The South East Asia E-commerce Market is projected to reach $762.6 billion by 2030, at a CAGR of 19.8% from 2024 to 2030.
The growth of this market is driven by the rising Internet and smartphone penetration, growing usage of social media and social commerce, the adoption of the omni-channel business model, and advances in multiple payment modes. However, concerns over online fraud and cybersecurity issues are expected to restrain the market's growth.
E-commerce automation and the expansion of cross-border E-commerce are expected to offer significant market growth opportunities. However, navigating local laws and legislation for cross-border operations and building consumer trust without physical touch and feel experience are some of the challenges for the players operating in this market.
Key trends in the South East Asia E-commerce market include the adoption of simulations for product testing and validation and the integration of AR and VR technologies in E-commerce.
Rising Penetration of the Internet and Smartphones
E-commerce has significantly reshaped consumer shopping preferences and has gained prominence worldwide, including in South East Asian countries. This remarkable growth can be attributed to widespread Internet adoption, especially in developing regions. Technological advancements are driving transformative changes in South East Asian economies. Leading technology-driven countries like Singapore are at the forefront of embracing cutting-edge technologies such as virtual reality, artificial intelligence, and autonomous vehicles, which increasingly rely on Internet services.
Furthermore, rapid technological advancements have made the Internet one of the world's most valuable tools, particularly in South East Asia, where mobile Internet usage is leading globally. For example, according to ASEAN.org, people in Indonesia, Malaysia, the Philippines, and Thailand spend more than four hours daily using mobile Internet, exceeding the global average of three hours.
In 2022, over 460 million people in South East Asia accessed the Internet, a penetration rate of 80%. Furthermore, South East Asia and Oceania are witnessing a significant increase in monthly data traffic per smartphone, with a projected 29% surge. The region's economy has become more resilient and diversified, contributing to the rising penetration of the Internet and smartphones, which, in turn, fuels the growth of the South East Asia E-commerce market.
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Key Findings in the South East Asia E-commerce Market Study:
The Vertical E-commerce Segment to Register the Highest CAGR During the Forecast Period
Based on business model, the South East Asia E-commerce market is segmented into horizontal E-commerce and vertical E-commerce. The vertical E-commerce segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by the rising popularity of dedicated E-commerce portals due to quicker shopping experiences and personalized merchandising offered by these portals. The vertical E-commerce model allows businesses to offer customers a focused and tailored shopping experience within specific product categories, enabling them to stand out from broader E-commerce platforms and establish a strong brand presence.
The Mobile/tablet Segment to Register the Highest CAGR During the Forecast Period
Based on browsing medium, the South East Asia E-commerce market is segmented into desktop/laptop and mobile/tablet. Further, the mobile/tablet segment is sub-segmented into application-based and browser-based. The mobile/tablet segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by the higher sales of mobile/tablet devices compared to laptops/desktops and the rising Internet penetration. The compact and user-friendly size of smartphones is the primary driver behind the higher sales of smartphones in the market.
The Digital Wallets Segment to Register the Highest CAGR During the Forecast Period
Based on payment mode, the South East Asia E-commerce market is segmented into card payments, digital wallets, bank transfers, cash payments, and other payment modes. The digital wallets segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by the convenience and security associated with digital wallets, as well as the active promotion of digital wallet usage by E-commerce platforms.
The Omni-channel E-commerce Segment to Register the Highest CAGR During the Forecast Period
Based on operational channel, the South East Asia E-commerce market is segmented into pure play E-commerce and omni-channel E-commerce. The omni-channel E-commerce segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by attributed to the seamless customer experience offered by these channels, resulting in increased sales, consumer traffic, customer loyalty, and better data collection, enabling businesses to optimize customer interactions and resource management.
The Beauty & Fashion Products Segment to Register the Highest CAGR During the Forecast Period
Based on offering, the South East Asia E-commerce market is segmented into beauty & fashion products, travel & tourism, electronic products, household products, pharmaceutical products, food & beverage, and other offerings. The beauty & fashion products segment is projected to register the highest CAGR during the forecast period. The growth of this segment is driven by rapidly changing customer behavior and preference towards online shopping, as well as the high demand for cosmetics and clothing. The rising popularity of mobile wallets and the increasing use of smartphones contribute to the segment's growth. Additionally, the rising incorporation of advanced technologies in online platforms and the availability of various beauty & fashion goods for comparison on E-commerce platforms contribute to the growth of this segment.
Indonesia: Fastest-growing Market in South East Asia
Based on geography, the South East Asia E-commerce market is segmented into Indonesia, Vietnam, Singapore, Thailand, Malaysia, Philippines, and the Rest of South East Asia. The market in Indonesia is slated to register the highest CAGR during the forecast period. The market growth in Indonesia is attributed to the substantial consumer base, the rising penetration of smartphones and internet connectivity, and the presence of numerous E-commerce players and emerging start-ups.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market players. The key players operating in the South East Asia E-commerce market are Amazon.com, Inc. (U.S.), Alibaba Group Holding Limited (China), eBay Inc. (U.S.), JD.com, Inc. (Jingdong) (China), Rakuten, Inc. (Japan), The Home Depot, Inc. (U.S.), Zalando SE (Germany), Otto GmbH & Co KG (Germany), Priceline.com (U.S.), B2W Digital Company (Brazil), Groupon, Inc. (U.S.), Walmart Inc. (U.S.), Inter IKEA Systems B.V. (Netherlands), Costco Wholesale Corporation (U.S.), Shopify Inc. (Canada), Wayfair Inc. (U.S.), Suning.com Co., Ltd. (Suning Commerce Group Co., Ltd.) (China), and Tesco plc (U.K.).
Scope of the report:
South East Asia E-commerce Market Assessment, by Business Model
- Horizontal E-commerce
- Vertical E-commerce
South East Asia E-commerce Market Assessment, by Browsing Medium
- Desktop/Laptop
- Mobile/Tablet
- Application-based
- Browser-based
South East Asia E-commerce Market Assessment, by Payment Mode
- Card Payments
- Digital Wallets
- Bank Transfers
- Cash Payments
- Other Payment Modes
South East Asia E-commerce Market Assessment, by Operating Channel
- Pure Play E-commerce
- Omni-channel E-commerce
South East Asia E-commerce Market Assessment, by Offering
- Beauty & Fashion Products
- Travel & Tourism
- Electronic Products
- Household Products
- Pharmaceutical Products
- Food & Beverage
- Other Offerings
South East Asia E-commerce Market Assessment, by Country/Region
- Indonesia
- Vietnam
- Singapore
- Thailand
- Malaysia
- Philippines
- Rest of South East Asia
Key questions answered in the report:
