GMV and revenue growth have been resilient in the face of inflation and competition, according to the mix of data analyzed

The ninth edition of a report on South-east Asian (SEA) e-commerce economies* by Google, Temasek and Bain has offered viewpoints that the region’s profitability has been on the rise, with gross merchandise value (GMV) set to grow 15% to US$263bn this year^.

The report’s data shows that revenues have grown 14%, and are projected^ to reach US$89bn in 2024. 

Other findings include:

  • SEA’s digital economy has reportedly reached a profitability milestone across sectors studied. Since 2022, profitability had grown 2.5x from US$4bn in 2022 to US$11bn in 2024.
  • AI is starting to drive transformative value for SEA’s digital economy, through both broad and sector-specific business use cases. Early adopters in the data had been realizing returns on their investments within 12 months of implementation.
  • Video commerce is rapidly transforming SEA’s e-commerce landscape, surging to 20% of e-commerce’ gross merchandise value in 2024.
  • While exit environments remain challenged, early stage firms in SEA have made significant progress towards profitability.
  • Private funding remains subdued: Higher interest rates and shifts in the geopolitical landscape have contributed to a decline in deal volumes. Investors have expressed confidence in SEA’s long-term potential, directing nearly 50% of investments towards nascent sectors.
  • Gaming developers in the region have been capturing an outsized share of the global mobile gaming market, driving 12% of downloads in 2024. In parallel, gaming content is booming, with more top creators and uploads than any other consumer category.

Also, although fraud rates were declining due to heightened user awareness and strengthened fraud controls, online scams remain prevalent, with half of all digital users falling victim despite expressing confidence in spotting them.

*defined therein as the digital markets of Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam

^projected market and financial information, analyses, and conclusions contained in this report should not be construed as definitive forecasts or guarantees of future performance or results.