The annual report on the digital economy of Southeast Asia, e-Conomy SEA 2024, has been released this year. Collaboratively compiled by Google, Temasek, and Bain & Company, it presents the digital economic landscape of a region that has shown consistent high growth over years globally. The report covers 6 countries namely Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
The total Gross Merchandise Value (GMV) in the business sphere has increased by 15% from 2023, reaching $2.63 trillion (excluding fintech business), translating to a revenue of $8.9 trillion for businesses, marking a 14% increase. Profitability in the digital business sector has seen a substantial 2.5 times increase in the past two years, totaling $1.1 trillion.
Two standout innovations in the digital economy of Southeast Asia are video commerce, representing 20% of all GMV, and mobile games, where regional developers hold a 12% global market share.
Another highlight from the report is the significant increase in AI-related searches in the region, with an 11-fold rise in the past 4 years. Among the top 10 global countries searching for AI, three are from Southeast Asia – Singapore, the Philippines, and Malaysia. Companies from the US have pledged infrastructure AI investments in Singapore, Malaysia, and Thailand.
The e-Conomy SEA 2024 report also provides detailed insights into specific aspects of Thailand. The overall growth of GMV has surged by 19%, led by sectors like e-commerce and travel.
Digital finance has experienced high growth rates, especially online credit and asset management groups. Customer behavior shows a trend towards non-brand-specific product searches, with key categories being games, food, and fashion among mainstream retailers.
For the full report, please refer to the source provided by Google.
TLDR: The e-Conomy SEA 2024 report sheds light on the thriving digital economy of Southeast Asia, highlighting significant growth in GMV, emerging digital finance trends, and consumer behavior shifts towards non-brand-specific product searches.
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