The Southeast Asia internet economy is predicted to exceed $240 billion by 2025 as affordable mobile internet drives new industries and ecosystems such as ride-hailing and e-commerce – the market in this region is likely to shock investors. Google and Temasek have done a study that covers Malaysia, Vietnam, Thailand and Philippines over a wide range of sectors. This report discusses online media and online travel as well.
Within those areas, the report added new sectors such as online food delivery as well. Right now, Indonesia has the largest and fastest-growing internet economy in Southeast Asia, and is forecast to expand to $100 billion by 2025 and account for 40 percent of spending in the region. One major difference in Asia is that many people connect with the internet from hand-held devices while in the US and Europe many people still use fixed stations at home. In Asia the ride-hailing sector, which includes transport bookings on the internet and online delivery, reached $7.7 billion in 2018.
The services now cover 500 cities in Southeast Asia – the growth is shockingly fast. There is also a surge in fundraising that seems to be spreading across the region. A majority of the funds went to nine internet unicorns in the region. these are of course start-ups with valuations of $1 billion or more. Investment in nascent sectors of the internet economy, including financial technologies, health care and education, have also grown in recent years. The Southeast Asian market will continue to grow and the leader seems to be Indonesia. More no this topic in the coming weeks.