Southeast Asia e-commerce expected to reach $181 billion by 2025

Southeast Asia's e-commerce is expected to reach $181 billion by 2025 thanks to the surge in video shopping and AI technology, opening up new competition between platforms.

The e-Conomy SEA 2025 report by Google, Temasek and Bain & Company said the e-commerce market in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam is expected to reach $181 billion this year. The 16% increase shows that e-commerce continues to be a pillar of the digital economy , higher than the 13% growth rate in 2024.

When food delivery, ride-hailing and online travel are included, Southeast Asia's digital economy is expected to reach $299 billion, representing a 15% increase year-on-year.

One of the factors driving the strong growth of e-commerce is the video and livestream sales model. The report expects this segment to account for 25% of total GMV by 2025, up from less than 5% in 2022.

TikTok, Lazada and Shopee are pushing to integrate video into the shopping experience, allowing users to interact and place orders right on screen.

The fashion segment accounts for 27% of GMV, while the beauty and personal care segment accounts for 21%, with rings, earrings, and sunscreen seeing strong demand. This boom shows that e-commerce is shifting strongly towards a visual content model.

AI directly impacts users' shopping behavior

AI is not only a part of strategy but has also deeply intervened in consumer decisions. According to Bain & Company, up to 68% of shoppers said AI influenced their product choices. The way AI recommends, optimizes the shopping journey and personalizes the experience is helping e-commerce expand its appeal to young users.

AI algorithms improve search speeds, classify needs, and boost order conversions, sending e-commerce across the region into a more profound growth phase.

Alongside e-commerce, related sectors such as food delivery are forecast to reach $22 billion, growing 14% in 2025. Transportation is expected to grow 16% to $11.1 billion thanks to cost-sharing models and recurring subscriptions.

Online travel could rise by 11%, despite people opting for shorter trips. In the Asia-Pacific region, the average length of stay has fallen from 6.1 days to 5.3 days.

Despite the strong growth of e-commerce, the startup investment market has slowed down significantly. In the first half of the year, there were only 191 private investment deals in Southeast Asia, down sharply from 305 deals in the same period last year and 2,697 deals in 2021.

Temasek said that the global economic fluctuations have caused investors to temporarily “wait and see”. However, the wave of investment in AI is spreading, creating expectations that technology and e-commerce startups will enter a new breakthrough cycle.

With the rise of video shopping, AI-powered personalization, and rapid expansion of regional platforms, Southeast Asian e-commerce is likely to continue breaking new revenue milestones in the coming years.

Increased online consumer demand and competition between major platforms will push the market towards faster and more sustainable innovation.

Source: https://baodanang.vn/thuong-mai-dien-tu-dong-nam-a-du-kien-dat-181-ty-usd-nam-2025-3310037.html