ASEAN’s Digital Economy Surges Toward $300 billion as the AI Era Begins

Southeast Asia’s digital economy is crossing a historic milestone, with Gross Merchandise Value (GMV) set to exceed $300 billion by 2025, according to the 10th annual e-Conomy SEA report by Google, Temasek, and Bain & Company. 

Key takeaways

• ASEAN’s digital economy is set to surpass $300B GMV by 2025, driven by a decade of disciplined, sustainable growth.
• Investor focus is shifting toward value creation, with funding rebounding 15% and late-stage, DFS-led deals dominating.
• Southeast Asia is emerging as a global AI hotspot, backed by soaring consumer adoption and a 180% surge in data-center capacity.

The figure is 1.5× higher than the inaugural forecast a decade ago, underscoring the region’s resilience and long-term digital momentum. Revenues are projected to reach $135 billion as profitability accelerates across markets.

The report shows the region has shifted from a phase of explosive growth to one characterized by disciplined monetization and sustainable business models. Since 2016, Southeast Asia’s total GMV has expanded 7.4×, while revenues have multiplied 11.2×, laying the groundwork for what analysts now call the region’s “AI reality.”

Innovation-led growth keeps businesses on track

Across sectors, companies are balancing growth with sustainable economics. Video commerce has become a key force, growing five-fold in three years and on track to represent a quarter of all e-commerce GMV by 2025.

Food delivery platforms, once criticized for cash burn, are either profitable or nearing that threshold after overhauling logistics and expanding into new revenue streams. The transport sector is scaling through tiered services and in-app advertising, while online travel is surging on the back of rising rates and supportive visa schemes.

Meanwhile, online media is being reshaped by retail media networks and AI-enhanced ad formats. Digital financial services (DFS) continue to deepen, moving beyond payments to cross-border interoperability, now live across eight ASEAN countries.

Private funding in the region is rebounding, increasing 15% year-on-year to about $8 billion. Rather than chasing hyper-growth, investors are prioritizing late-stage deals and DFS, which now attracts nearly half of total deal value.

This cautious revival rests on realistic valuations, proven monetization, and clearer profitability paths. The next frontier for investor confidence, analysts say, is strengthening exit pathways, with a growing IPO pipeline offering encouraging signs for 2026 and beyond.

ASEAN positions itself as a global AI hotspot

With three in five consumers shopping online and digital payments surpassing 60% of all transactions, Southeast Asia has the digital density to become a global AI leader. 

Consumer interest in AI is three times the global average, and 75% of users say AI tools already help them discover content and streamline tasks.

Behind the scenes, the region is racing to expand its physical backbone. More than 4,600 MW of new data-center capacity is planned, equivalent to 180% growth, outpacing the 120% increase projected for the rest of Asia Pacific.

AI is also emerging as one of the region’s hottest investment categories. In the past year alone, more than $2.3 billion has flowed into over 680 AI startups, representing over 30% of ASEAN’s private funding in 1H 2025.

Southeast Asia’s ascent to a $300 billion digital economy marks the end of its foundational decade and the beginning of a far more consequential one. With disciplined growth strategies, renewed investor confidence, and a fast-maturing ecosystem, the region is now positioned to lead the global shift into AI-driven commerce and infrastructure. As capital markets revive and innovation accelerates, ASEAN stands on the verge of transforming its digital momentum into long-term economic leadership, powered not just by scale, but by intelligence, resilience, and regional integration.