APAC tech firms show strong revenue growth, says study

Despite inflationary pressures and Covid-19 induced supply chain disruptions, approximately 85% of the top 20 Asia-Pacific (APAC) technology companies witnessed year-on-year (YoY) cumulative revenue growth in 2021, according to GlobalData, a US-based data and analytics company.

The report shows that Taiwan continues to lead the list of the top 20 APAC technology companies based on revenue with seven firms, followed by Japan, China, South Korea and Singapore. India and Indonesia are also surging ahead with growth coming from emerging technology services.

“Among the top 20 tech companies, 85% reported YoY growth in their revenue with 13 companies reporting double-digit growth in FY2021,” said Ragupathy Jayaraman, Business Fundamentals Analyst at GlobalData.

Companies such as Chinese IoT giant BOE Technology Group and phone maker Xiaomi, Taiwanese semiconductor majors such as TSMC and WPG Holdings and South Korean chipmaker SK Hynix topped the table with each registering more than 25% YoY revenue growth. All these companies have a strong presence in India and cater to customers across the world.

For example, Xiaomi reported a double-digit YoY increase and a five-year CAGR in revenue. The company’s sales largely benefited from increased smartphone shipments globally which reached 190.3 million units as well as its IoT and lifestyle products segment registered 26.1% YoY revenue growth in 2021.

Likewise, SK Hynix surpassed its previous highest revenue growth recorded in 2018 (34%), with 38.9% YoY revenue growth in 2021 thanks to the strong sales of DRAM and NAND flash products resulted in the company’s revenue growth.

For WPG, growth stemmed from strong demand for semiconductor and electronic components, especially PCs, laptops, communication components, base stations, cloud and servers. Strong demand for its advanced and specialty technologies resulted in a 25% YoY revenue growth for global semiconductor giant, TSMC.

Toshiba, Pegatron and Fujitsu are the only companies in the top 20 list that witnessed negative revenue growth rates in 2021. Toshiba’s revenue declined by 9.9% YoY due to a fall in its logistics services and battery cells and packs businesses. Pegatron reported a 4.8% YoY revenue decline due to weak demand in its computing and consumer electronic segments during Q2 and Q3 2021. Fujitsu reported a marginal 0.1% YoY decline in revenue.

Meanwhile, a February 2022 study by consulting firm Forrester expects the Asia Pacific technology market revenue to grow by 6.2% this year, reaching $675 billion. 

The report said that cloud-based solutions, digital experience, and human capital management projects will be big drivers for technology investments across Asia Pacific. Software demand for emerging technologies like 5G, the internet of things (IoT), AI, and blockchain will also fuel growth, albeit from a much lower base. Categories like managed security and data management services are also expected to do well. These factors will further have a positive impact on the sales and revenue growth of the companies in the region.