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1、Through the waves,towards a sea of opportunityReference2e-Conomy SEA is a multi-year research programme launched by Google and Temasek in 2016.Bain&Company joined the programme as lead research partner in 2019.The research leverages Temasek insights,Bain analysis,Google Trends,primary research,exper

2、t interviews,and industry sources to shed light on the digital economy in Southeast Asia.The information included in this report is sourced as Google,Temasek and Bain,e-Conomy SEA 2022,unless otherwise specified.DisclaimerThe information in this report is provided on an as is basis.This document was

3、 produced by Google,Temasek,Bain and other third parties involved as of the date of writing,and is subject to change.It has been prepared solely for information purposes over a limited period of time to provide a perspective on the market.It is not intended for investment purposes.Google internal da

4、ta was not used in the development of this report.All financial analysis is derived or estimated by Bain analysis using both non-Google proprietary and publicly available information.Google has not supplied any additional data for financial analysis,nor does Google endorse any financial analysis mad

5、e in the report.Where information has been obtained from third party sources and proprietary research,this is clearly referenced in the footnotes.Projected market and financial information,analyses,and conclusions contained in this report should not be construed as definitive forecasts or guarantees

6、 of future performance or results.Google,Temasek,Bain,their respective affiliates or any other third party involved make no representation or warranty,either express or implied,as to the accuracy or completeness of the information in the report,and shall not be liable for any loss arising from the u

7、se of this report.Towards asustainabledigital economy32016201720182019Unlocking the$200B opportunity in SEAUnprecedented growth for SEAs$50B internet economySEAs internet economy hits an inflection pointSwipe up and to the right:SEAs$100B internet economyRoaring 20s:The SEA Digital DecadeAt full vel

8、ocity:Resilient and racing aheadThrough the waves,towards a sea of opportunitySEAs Digital Decade20302022202020217th edition of e-Conomy SEA by Google,Temasek,Bain:Southeast Asias digital economy research programmeWith contributions frome-Conomy SEA research methodologyNotes:All dollar amounts are i

9、n USD.Bain conducted interviews and a quantitative survey of SEA-focused venture capital investors in Q3 2022,n=30.All quotes in the report attributed to VC are from interviews conducted with SEA-focused venture capitalists in June-August 2022,and have been redacted for brevity and editorial clarity

10、.*Google commissioned Ipsos to run the e-Conomy SEA consumer survey.The research was conducted in Indonesia,Malaysia,Philippines,Singapore,Thailand,and Vietnam.Fieldwork in urban cities ran online from 18/07/2022-06/08/2022 via a 25-minute Computer Assisted Web Interview survey,with a total of 4,995

11、 respondents interviewed.Fieldwork in suburban cities ran from 29/07/2022-24/08/2022 via offline-recruit-to-online surveys with connected consumers,along with offline recruitment via a randomised door-to-door approach,with quota controls on demographics on a total of 2,059 respondents across Indones

12、ia,Malaysia,the Philippines,Thailand,and Vietnam.Analysis was conducted with data weighted based on age,gender,region,monthly household income,and internet usage frequency for a more accurate and fairer representation of the markets,and the region as a whole.4Primary research*Temasek insightsBain an

13、alysisExpert interviews&industry sourcesGoogle Trendse-Conomy SEA covers 6 countries in Southeast AsiaSource:World Bank 5600M total population across the countriesPHILIPPINES113MSINGAPORE6MINDONESIA280MMALAYSIA33MTHAILAND70MVIETNAM98MLeading sectors6Notes:E-commerce does not include informal commerc

14、e due to lack of reliable data.Financial services is excluded from market sizing estimates due to differences in units of measurement compared to other leading sectors.E-commerceMarketplaces Direct-to-consumerGroceriesMarket coverage:5 leading and4 nascent sectors inthe digital economy HealthtechEdt

15、echSaaSWeb3Online mediaAdvertisingGamingVideo-on-demandMusic-on-demandTransport&foodTransportFood deliveryOnline travelFlightsHotelsVacation rentalsFinancial servicesPaymentsRemittancesLendingInsuranceInvestmentsNascent sectorsContents70102030704Executive summaryNavigating macroeconomic headwindsApp

16、roaching$200B in rough seasPrudence clouds tech investmentsCharting the course for the digital decade0506Towards a sustainable digital economyPorts of call:Country dataExecutive summary 8Sectors encounter different growth trendsNavigating macroeconomic headwindsJust as countries in SEA embarked on a

17、 return to pre-pandemic normality,global headwinds started to blow,threatening to derail a full economic recovery.Rising interest rates and high inflationary pressure have also been impacting consumer demand,particularly the discretionary sectors that sit at the core of the digital economy.Approachi

18、ng$200B in rough seasUrban consumers still drive the economyFavourable conditions uplift financial servicesDespite these macroeconomic headwinds,SEAs digital economy remains on course to reach$200B in gross merchandise value(GMV)in 2022.In fact,it is reaching this threshold three years earlier than

19、we had expected in our e-Conomy SEA 2016 report.Digital adoption continues to rise even today,albeit at a slower pace than the steep acceleration seen at the height of the pandemic.The adoption and usage of digital financial services(DFS)have flourished across the board,propelled by a shift from off

20、line to online and the positive financial market conditions of the last few years.With rising interest rates and a riskier lending environment,however,fintech players,platforms,and newly launched digibanks will see their business models stress-tested.Meanwhile,banks and insurance companies are rapid

21、ly digitalising their services and maintaining a stronghold on affluent consumers.Across urban areas,affluent consumers and their young digital native counterparts continue to represent the largest portion of the digital economy.For these two segments,the opportunity for growth lies in deeper engage

22、ment,including more frequent and valuable orders,subscriptions,or cross-selling services such as consumer lending.Meanwhile,adoption and spend by urban consumers on a budget and suburban consumers remain lower,leaving digital players to figure out more economically sustainable ways to serve them.SEA

23、s digital economy sectors are following three distinct trendlines.E-commerce follows an S-shaped growth curve,in which it continues on its growth trajectory,but from a higher starting point after the steep acceleration during the pandemic.Others,such as food delivery and online media,are returning t

24、o their trendlines after a two-year spike.And lastly,travel and transport are moving along a U-shaped recovery,with pre-pandemic levels still some miles away.Executive summary 9Prudence clouds tech investments Tech investments in SEA remain robust this year.However,the funding landscape tells a tale

25、 of two ends:early-stage deals are continuing with strong momentum,while late-stage deals are seeing more pronounced dips and a pause in IPOs.Meanwhile,DFS has overtaken e-commerce in investment volume.Investors will be cautious in the short-term as most do not expect a return to 2021 deal activity

26、and valuation peaks in the next couple of years.Nonetheless,most investors remain bullish in SEAs medium-to long-term potential,and have$15B dry powder on hand.We note increasing interest in emerging markets,like the Philippines and Vietnam,and in nascent sectors,like SaaS and Web3.Towards a sustain

27、able digital economyEconomic contribution meets social concernsOn the social front,the digital economy has created 160K high-skilled jobs and indirectly supports nearly 30M jobs,while platforms have enabled over 20M merchants and 6M restaurants to grow their businesses online.Concerns exist,nonethel

28、ess,around the welfare of worker-partners,necessitating dialogue between institutions and platforms.The SEA digital economy is expected to produce 20MT of emissions by 2030significant,albeit an order of magnitude lower than other environmental impact-intensive sectors.Digital players have been rolli

29、ng out reducing and recycling initiatives,but more can be done to further lower impact by up to 30-40%over time.In the meantime,platforms can play a positive role in raising awareness among SEA consumers,and move towards closing the prevailing say-do gap.Charting the course for the digital decadeSEA

30、s digital decade has just begun.The course to exceed$300B by 2025 depends on the shape of recovery amid todays uncertainties,while the path to a$600B-1T digital economy in 2030 remains geared on SEAs economic fundamentals.A growing emphasis on sustainable growth means profits may become as relevant

31、as GMV when it comes to measuring progress.Existing enablers like payments and logistics have come into place,but the talent challenge is now shifting from quantity to quality.New enablers,like digital inclusion of consumers on a budget and suburbanites,are key to unlocking SEAs full potential.Progr

32、ess has been limited,however,with institutional support potentially the missing link to bridging the divide.All in all,SEAs digital economy is grounded on strong social and economic fundamentals,and offline to online trends,which provides much to be optimistic about especially as the region settles

33、into its digital decade.Navigating macroeconomic headwinds11Just as SEA economies reopened from pandemic lockdowns,macroeconomic headwinds started to blow.SEA consumers and the digital economy are increasingly feeling the impact.63%68%89%SEA COVID-19 vaccination rates have exceeded global standardsN

34、otes:Based on the proportion of the eligible population that has received at least two vaccine doses.Data is up-to-date as of August 2022.Source:World Health Organization12COVID-19 vaccination rates,by country 88%85%83%76%66%62%SingaporeMalaysiaVietnamThailandPhilippinesIndonesiaUSAChinaWorld13Notes

35、:Retail Mobility Trends tracks data related to places such as shopping centres,restaurants,cafes,theme parks,museums,libraries,and movie theatres.The pre-pandemic baselines are the median value for the respective corresponding day of the week,during the 5-week period of January 3-February 6,2020.Sou

36、rce:Google Retail Mobility DataGoogle Retail Mobility Data,by country and indexed to pre-pandemic baselinesWith COVID restrictions lifted,people are now heading out more than before the pandemic IndonesiaSingaporeMalaysiaThailandPhilippinesVietnamRetail Mobility Trends Retail Mobility Trends Retail

37、Mobility Trends Retail Mobility Trends Retail Mobility Trends Retail Mobility Trends Jul 2020Jul 2022Jan 2021Jan 20220-50-2525Jul 20210-80-60-20-400-100-75-25-500-75-25-500-6020-20-400-75-25-50Jul 2020Jul 2022Jan 2021Jan 2022Jul 2021Jul 2020Jul 2022Jan 2021Jan 2022Jul 2021Jul 2020Jul 2022Jan 2021Jan

38、 2022Jul 2021Jul 2020Jul 2022Jan 2021Jan 2022Jul 2021Jul 2020Jul 2022Jan 2021Jan 2022Jul 202114However,global headwinds threaten to derail the path to recoveryLogistics providers capacity issues,climate change,and freight costs are restricting global trade routes.Zero-COVID mandates and continued lo

39、ckdowns have resulted in disrupted exports and imports with China,as well as outbound travel and tourism by Chinese nationals.Supply chain disruptionsMobility restrictionsVarious conflicts around the world are putting critical infrastructure,manufacturing capacity,and trade agreements at risk.Geopol

40、itical tensionsMacro headwinds have cascading implications on SEA consumers15Reduced disposable incomeWith the economic slowdown and a softer labour market,consumers discretionary spending will diminish.Increasing prices Inflation in fuel and food prices,and the depreciation of SEA currencies are dr

41、iving price hikes in travel,transport,and food delivery.Less product availabilityOngoing pandemic policies in China and production backlogs are hindering logistical flows,reducing consumer access to goods.Interest rates have been raised to combat inflationary pressure16Sources:Trading Economics;Bain

42、 analysis1-month interbank rates20162018202020222017201920214.2%6.0%5.5%4.7%3.9%2.8%4.8%201620182020202220172019202120162018202020222017201920212016201820202022201720192021201620182020202220172019202120162018202020222017201920213.1%3%3.2%3.1%2.1%1.7%2.7%2.5%2.6%3.8%4.7%2.5%1.7%3.7%5.9%2.5%3.1%4.2%4.

