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Thailand’s Internet Economy Set to Generate $35 Billion in 2022

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Thailand’s Internet Economy Set to Generate $35 Billion in 2022

(CTN News) – According to the “e-Conomy SEA 2022” research by Google, Temasek, and Bain & Company, Thailand’s internet economy is predicted to grow 17% year over year to US$35 billion in gross merchandise value (GMV) in 2022, led by e-commerce, ultimately reaching $53 billion in 2025.

Thailand is anticipated to maintain its position as Asean’s second-largest internet economy this year, trailing only Indonesia, which is anticipated to have GMV of $77 billion. Vietnam ($23 billion), Malaysia ($21 billion), the Philippines ($20 billion), and Singapore follow Thailand in terms of economic output (copy8 billion).

The internet economy in Thailand is expected to develop at the slowest pace among the other five Asean nations—Vietnam (31%), the Philippines (20%), Indonesia (19%), Malaysia (17%), and Singapore (17%)—from 2022 to 2025.

The report’s summary states that while the Asean member states are beginning to return to pre-pandemic normality, global headwinds could prevent a complete economic recovery.

In particular, the discretionary sectors at the centre of the digital economy are being impacted by rising interest rates and high inflationary pressure, according to the report.

According to the report, Asean’s digital economy will reach $200 billion in GMV in 2022, three years earlier than anticipated and an increase of 20% annually.

With a CAGR of 20% from 2022 to 2025, the internet economy in the area is anticipated to reach $330 billion in 2025.

A statement from Bain & Company claims that despite the partial return of offline shopping during the pandemic and a stronger emphasis on profitability by platform companies, the region’s e-commerce is still thriving and is predicted to increase by 16% GMV to copy31 billion in 2022.

According to the statement, “Marketplaces are moving their focus from new customer acquisition to deeper interaction with current consumers to increase frequency, value, and loyalty.”

E-commerce, food and transportation, online travel, and online media are all included in the report’s definition of the internet economy.

Although the growth rate is significantly lower than the 99% compound annual growth rate recorded between 2019 and 2021 during the pandemic, e-commerce in Thailand is predicted to reach $22 billion in GMV in 2022, up 8% yearly.

The country’s e-commerce is anticipated to grow at a compound annual growth rate of 13% from 2022 to 2025, reaching $32 billion.

In 2022, it is anticipated that spending on online media will increase 10% to $5.1 billion, while spending in the transportation and food sectors will increase 12% year over year to $3 billion.

After the nation reopens, online travel is predicted to grow by 139% to $5 billion in 2022; this is still less than the pre-pandemic level of $7 billion in 2019. The country’s tourism industry has not yet fully recovered.

From 2022 to 2025, online travel is anticipated to rise at a compound annual growth rate of 22%.

The study included a poll on the region’s nations’ use of digital media.

In Thailand, a poll of around 23% of the population revealed that they plan to use more e-commerce services next year, while 55% said their use would stay the same.

51% of respondents indicated they would utilize transportation services at the same level, while 36% said they would use them less often.

32% of people indicated they would use meal delivery services less often, while 52% said they would use them the same amount.

In Thailand, 33% of respondents indicated they watch video-on-demand at least once a week, which is comparable to the average for ASEAN.

Over the regional average of 23%, 33% of Thai respondents claimed to watch video-on-demand for more than an hour per day.

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