Southeast Asia’s Internet economy rides high

Southeast Asia’s booming Internet economy is set to double to $363 billion by 2025, eclipsing the previous forecast of $300 billion, new research from Google, Temasek Holdings and Bain & Co shows.

It is also on track to reach $1 trillion by 2030, the report stated, mainly buoyed by e-commerce, travel, media, ride-hailing and food business in the Internet.

In 2021 alone, online spending was growing by 49% to $174 billion in the region, which added 60 million new digital consumers since the start of the Covid-19 pandemic, led by Thailand and the Philippines, according to the report.

Lazada and Shopee boost online consumerism

Strong contributions came from online shopping portals such as Lazada and Shopee. Overall, online shopping in the region is now forecast to hit $234 billion in 2025 versus a previous $172 billion estimate, making up 64 per cent of the region’s total estimated digital revenue of $363 billion in that year.

“Digital consumerism has really taken hold since the pandemic. We’re seeing a digital decade ahead of us in Southeast Asia and a possibility of a $1-trillion economy in the digital space by 2030,” Stephanie Davis, vice president at Google Southeast Asia, said in an interview with Bloomberg TV aired on November 10.

Highly valuable startups in Southeast Asia

Deals for Internet companies in Southeast Asia totaled $11.5 billion in the first half of this year, putting the region on track to surpass the $11.6 billion investment in all of 2020. Some of the region’s most valuable tech start-ups, including Grab and GoTo, are preparing to go public to raise capital or allow early investors to monetise their holdings.

Indonesia is the region’s largest digital economy where online spending will probably double to $146 billion by 2025. Venture capital deals in the country in the first half of 2021 surpassed the full-year totals of each of the past four years, the report showed. Vietnam is expected to grow at the fastest rate among the six countries out of ten in the region tracked by the study, nearly tripling in online revenue over the next four years.



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Southeast Asia’s booming Internet economy is set to double to $363 billion by 2025, eclipsing the previous forecast of $300 billion, new research from Google, Temasek Holdings and Bain & Co shows. It is also on track to reach $1 trillion by 2030, the report stated, mainly buoyed by e-commerce, travel, media, ride-hailing and food business in the Internet. In 2021 alone, online spending was growing by 49% to $174 billion in the region, which added 60 million new digital consumers since the start of the Covid-19 pandemic, led by Thailand and the Philippines, according to the report. Lazada and...

Southeast Asia’s booming Internet economy is set to double to $363 billion by 2025, eclipsing the previous forecast of $300 billion, new research from Google, Temasek Holdings and Bain & Co shows.

It is also on track to reach $1 trillion by 2030, the report stated, mainly buoyed by e-commerce, travel, media, ride-hailing and food business in the Internet.

In 2021 alone, online spending was growing by 49% to $174 billion in the region, which added 60 million new digital consumers since the start of the Covid-19 pandemic, led by Thailand and the Philippines, according to the report.

Lazada and Shopee boost online consumerism

Strong contributions came from online shopping portals such as Lazada and Shopee. Overall, online shopping in the region is now forecast to hit $234 billion in 2025 versus a previous $172 billion estimate, making up 64 per cent of the region’s total estimated digital revenue of $363 billion in that year.

“Digital consumerism has really taken hold since the pandemic. We’re seeing a digital decade ahead of us in Southeast Asia and a possibility of a $1-trillion economy in the digital space by 2030,” Stephanie Davis, vice president at Google Southeast Asia, said in an interview with Bloomberg TV aired on November 10.

Highly valuable startups in Southeast Asia

Deals for Internet companies in Southeast Asia totaled $11.5 billion in the first half of this year, putting the region on track to surpass the $11.6 billion investment in all of 2020. Some of the region’s most valuable tech start-ups, including Grab and GoTo, are preparing to go public to raise capital or allow early investors to monetise their holdings.

Indonesia is the region’s largest digital economy where online spending will probably double to $146 billion by 2025. Venture capital deals in the country in the first half of 2021 surpassed the full-year totals of each of the past four years, the report showed. Vietnam is expected to grow at the fastest rate among the six countries out of ten in the region tracked by the study, nearly tripling in online revenue over the next four years.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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