43、3%4.5%0.9%0.5%0.6%1.6%1.5%1.5%1.5%0.3%0.7%1.3%1.8%0.4%2.7%0.2%IndonesiaSingaporeMalaysiaThailandPhilippinesVietnam(Sept)(Sept)(Sept)(Sept)(Sept)(Sept)Note:Data is up-to-date as of August 2022.Sources:S&P Global Market Intelligence,World Bank,Bain analysis17Real GDP growth maintains its pace.2020-202

44、12021-20222022-2023GDP growth rate(%YOY)while inflation remains relatively moderate3.55.34.68.13.84.98.76.95.85.33.00.95.71.51.02.14.70.92.45.16.82.88.44.78.2Inflation rate(%YOY)02468SEAChinaIndiaEUUSA02468SEAChinaIndiaEUUSA2020-20212021-2022SEA is relatively less impacted than other regionsApproach

45、ing$200B in rough seasApproaching$200B in rough seas19100M additional internet users have come onlinein the last three yearsSources:Google,Temasek and Bain,e-Conomy SEA,2019,2020,and 2021;Statista for 2022360M400M440M201920202021460M2022+40M(+11%)+40M(+10%)+20M(+4%)Total internet users in SEAStart o

46、f the pandemicNote:Digital adoption accounts for both active users(last used in the past 3 months)and lapsed users(last used more than 3 months ago).Question:S8.Which of these activities have you done before?Weighted base:Digital users in urban SEA internet population,n=4,498 per verticalSource:Goog

47、le-commissioned Ipsos e-Conomy SEA Research 202220After years of acceleration,digital adoption growth is normalisingDigital adoption among urban SEA users(%)E-commerce is nearing full adoption among digital users in urban SEA.New adoption of groceries,video-on-demand,and music-on-demand is minimal a

48、s consumers revert to their pre-pandemic habits.E-commerce75%19%Food delivery71%10%Transport64%7%Online groceries64%Travel58%4%Video-on-demand58%3%3%Music-on-demand52%0%Incremental adoption in H1 2022Adoption as of 202121With digital adoption maturing,understanding usage behaviour across consumer se

49、gments is necessary to unlock incremental headroom for growth.The majority of digital players are shifting priorities from new customer acquisition to deeper engagement with existing customers.LowNote:%of digital population is based on weighted survey results(age,gender,household income,location).Th

50、ere will be marginal differences between suburban users when segmented by income and age.Weighted base:SEA internet population,n=7,054 per verticalSource:Google-commissioned Ipsos e-Conomy SEA Research 202222There are five consumer demographics,each at different stages of adoption and usageSEA digit

51、al populationSuburban(new)UrbanHighMiddleAll income levels18-2930+All agesIncomeAgeLocationAffluent usersYoung digital nativesMetro mainstreamOn a budget usersSuburban usersConsumer demographic%of digital population Whats new this year?In previous reports,we covered Tier 1(metro)and Tier 2(non-metro

52、)cities in SEA.This year,we combined Tier 1 and Tier 2 cities into urban cities,and dove one layer deeper by conducting surveys in Tier 3 cities or suburban cities.18%All ages 11%18%12%41%Who are suburban users?Consumers in suburban cities who participate in the digital economy by having made a purc

53、hase in at least one digital vertical.All suburban cities in the survey have populations between 50,000 and 200,000 residents.All respondents are digital consumers who access the internet at least once every two weeks.All agesNote:Digital adoption accounts for both active users(last used in the past

54、 3 months)and lapsed users(last used more than 3 months ago).Question:S8.Which of these activities have you done in the past?(last 3 months+more than 3 months)Weighted base:SEA internet population weighted base includes survey respondents of(n=7,647 across 6 SEA markets)along with top-up samples(n=4

55、97)used for deeper consumer vertical representation.SEA internet population in the vertical for e-commerce n=5,563,groceries n=4,388,transport n=4,570,food delivery n=4,452,gaming n=2,263,video streaming n=2,759,music streaming n=2,231,travel n=3,768.Source:Google-commissioned Ipsos e-Conomy SEA Res

56、earch 202223Urban affluent users and young digital nativesare the heaviest adopters of digital servicesAdoption across digital services(%)E-commerceGroceriesFood deliveryTransportTravelMusic-on-demandVideo-on-demandGaming98%72%86%81%84%57%71%58%92%61%79%74%71%62%66%62%92%64%74%64%64%44%57%45%94%55%6

57、3%47%56%45%50%46%74%9%34%23%9%9%19%15%Affluent usersYoung digital nativesMetro mainstreamOn a budget usersSuburban users9892-9481-8671-747961-6456-5850-5544-4766E-commerceGroceriesTransportFood deliveryGamingVideo-on-demandMusic-on-demandTravel98%72%81%86%58%71%57%84%92%61%74%79%62%66%62%71%92%64%64

58、%74%45%57%44%64%94%55%47%63%46%50%45%56%74%9%23%34%15%19%9%9%Affluent usersYoung digital nativesMetro mainstreamOn a budget usersSuburban usersOld Color Scheme3423199E-commerce adoption is high across urban and suburban consumers.Affluent users consider the services an integral part of their modern

59、lifestyle while young digital natives are naturally inclined to embrace the convenience and easy access.E-commerce adoption has spread to suburban consumers while remaining sectors continue to be mainly urban practices.24Southeast Asias digital economy approaches$200B GMV in 2022three years earlier

60、than expected.Our inaugural e-Conomy SEA 2016 report,Unlocking the$200B opportunity in SEA,projected this to happen in 2025.16%17%115%37%20%20%9%15%Notes:Excludes digital financial services and nascent sectors;CAGR=Compounded Annual Growth Rate;GMV=Gross Merchandise Value.Source:Bain analysis25Digit

61、al economy GMV($B)2019202020211022114439361314324311616119433020222025Online mediaE-commerce161312741128192213117222414%38%20%20%YoY21-22CAGR22-25SEAs digital economy is closing in on$200B,growing 20%YoYFood&transportTravelCAGR2X in 3 years26Expected growthtrajectorySustained growth momentum towards

62、 2025 despite routines reverting to normaldriven by continued demand for services like online shopping.Growth towards 2025 returns to pre-pandemic levels due to resumption of in-person activities such as dining out and entertainment.S-shapedReturn to trendlineU-shaped20192020-20222023-202520192020-2

63、0222023-202520192020-20222023-2025Growth towards 2025 will be U-shaped given recovery from pandemic lows as local mobility habits and tourism trends gradually return to normal.As SEAs digital sectors leave the pandemic behind,they are following one of three growth trajectories 4321%19%E-commerce:Per

64、sistent growth despite resumption of offline shopping and greater focus on profitabilityNote:Non-grocery includes marketplaces and direct-to-consumer platforms.Source:Bain analysis27Tapering but still growing from pandemic peaksOnline retail channels are still gaining ground even as spend moves part

65、ially back offline with a return to in-store shopping.Optimising operations to improve profitabilityE-commerce players are reducing promotions and discounts while improving margins by monetising value-add services.Shifting from acquisition to engagementNow with high user adoption,e-commerce players

66、are instead focusing on boosting frequency,value,and loyalty of existing users,especially as average orders remain small($10-15 each).Online groceries needs better consumer valueTo acquire new customers,grocery players must overcome freshness,delivery time,and pricing concerns,particularly among on

67、a budget and suburban users.Environmentally-friendly practices on the riseMore online retailers are starting to take steps in the right direction,including optimising emissions,swapping to recycled packaging,and raising awareness for their sustainable offerings.40367971121807151831741121312112019202

68、0202120222025GroceryNon-grocery31%50%16%17%15%17%YoY21-22CAGR22-25SEA e-commerce GMV($B)CAGRE-commerce:Despite widespread adoption,there remains an urban/suburban usage gap,especially in online groceriesNote:Monthly active usage is derived from%adoption x%monthly usage frequency(among paying users,o

69、ver the past 3 months).Question:A2.In the last 3 months,how often did you purchase physical items/online groceries?Weighted base:Active users by verticals in Southeast Asia,e-commerce n=3,801,groceries n=996.Source:Google-commissioned Ipsos e-Conomy SEA Research 2022281920-2223-251920-2223-25Monthly

70、 active users(%)While all segments have adopted e-commerce,usage frequency is much higher among affluent users than on a budget and suburban users.Young digital natives are spending the most on groceries75%more than the medianindicating significant headroom for growth even as the sector matures.Less

71、 than 5%of suburban users buy groceries online as barriers like limited product variety and delivery options still need to be addressed.Affluent usersYoung digital nativesMetro mainstreamOn a budget usersSuburban usersE-commerce72%64%59%52%39%Groceries58%49%49%37%4%Urban usersSuburban usersUrban use

