Southeast Asia’s digital economy to hit $368 billion

Southeast Asia's digital economy is expected to grow 17% year on year to $368 billion in gross merchandise value in 2026, according to the 11th annual e-Conomy SEA report from Google, Temasek and Bain & Company. Announcing the findings on October 21, Google's Nitin Gajria wrote that the region is on course to pass $1 trillion by 2035, with generative AI a central driver. The report says 243 million people, or 58% of the working population, actively use generative AI, and that adoption is scaling four times faster than mobile internet did.

E-commerce remains the largest segment at $226 billion, up 18%, followed by online travel at $59 billion, online media at $44 billion in revenue and mobility and food delivery at $40 billion. Digital financial services reached $1,650 billion in transaction value, up 16%.

The report also points to rising comfort with agentic commerce: 75% of users surveyed said they would let AI agents compare prices and complete purchases for them, while 62% trust AI tools more than a year ago. Users still want privacy protections, clarity about AI's limits and the ability to reverse transactions.

The authors project regional AI usage, measured in tokens, will rise 60-fold by 2030. Supporting that would require roughly tripling data center capacity within five years, tighter energy efficiency rules like those Singapore is pursuing, and more clean power. Google also highlights the ASEAN Digital Economy Framework Agreement due in November 2026, described as the first region-wide digital trade pact in the world.