
As we look into 2025, here are the top 5 trends The Scale Factory foresees:
1. More Western Companies Eying Expansion Into Asia Pacific
Over the past five years, we’ve seen a steady rise in Western companies building and executing go-to-market (GTM) strategies for the APAC region. APAC is becoming a key part of global business strategies, and this trend is expected to accelerate further in 2025. This shift makes sense, especially with recent studies predicting that by 2030, more than 50% of the world’s middle-class population will reside in the APAC region.
For many of The Scale Factory’s Clients, entering APAC presents an opportunity to tap into a diverse and growing market. We’re seeing more companies set up offices or form strategic partnerships to capitalize on the region's growth potential.
2. Increasing Investments to Establish Digital Hubs and Development Centers
Across the APAC region, countries are competing to attract talent and investments by establishing digital hubs, often backed by strong government support. While cities like Bangkok, Jakarta, Ho Chi Minh, and Bangalore are experiencing significant growth in their tech ecosystems, none quite match Singapore’s leadership.
As The Scale Factory’s home base, Singapore remains a key player. We work closely with various government entities to help our clients navigate a successful market entry, leveraging Singapore’s strategic position and resources.
3. Asian Tech Companies Expanding West
As Western companies increasingly focus on Asia, we’re also seeing more Asian tech firms looking to expand into Europe. The continent’s well-established tech ecosystem, diverse consumer base, and business-friendly regulatory environment make it an appealing destination. However, many of our Asian clients view Europe as more fragmented and complex compared to the more unified US market.
When we launched The Scale Factory in Europe last year, our goal was to position ourselves as trusted partners for Asian companies seeking to tap into the European market opportunities.
4. Great Local Talent, Less Expats
Asia’s talent landscape is transforming rapidly. The emphasis is shifting from hiring expats to building strong, locally-based teams with deep knowledge of regional markets. Local talent pools are strengthening, with universities producing highly skilled graduates, particularly in fields like engineering, data science, and AI.
According to World Economic Forum data, Asia now produces more STEM graduates than any other region, making local talent an increasingly valuable asset for companies operating in the region. At The Scale Factory, we help our Clients tap into this deep talent pool to build innovative teams. Hiring local talent not only reduces operational costs but also enables companies to better understand and connect with the markets they’re entering.
5. Asia’s Economy Bouncing Back
After facing a challenging period due to global disruptions, Asia’s economy is expected to rebound strongly in 2025. An IMF forecast predicts that Asia will lead the global recovery, with economies like China, India, and Southeast Asia projected to grow at rates higher than the global average.
For B2B tech startups, this rebound offers a golden opportunity. With governments providing incentives to spur innovation and attract foreign investments, the conditions for growth in the region are favorable.
Conclusion
As we move through 2025, the trends shaping B2B tech expansion in Asia and Europe offer exciting opportunities for scale-ups. Whether it’s Western companies targeting APAC or Asian firms expanding into Europe, the landscape is full of potential. From the rise of digital hubs and increasing reliance on local talent to the economic resurgence in Asia, these trends are paving the way for accelerated growth.
At The Scale Factory, we're excited to help clients navigate these developments and grow their businesses across Asia and Europe. By staying ahead of these trends, companies can set themselves up for success in the global market.
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