The latest research by Google, Temasek Holdings and Bain & Company shows that by 2025, the booming Internet economy in Southeast Asia will double to US$363 billion, exceeding the previous forecast of US$300 billion. According to the report, it is also expected to reach US$1 trillion in 2030, mainly driven by e-commerce, tourism, media, online ride-hailing and Internet food businesses. According to the report, in 2021 alone, online spending in the region has increased by 49% to US$174 billion, and since the beginning of the Covid-19 pandemic, the region has added 60 million new digital consumers. Lazada and…
The latest research by Google, Temasek Holdings and Bain & Company shows that by 2025, the booming Internet economy in Southeast Asia will double to US$363 billion, exceeding the previous forecast of US$300 billion.
According to the report, it is also expected to reach US$1 trillion in 2030, mainly driven by e-commerce, tourism, media, online ride-hailing and Internet food businesses.
According to the report, in 2021 alone, online spending in the region has increased by 49% to US$174 billion, and since the beginning of the Covid-19 pandemic, the region has added 60 million new digital consumers.
Lazada and Shopee promote online consumerism
Contributions from online shopping portals such as Lazada and Shopee are great. Overall, online shopping in the region is now expected to reach US$234 billion in 2025, compared with the previous estimate of US$172 billion, accounting for 64% of the region’s estimated total digital revenue of US$363 billion that year.
“Since the pandemic, digital consumerism has indeed dominated. We see Southeast Asia will usher in a digital decade. By 2030, the digital economy may reach $1 trillion,” said Stephanie, vice president of Google Southeast Asia Davis said in an interview. Bloomberg TV Aired on November 10.
High-value startups in Southeast Asia
In the first half of this year, the total transaction volume of Internet companies in Southeast Asia was US$11.5 billion, making the region expected to exceed the total investment of US$11.6 billion in 2020. Some of the most valuable technology start-ups in the region, including Grab and GoTo, are preparing to go public to raise capital or allow early investors to monetize their holdings.
Indonesia is the largest digital economy in the region, and online spending may double to US$146 billion by 2025. The report shows that the country’s venture capital transactions in the first half of 2021 have exceeded the total for the entire year of the past four years. Among the six of the ten countries in the region tracked by the study, Vietnam is expected to grow at the fastest rate, with online revenue nearly tripling in the next four years.
