The enterprise information, communication, and technology (ICT) revenue opportunity in South Korea is forecast to increase at a compound annual growth rate (CAGR) of 7.2% between 2023 and 2028, according to GlobalData’s ICT Customer Insight Survey.
The country’s high-speed internet connectivity with next-generation networks available to enterprises, positive ICT investment sentiment, and evolving application areas for emerging technologies like internet of things and artificial intelligence will drive the ICT market in the country, says GlobalData.
GlobalData’s ICT Customer Insight Survey indicates a positive outlook for enterprise ICT spending in South Korea, with a majority of respondents (77.1%) saying their enterprise ICT budget increased in 2024 compared to 2023.
“Fast developing network infrastructure with continued 5G network expansion and rising research and development investment by enterprises to intensify their focus on new IT projects presents a positive outlook for the ICT market in the near term,” said GlobalData Technology Analyst Pragyan Tarasia.
GlobalData’s report, South Korea Enterprise ICT Market Analysis and Future Outlook by Segments (Hardware, Software and IT Services), reveals that South Korea’s ICT market will be primarily driven by IoT solution area. The segment is set to account for a 18.3% share of the total cumulative revenue forecasted for 2023-2028.
GlobalData’s ICT Customer Insight Survey reveals that there has been an increase in the enterprise ICT budget allocations in IoT infrastructure including hardware, software and services. About 67.1% of respondents confirmed an increase in their enterprise ICT budget for IoT infrastructure in 2024 compared to 2023.
“Telcos in South Korea are offering M2M/IoT technologies, thereby enabling transformative applications across industries such as logistics, smart cities, healthcare, and agriculture,” said Tarasia. “Key telecom players like SK Telecom, KT and LG U+ are offering IoT solutions through strategic partnerships, advanced infrastructure enhancements and targeted developments.”
GlobalData forecasts AI to be the fastest-growing solution area for the ICT market in South Korea and will remain so over the forecast period. ICT revenue from AI reached USD1.5 billion in 2023 and is set to grow up to USD5.4 billion in 2028 at a CAGR of 28.7%.
“In South Korea, companies are increasingly adopting AI to drive digital transformation, automate tasks, and reduce costs,” added Tarasia. “Major ICT firms like Samsung, LG Electronics, Kakao, Naver, SK, and KT are heavily investing in AI, with initiatives ranging from the establishment of AI centers to projects involving advanced machine learning, AI chips, and large language models.”
For instance, KT announced USD5.4 billion investment in AI services in 2023, focusing on the robotics, education, and healthcare sectors by 2027.
“With its advanced technology, strategic investments, and robust government support, South Korea is positioning itself as a leader in the semiconductor sector, which will, in turn, drive growth and innovation across the broader ICT landscape,” said Tarasia. “In 2024, South Korea unveiled a significant USD19 billion investment package to bolster its semiconductor industry.”