72、rsSuburban users524Food delivery:Demand returns to trendline growth after tripling during the pandemicSource:Bain analysis29Consumers gradually resuming pre-pandemic habitsDemand growth is normalising as people return to offices and eating out.Food delivery continues to be popular among urban consum

73、ers,but recent prices are driving them to order less.Companies prioritising profitability over growthThere is greater urgency around improving unit economics,meaning fewer discounts,higher delivery fees,and increased take rates from restaurants are likely to reduce order growth.Underpenetrated SEA m

74、arket offers sizable headroomFood delivery in SEA accounts for 2-4%of total spend on ready-to-eat meals,trailing behind markets such as the US and China which are at 6-8%.Unlocking this opportunity will require pushing beyond urban areas.Balancing interests to drive sustainable growthFood delivery s

75、ervices kept the F&B industry afloat during the pandemic,but platforms take rates remain a concern for restaurant owners as they resume normal operations.915172019202020212022202585%65%14%13%CAGRSEA food delivery GMV($B)814Transport:Strong recovery expected as opportunities unlock but hurdles aplent

76、ySource:Bain analysis30Transport rising as mobility exceeds pre-pandemic levelsThe gradual return to office,increase in brick-and-mortar shopping,and resurgence of tourism are driving a U-shaped recovery from lockdown lows.Profitability measures affecting the value propositionThe introduction of new

77、 surcharges(e.g.cancellation fees and waiting fees)is translating into higher effective fares.They bump up GMV but are deterring on a budget users,half of whom view price and promotions as barriers to usage.Supply shortages putting the brakes on near-term growthPlatforms looking to rebuild their fle

78、ets are faced with inflated fuel costs and a labour shortage as F&B,hospitality,and taxi operators ramp up hiring.Transport players are offering financial incentives and social welfare to attract and retain drivers.Low penetration and rising urbanisation are long-term tailwindsOnline transport has a

79、 1-3%share of SEAs total transport market,which is lower than the 3-7%seen in the US and China.Growing urbanisation will help boost online transport,but profitable expansion in suburban cities remains tough.43.75.220192020202120222025-46%-13%43%40%SEA transport GMV($B)CAGRFood delivery&transport:Dig

80、ital services provide convenience,but they are not for everyoneNote:Monthly active usage is derived from%adoption x%monthly usage frequency(among paying users,in the past 3 months).Question:A2.In the last 3 months,how often did you order a car or motorbike ride/food online?Weighted base:Active users

81、 by verticals in Southeast Asia,transport n=1,126,food delivery n=1,447.Source:Google-commissioned Ipsos e-Conomy SEA Research 202231Affluent users are the largest segment among transport and food delivery users,and spend nearly 2X more than the median.Food delivery usage correlates with income leve

82、ls,with young digital natives and metro mainstream consumers equally dependent on the ease and convenience it provides.Metro mainstream consumers are less likely to use transport services as they are more likely to own a family car.Urban usersSuburban usersUrban usersSuburban usersMonthly active use

83、rs(%)Food delivery70%58%58%43%18%Transport58%43%37%29%10%Affluent usersYoung digital nativesMetro mainstreamOn a budget usersSuburban users49%16%170%23%3Online travel:Revenge travel is here,but recovery to pre-pandemic levels will take years*vs Singapore at 80%of pre-COVID capacitySource:Bain analys

84、is32Travel is back but recovery will be gradualIn 2022,the easing of travel restrictions and quarantine requirements spurred a surge in travel demand,but full recovery to 2019 levels is only expected in 2023/2024.Domestic travel seeing a quicker revival Hotels in SEA are back to 80%of pre-COVID GMV.

85、Domestic air travel has rebounded with passenger traffic at 60%and 70%of 2019 levels in Malaysia and Indonesia,respectively.International travel taking longer to reboundFlight capacity is still at 30-50%of 2019 levels*as airlines struggle to cope with demand after years of downsizing.Skyrocketing pr

86、ices are also deterring travellers.High-value corridors partially chokedThe inflow of tourists from mainland China remains limited,and popular destinations for SEA travellers,such as Japan and Korea,were off-limits for much of 2022.15221029-62%-32%115%37%71%49%YoY21-22CAGR22-25SEA travel GMV($B)3284

87、420192020202120222025Vacation rentalsHotels1217Airlines1981755001CAGR333Online travel:Travel-related search interest reaches or exceeds pre-pandemic levels,indicating impending demandTravel-related search trends,by country Notes:Includes air-and accommodation-related queries;indexed searches are on

88、a four-week rolling average;pre-pandemic average is for the period of January 2020.Source:Destination Insights with Google202120220255010020207520212022025501002020752021202202550100202075202120220255010020207520212022025501002020752021202202550100202075IndonesiaSingaporeMalaysiaThailandPhilippinesV

89、ietnamAverage pre-pandemic search interestIndexed searchesOnline travel:Intent to travel internationally is back,with Singaporeans and Malaysians most likely to take flightNote:Chart refers to%of urban consumers intending to travel internationally for leisure purposes.Question:H17.Which of these typ

90、es of trips have you taken/are you intending to take in the following year?Base:Digital users in Southeast Asia in the travel vertical,n=3,768.Source:Google-commissioned Ipsos e-Conomy SEA Research 202234People intending to travel internationally(%)20222023SingaporeMalaysiaVietnamIndonesiaPhilippine

91、sThailand39%52%17%40%19%38%17%31%21%30%16%22%35%135%98%83%42%39%Growth YoYPeople in Malaysia and Vietnam show the biggest leap in intent to travel internationally next year,doubling from 2022.On the flip side,enthusiasm for domestic travel is dipping across all consumer segmentswith the exception of

92、 suburban consumers,of whom 50%more plan to travel within the country in 2023.Filipinos and Thais are especially spoilt for choice when it comes to domestic destinations.Incentive schemes from local governments are also helping boost domestic travel as international tourism to these countries will t

93、ake time to recover.Online media:Growth slows to single-digit following pandemic accelerationSource:Bain analysis35Online media GMV($B)AdsGaming18%37%9%15%YoY21-22CAGR22-25VideoMusic143616222429%19%5%23%-6%19%14%13%Video down from peaks and back to trendlineThere is much headroom for growth as video

94、-on-demand penetration remains low.Expanding paid usage beyond affluent urban consumers will require more affordable subscription plans and local language content.Music returning to normalityMusic-on-demand is seeing strong recovery as people revert to pre-pandemic,on-the-go music-listening routines

95、.Reactivated content platforms(e.g.live concerts,artist collaborations)are also boosting listening.Gaming faces post-pandemic pullbackWith the return to normal life,gaming has seen dips in downloads,time spent,and in-app purchases.Digital ads maintain momentumThe uptick is driven by increased engage

96、ment on new social media platforms,and ads monetisation on marketplaces and platforms,though macro headwinds cloud the industrys near-term outlook.CAGR20192020202120222025AdsGamingVideoMusic29%19%5%23%-6%19%14%13%14362019202020212022202518%37%9%15%YoY21-22CAGR22-2516222429%19%5%23%-6%19%14%13%CAGRAd

97、sGamingVideoMusicDespite the widespread popularity of free online entertainment apps,paid usage in SEA is concentrated in a few urban consumer segments.Music-on-demand has a notable skew towards young digital natives,where 30%of them are using the service on a daily basishigher than any other consum

98、er segment.Content variety is the top trigger for video-on-demand users to switch between platforms,while price is the top trigger for music-on-demand.Online entertainment:Affluent users and young digital natives are the most willing to pay for music,video,and gaming servicesNote:Weekly active usage

99、 derived from%adoption X%weekly usage frequency(among paying users,in the past 3 months).Question:A2.In the last 3 months,how often did you use music streaming/video streaming/gaming?Weighted base:Active users by vertical in Southeast Asia;gaming,n=953,video streaming,n=1,409,music streaming,n=845So

100、urce:Google-commissioned Ipsos e-Conomy SEA Research 202236Weekly active usage by paying users(%)GamingMusic-on-demandAffluent usersYoung digital nativesMetro mainstreamOn a budget usersSuburban usersVideo-on-demand46%48%34%36%12%49%56%34%32%7%59%51%43%35%14%Question:E21.Compared to 2020-2021(during

101、 the peak of the pandemic),did you spend more or less time playing digital games?Base:Active and lapsed users across gaming vertical in Southeast Asia,n=1,851.Source:Google-commissioned Ipsos e-Conomy SEA Research 202237Gaming:Seeing clear pullback from pandemic peaks7 in 10 gamers are spending the

102、same or less time playing now than during the pandemic.Nearly 50%cited“I want to spend more time on other hobbies/interests”as the key reason for the drop in frequency.The decline in time spent is more pronounced among lower income gamers,especially suburban users,who embraced gaming during the pand

103、emic.Q.Compared to 2020-2021,how much time did you spend playing digital games?(%)More time than 2020/2021Same time than 2020/2021AffluentusersYoung digital nativesMetro mainstreamOn a budget usersSuburbanusers24%45%19%49%28%27%45%46%56%44%Less time than 2020/202131%32%26%17%11%18%11%18%12%41%digita

104、l population38Digital financial services(DFS)have made significant inroads over the years,buoyed by a highly conducive growth environment.However,clear shifts in battlegroundshave made the landscape more competitive.Insurance(APE/GWP)Lending loan book Notes:GTV=Gross Transaction Values;AUM=Assets Un

105、der Management;APE=Annual Premium Equivalent;GWP=Gross Written Premiums.Source:Bain analysis39DFS:All sub-sectors are growing as a result of enduring offline-to-online behaviour shifts post-pandemicPayments(GTV)Remittance flow(GTV)Investment(AUM)201920212022202520305957088061,1742,135+9%+14%+13%+13%

106、201920212022202520301116203260+13%+17%+19%+22%2019202120222025203020192021202220252030244050116325+23%+33%+25%+29%2019202120222025203015343992530+42%+34%+15%+50%234925+44%+31%+31%+23%Digital financial services($B)CAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRSource:Bain analysisStashAw

