control across multiple cloud providers.
- Key players in the ICT market are increasing their spending on system infrastructure maintenance while investing in development, modernization, and enhancement projects. For instance, DELL Technologies recently launched a new portfolio of over 500 storage software advancements, such as ell PowerStore, PowerMax, and PowerFlex, designed to deliver vast improvements in intelligence, automation, data mobility, and security across clouds, on-premises, and edge environments with no additional cost to existing customers. The unique hybrid launch simultaneously happened across several countries in the Asia Pacific region, such as Malaysia, Singapore, Indonesia, and Vietnam, joining delegates in the Philippines. Dell PowerStore, PowerMax, and PowerFlex deliver faster data insights, better multi-cloud data control, and increased cyber resiliency at no cost to existing customers.
- Globalization in this region and the growing need for adopting advanced technologies such as Cloud, IoT, and artificial intelligence are boosting the growth of the market. According to the world bank, the Philippines' GDP recorded USD 394.09 billion in 2021. This indicates that the GDP is growing, and the growth of the ICT market is expected to grow over the next five years.
Telecommunication Services is Expected to Bring New Opportunities for the Market
- The growth in the telecom industry is mainly due to the increasing population with the rising adoption of mobile phones that support 3G, 4G, and 5G services across the country. For instance, PDLT is accelerating a network modernization program that migrates from copper to fiber. At the same time, there has been considerable progress in 5G developments.
- All telecommunication players must upgrade their network capabilities, install fiber-optic and sub-sea systems and cables, purchase modern networking equipment/storage/servers, and utilize cloud and cybersecurity services. The 5G rollout requires digital transformation solutions, including 5G-ready consumer devices. There are opportunities for telecom companies to support medium to long-term telecommunications expansion projects.
- According to DITO Telecommunity, it had deployed more than 30,000km of fiber-optic cabling to link the country's three major islands and built over 5,500 mobile towers, connecting more than 600 cities and municipalities. Such broadband deployments will drive the growth of the Philippine ICT market. Such telecom investments will bring new growth opportunities for the Philippine ICT market.
- According to Ookla Speedtest Global Index, the Philippines ranked 54th with a median fixed broadband download speed of 71.70 Mbps in October 2022. Smartphone penetration is growing significantly and thus increasing the demand for high-speed wireless services.
- According to GSMA, the Average download speed of the 5G mobile network in the Philippines is 163.51 Mbps. Adults in the country are increasingly using mobile internet. The increasing population will further increase the demand for ICT products and services.
- For instance, PLDT announced that they are ready to deliver 5G services on the new converged SDN (software-defined networking) transport infrastructure provided by Cisco. Such investments in 5G services will bring new growth opportunities for the Philippine ICT market.
Philippines ICT Industry Overview
The Philippine ICT market is fragmented, with many players operating in the market. Several key players in the ICT market are in constant efforts to bring advancements. A few prominent companies are entering into collaborations and expanding their footprints in developing regions to consolidate their positions in the market. The major players are Accenture, Cisco Systems, Globe Telecom, IBM, Dell Technologies, and many others.
- In March 2022, PLDT Inc. teamed up with global satellite operator Telesat to complete the first successful trials of high-speed broadband connectivity using the Canadian-based firm's Phase 1 Low Earth Orbit (LEO) satellite. These initiatives will help offer high-speed mobile and internet services across urban and rural areas.
- In April 2022, Microsoft launched its new developments for Windows 11 and 365 for commercial customers to support the future of hybrid work in the Philippines.
Philippines ICT Market Leaders
Accenture
Cisco Systems
Globe Telecom
IBM
Dell Technologies
*Disclaimer: Major Players sorted in no particular order
Philippines ICT Market News
- September 2022: Globe Telecom and Singapore Telecommunication agreed to sell 1,350 cellular towers to a consortium backed by a unit of Australia's Macquarie Group for USD 340 million.
- October 2022: Globe Telecom deployed 252 5G-ready base stations in Mindanao. The ongoing 5G network deployment will create growth opportunities for the company.
- August 2022: Stonepeak signed definitive agreements to acquire 2,180 telecom towers and related passive infrastructure from Globe Telecom Inc. for a total consideration of approximately USD 472.2 million. This collaboration aims for Stonepeak to continue expanding its presence in the Asia-Pacific region.
Philippines ICT Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Stakeholder Analysis
4.3 Industry Attractiveness-Porter's Five Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Demand for 5G
5.1.2 Rising Need to Explore and Adopt Digital technologies and Initiatives
5.2 Market Restrain
5.2.1 Fragmented Nature of the Market and Growing Incidence of Data Breaches and Lack of Supporting Infrastructure
5.3 Impact of COVID-19 on the Market
6. KEY TECHNOLOGY INVESTMENTS
6.1 Cloud Technology
6.2 Artificial Intelligence
6.3 Cyber Security
6.4 Digital Services
7. MARKET SEGMENTATION
7.1 By Type
7.1.1 Hardware
7.1.2 Software
7.1.3 IT Services
7.1.4 Telecommunication Services
7.2 By Size of Enterprise
7.2.1 Small and Medium Enterprises
7.2.2 Large Enterprises
7.3 By Industry Vertical
7.3.1 BFSI
7.3.2 IT and Telecom
7.3.3 Government
7.3.4 Retail and E-commerce
7.3.5 Manufacturing
7.3.6 Energy and Utilities
7.3.7 Other Industry Verticals
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Accenture
8.1.2 Cisco Systems
8.1.3 Globe Telecom
8.1.4 IBM
8.1.5 Dell Technologies
8.1.6 Oracle
8.1.7 Microsoft Corporation
8.1.8 Huawei Technologies
8.1.9 Google
8.1.10 HP
8.1.11 Amazon
8.1.12 Cognizant Technology Solutions
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. FUTURE OUTLOOK OF THE MARKET
Philippines ICT Industry Segmentation
The Philippine ICT market includes deep analysis of key technology investments such as cloud technologies and artificial intelligence.
The Philippine ICT market is segmented by type (hardware, software, IT services, and telecommunication services), size of enterprise (small and medium enterprise and large enterprise), and industry vertical (BFSI, IT & Telecom, government, retail, and e-commerce, manufacturing, energy and utilities, and other industry vertical). The market sizes and forecasts are provided in terms of value in USD million for all the above segments.
| By Type | |
| Hardware | |
| Software | |
| IT Services | |
| Telecommunication Services |
| By Size of Enterprise | |
| Small and Medium Enterprises | |
| Large Enterprises |
| By Industry Vertical | |
| BFSI | |
| IT and Telecom | |
| Government | |
| Retail and E-commerce | |
| Manufacturing | |
| Energy and Utilities | |
| Other Industry Verticals |
Philippines ICT Market Research FAQs
What is the current Philippines ICT Market size?
The Philippines ICT Market is projected to register a CAGR of 8% during the forecast period (2024-2029)
Who are the key players in Philippines ICT Market?
Accenture, Cisco Systems, Globe Telecom, IBM and Dell Technologies are the major companies operating in the Philippines ICT Market.
What years does this Philippines ICT Market cover?
The report covers the Philippines ICT Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Philippines ICT Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Philippines ICT Industry Report
Statistics for the 2024 Philippines ICT market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Philippines ICT analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
