Philippines ICT Market Report and Forecast 2024-2032

Philippines ICT Market Size

The Philippines ICT market reached approximately USD 16.68 billion in 2023. The market is projected to grow at a CAGR of 8.0% between 2024 and 2032 to reach a value of around USD 33.34 billion by 2032.

Philippines ICT Market Outlook

• In June 2024, the board of the National Economic and Development Authority (NEDA) approved the P16.1 billion initiative known as the PDIP, which is funded by the World Bank. The board of approvals is chaired by President Ferdinand Marcos Jr.

• In 2018, the Internet Society (ISOC) and the Department of ICT (DICT) of the Philippine government signed a Memorandum of Understanding. This was carried out in order to aid in the creation of the nation's National ICT Ecosystem Framework (NIEF) 2022.

• Recently, Converge ICT Solutions Inc. unveiled its intentions to allocate approximately USD 60 million for the establishment of three data centres within the next two years, in response to the escalating demand within the Philippines. The plan includes the construction of data centres in Angeles City Pampanga, Quezon City, and Cebu City.

Philippines ICT Market Growth

The increasing internet provisions in the country is a key driver of this market. The availability of the internet is fundamental for being able to harness the potential of ICT. Things such as e-commerce, e-governance, social media, content consumption and gaming are only possible through the availability of Internet access. As per industry reports in 2022, people in this country between the ages of 16 and 64 used the internet for an average of 10 hours and 27 minutes every day. The Philippines has the largest population of social media users in the world, and its people spend a lot of time online.

The growing number of digital devices in the country is another contributor to the market. According to the Philippines Statistics Authority, the digital economy in 2023 amounted to USD 35 billion and contributed 8.4% to the country's Gross Domestic Product. The increase in the number of digital devices has significantly propelled the market because the extensive availability of devices enables people to efficiently make use of the existing and upcoming ICT technologies.

Government investment in broadband infrastructure and support is a major driving factor for the ICT market in the Philippines. According to the global eGovernment rating, the Philippines is ranked 95th. Under the "Free Public Internet Access Program," people can use free Wi-Fi. An additional program aimed at achieving the UN Millennium Development Goal of universal access to ICT is "DOST-ICTO." By creating community centres known as "CeCs," the DOST-ICTO aims to employ ICT to promote growth and development in the Philippines. These centres cater to the diverse ICT requirements of individuals, providing each community with alternate modes of instruction and skill development.

Philippines ICT Industry Segmentation

‘Philippines ICT Market Report and Forecast 2024-2032’ offers a detailed analysis of the market based on the following segments

Market Breakup by Type

• Hardware
  • Network Switches 
  • Routers and WLAN 
  • Servers and Storage 
  • Others 
• Software

• IT and Infrastructure Services

• Telecommunication Services

Market Breakup by Industry Vertical

• BFSI

• IT and Telecom 

• Government 

• Retail and E-commerce 

• Manufacturing 

• Energy and Utilities 

• Others

Philippines ICT Market Share

According to the industry reports, the Philippines has been actively using ICT to enhance governmental processes. ICT significantly contributes in simplifying the government’s working through various methods such as digitization of form applications and documents, online payment of taxes and other dues and the access to government portals for obtaining data and information.

Leading Companies in the Philippines ICT Market

The market players are increasingly bringing newer concepts and technologies to simplify various sectors by incorporating ICT to stand out in the market.

• IBM Corp.

• Microsoft Corp.

• Cisco Systems Inc.

• Google LLC

• AT&T Inc.

• Qualcomm Technologies, Inc.

• Oracle Corp.

• Fujitsu Ltd.

• HP Inc.

• Fortinet Inc.

• Others

Key Highlights of the Report