APJ among the fastest growing region in the world: TD SYNNEX DoT report

The APJ region recorded the highest growth, despite the global slowdown as channel partner looking for spark to ignite revenues, reveals TD SYNNEX DoT report.

TD SYNNEX’s Direction of Technology report revealed a slower growth momentum in 2025. The findings are based on direct feedback from over 1,400 technology partners across 40 countries.

While the slow growth momentum is still not at a concerning rate, the reality is, channel partners are now needing to find a spark to ignite their revenues. Globally, the growth rate has declined by 11.3% in 2025 while 20% of channel partners had a flat revenue.

Interestingly, the APJ region recorded the highest growth, despite the global slowdown. Taking a deeper look at the statistics in APJ, the region recorded a 69.5% growth in 2025 compared to 77% the previous year. TD SYNNEX goes to market as Tech Data in the APJ region.

According to Jaideep Malhotra, President, TD SYNNEX Asia Pacific & Japan, the outlook in APJ remains positive, with significant opportunities in high-growth technologies. He added that 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.

“Navigating this landscape involves many moving parts, and partners need a distributor who not only simplifies complexity and accelerates go-to-market, but also orchestrates these elements seamlessly to deliver tailored solutions for today’s challenges. As a value-added distributor with an end-to-end portfolio, our solutions, platforms, and capabilities empower partners to scale with agility and capture growth,” Jaideep said.

50.7% of APJ channel partners cite increasing competition as their top challenge when scaling IT operations while 83.4% of APJ channel partners are concerned about increased market competition. Difficulty in hiring and retaining talent as well as changing customer demands, and supply chain disruptions were regarded as the main macroeconomic concerns hindering growth in APJ.

Given the increasing tech investments companies have made in 2025 and are looking to make in 2026, most of the channel partners have also relooked into how they can boost their revenue streams. This includes changing their focus to offer more higher value services.

This includes shifting the focus from devices, software and hardware to more services. While the devices, software and hardware remain essential in their strategy, the demand for cloud hosting and services, managed services, AI training and enablement, data management and infrastructure as well as cloud data warehousing are showing a clearer growth path.

Cybersecurity and data analytics continue to see increased demand in APJ. The same can be also applied for demand for AI specific areas, be it AI infrastructure and cloud, AI-driven automation as well as AI data management and analysis.

Growth in Singapore, India and Japan

Taking a look at country specific statistics, Singapore is showing a strong intent in advanced services, analytics, and security in the next 12 months. 90.6% offer or plan to offer managed services while 88.7% offer or plan to offer hybrid infrastructure.

81.1% offer or plan to offer AI-powered cybersecurity while another 81.1% offer or plan to offer data management and infrastructure. 75.5% are also thinking to offer or plan to offer business intelligence and visualization platforms. 90.6% offer or plan to offer network and infrastructure and security while 88.7% offer or plan to offer security monitoring and incident response.

In India, there is a strong intent in AI and data management in the next 12 months with 87.3% offer or plan to offer AI infrastructure and cloud solutions while 85.9% offer or plan to offer generative AI. Another 83.1% offer or plan to offer data management and infrastructure.

Meanwhile in Japan, there is a strong intent in hardware resell and endpoint devices in the next 12 months, with 71.6% offer or plan to offer hardware resell and 68.7% offer or plan to offer devices (e.g., AI PCs). Another 32.8% plan to offer endpoint devices.

With IDC predicting AI and GenAI investments in the Asia Pacific to reach US$175 billion by 2028, there is an immense growth opportunity for channel partners. IDC also expects the AI platforms market upward trajectory to continue to accelerate at 52% by 2029, presenting significant opportunities for businesses and investors across the region.

“APJ leaders should leverage partnership support, continue scaling foundational offerings, expand high-growth technologies, and proactively close the skills gap to best foster positive growth and competitive advantage into the future,” concluded the report.