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:

e-conomy prediction for 2025

e-conomy prediction for 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)
figure two: ecommerce segments

Figure 2: Ecommerce segments

  • 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).
ecommerce challenges for the region

Figure 3: Ecommerce challenges for the region

To access the whole report, click here