IDC: Southeast Asia E-commerce Market Projected to Reach $289.8 Billion by 2029, Ranking Second Globally with 13.2% CAGR

May 26, 2024 - In a report commissioned by the payment platform 2C2P by Antom, IDC forecasts that the Southeast Asian e-commerce market size is expected to grow from $156.3 billion in 2024 to $289.8 billion by 2029, achieving a compound annual growth rate (CAGR) of 13.2% during this period. This growth rate positions Southeast Asia as the second-fastest growing market globally, trailing only India. The report indicates that digital payments will serve as a key growth engine, projected to account for 97% of all e-commerce transaction value by 2029. Specifically, the transaction volume of local real-time payments is expected to double to $92 billion, potentially surpassing card payments to become the primary payment method. Mobile wallet transaction value is forecast to grow to $79 billion. The Buy Now, Pay Later (BNPL) market is anticipated to expand by 174% to $18.9 billion. Meanwhile, the share of offline payment methods like cash on delivery is expected to shrink to 3%. Furthermore, small and medium-sized enterprises (SMEs) currently hold a 57% share of the Southeast Asian e-commerce market, and 75% of them plan to expand into cross-border business within the next two years. Broader participation in cross-border e-commerce by these SMEs is projected to generate an additional $20.8 billion in incremental sales. However, the report notes that uneven digital development levels across countries, system integration complexity, data security concerns, and transaction fee costs remain major constraints. Over 60% of SMEs believe existing payment systems urgently need upgrades to adapt to new trends. [Source: Ebrun Go. This article was generated by an automated writing robot developed by Ebrun. It uses algorithms to promptly deliver e-commerce industry insights. This 'dog' is still young; welcome to contact run@ebrun.com or leave comments to help it grow.]