107、ayBareksaEndowusBentoDirectAsiaNTUCEstablished playersAIAPrudentialGreat EasternFWDDirectAsiaMatchMoveMoMo2C2PFinancial servicesConsumer servicesNew entrantsTelcoRetailData&analyticsAggregatorRemittanceOnline WM&insuranceLendingPOSInsuranceRemittancePayment and e-walletE-commerceAccounting softwareC

108、ontent/social mediaRide hailing+ConsumersandmerchantsMobile platformsWealth managementBanksAirlinesTransferWiseInstaRemAdvance.aiTrustingSocialGoBearCekAjaCermatiJurnalXeroGoogleTencentLINEFacebookFunding SocietiesFinAccelAkulakuHome CreditPawoonPayMayaAlibabaBukalapakShopeeLazadaTokopediaGrabGojekS

109、amsungAppleSingtelAxiataTelkomselGlobe TelecomTrue TelecomPLDTAirAsiaSingapore AirlinesIndomaret7-ElevenWestern UnionMoneyGramOCBCCredit SuisseUBSMandiriVietcombankDBSMaybankBDOAlfamartMokaConsumer FinanceAstra Sedaya FinanceAeonZaloRobinsonsStandard Chartered BankBPIBCAUOBCIMBVNPayValidusK-BankBang

110、kok BankSCBGCashDFS:We introduced the diverse competitive landscape in 2019Pure-play fintechsEstablishedfinancial services playersConsumer tech platformsEstablishedconsumer players40 fast forward three years and winning business models are emergingProgress of different DFS business modelsPace of inn

111、ovation,a fast-growing suite of financial products,and a dedicated platformOperating at subscale levels so profitability is challenging,limited productsPure-play fintechs:Largely focused on expansion to improve profitability and drive customer stickinessSynergistic value-add to the existing consumer

112、 journeyBasic financial products available today,less sophisticated than pure-play fintechsConsumer tech platforms:Leading e-commerce or transport platforms expanding into DFS with initial focus on existing customersSophisticated financial products across a range of asset classes,extensive customer

113、supportSlower platform and product innovation than pure-play fintechsEstablished financial services players:Rapid digitalisation to unlock seamless omnichannel customer journeys and to compete with insurgents Less effective platforms and services than the expertise and infrastructure of fintech/tech

114、 platformsEstablished consumer players:Solo attempts at expansion mostly unsuccessful and now pivoting from individual ventures to partnershipsPenetration of young digital natives and unbanked/underbanked populations,catalysing financial inclusionUnclear value proposition against incumbents in matur

115、e financial markets,challenging unit economics in emerging economiesDigital banks:New entrants leveraging existing merchant and consumer networks to reach unbanked and underbanked populationsSource:Bain analysis-?Synergistic value-add to the existing consumer journey+-+-+-+-?+-StrongerStableWeakerJu

116、st launchingStrengthWeakness41Note:CASA=Current accounts and savings accounts.Source:Bain analysis while incumbents are building on inherent strengths to digitalise quickly High net worth and affluent customers drive 60-80%of deposit balances,and are more likely to hold multiple products(e.g.investm

117、ents,insurance,wealth,etc.).They are thus more likely to stick with established financial services.To stay competitive,leading established banks are investing heavily in ramping up their digital capabilities so as to offer a better user experience and more value-added services,such as digital paymen

118、ts and investments.DFS:Digibanks compete for mass and unbanked consumers while established banks fast-track digitalisation“We continue to develop world-class digital solutions to match the value propositions offered by leading fintech and digibanks.”-CEO,leading regional bankDigibanks are starting t

119、o gain traction in SEANew entrants are gradually gaining consumer trust,especially among young digital natives.SEAs digibanks aim to emulate peers in developed markets(e.g.the UK or South Korea)that enjoy a 60-70%cost base vs incumbent banks.Efficient,non-legacy platforms,together with streamlined o

120、perations and distribution,allow digibanks to pass on savings to their customers(e.g.higher CASA rates)as well as reinvest in new products such as their lending and investment portfolios.“Digibanks opportunity lies in credit.They have access to proprietary consumer data and are in a position to capt

121、ure share of underbanked via alternative credit decisioning.”VC%of total depositsSegmentLikelihood ofswitching High net worth40-50%Affluent20-30%Mass affluent15-25%Mass10-15%UnbankedN/A42Consumers in Indonesia and Vietnam demonstrate significantly higher affinity towards digibanks than in other regi

122、onal markets.”VC Note:Right to win is defined as the ability to gain sizable market share and profitable economics over a sustained period of time.Sources:World Bank,Bain analysis43DFS:Uptake of digibanks will depend on unbanked share of population and digital maturity of incumbent banks%of populati

123、on aged 15-35%unbanked/underbankedDigibanksright to win31%34%30%26%34%24%81%75%54%46%28%12%Digibanks have a higher right to win in Indonesia,the Philippines,and Vietnam,where digitalisation of incumbent banks is slower,and low digital inclusion of the unbanked and underbanked offers sizable headroom

124、 for growth.Achieving profitable economics,however,will be a challenge.In Thailand and Malaysia,digibanks have a medium right to win,given the lower proportion of unbanked and underbanked people.Incumbent banks enjoy ecosystem support such as protective regulations and integrated partnerships,making

125、 it harder for newer players to gain ground.In a mature market like Singapore,digibanks have a low right to win,given how few unbanked and underbanked customers there are.The banking system is concentrated around well-established financial institutions undergoing rapid digitalisation,which have a st

126、ronghold on the most profitable segmentsthe high net worth and affluent customers.“HighLowPrudence clouds tech investments45Investments maintained strong momentum in H1 2022,but investors are getting increasingly cautiousNote:Funding value excludes public financing deals like PIPE,IPO,ICO.Source:Bai

127、n analysisPrivate funding value($B)Average 10-year US treasury rateSEAs deal landscape continues last years upward momentumRising interest rates hindering investments in H2 2022 While total deal activity remained relatively constant at about 1.2K from H1 2021 to H1 2022,this years deal value has alr

128、eady surpassed last years by 15%,mainly driven by larger average ticket sizes of+13%YoY.Historically,the US experiences peak venture capital(VC)investment activities while riding on prolonged periods of low interest rates,like in the past few years.The recent increase in long-term US treasury rates

129、has made investments in high-growth tech companies less attractive from a financial perspective,leading to a gradual slowdown in the latter half of 2022,akin to VC trends in the US.201920202021H1 2021H2 2021H1 202212.011.626.711.515.213.2Deal count1,5461,8532,6971,2161,4811,2331.2%2.3%1.4%1.2%1.5%2.

130、4%3.2%(Sept 2022)Private funding value($B)46Early-stagers are flourishing,while late-stage investments are impacted by dim IPO prospectsNote:Private funding value excludes public financing deals like PIPE,IPO,ICO.Source:Bain analysis Early-stage investments growing Even after a record high 2021,fund

131、ing continued pouring in throughout H1 2022.With SEA relatively insulated from macro headwinds,ticket sizes have increased by 40-60%,giving investors reasons to stay optimistic about the regions long-term prospects in the private market.Early-stageGrowth-stageLate-stage Growth-stage sees record high

132、sFrom H1 2021 to H1 2022,growth-stage investments hit an all-time high.Larger funds are active in the region and willing to follow up on previous investments,particularly in sectors and companies that accelerated during the pandemic.Late-stage investments on a downtrend Amid global headwinds and a r

133、ecent series of inflated late-stage valuations,E+megarounds have seen funding dry up as pre-IPO companies struggle to build a track record of profitable growth.SeedSeries ASeries BSeries CSeries DSeries E+H2 2019H1 2020H2 2020H1 2021H2 2021H1 2022H1 2019H2 2019H1 2020H2 2020H1 2021H2 2021H1 2022H1 2

134、019H2 2019H1 2020H2 2020H1 2021H2 2021H1 2022H1 201901234012345024647In public markets,IPOs and post-IPO financing deals are drying upNote:Funding value includes public financing deals like PIPE,IPO,ICO.Source:Bain analysisPublic funding value($B)After a bull run in 2021 cool-off is happening in 202

135、2Last year,leading digital players in SEA raised IPO and post-IPO financing rounds ranging between$1B and$6B,comprising over 80%of the digital economys total public funding.Now,rising interest rates,plummeting stock valuations,and global investor pivots to safe havens are bringing IPO prospects to a

136、 near halt for the next 12 to 18 months.Deal count61520202021H1 20224113148Most VCs expect valuations to continue dwindling;only a small minority sees recovery in the near-term*from 2021 peaksSource:Bain,SEA Venture Capital Investors Survey,Q3 2022Following the pullback of leadinglate-stage funds,we

137、 are starting tosee fewer and smaller-sized dealsin later-stage rounds,as well as higher caution among other growth investors.”VCinvestors see valuationsdeclining by at least 10-30%*in 2022 investors expect valuations to further decline from 2022 levelsAs we continue to face the impactsof global hea

138、dwinds,we expect tighter squeezes on valuations in 2023withmore down rounds,especially with late-stage companies.”VCinvestors believe valuationswill only return to 2021 peaks in 2023-2024We are optimistic that deal activity and valuations will pick up again after the uncertainties in macro-condition

139、s have cleared,over the next 2-3 years.”VC3 in 4 1 in 2 80%of VCs expect to increase focus on healthtech,SaaS,and Web3,while enthusiasm for edtech coolsSource:Bain,SEA Venture Capital Investors Survey,Q3 2022;Bain analysisMany Web3 technologies will eventually be embedded into Web 2.0 platforms,enha

140、ncing functionality and engagement in the future.The trend of mixing Web3 tokenisation with Web 2.0 games is a clear example of that.”VCWith the return to in-person training and learning,demand for online-based learning has cooled off significantly compared to peak levels in the past 2 years.Going f

141、orward,it will be vital to consider hybrid learning forms to sustain growth.”VCSMEs in SEA contribute a sizable amount to our overall GDP(especially in Indonesia),and will continue to grow over the next five years.Affordable SaaS solutions are key to empowering these companies.”VCHealthtechSaaS/Ente

