5G & AI among key growth trends in Asia Pacific by 2025

Alcatel-Lucent Enterprise has outlined trends expected to significantly impact business growth in the Asia Pacific region by 2025.

The company believes that while global economic growth projections remain modest, strategic investments in technology and digital infrastructure are crucial for organisations to navigate complexity and drive future growth. According to the Organisation for Economic Co-operation and Development (OECD), global GDP growth is expected to be 3.1% in 2024, with predictions of a slight increase to 3.2% in 2025.

One of the key trends identified is the accelerated adoption of next-generation connectivity. The rollout of 5G networks in the Asia Pacific region is expected to enhance connectivity, supporting a wide range of Internet of Things (IoT) applications. The GSM Association (GSMA) estimates that 5G will contribute nearly USD $130 billion to the region's economy by 2030, driven by smart factories, smart grids, and IoT-enabled products.

In line with this, there is an increasing demand for private networks, providing organisations greater control and security over their communications infrastructure. Developments like Wi-Fi 7, promising higher transfer speeds at reduced latency, present potential for industries such as healthcare, where applications include telehealth services and remote surgical robotics.

Artificial Intelligence (AI) is another transformative factor, impacting network management through automation and predictive analytics. Chief Information Officers (CIOs) are expected to increasingly utilise AI to optimise network performance and strengthen cybersecurity. International Data Corporation (IDC) forecasts global spending on AI-supporting technology to reach USD $337 billion in 2025, potentially doubling to USD $749 billion by 2028.

The rise of as-a-service models in the region is another trend, with predictions that Asia Pacific will surpass Europe and the US in tech spending for 2024 and 2025. This shift is driven by market trends and the competitive landscape, offering organisations flexibility and scalability. Alcatel-Lucent Enterprise's Network as a Service (NaaS) is highlighted as aligning with the need for adaptable network management.

Additionally, increased regulatory compliance is necessary due to evolving geopolitical tensions and regulatory landscapes. Organisations operating at a global level must navigate complex compliance requirements. Partnering with solutions providers compliant with globally recognised cybersecurity standards, including NIS 2 and GDPR, will help organisations align their practices with global security standards and local data protection laws.

Tee Jyh Chong, Vice President, Sales and Services, APAC at Alcatel-Lucent Enterprise, commented on these trends: "For 2025 and beyond, APAC organisations must embrace strategic investments in technology to drive efficiency and enhance collaboration, not just as a response to technological advancements and shifting customer expectations, but also geopolitical dynamics in the region. ALE remains committed to delivering tailored solutions, tools, and the expertise to help them collaborate more effectively, to enhance business agility and resilience, and unlock new opportunities for success."