South East Asia's internet economy is estimated to exceed $ 240 billion in 2025, as affordable mobile internet drives rapid…
South East Asia’s internet economy is estimated to exceed $ 240 billion in 2025, as affordable mobile internet drives rapid growth in sectors such as e-commerce and horse riding, according to a new study released by Google and Singapore’s Temasek Holdings on Monday. 19659002] div> div.group> p: first child “/>
It’s $ 40 billion more than a previous estimate made by companies in 2016. The study focused on six Southeast Asian countries – Singapore, Indonesia, Malaysia, Vietnam, Thailand and the Philippines – across four main areas: horse riding, e-commerce, online media and online travel. Within these areas, the report has added new sectors such as online food delivery, music subscriptions and video on demand.
By the end of 201
8, the region’s internet economy is estimated to be approximately $ 72 billion, an increase of 37 percent year-on-year, measured by gross surplus value – a key industry’s metric measure value for the dollar value of online-sold goods.
Indonesia has the largest and fastest growing internet economy in Southeast Asia and is expected to grow to $ 100 billion by 2025 and account for 40 percent of the region’s spending, according to the report.
Affordable mobile data and related enhancements have led to more Internet users in Southeast Asia; More than 90 percent of them have access to the World Wide Web through their smartphones, says the report. The six countries studied in the report currently have about 350 million Internet users compared to only 260 million in 2015, making Southeast Asia the fastest growing internet sites in the world.
“We add about 3 million new internet users Every month they get internet access,” said Rajan Anandan, Vice President of India and Southeast Asia on Google, on CNBC’s “Squawk Box” on Monday.
He explained that for the average user in Southeast Asia, their first point for connecting to the worldwide web is via mobile internet – unlike in the West, where most people first connect to the Internet via fixed connections from their homes, probably on their desks.
In recent years mobile internet has also become cheaper because the price per gigabyte data has fallen by nearly 50 percent over the last two to three years, according to Anandan.