142、rprise/IT software Web3EdtechThe pandemic accelerated the development of digital medical services in order to provide affordable and accessible healthcare to all.We expect to see much higher adoption in the coming years,especially among the rural population.”VC87%87%80%47%“Q.How do you expect deal a

143、ctivity to change in the long-term(2025-2030)for the following sectors?Expected increase in deal activity in 2025-2030 vs today5859Source:Bain analysisPoor access and rising healthcare costs are key reasons for healthtech adoptionHealthtech can help tackle SEAs chronic healthcare pain pointsEmerging

144、 healthcare systemsIndonesia(ID)Philippines(PH)Vietnam(VN)Mature healthcare systemsSingapore(SG)Thailand(TH)Malaysia(MY)ID,PH,and VN have between 1-3 hospital beds per 1,000 residents,compared to 13 in JapanPoor access to hospital facilitiesPatients in ID and PH pay out-of-pocket for 40%of digital h

145、ealth services(e.g.online pharmacy,tele-meds,self-diagnostics,wellness)compared to 20%in AustraliaLow insurance coverage for digital health servicesThe number of people over 65 in these countries is expected to double by 2030Rapidly ageing populationHospitals in TH and MY still operate in siloed dat

146、abases,hindering patient and clinical data-sharing and efficiencies Lack of consolidated health records In 2022,healthcare costs in SG and MY surged by 9%and 16%respectively,well above South Koreas 3%riseRisinghealthcare costs“Healthcare accessibility is particularly challenging for suburban cities

147、in emerging economiesdigital solutions can help bridge this gap.”VCMore mature markets are seeing growth in the aged population,which creates more pressure on the medical system.Telemedicine can help alleviate some of that pressure.”VCAffordability is another problem,given the scarcity of medical re

148、sources.Tech-based health services can lower these costs.”VCWhile Singapore is progressively consolidating medical records across providers and platforms,there is significant room for improvement in Thailand and Malaysia.”VC60Affordable SaaS with embedded finance solutions are key to digitalising an

149、d professionalising SMEs in SEALarge,growing SME populationSMEs deliver a substantial contribution to the economySignificant job creationCostly backend servicesLimited reach and scalabilityInaccessible financingSEAs 70M SMEs,including Indonesias warungs and the Philippines sari-sari stores,are key t

150、o the regions social and economic development40%of SEAs GDP is driven by SME activitiesSMEs employ 67%of SEAs working populationCostly cash transactions and manual bookkeeping practices cause high operating costsMany SMEs are unbankable due to unreliable business and financial dataMajority of SMEs a

151、re offline with limited customer reach,making it a challenge to scale and SaaS with embedded finance can help address their pain pointsSMEs are the backbone of our economythey drive a sizable amount of Indonesias GDP,along with an array of job opportunities,especially in suburban cities.”VCSMEs are

152、the bedrock of SEA“SMEs and MSMEs will continue to play a vital role in our economy,given the heavily fragmented nature of our geographyespecially in Indonesia.”VCThe opportunity for SaaS in SEA is less on enterprise solutions but more on free/affordable SME SaaS solutions with embedded financial se

153、rvices(for monetisation).”VC“Source:Bain analysisQ.Within Web3,which areas are you most interested in investing in?61Notes:DAO=Decentralised Autonomous Organisation;Others include companies levered to crypto,creator economy and Web3 infrastructure.Source:Bain,SEA Venture Capital Investors Survey,Q3

154、2022Though nascent,venture capital interest in Web3 themes is growing Although Web3/crypto is a small portion of our investment portfolio today,we have established a separate fund dedicated to these investments,and are looking to expand our work in that space.”VCWe expect select themes like infrastr

155、ucture and gaming to gain significant traction in the years ahead.In fact,we are already seeing 50%of pitches coming from Web3 gaming startups.”VC“Privacy&digital infrastructureDeFiBlockchain gamesDAOsMetaverseCryptoNFTsOthers67%57%37%27%27%13%13%10%of VC respondents who have started investing in We

156、b3All the investment hype in Web3 is on the infrastructure layer right now.As for the metaverse,we are taking a wait and see approach.It is not a priority yet.”VC“Investments in edtech dip as economies reopen and e-learning gives way to in-person learningSource:Bain analysisThe widespread adoption o

157、f technology in learning continues to pose challenges.In order to scale,edtech needs top quality teaching materials and a learning experience that seamlessly integrates into traditional learning forms,all while ensuring security and privacy.The reopening of economies has led to higher churn rates,lo

158、wer uptake of new courses,and reduced average spend,causing investors to approach edtech cautiously and pivot towards sectors such as SaaS and Web3.Edtech private funding value($B)Deal count531031457471530.20.30.50.20.30.1201920202021H1 2021H2 2021H1 2022Edtech cools after pandemic peaksChallenges i

159、n scaling into a sustainable business model62Towards a sustainable digital economy64Awareness of environmental,social,and governance issues remains nascent,but is on the rise.Digital economy players can play a positive role in leading SEA consumers towards more sustainable habits.Source:Bain analysi

160、s65Sustainability spans across environment,social,and governance,and is a key enabler for SEAs digital decadeEnvironmentWater stewardshipSensible water use,water quality,and watershed managementBiodiversity and ecological welfareAir qualityLowering pollutants impacting air quality and atmospheric in

161、tegrityReducing and offsetting emissions contributing to climate changeCarbonemissionsLand and ocean useEnsuring long-term sustainable land and ocean use,incl.land/ocean change(e.g.deforestation),sound utilisation practicesLiving within our planetary boundariesProtecting and enhancing natural ecosys

162、tems and living organisms;upholding animal welfareResponsible sourcing and use of resources,incl.product,packaging,and food lifecycles(reduce,reuse,recycle)Material use,waste and circularitySensitively using and treating toxic products and waste,incl.chemical and technology pollutantsHazardous subst

163、ancesSocialCommitting to equitable outcomesGovernanceNational and intl.policyAppropriately navigating complex domestic and international issues,incl.policy and lobbying stancesTransparency and risk managementAccurate accounting;appropriate risk disclosure and management;ESG transparencyBusiness ethi

164、csSound decision-making,ethical conduct;no anti-competitive practices,bribery,or corruptionIndirect economic impactsSensitivity to indirect impacts on external populations of firms economic activityTax practicesFair tax paymentand practiceGovernance foundationNorms and practices related to good gove

165、rnance,e.g.ownership and control,board diversity,pay,accountability Third-party relationshipsClear practices embedded in sourcing activities and investment and partnership decisionsDemonstrating responsible conductDiversity,equity and inclusionAware and/or engaged members of the communities and broa

166、der society Labour practicesDecent and safe work,incl.equitable pay/benefits,upskilling/development,and hiring practicesCyber security and digital privacySecure technology systems,infrastructure,and data practices;duty of care to customer privacy;responsiveness to law enforcementCommunity partnershi

167、pCustomer safety and accessPractices and culture promoting diversity,equity,accessibility,and inclusion,inside company and beyondUpholding the corporate responsibility to respect universal rights(e.g.life,liberty,freedom of expression,no forced/child labour)Human rightsSafe and accessible offerings

168、incl.safe formulations,clear labelling and non-abusive practices in marketing,access,and pricingProducts,services,and technologies that enhance customer well-beingHealth and wellnessESGNote:VCs perception of the level of concern(somewhat concerning+significant concern)for each ESG dimension across d

169、ifferent sectors.Source:Bain,SEA Venture Capital Investors Survey,Q3 202266Levels of concern,by sectorE-commerceTransportFood deliveryOnline travelGamingOnline mediaFintechHealthtechEdtechEnvironmentSocialGovernanceLow concernHigh concernEnvironmental and social sustainability are the greatest conce

170、rns among SEAs core digital economy sectors Source:Bain analysis67Emissions and resources are the hottest environmental issues while labour practices and DEI are top of mind social topicsEEnvironmentWater stewardshipSensible water use,water quality,and watershed managementBiodiversity and ecological

171、 welfareAir qualityLowering pollutants impacting air quality and atmospheric integrityReducing and offsetting emissions contributing to climate changeCarbonemissionsLand and ocean useEnsuring long-term sustainable land and ocean use,incl.land/ocean change(e.g.deforestation),sound utilisation practic

172、esLiving within our planetary boundariesProtecting and enhancing natural ecosystems and living organisms;upholding animal welfareResponsible sourcing and use of resources,incl.product,packaging,and food lifecycles(reduce,reuse,recycle)Material use,waste and circularitySensitively using and treating

173、toxic products and waste,incl.chemical and technology pollutantsHazardous substancesSocialCommitting to equitable outcomesGovernanceNational and intl.policyAppropriately navigating complex domestic and international issues,incl.policy and lobbying stancesTransparency and risk managementAccurate acco

174、unting;appropriate risk disclosure and management;ESG transparencyBusiness ethicsSound decision-making,ethical conduct;no anti-competitive practices,bribery,or corruptionIndirect economic impactsSensitivity to indirect impacts on external populations of firms economic activityTax practicesFair tax p

175、aymentand practiceGovernance foundationNorms and practices related to good governance,e.g.ownership and control,board diversity,pay,accountability Third-party relationshipsClear practices embedded in sourcing activities and investment and partnership decisionsDemonstrating responsible conductDiversi

176、ty,equity and inclusionAware and/or engaged members of the communities and broader society Labour practicesDecent and safe work,incl.equitable pay/benefits,upskilling/development,and hiring practicesCyber security and digital privacySecure technology systems,infrastructure,and data practices;duty of

177、 care to customer privacy;responsiveness to law enforcementCommunity partnershipCustomer safety and accessPractices and culture promoting diversity,equity,accessibility,and inclusion,inside company and beyondUpholding the corporate responsibility to respect universal rights(e.g.life,liberty,freedom

178、of expression,no forced/child labour)Human rightsSafe and accessible offerings incl.safe formulations,clear labelling and non-abusive practices in marketing,access,and pricingProducts,services,and technologies that enhance customer well-beingHealth and wellnessSGSources:Bain analysis;Swiss Re Climat

