Southeast Asia’s Internet economy on track to hit $200bn by 2020. Here's the Stars
Southeast Asia’s Internet economy is set to hit $50bn in 2017, outpacing earlier growth expectations by 35% and well on track to realising a $200bn internet economy by 2025, according to a report released by Google and Temasek Holdings, the Singapore government’s investment vehicle, called the ‘e-Conomy Southeast Asia Spotlight 2017’.
The report found that ecommerce sales are accelerating in Southeast Asia, reaching $10.9bn in gross merchandise volume in 2017, up from $5.5bn two years ago and growing at 41% compound annual growth rate. The stars were e-commerce and ride-hailing.
Online travel has shot up 18 per cent, while online media expanded with a compound annual growth rate of 36 per cent.
South-east Asian mobile Internet users are among the most engaged globally - spending on average 140 minutes a month on regional e-commerce platforms, versus just 80 minutes on the top platform in the United States.
The report did not name these platforms, but cited Lazada, Shopee and Tokopedia as leading players in South-east Asia. Ride-hailing services will reach US$5.1 billion in gross merchandise value this year, more than double the US$2.5 billion in 2015.
Over six million rides per day were booked on the region's top apps - Go-Jek, Grab and Uber - in this year's third quarter alone, up more than fourfold since 2015.
South-east Asia's Internet economy will account for 2 per cent of the region's gross domestic product this year and is projected to reach 6 per cent by 2025, said the report. This puts it "on a solid trajectory to exceed US$200 billion by 2025", it added.
There are seven Internet unicorns - firms valued at over US$1 billion - in South-east Asia, with four of them based in Singapore: Grab, Lazada, gaming firm Razer and Internet firm Sea.
The other three are based in Indonesia: Go-Jek, travel firm Traveloka and e-commerce firm Tokopedia.
Source : The Strait Times | TheDrum.com