In a recent report by Bain and Company, Southeast Asia’s digital economy has reached a remarkable milestone, hitting $100 billion in revenue. The study highlights the region’s rapid advancement, with digital payments now constituting more than half of the overall transaction value.
The report projects that the digital economy’s revenue is set to hit the $100 billion mark this year, growing at a pace 1.7 times faster than the region’s Gross Merchandise Value (GMV). This growth is attributed to the strategic shift of digital businesses, focusing on monetization to achieve profitability targets, which has proven successful.
Digital enterprises have transitioned from a focus on user acquisition to deepening engagement with existing customers, marking a pivotal moment in the monetization of Southeast Asia’s digital landscape.
Online Travel is on a trajectory to recover by 2024, nearing pre-pandemic flight passenger volumes. Fueled by inflation, the sector’s revenue is expected to reach $14 billion, showcasing a substantial 57% Year-on-Year (YoY) increase. The GMV for Online Travel experienced a robust 63% YoY growth, reaching $30 billion in 2023, with expectations to further soar to $43 billion in 2025.
Transport is witnessing a robust recovery, bolstered by effective monetization efforts. Despite a return to in-person dining and reduced promotions, Food Delivery has reached a higher revenue.
Advertising and video streaming are anticipated to be long-term revenue drivers. The Philippines is expected to lead the Online Media sector’s growth in SEA until 2025, while Thailand is poised to be the largest Online Media market overall between 2023 and 2030.
These developments underscore the resilience and adaptability of Southeast Asia’s digital economy, as various sectors successfully navigate challenges and leverage new opportunities for growth.