Asian Tech Press (Nov 10) -- A study by Google, Temasek Holdings and Bain & Co. shows that the size of the Internet economy in Southeast Asia will double to $363 billion by 2025, surpassing the previous forecast of $300 billion.

The study said e-commerce, travel, media, transportation and food are driving digital economic growth in Southeast Asia, with online spending in the region growing by 49 percent to $174 billion in 2021. The region has added 60 million new Internet users since the Covid-19 outbreak, led by increases in Thailand and the Philippines.

According to the study, online shopping in Southeast Asia is expected to reach $234 billion in 2025, compared to previous estimates of $172 billion, or 64 percent of the region's $363 billion total digital GMV.

The report said, "Continued shifts in consumer and merchant behavior, coupled with strong investor confidence, have brought Southeast Asia into the 'digital decade' - with the region's GMV set to reach $1 trillion by 2030. "

Internet company M&A deals in Southeast Asia totaled $11.5 billion in the first half of this year, on track to surpass the $11.6 billion in deals for all of 2020. Some of Asia's most valuable tech startups, including Grab Holdings Inc. and GoTo, are also gearing up to raise capital through IPOs.

Indonesia, the region's largest digital economy, could double its online spending to $146 billion by 2025, according to the report. The report also shows that Indonesia saw more venture capital deals in the first half of 2021 than in the past four years combined.

Of the six countries tracked in the study, Vietnam's digital economy is expected to grow at the fastest rate, with its online GMV expected to nearly triple in the next four years.