As more consumers use their smartphones to go online, the latest study by Google and Temasek Holdings changed its expectations for Southeast Asia's internet economy. It is now forecasted to reach $240 billion by 2025, an increase by $40 billion which is more than previously estimated.
Originally published in 2016, the study covered services such as ride-hailing, e-commerce, online travel and online media. However, the latest report deals also with new sectors such as online food delivery, as well as subscription music and video on demand.
The region’s internet economy now, in 2018, stands at $72 billion in gross merchandise value (GMV), rising 37% from the year earlier, and will rise more than four times to exceed $100 billion by 2025, boosted by increased consumer trust.
It is noteworthy that the research covers Southeast Asia's six largest economies -Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam.
The report highlighted that Southeast Asia's growing internet user base might be the result of the increasing availability of affordable smartphones and the rollout of faster and more reliable mobile telecommunication services.