SINGAPORE (Dec 25): Southeast Asia’s internet economy has experienced unprecedented growth over the past year to exceed initial research projections from Google and Temasek Holdings. The e-Conomy SEA Spotlight 2017 report, jointly released on Dec 12 by the two companies, estimated that there will be over 330 million active monthly internet users in the region by end-2017. This represents a 70 million increase in new users since 2015, or a compound annual growth rate (CAGR) of 13%.
Currently, 90% of active users in the region are using the internet on their smartphones. Southeast Asian internet users also spend an average of 3.6 hours a day on mobile internet, the highest proportion globally. Southeast Asia’s internet economy is estimated to hit US$50 billion ($67 billion) by end-2017.
In May 2016, the Google-Temasek e-Conomy SEA report forecasted that the region’s internet economy would grow at a CAGR of 20% over a 10-year period to reach US$200 billion by 2025, and that about US$40 billion to US$50 billion in investments would be required over a decade to achieve that goal.