According to a report released by Google and Temasek Holdings, an investment arm of the Singapore government, titled “e-Conomy Southeast Asia Spotlight 2017”, Southeast Asia’s web economy is predicted to achieve US$50 billion in 2017, exceeding previous expectations by 35%, and is heading in the right direction to achieve US$200 billion in the web economy by 2025.
The report found that e-commerce sales are accelerating in Southeast Asia, reaching $10.9 billion in gross merchandise volume in 2017, up from $5.5 billion two years ago and growing at a compound annual growth rate of 41 percent. E-commerce and passenger transportation were the celebs.
Online travel grew by 18 percent, and online media expanded at a compound annual growth rate of 36 percent.
Southeast Asian mobile web users are amongst essentially the most energetic on the earth, spending a mean of 140 minutes per thirty days on regional e-commerce platforms, compared with just 80 minutes per thirty days on the highest platform within the United States.
The report didn’t name the platforms, but listed Lazada, Shopee and Tokopedia because the leading players in Southeast Asia. Shipping services will reach $5.1 billion in gross merchandise value this yr, greater than double the $2.5 billion in 2015.
In the third quarter of this yr alone, greater than six million rides were booked each day through the region’s hottest apps – Go-Jek, Grab and Uber – a four-fold increase in comparison with 2015.
Southeast Asia’s web economy will account for two percent of the region’s gross domestic product this yr and is predicted to achieve 6 percent by 2025, the report said. That puts it “on a solid trajectory to exceed US$200 billion by 2025,” it added.
Southeast Asia is home to seven web “unicorns” – corporations valued at greater than US$1 billion – 4 of that are headquartered in Singapore: Grab, Lazada, gaming company Razer and web company Sea.
The remaining three are based in Indonesia: Go-Jek, travel company Traveloka and e-commerce company Tokopedia.
Source: The Strait Times | TheDrum.com
