Southeast Asia, comprising of densely populated countries such as Indonesia, Thailand, Singapore, Malaysia, etc. is grabbing the attention of the world. A recent report released by Google, the digital economy of the region, which currently sits at an approx. $72 billion, will triple by the year 2025!
Digital economy is comprised of components such as e-commerce, online media, online travel and ride-hailing (such as Uber). For the year 2018, they are estimated at approximately $23B, $11B, $30B and $8B respectively. The forecast for 2025, however, is looking massive! Google’s report says they will reach $102B, $31B, $78B, and $29B respectively!
Out of all the Southeast Asian countries, Indonesia is the one that stands out. The market size of the nation, which is the fourth largest by population, is currently at $27B. By 2025, it is said to almost quadruple and reach $100B, thereby outperforming its fellow nations by miles! Such a development is said to be the resultant of the growing trend of ride-hailing, e-commerce and online food ordering in Southeast Asia. Businesses such as Uber (acquired by Grab) and Go-Jek are expanding their portfolio with on-demand services, which is raking in more revenue for the country.
The report from Google states, “More than 2,000 internet economy companies in the region have secured investments, with companies valued less than $1 billion able to raise collectively almost $7 billion in the last three years. Among them, the most dynamic segment was that of companies valued between $10 million and $100 million. The bedrock of the internet economy, these companies have raised $1.4 billion in the first half of 2018, already eclipsing the $1.0 billion they received in all of 2017.”
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