Tech Data tips AI, security & services to fuel APAC

Tech Data has set out its expectations for Asia Pacific and Japan's technology channel in 2026, highlighting artificial intelligence, cybersecurity and services-based models as the main growth engines for partners in the region.

The distribution group said partners across Asia Pacific are positioning around a mix of high-growth technologies and resilient demand for hardware, while facing persistent shortages in specialist skills.

Anand Chakravarthy, Vice-President, Advanced Solutions - Asia Pacific & Japan at Tech Data, outlined the outlook based on trends from the company's latest Direction of Technology survey of more than 1,000 partners in 40 countries.

AI as differentiator

Tech Data reported broad agreement among partners in Asia Pacific and Japan that AI will sit at the centre of competitive positioning in 2026. The survey found that 75.8% of partners see opportunity in AI infrastructure and cloud. A further 70.9% see potential in AI-led automation and data management.

Regional spending on AI and generative AI in Asia Pacific is forecast to reach $175 billion by 2028. Tech Data said this level of investment is turning the region into a test bed for real-world AI deployments and commercial models.

Cybersecurity imperative

Security remains the second major pillar of the 2026 outlook. Tech Data said 73.4% of partners in Asia Pacific and Japan already offer at least one cybersecurity solution or plan to do so.

Data and privacy protection is the top focus area for 81% of partners in the region. Network security is a priority for 78%. Cloud and application security follows closely at 77%.

According to Chakravarthy, customers increasingly expect coverage across data, cloud and AI environments. It reported that partners are broadening their portfolios beyond point products into more integrated security offerings.

Services-led models

Tech Data said the shift towards services-led engagement across the channel will deepen in 2026. The survey found that 83% of partners in Asia Pacific and Japan offer consulting or professional services. It also found that 78% provide managed services.

Chakravarthy said these service lines give partners a more consultative role with end customers. They also offer more predictable revenue streams than traditional resale models.

Hardware demand persists

Despite the focus on AI and services, Tech Data said demand for foundational technologies such as hardware and endpoint devices remains solid in Asia Pacific and Japan. The survey found that 68.5% of partners continue to offer devices in the region. It found that 57.6% still provide hardware, which is above the global average.

Tech Data linked this resilience to factors such as government regulations, local data sovereignty rules and the need for greater computational power at the edge and in data centres.

Chakravarthy expects sustained hardware and endpoint demand to support channel revenues in 2026. It said this will reinforce the role of partners in areas such as data security, hybrid work and digital infrastructure rollouts.

Skills shortage pressure

The outlook identified skills shortages as the biggest structural challenge for the channel in Asia Pacific and Japan. Tech Data said 79.8% of partners report difficulty in attracting or retaining talent.

This shortage is most acute in advanced AI and cybersecurity projects. Partners report constraints on their ability to sell, implement and scale complex solutions and managed services.

Tech Data said distributors are stepping up support through training programmes, enablement resources and proof-of-concept assistance. It said this activity aims to ease the talent shortfall while helping partners ramp up new offerings.

Tech Data expects AI investments, cybersecurity requirements and services adoption to shape channel strategies across Asia Pacific and Japan through 2026 as economic growth in the region continues.