Southeast Asia’s Digital Economy Set to Surpass $300 Billion by 2025, Reports Google, Temasek, and Bain & Company
- ByStartupStory | November 11, 2025
Southeast Asia (SEA) is on track to achieve a landmark milestone as its digital economy is projected to exceed $300 billion in gross merchandise value (GMV) by 2025. This remarkable growth, revealed in the 10th annual e-Conomy SEA report jointly published by Google, Temasek, and Bain & Company, underscores the region’s rapid digital transformation fueled by AI adoption, increasing internet penetration, and evolving consumer behaviors.
The report expands the scope from six to ten ASEAN countries, adding Brunei, Cambodia, Laos, and Myanmar to provide a more comprehensive view of the regional digital economy. It highlights a sustained 15% year-over-year growth in both GMV and revenue, with revenues forecasted to hit $135 billion in 2025, marking an acceleration in profitability.
Over the past decade, SEA’s digital economy has grown exponentially—registering a 7.4x increase in GMV and an 11.2x jump in revenue. The region has attracted $120 billion in private funding and welcomed over 200 million new internet users, driving massive adoption in sectors like e-commerce and digital payments. Currently, about three in five people in SEA shop online, and more than 60% of payments are digital.
Key trends shaping this growth include the rapid rise of video commerce, now accounting for approximately 25% of total e-commerce GMV. This shift is powered by social commerce influencers, high transaction volumes, and seamless integration of entertainment with shopping. The food delivery sector is nearing widespread profitability thanks to logistical optimizations and diversified revenue streams like advertising and cloud kitchens. Meanwhile, transport services and online media continue to expand, supported by subscription models and AI-driven ad technologies.
Singapore stands out as a pillar of digital resilience, with its GMV forecasted to reach $29 billion in 2025, bolstered by growth in transport, online media, and digital financial services. Importantly, Singapore leads in AI investment within SEA, securing $1.31 billion in private AI funding in the first half of 2025 alone, highlighting its role as the region’s AI governance and innovation hub.
The report’s authors emphasize that the region’s digital decade has paved a robust foundation, and the next phase—the “AI reality”—will be defined by speed, innovation, and efficiency. Businesses are increasingly focusing on quality growth and sustainable monetization strategies amid shifting macroeconomic conditions.
Experts believe AI will be a catalyst for the next wave of digital economy expansion, requiring continued investment in physical infrastructure like data centers, of which over 4,600 MW new capacity is planned. Workforce skills in AI development and deployment are actively growing across the region, setting the stage for even greater economic digitization.
In conclusion, the SEA digital economy’s surge past $300 billion in GMV by 2025 reinforces the region’s position as a vital technology and innovation hotspot, ready to capitalize on AI-driven growth opportunities while maintaining sustainable and inclusive development.
This comprehensive and optimistic outlook provides a roadmap for investors, policymakers, and businesses to harness the next chapter of Southeast Asia’s digital future.
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