Report: Southeast Asia’s Internet economy to grow to $200B by 2025

Southeast Asia’s internet economy is expected to grow to $200B by 2025, according to a new report by Google and Singaporean sovereign wealth fund Temasek. The report focuses on the $200 billion digital opportunity in Southeast Asia. Cultivating from 4 independent data sources, the two companies identified expected values  of different start-ups and sectors, and made calculated predictions about challenges in the ecosystem. Read on for key takeaways:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Key Takeaways

• Southeast Asia to be the fastest growing internet market in the world. With 480m users by 2020
• Indonesia is the fastest growing nation in the world
• Southeast Asia’s internet economy is ready to take off: 124k users coming online every day for the next 5 years
• Southeast Asia currently houses 700m Mobile connections. This makes up 130% of the population
• The ecommerce market is split into two key segments: First- hand goods and Second-hand goods (See figure 2)

• Investment flow is growing, but activity is concentrated to Singapore and Indonesia, with the majority of funding going to a few prominent startups.
• A total of $40-$50B of investments must be injected over the next 10 years to make Southeast Asia a $200B internet economy in 2025.
• Investment levels in India are higher than Southeast Asia. SEA had a GDP of $2.4T while India had $2.1T in 2014, it received less than a fifth of the funding.
• Southeast Asia will face four key challenges (See figure 3).

To access the whole report, click here