Thailand’s Digital Economy To Grow To $50 Billion By 2025
Nov 05, 2019

In Thailand, the digital economy is expected to grow to a volume $50 billion by 2025 from $16 billion as of 2019, making it the second largest in Southeast Asia behind Indonesia. This is one finding of the “E-Conomy SEA 2019” report by Google and Singaporean investment firm Temasek found, based on a 29 per cent annual growth.

The report shows that Southeast Asia’s entire Internet economy reached $100 billion for the first time this year, with 360 million people now linked to cyberspace – 100 million more than just four years ago. But the region’s Internet economy value still only accounts for just 3.7 per cent of combined GDP, which represents a huge opportunity for accelerated growth.

Online travel remains Thailand’s and most mature segment with $7.2 billion in gross value in 2019, growing 17 per cent. Online shopping is the biggest and fastest growing segment in Southeast Asia with Thailand leading the pack at 54 per cent growth since 2015, reaching $5 billion dollars in 2019 and expected to hit $18 billion by 2025.

Online media, including advertising, gaming, subscriptions, as well as music and video on demand is also growing rapidly in Thailand, at $3 billion in 2019, set to reach $7 billion by 2025. This is largely driven by high levels of engagement on social media and video platforms. Ride-hailing in Thailand reached $1.3 billion in 2019, up 36 per cent since 2015.

Opportunities are also spreading beyond big cities in Southeast Asia. Now, seven major metropolitan areas make up more than 50 per cent of Southeast Asia’s Internet economy, but account for just 15 per cent of the total population. But by 2025, areas outside cities are expected to double growth as well, which means new jobs and opportunities plus greater demand for education and training.