Deal activity in the Asia-Pacific (APAC) region has faced challenges in early 2025, marked by an 8% decrease in total deal volume compared to the same period in 2024. This decline highlights the ongoing complexities in the market, driven by a combination of economic factors and evolving market dynamics. Despite this overall downturn, certain countries within the APAC region have experienced a rise in deal volume, demonstrating that there are still areas of growth and funding opportunities, as indicated by GlobalData, a leading data and analytics firm.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Analyzing the trend across various deal types and key markets reveals both challenges and opportunities that stakeholders must navigate.”
An analysis of GlobalData’s Deals Database revealed that the overall downturn is majorly driven by a significant reduction in venture financing activity, which contracted by around 13% during January-February 2025 compared to January-February 2024, reflecting a cautious approach from investors in the current economic climate.
The impact was pronounced in mergers and acquisitions (M&A) activity, which contracted by 5%. M&A transactions, traditionally a barometer of corporate confidence and strategic growth, appear to be under pressure as companies reassess their expansion strategies.
Conversely, private equity deals have shown resilience, with deal volume mostly remaining at the same level during the review period.
Bose adds: “Meanwhile, a closer examination of the deal volume across select top markets within the APAC region reveals a mixed picture.”
China, historically a powerhouse in deal-making, experienced a substantial decline of more than 20% in deal volume. This drop can be attributed to regulatory challenges and economic slowdown. In contrast, India emerged as a bright spot, with a growth of more than 10% in deal volume. This growth underscores India’s potential as a burgeoning market for deal-making.
Japan has also demonstrated remarkable resilience with a growth rate of around 35%. Meanwhile, Australia and South Korea have both seen significant declines. These declines highlight the challenges faced by these markets, including economic uncertainties and geopolitical tensions that may be impacting investor sentiment.
Other markets such as Singapore and Malaysia have also reported declines. This trend suggests that even established financial hubs are not immune to the broader market pressures affecting the region.
Bose concludes: “Although the APAC deal landscape in early 2025 is characterized by a decline, pockets of growth, particularly in India and Japan, suggest that opportunities still exist for savvy investors.”