179、e Economics Index68Environment:SEA is one of the most heavily exposed regions to the risks and consequences of climate changeLow riskHigh riskUSAJapanAustraliaSouth KoreaChinaIndiaSoutheast AsiaIndex of GDP loss potential from chronic climate risk by 2048Exposure to extreme weather events link to se

180、vere weatherCurrent capacity to cope with climate impactsGDP impactExtreme weather riskAdaptive capacityClimate economic indexWeighted score across all three factors Notes:The Greenhouse Gas Protocol includes Scope 1,2 and 3 emissions.Scope 3 defined as:Emissions coming from activities from assets n

181、ot owned by the company,but indirectly impacts in its value chain.Nascent sectors(e.g.Web3)not included given uncertainties around the technology and business models.MT CO2e=million tonnes of carbon dioxide equivalent.Source:Bain analysis69Environment:As the digital economy scales,emissions are proj

182、ected to reach 20 MT CO2e by 2030Carbon footprint(CO2e)CO2e projections are calculated based on the Greenhouse Gas Protocol Scope 3.The methodologies used to calculate the digital economys three key sectors are:TransportFood deliveryE-commerce202120222025203020 MT10 MT6 MT5 MTOnline travel has been

183、excluded despite the environmental footprint of air travel,since online platforms facilitate bookings and do not emit material CO2e themselves.Scaled up regional players published carbon footprint reports,by market shareGrowth in carbon footprint is assumed to follow sectors GMV growthPackaging emis

184、sions based on the average amount and type of materials usedRider emissions based on average distance to pick-up point,then to customer destination Estimated average trip,including driver repositioning distance per ride,based on urban area sizesApplied blended emissions per km per trip based on elec

185、tric vehicle(EV)and hybrid electric vehicle(HEV)penetrationNotes:Differences between scenarios are largely driven by Scope 3 emissions.Purchasing behaviour has significant impact on carbon emissionsif consumers consolidate multiple purchases in the same trip or order,they can reduce emissions on a p

186、er item basis.Transport comparison does not consider end-to-end carbon emissions linked to vehicle manufacturing and ownership.Online transport can help reduce the need for vehicle manufacturing and ownership.Source:Bain analysis70Environment:If optimised,the carbon output from digital channels can

187、be much lower than traditionalE-commercePer item scenario comparisonTransportPer trip scenario comparisonTraditional commerceE-commerceOptimised e-commerce-30-40%Traditional transportOnline transportOptimisedonline transport-20-30%To reduce e-commerces footprint by 30-40%,logistics providers can dep

188、loy electric vehicles(EV)to handle last-mile deliveries,consolidate operations into satellite distribution centres,and further reduce and recycle packaging materials.The online transport sector can lower its footprint by 20-30%by helping drivers reduce wait times,optimising driving routes using mapp

189、ing technologies,and converting more of its fleets to EV,HEV,and plug-in electric vehicles(PEV)through partnerships with EV manufacturers around the region.Carbon footprint scenarios(indexed emission levels)71Environment:Achieving optimised carbon goals will first require a concerted effort to addre

190、ss some key questionsCarbon-friendly practicesPurchasing behaviourCompaniesConsumers How can we highlight sustainable products and services to raise awareness and provide options to consumers who want to reduce or offset their carbon emissions?How can we use environmentally friendly practices,like w

191、aiving flexible-time delivery fees,recycling packaging materials,and opt-ins for cutlery,to meet the path to profitability goals?How can we adopt environmentally friendly purchasing behaviour,like choosing sustainable products,services,and merchants,consolidating purchases into larger orders,or acce

192、pting longer delivery times to help optimise operations?How can we switch from owning vehicles with internal combustion engines(ICE)to using shared electric vehicles(EV)services and reducing our collective carbon footprint?Sustainable salesMerchants How can we source and sell sustainable products th

193、at use less packaging materials,last longer,and can be reused and recycled by consumers in a circular economy?How can we grow the business and leverage consumers emerging willingness to pay for sustainable products and services,while standing out in a crowded marketplace?7172Social:SEAs digital econ

194、omy has delivered business opportunities,jobs,and economic contributionNotes:(1)Core sectors include e-commerce,transport,food delivery,online travel,online media,and financial services.(2)Indirect jobs refer to jobs created as a result of the digital platform business,including transport driver-par

195、tners,food delivery riders,content creators and personnel of third party logistics companies that support e-commerce,etc.(3)With 5%being the lowest and 10%being the highest GMV/GDP penetration among SEA countries in 2022.Source:Bain analysisBusiness opportunitiesJob creationEconomic contribution20-2

196、5M unique merchants transacting on e-commerce platforms to date6-7Msmall-to medium-sized restaurants on food delivery platforms to date160Kdirect1 jobs created to date across the digital economy 30Mindirect2 jobs created to date across the digital economy 5-10%penetration of SEAs GDP3 in 2022(i.e.di

197、gital economys GMV/GDP)2Xexpected growth of SEAs digital economy GMV(vs GDP)between 2022 to 202573Social:Companies and institutions must address some key concerns before the digital economy can become truly sustainableWelfareWorker-partner concernsConsumer concernsWell-beingDigital inclusionFinancia

198、l inclusion How do we drive higher adoption of digital economy services in suburban cities,especially in underserved areas?How do we make digital economy services more affordable to on a budget consumers?How can institutions play a more active role in closing the digital economy divide?How do we bet

199、ter support gig economy workers in their medical,accident,income protection,and retirement needs?How do we help them build skills relevant to the digital decade and beyond?How do we balance worker-partners rights with service affordability and financial sustainability of the platform?How do we guara

200、ntee a high standard of workplace safety in e-commerce warehouses and last-mile delivery centres?How do we ensure safety standards for transport drivers and delivery partners that prioritise well-being over jobs maximisation?How do we increase financial literacy,particularly among suburban and lower

201、 income consumers?How do we offer financial services to the unbanked and underbanked in an economically sustainable way?What can institutions do to promote adoption of digital financial services while regulating against abuse and fraud?74Despite growing interest in sustainability,adoption remains na

202、scent.There is much to do,with the onus on consumers,companies,investors,and governments to jointly strive towards amore sustainable digital economy.75Sustainability-related search trends,by country Note:Terms include sustainability and sustainable,and their variants.Source:Google Trends,2022 vs 202

203、0 average search volumes IndonesiaSingaporeMalaysiaThailandPhilippinesVietnamIndexed searches202120220204080602021202202021202220212022202120222021202225501007502550100750255010075025501007502550100751.2X2.6X2.2X2.8X2.1X1.4XConsumers:Interest in sustainability is rising across the region76Consumers:

204、A say-do gap exists between declared intentions and actual purchasing behaviourQuestion:What are the most important things you consider while purchasing the following products?Base:Indonesia,Philippines,Vietnam,Thailand,Malaysia,and Singapore,n=9,749Sources:Say-Bain APAC ESG Survey Jan 2022,Do-Eurom

205、onitor;data is based on the packaged foods category40%of SEA consumerssay they careabout sustainability but only 3-15%are acting on their intentions by purchasing sustainable foodsSay-%of consumers who consider sustainability a top three criteria when purchasing packaged foodsDo-%market share of pac

206、kaged foods that is sustainableSEAIndonesiaSingaporeThailandPhilippinesVietnam9%36%32%36%38%26%Malaysia414023143140414195453Question:N3.Please select the top two reasons that prevent you from choosing the more sustainable product/service option.Weighted base:Digital users in SEA,n=8,144Source:Google

207、-commissioned Ipsos e-Conomy SEA Research 2022Consumers generally have insufficient information about the available sustainable options.When they do,they dont necessarily trust the sustainability claims companies make.As environmental and social concerns rise across the region,brands need to provide

208、 transparency and trustworthy information so that consumers can make purchases that best align with their values.New brands stand to gain market share by launching more sustainable products,while existing players,like e-commerce and transport platforms,can highlight their product/services sustainabi

209、lity features via product descriptions,in their delivery options,or in their merchant ratings/reviews with the goal of encouraging the adoption of sustainability practices.Consumers:Awareness,and trustworthy sustainability claims are more pivotal to closing the say-do gap than priceTop barriers for

210、sustainability adoption in SEA(%)32%21%20%15%12%AwarenessTrustAvailabilityPriceOther7778Investors:Still in the early stages of wrapping ESG considerations into VC investment processes Source:Bain,SEA Venture Capital Investors Survey,Q3 2022Q.How do you rate the importance of ESG dimensions in your i

211、nvestment process?EnvironmentalSocialGovernance33%23%30%20%33%23%Somewhat importantVery importantSome SEA-focused funds recognise the importance of incorporating ESG elements into the deal evaluation processWere actively building our capacity and knowledge depth in the sustainability space”VCIt ESG

212、is inherently a part of our diligence process,but more can be done to formalise this”VCFor many funds,it is an ongoing learning process as most have yet to formulate a structured approach to doing soWhile ESG is increasingly important,it is still an early concept for most companies in SEA today and

213、they should not be over-penalised at this stage”VCMost funds today do not actively assess ESG within the investment due diligence“79Companies:Digital platforms have started to take concrete steps towards sustainability,though efforts are still nascentEnvironment exampleSocial exampleGovernance examp

214、leA regional transport player partners with automakers to deploy electric vehicles(EV)in IndonesiaA leading e-commerce platform in Vietnam empowers suburban farmers via digitalA regional e-commerce platform commits to responsible governance practicesThrough this partnership,over 8,000 electric vehic

215、les were rolled out.The same company also worked with leading partners to develop and deploy battery-swapping stations in order to power the fleet.The e-commerce platform created an online app that enabled suburban farmers in 23 provinces to sell their produce directly to end-consumers and identify

216、ways to prevent food waste,ensuring sustainable income for the farmers.The company is a signatory of the World Economic Forums Stakeholder Capitalism Principles,which shape sustainability goals globally,and holds itself accountable against international ESG standards.It also established the Sustaina

217、bility Advisory Council,which includes experts from the World Bank,United Nations,and ASEAN Centre for Energy to ensure that its sustainability commitments meet global standards.80Sustainability is the responsibility of not one,but all stakeholders InvestorsIncrease focus on ESG during the due dilig

