Philippine ICT Market

Growing internet penetration and growing government initiatives to promote digital transformation are driving market growth.

The increasing accessibility of affordable internet services and the growing adoption of smartphones have driven the demand for digital services and solutions. The Information and Communication Technology (ICT) sector encompasses both the IT and Telecom markets. As per the July 2023 Ookla Speedtest Global Index, the Philippines ranked 89th out of 143 countries in mobile internet speed, with 25.88 Mbps (compared to the global average of 42.35 Mbps), and 49th out of 181 countries in fixed broadband speed, typically higher in Metro Manila, with 91.56 Mbps (compared to the global average of 82.56 Mbps).

Investments in IT are on the rise, and significant growth is anticipated in the ICT market over the next five years. The International Trade Administration projects Philippine software and software service sales to reach USD 95 million by 2025. According to the Philippine Statistics Authority (PSA), the country's digital economy surged to approximately $36.5 billion in 2022, contributing 9.4 percent to the Gross Domestic Product (GDP). This marked an 11 percent increase from about $33 billion recorded in 2021, encompassing digital transactions across digital-enabling infrastructure, e-commerce, and digital media/content.

The Philippine Development Plan (PDP) 2023-2028 emphasizes digital transformation as one of its core themes. In his second State of the Nation Address (SONA), President Marcos instructed all government agencies to digitize essential public services.

Initiatives in this direction include the establishment of additional common tower infrastructures to enhance connectivity, digitalization of business registration processes in local governments, integration of online government services into a single platform via the eGov PH Super App, implementation of the national broadband plan to enhance internet and mobile services, and enforcement of the Cloud First Policy promoting cloud computing technology for government administration and public services delivery. Therefore, the market is expanding due to growing internet penetration and growing government initiatives to promote digital transformation. Thus, driving the ICT market revenue.

The Global Philippine ICT Market Industry is currently experiencing a rapid digital transformation, driven by the increasing adoption of advanced technologies such as cloud computing, artificial intelligence, and big data analytics. This shift is evident as businesses across various sectors leverage digital tools to enhance operational efficiency and customer engagement. In 2024, the market is projected to reach 30.0 USD Billion, reflecting a growing recognition of the importance of digital solutions in maintaining competitiveness. As organizations continue to invest in digital infrastructure, the Global Philippine ICT Market Industry is poised for substantial growth, potentially reshaping the economic landscape.

Leading market players are investing heavily in research and development to expand their product lines, which will help the ICT market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the ICT industry must offer cost-effective items.

Major players in the ICT market are attempting to increase market demand by investing in research and development operations, including Accenture, Cisco Systems, Globe Telecom, IBM, Dell Technologies, Oracle, Microsoft Corporation, Huawei Technologies, Google, HP, Amazon, and Cognizant Technology Solutions.