Technology

Southeast Asia internet economy growth accelerates

The ecosystem of Southeast Asia’s internet economy is a growing and dynamic environment. The growth of online economy in the region has exceeded expectations and will reach $50 billion in 2017, according to the Google and Temasek e-Conomy Southeast Asia Spotlight 2017 report, published on December 12. Last year’s “e-Conomy 2025 Southeast Asia” report foresaw that the sector would realize $200 billion by 2025. This means predictions were surpassed by 35%. The latest report shows optimistic data concerning sectors of e-commerce, ride-hailing, online travel and internet media.

Online travel biggest segment, e-commerce and ride-hailing saw highest growth

With a jump to $26.6 billion in 2017 from $19.1 billion in 2015, or a 18% rise, online travel has remained the biggest segment for internet-base spending. The sector is led by airline and hotel bookings. On the other hand, ride-hailing and e-commerce saw the highest growth. E-commerce broke the $10 billion mark for the first time this year, showing a 41% growth. It is expected that the segment would remain the most lucrative one, reaching more than $88 billion by 2025. The ride-sharing market continues to grow with competitors such as Uber, Grab and Go-Jek. The report concluded that the total spend on ride-hailing apps more than doubled comparing to 2015, crossing the $5 billion mark this year. The industry is expected to develop and reach $20 by 2025.

Impressive numbers

  • 330 million internet users. – Southeast Asia now holds the title of the third largest market according to the number of internet users.
  • 3.6 hours on mobile internet every day. – As of 2017 Southeast Asians spend more time on mobile internet than anyone else in the planet. Thailand is top of the list with 4.2 hours per day, with Indonesia a close second at 3.9 hours per day. To compare, the US spends 2 hours per day, the UK 1.8 hours per day, and Japan 1 hour per day on mobile internet.
  • 140 minutes shopping online every month. – Users from Southeast Asia spend almost double the amount of time on digital marketplaces compared to Americans.
  • 6 million rides booked through ride-hailing platforms every day. – The ride-sharing market in Southeast Asia has grown four times since 2015.
  • More than $12 billion raised by Southeast Asian startups since 2016. – At 0.18 percent of GDP, the amount of investment into Southeast Asian startups is on par with India’s.

 

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