Sources e-Conomy SEA leverages Google Consumer Barometer,Temasek research, industry expert interviews, andthird-party sources, to provide the best availableestimates and projections of the internet economymetrics and trends. Acknowledgments We would like to acknowledge the insights shared byinternet economy companies and industry experts whoparticipated in this research, particularly the contributionof teams at Golden Gate Ventures, Monk’s Hill Ventures,Openspace, Wavemaker, and Jungle Ventures forproviding data and insights on venture capitalinvestments in Southeast Asia. Scope e-Conomy SEA is a multi-year research project by Googleand Temasek to shed light on the internet economy inSoutheast Asia. This year’s research covers four keysectors of the internet economy: Online Travel (Flights,Hotels, Vacation Rentals); Online Media (Advertising,Gaming, Subscription Music and Video on Demand); RideHailing (Transport, Food Delivery); and e-Commerce(First-Hand Goods). It does not include other sectors ofthe internet economy that are still in the early stages ofdevelopment or lack reliable data sources, such asEducation, Financial Services, Healthcare, and SocialCommerce. Our research covers the six largest marketsin Southeast Asia: Indonesia, Malaysia, Philippines,Singapore, Thailand, and Vietnam. All monetary valuesare expressed in U.S. dollars unless specified otherwise. 2 Introducing e-Conomy SEA 2018 In May 2016, Google and Temasek released “e-Conomy SEA — Unlocking the $200B digital opportunity inSoutheast Asia,” a foundational research study that shed light on the fast-growing internet economy in theregion. In that research, we presented Southeast Asia as the world’s fastest-growing internet region, with anexisting internet user base of 260 million users. We predicted that Southeast Asia’s internet economywould grow to $200 billion by 2025, driven primarily by the growth of online travel, e-commerce, and onlinemedia. We also estimated that in order to achieve that goal, investments of approximately $40 to $50billion would be required over a decade. In November 2017, we followed it up with “e-Conomy SEA Spotlight 2017 — Unprecedented growth forSoutheast Asia’s $50B internet economy.” There, we highlighted some of the most significant industrytrends, such as the boom of e-commerce marketplaces and ride hailing services as well as the accelerationof venture capital investments in the region. We also discussed the encouraging progress made byecosystem players in addressing challenges that constrain the internet economy from reaching its fullpotential, such as the availability of homegrown tech talent, digital payment solutions, last-mile logisticsinfrastructure, high-speed internet access, and consumer trust. Coping with the continuous development of Southeast Asia’s internet economy ecosystem, “e-Conomy SEA2018 — Southeast Asia’s internet economy hits an inflection point” includes sectors of the interneteconomy not covered in our previous research, such as Online Vacation Rentals (Online Travel),Subscription Music & Video on Demand (Online Media), and Online Food Delivery (Ride Hailing). Thesesectors have achieved substantial adoption among Southeast Asian users, resulting in significant businesssize and growth. Supported by the increasing availability of affordable smartphones and the rollout of faster and more reliablemobile telecommunication services, Southeast Asia’s internet user base continued to grow in 2018. There aremore than 350 million internet users across Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnamin June 2018 — 90 million more than in 2015. Also, with more than 90% of Southeast Asians connecting to theinternet primarily through their smartphones, this is one of the most mobile-first internet regions globally. 3 There are more than 350 million internet users acrossand Vietnam — 90 million more than in 2015. Southeast Asian internet users are the most engaged in the world. According to recent research byHootsuite,1 internet users in Thailand spend 4 hours and 56 minutes per day using mobile internet — morethan in any other country in the world. Indonesian, Filipino, and Malaysian users, who spend approximately4 hours per day on mobile internet, are also among the top 10 globally in terms of engagement. Bycomparison, internet users in the U.K. and in the U.S. spend just over 2 hours per day on mobile internet,while users in France, Germany, and Japan spend approximately 1 hour and 30 minutes per day.For most Southeast Asians, smartphones represent the primary gateway to search information, socialmedia and messaging applications, and music and video entertainment. Smartphones also enable accessto maps, news, personal productivity applications such as emails and spreadsheets, and transportationservices, contributing to improve the livelihood of vast segments of the population that don’t have accessto the internet via desktop or laptop computers. Powered by a large, growing, and incredibly engaged internet user base, we estimate that the Southeast Asianinternet economy has reached $72 billion in gross merchandise value (GMV) in 2018 across Online Travel,e-Commerce, Online Media, and Ride Hailing. Growing at 37% from a year earlier,2 it has accelerated beyondthe 32% compounded annual growth rate (CAGR) that we recorded between 2015 and 2018, therefore hittingan inflection point. Southeast Asia’s internet economy reached $72 billionin 2018 and is on track to exceed $240 billion by 2025,1Hootsuite Digital in 2018 report, based on a GlobalWebIndex survey of internet users in the age group 16-64. 2In our e-Conomy SEA Spotlight 2017 research, we estimated that the internet economy was worth $50 billion in 2017.With the addition of the new sectors included in e-Conomy SEA 2018, the estimates for 2017 are updated to $53 billion.4 。。。。。。