Google and Temasek conducted study showed that the internet economy in South East Asia anticipates topping $240 billion by 2025. This is due to the accelerated number of people using the smartphones to browse and surf online.
The first study regulated back in 2016 only reflected online travel, ride-hailing, e-commerce, and social media. However, the report issued on Monday got new sectors on the list like a subscription to video and music platforms as well as online delivery. It is not a shock anymore given the fast-paced lifestyle and people’s interest in diversified music and films.
The region’s estimated GMV or also known as Gross Merchandise Value spiked up to $72 billion this year 2018. It escalated 37 percent from the previous year’s record.
According to the report, e-commerce’s GMV in the SEA will surpass $23 billion this year. In 2025, it is expected to soar four times to top $100 billion. It will increase with the consumer’s growing trust.
SEA Ltd’s Shopee, Alibaba Group Holding Ltd’s Lazada, and Indonesia’s Tokopedia are the e-commerce companies that got credit for being a bridge to expand the sector.
In 2018, the rough calculation of GMV on online food delivery along with the ride-hailing category attained $7.7 billion.
Also, Google-Temasek reported that with the ambition of Grab and Go-Jek to top as the everyday app in South East Asia, they predict that the ride-hailing will outstretch to $30 billion in the year 2025.
Temasek, Singapore’s state investors, with Alphabet Inc’s Google have an investment in Go-Jek.
The report also forecasted growth of $100 billion in the internet economy of Indonesia alone. It will account for 2.5% of every $10 consumed in the country.
2018 is also to set a record in fundraising intended for the country’s internet companies. For the first half of the year, it accumulated $9.1 billion. It was nearly the amount it gained in the whole year of 2017.
The research includes all six largest companies in South East Asia namely Thailand, Singapore, Vietnam, Malaysia, Indonesia, and the Philippines.
The growth in the internet economy comes from the active engagement of internet users amounting to 90 percent of the people connecting to the internet through their mobile phones.
Moreover, with the increased availability of smartphones with lower rates and prices along with the rollout of more reliable and faster telecommunication services; it supports the growth expected from South East Asia as the base of internet users.