218、ence process,since ESG resembles licenses to operate and could cripple businesses that fall shortAdvocate sustainability practices as value creation levers rather than compliance requirementsDemonstrate commitment to uphold ESG principles by investing in digital companies that exemplify strong susta

219、inability standardsConsumersClose the say-do gap by spending more on brands that are ESG-conscious,and cutting back on brands that arentSupport digital platforms that adopt socially responsible practices for their worker-partnersAdopt more sustainable ordering habits,such as larger basket sizes,lowe

220、r order frequencies,or accepting extended delivery timesGovernmentsProactively review international ESG best practices in view of developing consistent,SEA-nuanced policiesConduct regular dialogues with the industry when introducing new regulations to encourage growth while balancing ESG needsImplem

221、ent incentives and regulations that encourage companies to move towards less carbon-intensive solutionsCompaniesHelp consumers bridge the say-do gap by being transparent about products and merchants sustainability,facilitating greener purchases Reduce and recycle packaging materials,offer viable alt

222、ernatives to single-use plastics,and enforce opt-ins for plastic packagingOptimise last-mile logistics,charge carbon taxes for off-route services,and offer discounts on EV rides and carbon credits to offset emissionsOffer social welfare solutions for both employees as well as worker-partners Chartin

223、g the course for the digital decade82We remain optimistic about the sustainable development of SEAs digital economy.Rooted in strong social and economic fundamentals,SEAs digital decade has just started to deliver on its promises.83Notes:2025 projection excludes DFS and nascent sectors;2030 projecti

224、on includes ballpark estimates for nascent sectors.Source:Bain analysisThe SEA digital economy could reach up to$1T GMV by 2030,provided it can pursue this potential in a sustainable wayDigital economy GMV($)2022$200B2025$330B2030$600B-$1Tincluding nascent sectorsEnvironmentally,socially,economicall

225、y sustainableAchieving profitable growth(2023-2025)Digital inclusion of suburban and lower income users in urban areas will be required to unlock the full economic potential and social impact of SEAs digital economy by the end of the digital decade.Sustainable growth hinges on addressing environment

226、al,social,and governance responsibilitieswhich,following trends seen in developed markets like the US and China,will become licences to operate.Over time,sustainability will become more important than top line growth,opening a wide range of GMV scenarios for 2030from$600B to$1T.Unlocking full potent

227、ial,sustainably(2025-2030)The path to profitability has risen to prominence as an immediate priority for digital economy companies around the world,and in SEA.In the next two to three years,they will need to maintain growth against macroeconomic headwinds,in a balancing act between price increases,c

228、ost optimisation measures,and raising cost of capital.84Notes:Excludes DFS and nascent sectors in 2025;includes ballpark estimates for nascent sectors in 2030.Source:Bain analysisSustained growth expected across the board,with Vietnam and the Philippines as frontrunners going forwardOnline mediaFood

229、&transportTravelE-commerce77130220-360213440-702035100-150182840-653553100-1654923120-20019%17%20%17%15%31%202220252030202220252030202220252030202220252030202220252030202220252030IndonesiaSingaporeMalaysiaThailandPhilippinesVietnamDigital economy GMV($B)85Note:Excludes DFS.Sources:Bain analysis;GDP

230、data from IHS,Central Bank,World BankThe digital economy is expected to grow 2X as fast as GDP through 2030Digital economy GMV growth vs GDP growth(%)Expected nominal GDP CAGR Expected digital economy CAGR2022-20252025-20302022-20252025-20302022-20252025-20302022-20252025-20302022-20252025-20302022-

231、20252025-20309%6%8%11%8%6%4%7%5%12%9%19%11%7%17%13%15%17%7%20%20%31%19%IndonesiaSingaporeMalaysiaThailandPhilippinesVietnam5%86A new set of enablers can help SEAs digital decade reach new heightsAdvancedSome progressNascentUnprecedented digital economy growthTowards a sustainable digital economyPaym

232、entsFundingLogisticsInternet accessConsumer trustTalentEnvironment,social,governanceDigital inclusionData infrastructure and regulationPath to profitability87Source:Bain analysisPayments and funding push ahead,but talent challenge is shifting focus from headcount to depth of capabilitiesThroughout t

233、he pandemic,the adoption and usage of digital payments have accelerated more than ever before,with payments GTV exceeding$800B in 2022 after surging over 35%since 2019.The rise of e-commerce catapulted digital payments adoptioneven in areas where offline merchant payments adoption is not yet ubiquit

234、ous.LogisticsInvestments in logistics infrastructure cooled off to$0.2B in 2022,down from its peak of$2.5B in 2021.Nonetheless,logistics providers have built up capacity to deliver over 15B orders per year,given the increasing frequency of shopping festivals across the year.PaymentsFundingVC investm

235、ents in SEAs digital economy reached an all-time high of$27B in 2021,and momentum extended into H1 2022 with$13B.Continued investments in early-stage startups and nascent sectors are needed if the digital decade is to reach its$1T GMV ambition by 2030.2022 will see 20M new internet users joining the

236、 online world,bringing the total number of users added since the pandemic began to 100M.Over 95%of SEAs internet users have access to LTE/WiMax connectivity,and the region enjoys some of the cheapest data in the world.TalentSEAs digital economy directly employs over 160K people.As companies streamli

237、ne their operations on the path to profitability,they are now optimising staffing after years of accelerated growth.Going forward,the focus will shift from headcount growth to depth of capabilities,especially in specialised disciplines like engineering,data science,cloud technology,and digital marke

238、ting.Internet accessConsumer trustTrust in e-commerce players is high,with less than 5%of users dissatisfied with the authenticity of products on marketplaces.Meanwhile,trust in food delivery is table stakes,as the second least important factor when consumers choose which merchant to order from.88So

239、urce:Bain analysisDigital inclusion and ESG present both opportunities and challenges,and requires balancing with path to profitabilityIn SEA,search interest in sustainability has more than doubled over the past three years.Consumers have yet to turn that interest into everyday choices,however,with

240、a prevailing 30%say-do gap.Companies and investors must increasingly consider ESG practices as value creation levers rather than compliance items.Environment,social,governanceDigital inclusionTo enable equitable access,providers need to continually improve security and speed of connectivity in under

241、served areas.Governments should ensure balanced policies and regulatory frameworks on privacy,data sharing,and taxes to encourage interoperability and reduce fragmentation of the internet,thereby enabling businesses to scale digitally.Data infrastructure and regulationA digital divide between urban/

242、suburban lines and income levels persists.Fewer consumers in suburban areas(20-30%excl.e-commerce)have adopted digital economy services compared to those in urban areas(90%).Even urban on a budget users deem digital services too expensive,urging companies to make them more affordable,such as by offe

243、ring basic plans and lowering price points.Institutional interventions may be needed to invest in digital literacy,and help onboard consumers and areas that companies cannot serve in an economically feasible way.Path to profitabilityInvestors are asking companies to achieve financial independence an

244、d generate cash by focusing on profitable unit economics(i.e.cost per order).For example,they could optimise operations,or scale core services.The risk in doing so is that while online companies are pulling back incentives and promotions,consumers may find their value proposition less attractive,esp

245、ecially as price and promotions remain the top reasons that a third of users would switch platforms or revert to offline alternatives.Ports of call:Country dataIndonesiaVideo-on-demand80%using at least once a weekQuestions:1-X10.How would you describe your intent to use e-commerce,online groceries,t

246、ransport,food delivery in the next 12 months?;2,3-Usage derived from adoption of X usage frequency/time(among paying users in the past three months);4-On average,how much more would you be willing to pay for products/services that are more sustainable(e.g.reducing fuel/carbon emissions,etc)?Base:Use

247、rs by verticals in Indonesia,n=948.Source:Google-commissioned Ipsos e-Conomy SEA Research 2022E-commerceTransportFood deliveryGroceries48%Usage intent 1MoreIndonesia:Digital consumers in numbersSameLessIntent to use the service in the next 12 months18%50%32%16%65%19%25%51%24%18%69%13%adoption across

248、 urban digital users89%79%52%63%57%48%E-commerce GroceriesTransportFood deliveryTravelVideo-on-demandMusic-on-demandGamingMedia usage frequency 2IndonesiaSEA average%using 1 hour per dayMedia usage time 3GamingMusic-on-demandIndonesiaSEA averageVideo-on-demandMusic-on-demandGaming59%33%37%28%38%29%3

249、4%23%16%12%13%18%13%Declared willingness to pay morefor a sustainable product or service 491Video-on-demandIndonesiaSEA averageGamingMusic-on-demandIndonesiaSEA averageVideo-on-demandMusic-on-demandGaming33%37%28%38%29%34%23%16%12%13%18%13%OverviewGrowthInvestmentsAt 22%YoY GMV growth,Indonesias dig

250、ital economy hits$77B in 2022and is on course to reach$130B by 2025,driven primarily by e-commerceGMV($B)E-commerceOnline travelTransport and foodOnline media20192021202220252030416377130220-36025%22%19%20192021202220252019202120222025201920212022202520192021202220257231036.16.4112548599567815-45%60

251、%45%37%5%19%39%22%17%9%19%22%TransportFood deliverySource:Bain analysis92GMV($B)CAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGROverviewGrowthInvestmentsOverall digital economyDFS will maintain momentum towards 2025,with digital payments CAGR growing in the teens,and investment platforms accelerating by 75%

252、CAGRInvestment(AUM)Lending loan bookRemittance(GTV)Payments(GTV)Insurance(APE/GWP)20192021202220252019202120222025201920212022202520192021202220252019202120222025206234266421210.410316150.51.2230.10.20.41+17%+13%+7%+99%+31%+74%+66%+57%+51%+61%+34%+26%+78%+64%+51%Note:BNPL loan book calculated using

253、3 month average loan tenure for BNPL loans.GTV=Gross Transaction Values;AUM=Assets Under Management;APE=Annual Premium Equivalent;GWP=Gross Written Premiums.Source:Bain analysis Digital financial services($B)93CAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGROverviewGrowthInvestmentsDeal count constant but d

