In a recent blog post, Sapna Chadha Vice President, Google Southeast Asia and South Asia Frontier discussed the major takeaways from Google’s e-Conomy SEA 2024 report released recently.
This year’s e-Conomy SEA 2024 report by Google, Temasek, and Bain & Company showed that in 2024, the region’s digital economy — measured in gross merchandise value (GMV) — is projected to grow 15% from last year, reaching $263 billion, Chadha wrote.
Revenues (excluding digital financial services) have grown 14% and are projected to reach $89 billion in 2024. And for the first time, the report examines the health of the digital economy through the lens of profitability.
“Over the past two years, profitability has soared 2.5 times to $11 billion. Southeast Asia’s economy has rapidly expanded over recent years — and there’s no sign of slowing down. In fact, the GDP growth of Southeast Asia is projected to outpace that of developed economies in the coming years,” she noted.
Chadha said in particular, it’s the online sphere that’s driving much of this change. Millions across the region are joining the digital economy as creators, entrepreneurs, and consumers. This surge in internet users isn’t just driving economic growth, but transforming the way people live, work, and interact.
Here are the 4 key takeaways from Google’s e-Conomy report for 2024
- Profitability is on the rise
As mentioned, this year’s e-Conomy SEA 2024 report shows that in 2024, the region’s digital economy, which is measured in gross merchandise value (GMV), is projected to grow 15% from last year, reaching $263 billion.
“What we see from these rising numbers is that growth and profitability can very much go hand-in-hand. Businesses are adapting to the evolving demands of the digital landscape and the changing behaviors of Southeast Asian consumers. As the focus is shifting from rapid growth to sustainable profitability, innovation continues to thrive,” Chadha said.
- Strides in e-commerce and gaming
That innovation is particularly evident in two areas: video commerce and mobile gaming.
According to Chadha, creators in Southeast Asia have helped drive e-commerce growth significantly through their use of live shopping.
“In fact, video commerce in the region accounts for 20% of the total e-commerce GMV — which has itself grown 15% since last year. And when it comes to gaming, Southeast Asia’s developers are driving an outsized share of the global gaming market with 12% of all global mobile game downloads in 2024.”
“Gaming content has surged as a result, with more creators and uploads than any other consumer category. As the report shows, the region’s developers are building for a global audience.”
- Southeast Asia: A global hub for AI
The 2024 report shows compelling evidence of Southeast Asia’s inherent strengths in artificial intelligence (AI).
“Its young, digitally plugged-in population has a strong appetite for AI-powered products and services. In fact, AI-related searches in Southeast Asia grew 11 times from 2020 to 2024 and three of its countries — Singapore, Philippines, and Malaysia — rank in the top 10 countries globally that searched most for AI,” Chadha said.
- Attracting investments
She noted that Southeast Asia is also attracting significant investments in AI, with the first half of 2024 alone bringing in over $30 billion committed to AI infrastructure in Singapore, Thailand, and Malaysia.
“This influx of capital is laying the foundation for more compute power, AI services, and the capacity to handle ever-growing amounts of data, positioning the region for long-term success.”
“Southeast Asia’s digital economy is undergoing a dynamic transformation as businesses find creative ways to achieve profitability, making for a more sustainable and resilient ecosystem. With significant investments in AI infrastructure and a thriving ecosystem of startups and developers, the region is poised to unlock the transformative power of AI.”
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