Asia Pacific and Japan sit at the front of the next wave of IT growth, driven by rapid AI adoption, a move to service-led business models and continued investment in cybersecurity and endpoint infrastructure. TD SYNNEX’s Fourth Annual Direction of Technology report shows the region outpacing the baseline with a Net Growth Index of 112 versus 100, signalling stronger momentum than many other markets.
The report draws on insights from more than 1,400 IT solution providers and resellers across 40 countries and paints a picture of a sector that is evolving rapidly – driven by innovation, specialisation, and resilience amid economic uncertainty.
APAC: Strong momentum, persistent challenges
“The outlook in APJ remains positive, with significant opportunities in high-growth technologies,” said Jaideep Malhotra, President of TD SYNNEX Asia Pacific & Japan. “AI, cybersecurity, and data and analytics are driving change across the ecosystem, and partners are investing to ensure these technologies are available to meet customer demand.”
More than three-quarters of APJ partners are focusing on AI infrastructure and cloud, while 71% are investing in automation and data management. Yet, 54% cited a lack of skilled workers as the biggest barrier to adoption – a challenge that continues to shape hiring and training strategies across the region.
Cybersecurity remains a major pillar of growth, with 73% of partners offering or planning to offer at least one security solution. Data privacy, network security, and cloud protection top the list of priorities, reflecting the rising importance of digital trust in a hyperconnected market.
While the region races ahead in next-generation technologies, traditional hardware and endpoint devices continue to hold their ground. Around 68.5% of APJ partners still provide devices and 58% offer hardware – figures that remain above the global average and highlight the region’s balanced approach to technology adoption.
AI and cybersecurity take centre stage
Artificial intelligence has firmly established itself as the foundation for growth and market leadership. Nearly three-quarters of the partners surveyed said AI is essential to their future strategy, not just as a tool for efficiency but as a catalyst for innovation. Many are already deploying advanced use cases such as AI-powered cybersecurity (58%) and AI-driven automation (54%).
The report notes that as AI becomes more embedded in operations, cybersecurity remains a critical priority. Eight in ten partners now offer at least one security solution, and advanced endpoint protection has emerged as one of the top areas of investment for 2026. Yet challenges persist. Nearly half of respondents identified AI-driven cyberattacks as a growing concern, alongside risks such as data breaches and evolving compliance demands.
Despite these pressures, optimism remains high. Over 66% of companies reported revenue growth in the past year, underscoring the sector’s resilience. Those combining strategic foresight with operational agility appear best placed to capture the opportunities of an AI-first market.
Specialisation: The most sought-after trait
As customers seek partners who understand their industries and challenges, specialisation is increasingly trumping scale. The report found that deep expertise and consultative support are now the most valued traits customers look for. To meet this demand, 90% of partners plan to expand support and maintenance services, 88% will increase custom IT integration capabilities, and 82% intend to grow managed services offerings over the next 12 months.
However, skills shortages continue to test the limits of this transformation. Nearly 70% of leaders said talent constraints are affecting their ability to implement AI, data analytics and cybersecurity projects. Many firms are now rethinking how they operate, adopting automation and redesigning workflows to deliver services more efficiently in an AI-enabled world.
As TD SYNNEX’s report makes clear, the IT industry’s evolution in 2025 is not just about new technology, it’s about transformation at every level. For Asia Pacific, that means finding harmony between innovation and execution, and ensuring the people, skills and partnerships are in place to drive the next wave of digital growth.
