Southeast asias internet economy to top 100 billion this year năm 2024
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SINGAPORE (Reuters) - Southeast Asia's internet economy will hit $105 billion this year, as the coronavirus crisis prompted stuck-at-home consumers to go online to shop, get food delivered at home and for entertainment purposes, an industry report said on Tuesday. Show The report, which covers Indonesia, Malaysia, Vietnam, Singapore and the Philippines, said the region added 40 million new internet users this year, taking the total to 400 million. That implies 70% of the region's population is now online, the report added. "The coronavirus has brought about a permanent and massive digital adoption spurt," stated the report by Google, Singapore state investor Temasek Holdings and business consultants Bain & Co. Southeast Asia's internet economy expanded 5% from 2019. Online retailers have emerged as winners from coronavirus lockdowns as people prefer to shop from their homes instead of making a trip to stores amid worries over a resurgence in infections. E-commerce grew 63% to reach $62 billion in 2020, to become the largest vertical this year, while the travel sector contracted 58% to $14 billion. Singapore's internet economy contracted 24% to $9 billion as the pandemic choked the travel sector, while Vietnam and Indonesia continued to grow at double-digit rates. The region's online industry is poised to triple to $309 billion in gross merchandise value by 2025, nearly in line with the $300 billion forecast made last year. With an 11% increase in online users, Southeast Asia is one of the world's fastest growing internet markets. That compares with around 4.7 billion internet users worldwide, up 7.4% from a year ago, according to wearesocial.com, a digital monitoring service. Continued growth in internet usage has helped create unicorns such as Grab and Go-Jek, with the region's startups attracting billions in capital from global technology companies and investment firms. Deal value has declined since 2018, primarily driven by a slowdown in big-ticket unicorn investments, the Google-Temeasek-Bain report said. Still, $6.3 billion worth of deals were struck in the first half of 2020 versus $7.7 billion a year ago. Investors still have sufficient capital to deploy but are focusing more on companies' path to profitability. Southeast Asia’s digital economy has shown resilience and growth, with the region’s digital economy set to reach US$100 billion in revenue and US$218 billion in gross merchandise value (GMV) in 2023. Key Takeaways
Despite a decline in private funding, there is still capital available for investment, and digital companies need to demonstrate profitability and strong exit options to attract investors. This year, e-Conomy SEA 2023 shows us just how robust and adaptable Southeast Asia’s digital economy remains. The digital economy in the region is on track to reach a remarkable milestone of generating USD 100 billion in revenue. This substantial growth marks an eight-fold increase in revenue for digital businesses over the past eight years. Thailand ranks second in terms of digital economy in the region, with Indonesia taking the lead. By 2030, Indonesia’s digital economy is projected to reach $210-360 billion, a significant increase from $109 billion in 2025 and $82 billion in 2023. The focus on profit has paid off, with sectors like e-commerce, online travel, transport, food delivery, and online media showing positive growth trajectories. Digital payments and lending have played a significant role in boosting the digital financial services sector. However, there is a risk of a widening digital economic divide outside of metro cities, and efforts are needed to bridge this gap and promote digital inclusion. All stakeholders, including investors, businesses, governments, and NGOs, have a responsibility to help more Southeast Asians participate in the digital economy for sustainable growth opportunities. In recent years, we’ve seen Southeast Asia’s digital economy grow and weather the obstacles of the pandemic and macroeconomic headwinds. Its resilience through these challenges shows in its numbers: last year, the e-Conomy SEA report by Google, Temasek and Bain & Company showed that Southeast Asia’s digital economy was poised to reach US$200 billion in gross merchandise value (GMV) in 2022, three years earlier than we predicted in our inaugural report in 2016. This year, e-Conomy SEA 2023 shows us just how robust and adaptable Southeast Asia’s digital economy remains. The region’s digital economy is set to hit US$100 billion in revenue — an eight-time revenue increase for digital businesses in the last eight years. In fact, revenue is growing 1.7 times as fast as GMV, which is reaching US$218 billion this year. However, Southeast Asia hasn’t been immune to the shifts in the global economic climate. Private funding has declined to its lowest level in six years after record highs. But despite the dip, there’s still a large pool of capital available for investment. And as investors reset their expectations, digital companies will need to demonstrate clear pathways to profitability and prove to investors that they have strong exit options. Remarkably, Southeast Asia consistently delivers on both GMV growth and revenue growth, showing that increased profitability and overall market growth are not at odds. Businesses’ focus on profit has paid off, with most main digital economy sectors – e-commerce, online travel, transport, food delivery and online media – showing positive growth trajectories. Travel and transport are even on track to exceed pre-pandemic levels in 2024. In the digital financial services (DFS) sector, digital payments have helped boost the growth by making up more than 50% of the region’s overall transaction value. Digital lending is the biggest driver of the US$30 billion DFS revenue because of high lending rates and rising consumer demand as traditionally underbanked consumers and small businesses have begun joining the digital economy. The Southeast Asia region is home to some of the most digitally engaged consumers in the world. In fact, since our inaugural report, the number of people connected to the internet across all six of its countries has doubled. But though digital inclusion has made inroads in the region over the years, consumers outside of metro cities are at risk of facing a widening digital economic divide because of the current demand and supply gap in digital services. To bridge this gap, we must work together and combine our efforts to shrink the economic divide. Today, 30% of the highest spending consumers make over 70% of the digital economy’s transaction values. They spend six times the amount that others do, who are more likely to spend more if barriers like the experience of touching products or the recurring costs of streaming services were addressed. All digital economy stakeholders – investors, businesses, governments and NGOs alike – are responsible for helping more Southeast Asians participate in the digital economy. This could mean investors taking a digital inclusion lens when evaluating new opportunities, governments rolling out education initiatives to improve digital and financial literacy or businesses designing new products that are easier to use or more affordable. Not only is it the right thing to do for an inclusive digital economy, but it will also help Southeast Asia unlock sustainable growth opportunities. Is Southeast Asia's internet economy forecast to reach $1 trillion by 2030?One such huge opportunity is its digital economy, estimated to grow from approximately $300 billion to almost $1 trillion by 2030. ASEAN is one of the world's fastest-growing regions, with average real gross domestic product growth forecast to reach 4.6% in 2023 and 4.8% in 2024.nullHow ASEAN is building trust in its digital economywww.weforum.org › agenda › 2024/01 › asean-building-trust-digital-econ...null What is the fastest growing internet economy in Asia?Việt Nam has been the fastest growing digital economy in ASEAN in 2022, 2023 and expected to maintain this position until 2025, with the forecast of smartphones users reaching 67.3 million by 2026, accounting for 96.9 per cent internet users, according to Google, Temasek, Bain & Company and Insider Intelligence.nullViệt Nam becomes a fastest growing digital economy in ASEAN.vietnamnews.vn › economy › viet-nam-becomes-a-fastest-growing-digital-...null What is the strongest economy in Southeast Asia?Finally, Southeast Asia's largest economy, and the world's fourth-most populous country Indonesia, rounds out the top five with a GDP per capita of $5,270.nullMapped: Southeast Asia's GDP Per Capita, by Country - Visual Capitalistwww.visualcapitalist.com › mapped-southeast-asias-gdp-per-capita-by-cou...null What is the digital economy of Southeast Asia 2025?With Southeast Asia's digital economy projected to reach US$300 billion by 2025, this is an exciting but complex region for businesses to be in. Learn how to navigate these diverse markets.nullSoutheast Asia | Business Insights | Singapore EDBwww.edb.gov.sg › business-insights › southeast-asianull |
