Google forecasts Southeast Asia’s Digital economy to triple by 2025

With over 650 million cumulative populations, Southeast Asia’s Digital economy is predicted to reach $240 billion by 2025 according to “e-Conomy SEA” report by Google. The report suggests that internet economy will grow by 44% this year from last year to $72 billion, which was only $19.1 billion in 2015.

Online travel (30 billion) tops the chart in bringing in revenue, followed by e-commerce (23 billion), Online Media (11 billion) and Ride Hailing (8 billion). The growth is expected to continue unto 2025.

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Disruptive growth potential can be seen in Indonesia which is forecasted to reach $100 billion by 2025, followed by Thailand (43 billion), Vietnam (33 billion). Indonesia’s and Vietnam’s digital economy have tripled since 2015.

Ride Hailing boom is seen in the region as Grab and Go-Jek have made solid footstep by increasing the number of daily ride hailing users to 8 million from 1.5 million in 2015 and monthly users to 35 million. Revenue growth is very strong in food and delivery services which is a huge opportunity for Grab and Go-Jek. Singapore has seen exceptionally outstanding growth in ride hailing that is 28% from 0.8 billion in 2015 to 1.8 billion this year.

Funding has been the most impactful factor in the growth of the giants. Billion dollar companies have engulfed $16 billion alone where the whole region got only $24 billion in total. Grab got $6 billion alone.

More than 2000 internet companies have secured investments of around $7 billion in the last 3 years. However, $1.4 billion have been raised in the first half of 2018 topping last year’s overall investment of $1.0 billion.

Elvis Gomes

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