Market Trends of Philippines ICT Industry
The Rise in Telecommunication Services is Expected to Drive Market Growth
- The growth in the telecom industry can be attributed to the increasing population and the rising adoption of mobile phones that support 3G, 4G, and 5G services across the country. The telecommunication services in the country majorly include voice, data, and other services provided by the telecom service providers, such as PLDT, Globe Telecom, etc., to support the digital transformations of various industries. Telecommunication services contribute significantly to the growth of the overall ICT market.
- The country is witnessing advancements in emerging technologies, such as augmented reality (AR), virtual reality (VR), artificial intelligence, and machine learning. Such emerging technology trends are expected to escalate the need for better network connectivity requirements in businesses across the country in the coming years and drive the demand for telecommunication services.
- The accelerated rollout of 5G services by major market vendors is positively influencing the demand for telecommunication services in various business sectors. For instance, according to the data from Viavi Solutions, as of April 2023, 105 cities in the Philippines had 5G network coverage, an increase from 98 cities in April 2022.
- In April 2024, Globe Telecom, a major player in the Philippine telecom sector, announced a significant expansion of its 5G network. The company added 41 new 5G sites in the Visayas and Mindanao regions in 2023. By the end of 2023, Globe had bolstered its 5G presence to reach a total of 894 sites. Globe also broadened its 5G roaming alliances, collaborating with 156 partners spanning 82 countries. Such developments are expected to support the growth of telecommunication services in the Philippines over the forecast period.
Understand The Key Trends Shaping This Market
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The IT & Telecom Segment is Expected to Gain Significant Traction Over the Forecast Period
- The IT & telecom segment is expected to positively influence the growth of the ICT market in the Philippines. The growing digital transformation across the country's IT & telecom sector, coupled with the growing rollout of 5G by telecom market vendors, is significantly driving the demand for IT services.
- The telecom sector in the country is rapidly transitioning from 3G/4G services to 5G services, owing to increasing efforts from the country's major telecommunication operators. The telecom authority is making significant investments to boost the coverage of broadband networks in the country. Hardware solutions are expected to witness substantial growth as the country's telecom operators speed up 5G rollouts, which would drive the demand for hardware components to upgrade the passive infrastructure of telecom towers in the country.
- The information and communication sector in the Philippines is witnessing robust growth, propelling the demand for ICT components, including hardware, software, and IT services. In addition, the country's IT sector is growing rapidly with the increasing presence of global market vendors, adoption of advanced technologies, and launch of data centers, coupled with increasing cloud migration in the IT business, driving the ICT market in the country.
- Data from The Philippine Statistics Authority (PSA) revealed that the sector contributed around USD 12.92 billion in GVA, marking a consistent upward trend over recent years. According to the data, the GVA generated from the IT & telecom sector in the Philippines rose significantly from USD 11.52 billion in 2021 to USD 12.92 billion in 2023.
