Southeast Asia’s digital economy, which is presently estimated to be worth $210 billion, is predicted to develop at a compound annual growth rate (CAGR) of 15% to reach $430 billion, according to research issued on Monday. Southeast Asia should be considered by Indian entrepreneurs who want to grow worldwide.
The population of Southeast Asia is close to 650 million, and there are 70 million SMEs there. As a result of the region’s rapidly rising affluence and level of digital literacy, there is an increasing demand in the region for cutting-edge products and services.
“It’s the ideal time to look into and expand in the region right now since it’s a desired region with a lot of room for expansion,” said market research firm Redseer Strategic Consultants.
The economy of the area has been expanding at an exceptional rate, and it will reach an astounding $3.2 trillion in 2021.
While the standard categories like e-tailing, travel, ride-hailing, and foodtech will contribute to the whole sum, a larger portion of the next $220 billion will come from developing categories like online content, gaming, agritech, classifieds, etc.
The research stated that “SMEs are becoming more prominent, e-commerce is expanding, and there are concentrated pockets of opportunity in the region’s metropolitan centres,” all of which would help the digital economy.
Although Singapore has served as a gateway to the region, growing economies with higher purchasing power and a higher penetration of digital technology, such as Indonesia, the Philippines, and Vietnam, are ideal for entrepreneurs in the digital space.
Notwithstanding macroeconomic difficulties, GDP growth is projected to be about 5% in 2023, providing compelling evidence for the impending growth surge the area would see.
The research stated, “In addition, 95% of all registered companies or entities are MSMEs, bringing up significant prospects for entrepreneurs and investors wishing to access the SEA market.
