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Google-Temasek study sees US$240b South-east Asia Internet economy by 2025

20 Novembre, 2018, 08:54 | Auteur: Auguste Feret
  • Google study sees $240 billion Southeast Asia internet economy by 2025

Southeast Asia's internet economy is expected to exceed $240 billion by 2025, a joint study by Google and Temasek showed, a fifth more than previously estimated, as more consumers use their smartphones to go online.

It estimated that the gross merchandise value (GMV) of the region's internet economy has reached $72 billion in 2018, rising 37 per cent from the year earlier.

The latest report released on Monday adds new sectors such as online food delivery, as well as subscriptions to music and videos.

The region's biggest companies, like Alibaba Group Holding, Shopee or Tokopedia will also play a major role.

"Powered by the ambitions of Go-Jek and Grab to become Southeast Asia's "everyday apps", we project that ride hailing will reach nearly $30 billion by 2025", the Google-Temasek study said.

Both Alphabet Inc's Google and Singapore state investor Temasek have invested in Go-Jek.

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As the report notes, this surge has been fuelled by tech sectors such as online travel ($30 billion) e-commerce ($23 billion), online streaming media ($11 billion) and ride-hailing ($8 billion).

Southeast Asia's internet companies attracted a record amount of capital from venture capitalists, private equity firms and corporate investors in 2018, raising $9.1 billion in the first six months of the year, compared to $9.4 billion in all of 2017.

It added that 2018 was on track to be a record year for fundraising for the region's internet economy companies, with $9.1 billion raised in the first half of the year, almost as much as in all of 2017.

Breaking down the numbers, Google puts Indonesia - the world's fourth largest country by population - on track to hit $100 billion by 2025, ahead of Thailand ($43 billion) and Vietnam ($33 billion).

As smartphones become more reliable, cheaper and easier to come by, and as telecom services improve their offerings, so will more people use the internet on an everyday basis.

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