With Southeast Asia’s continued rapid digitalization, gross merchandise value (GMV) forecasts continue to project Southeast Asia’s digital economy to reach $1 trillion by 2030. According to the e-Conomy SEA 2024 Report by Google, Temasek, and Bain & Company, the region’s digital economy is expected to see US$11 billion in profits this year, almost tripling its profits over the course of two years, as GMV and revenue continue experiencing double-digit growth. There has also been a noticeable uptick in AI investment, with over US$30 billion invested in building AI-ready data centers in Malaysia, Singapore, and Thailand during the first half of 2024 alone.
E-commerce remains the largest component of the region’s annual digital economic growth, largely driven by existing customers and the rise of video commerce. Video commerce has quadrupled in its share of GMV since 2022, offering new potential pathways to cultivate customer relationships and brand loyalty. However, investment trends have been more subdued as the region navigates higher interest rates, geopolitical shifts, and the maturity of some of the region’s first unicorn companies. Although purely digital companies have been receiving as much investor attention, some more nascent sectors, such as AI, fintech, and software as a service (SaaS), have the potential to become a key driver for future digital economy investment.
