Market Trends of Philippines ICT Industry
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.
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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.
