Bain, Google, Temasek report 2021: The SEA Digital Decade

By Kate Birch
Bain & Company, Google and Temasek’s latest annual research report says Southeast Asia is showing resurgence towards a trillion-dollar internet economy

From resilience to resurgence: Southeast Asia is on the road towards a US$1 trillion gross merchandise value economy by 2030. That’s according to the latest e-Conomy SEA report originally launched by Google and Temasek (the global investment company headquartered in Singapore) in 2016, and joined by Bain & Company as lead research partner in 2019.

The multi-year programme takes a deep dive into the internet economy in Southeast Asia, as more SEA nations embrace a digital transformation accelerated by the COVID-19 pandemic.

The region is one of the fastest-growing internet markets, with a young population adopting smartphone use and access to increased connectivity via 4G and 5G networks.

 

The 129-page report – which focuses on industry and country profiles drawing on data from Google, Temasek and Bain – highlights five key insights:

Consumers cruise to a new way of life

Digital consumption has quickly become a way of life in the region. Early adopters have expanded their usage while some 60 million consumers who joined since the pandemic are staying. The stats show that nine in 10 consumers who tried a new digital service in 2020 – such as ride-hailing or online grocery shopping – are continuing to use those services.

Digital merchants take off

The shift in consumer behaviour has led to the rise of the digital merchant. A third say they would not have survived the pandemic without digital platforms.

Resilience leads to resurgence

The region’s internet economy showed great resilience in 2020, but now a resurgence in 2021 has boosted it towards US$170 billion gross merchandise value (GMV). Ecommerce, food delivery and digital financial services remain the biggest winners, with the internet economy predicted to reach about US$360 billion by 2025.

Funding on track to reach new heights

Strong growth, supportive government regulations and an influx of global capital have seen deals boom – with ecommerce and digital financial services leading the way.

The ’20s roar towards a trillion

Shifts in consumer and merchant behaviour, coupled with strong investment, are suggesting that GMV in SEA could well be on its way to US$ 1 trillion by 2030.

 

Share

Featured Articles

Twitter timeline – how Musk pulled off a hostile takeover

Elon Musk strikes deal to buy Twitter for US$44bn following four months of cryptic tweets, secret meetings and buying of shares – here’s the timeline

Top 10 Asia restaurants, from Tokyo’s Den to Bangkok’s Sorn

From Tokyo to Bangkok, with cuisines spanning Cantonese, Thai and German, we highlight Asia’s top 10 places to eat, as per Asia’s 50 Best Restaurants

Microsoft: what Asia leaders need to know about hybrid work

Microsoft’s 2022 Work Trend Index guides Asia leaders to navigating a hybrid future – from making the office worth the commute to rebuilding social capital

Meet the company: EV Nio to list in Hong Kong, enter Europe

Leadership & Strategy

12 Tech trends to watch closely in 2022, from CB Insights

Technology

Why Deloitte Australia’s HR technology is winning awards

Human Capital