254、eal value dips by$2B YoY as investors prioritise profitability and contend with valuation concerns around late-stage companiesSource:Bain analysisPrivate funding value($B)201920202021H1 2021H2 2021H1 2022Deal count35543764930034930234954394OverviewGrowthInvestmentsDFS claims lions share of investor

255、funding,raising$1.5B in H1 2022 alone,with activity primarily focused on B2B payments and lending servicesIndonesia:Usage of digital services to remain strong,despite adoption tapering from pandemic peaksNote:Others include foodtech,B2B SaaS,Web3,cleantech,agritech,etc.Source:Bain analysisPrivate fu

256、nding value($B)DFSE-commerceTransportTravelOthersDigital media3495459%9%12%11%36%31%14%14%39%32%13%13%67%13%15%9%59%12%44%23%7%2%26%319%6%1%1%2%5%4%1%95201920202021H1 2021H2 2021H1 2022OverviewGrowthInvestmentsDeal count355437649300349302MalaysiaVideo-on-demand73%using at least once a weekQuestions:

257、1-X10.How would you describe your intent to use e-commerce,online groceries,transport,food delivery in the next 12 months?;2,3-Usage derived from adoption of X usage frequency/time(among paying users in the past three months);4-On average,how much more would you be willing to pay for products/servic

258、es that are more sustainable(e.g.reducing fuel/carbon emissions,etc)?Base:Users by verticals in Malaysia,n=987Source:Google-commissioned Ipsos e-Conomy SEA Research 2022E-commerceTransportFood deliveryGroceriesMalaysia:Digital consumers in numbersUsage intent 1MoreSameLessIntent to use the service i

259、n the next 12 months23%53%24%19%57%24%21%66%13%18%69%13%adoption across urban digital users95%86%70%59%46%47%E-commerce GroceriesTransportFood deliveryTravelVideo-on-demandMusic-on-demandGamingMedia usage frequency 2MalaysiaSEA average%using 1 hour per dayMedia usage time 3GamingMusic-on-demandMalay

260、siaSEA averageVideo-on-demandMusic-on-demandGaming63%33%39%28%31%29%31%23%28%12%19%18%21%Declared willingness to pay morefor a sustainable product or service 49738%Video-on-demandMalaysiaSEA averageGamingMusic-on-demandMalaysiaSEA averageVideo-on-demandMusic-on-demandGaming33%39%28%31%29%31%23%28%12

261、%19%18%13%OverviewGrowthInvestmentsThe digital economy continues pushing towards$35B in 2025,largely fuelled by e-commerces S-shaped growth and online travels U-shaped recoveryE-commerceOnline travelTransport and foodOnline mediaTransportFood deliverySource:Bain analysis20192021202220252019202120222

262、0252019202120222025201920212022202520192021202220252030512822.62.843131418122.541218213440-70-57%100%56%21%9%13%98%6%10%30%22%18%26%13%17%98CAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGROverviewGrowthInvestmentsGMV($B)Overall digital economyDFS to accelerate towards 2025,driven by digital investments hitt

263、ing$25B AUM at 40%CAGR and lending reaching$16B at 39%CAGRIndonesia:Usage of digital services to remain strong,despite adoption tapering from pandemic peaksInvestment(AUM)Lending loan bookRemittance(GTV)Payments(GTV)Insurance(APE/GWP)201920212022202520192021202220252019202120222025201920212022202520

264、19202120222025258312314619975161655.811.7230.30.50.72+11%+19%+22%+128%+40%+57%-2%+15%+39%+16%+19%+20%+26%+31%+36%Digital financial services($B)99CAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRNote:BNPL loan book calculated using 3 month average loan tenure for BNPL loans.GTV=Gross Transaction Values;AUM=As

265、sets Under Management;APE=Annual Premium Equivalent;GWP=Gross Written Premiums.Source:Bain analysisOverviewGrowthInvestmentsDespite a 30%drop in deal activity,deal value grew marginally YoY due to several high-profile investments in new categoriesSource:Bain analysisPrivate funding value($B)Deal cou

266、nt147202236101135770.40.50.90.40.60.5100201920202021H1 2021H2 2021H1 2022OverviewGrowthInvestmentsE-commerce attracts$340M in H1 2022,of which the bulk was allocated to Malaysias first unicorn,outpacing DFS to become the investor favouriteIndonesia:Usage of digital services to remain strong,despite

267、adoption tapering from pandemic peaksPrivate funding value($B)DFSE-commerceTransportTravelOthersDigital media0.40.50.90.40.615%11%81%7%6%26%19%32%13%6%9%13%25%25%67%12%26%0.557%14%2%2%16%8%0%40%0%0%0%1%2%4%14%10%0%Note:Others include foodtech,B2B SaaS,Web3,cleantech,agritech,etc.Source:Bain analysis

268、101201920202021H1 2021H2 2021H1 2022Deal count14720223610113577OverviewGrowthInvestmentsPhilippinesVideo-on-demand48%using at least once a weekQuestions:1-X10.How would you describe your intent to use e-commerce,online groceries,transport,food delivery in the next 12 months?;2,3-Usage derived from a

269、doption of X usage frequency/time(among paying users in the past three months);4-On average,how much more would you be willing to pay for products/services that are more sustainable(e.g.reducing fuel/carbon emissions,etc)?Base:Users by verticals in Philippines,n=1,233Source:Google-commissioned Ipsos

270、 e-Conomy SEA Research 2022E-commerceTransportFood deliveryGroceriesPhilippines:Digital consumers in numbersUsage intent 1MoreSameLessIntent to use the service in the next 12 months29%51%20%30%56%14%32%39%29%29%60%11%adoption across urban digital users88%69%48%58%48%50%E-commerce GroceriesTransportF

271、ood deliveryTravelVideo-on-demandMusic-on-demandGamingMedia usage frequency 2PhilippinesSEA average%using 1 hour per dayMedia usage time 3GamingMusic-on-demandPhilippinesSEA averageVideo-on-demandMusic-on-demandGaming57%33%39%28%33%29%37%23%29%12%19%18%28%Declared willingness to pay morefor a sustai

272、nable product or service 410342%OverviewGrowthInvestmentsThe digital decade continues its upward trend at 20%YoY to reach$20B this year,with e-commerce propelling it to$35B by 2025E-commerceOnline travelTransport and foodOnline mediaTransportFood delivery201920212022202520192021202220252019202120222

273、025201920212022202520192021202220252030-58%180%44%29%17%18%110%17%17%30%21%29%47%22%20%320.41422.63.1512142211.51.948162035100-150104Source:Bain analysisCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGROverviewGrowthInvestmentsGMV($B)Overall digital economySustained DFS growth with lending and remittance hit

274、ting$8B each(as part of a U-shaped recovery for the latter);digital investments still nascent20192021202220252019202120222025Payments(GTV)Investment(AUM)Lending loan bookRemittance(GTV)Insurance(APE/GWP)20192021202220252019202120222025201920212022202516669751230.30.20.02180.1273480.030.080.120.4+18%

275、+9%+2%+189%+63%+50%+51%+304%+53%-30%+32%+25%+53%+58%+51%Digital financial services($B)105Note:BNPL loan book calculated using 3 month average loan tenure for BNPL loans.GTV=Gross Transaction Values;AUM=Assets Under Management;APE=Annual Premium Equivalent;GWP=Gross Written Premiums.Source:Bain analy

276、sisCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGROverviewGrowthInvestmentsAfter a two-year digital economy boom,both deal value and deal activity have risen thanks to sizable investments in incumbent playersPrivate funding value($B)Deal count72731255966680.20.40.90.50.50.8106201920202021H1 2021H2 2021H1 2

277、022Source:Bain analysisOverviewGrowthInvestmentsDFS captures 56%of total investor funding and raises$450M in H1 2022 alone;Web3 is also pulling its weight with a 12%share of the piePrivate funding value($B)DFSE-commerceTransportTravelOthersDigital media0.20.40.90.50.548%36%37%16%74%6%14%71%7%0%0%0%0

278、%16%77%13%56%32%0.838%1%1%0%2%1%1%10%5%10%5%6%13%2%4%107201920202021H1 2021H2 2021H1 2022Deal count7273125596668Note:Others include foodtech,B2B SaaS,Web3,cleantech,agritech,etc.Source:Bain analysisOverviewGrowthInvestmentsSingaporeVideo-on-demand82%using at least once a weekQuestions:1-X10.How woul

279、d you describe your intent to use e-commerce,online groceries,transport,food delivery in the next 12 months?;2,3-Usage derived from adoption of X usage frequency/time(among paying users in the past three months);4-On average,how much more would you be willing to pay for products/services that are mo

280、re sustainable(e.g.reducing fuel/carbon emissions,etc)?Base:Users by verticals in Singapore,n=756Source:Google-commissioned Ipsos e-Conomy SEA Research 2022E-commerceTransportFood deliveryGroceriesSingapore:Digital consumers in numbersUsage intent 1MoreSameLessIntent to use the service in the next 1

281、2 months17%63%20%15%70%15%30%59%11%29%60%11%adoption across urban digital users97%92%80%63%51%46%E-commerce GroceriesTransportFood deliveryTravelVideo-on-demandMusic-on-demandGamingMedia usage frequency 2SingaporeSEA average%using 1 hour per dayMedia usage time 3GamingMusic-on-demandSingaporeSEA ave

282、rageVideo-on-demandMusic-on-demandGaming75%33%51%28%45%29%36%23%36%12%17%18%23%Declared willingness to pay morefor a sustainable product or service 410932%OverviewGrowthInvestmentsThe digital economy grew 22%YoY with expectations to hit$30B by 2025,mainly powered by$11B e-commerce and$9B travel reco

283、veryE-commerceOnline travelTransport and foodOnline mediaTransportFood delivery201920212022202520192021202220252019202120222025201920212022202520192021202220252030-47%125%34%16%12%10%82%4%9%12%20%17%11%22%17%6262491.62.12.3388.21133.23.91215182940-65110Source:Bain analysisCAGRCAGRCAGRCAGRCAGRCAGRCAG

284、RCAGRCAGRCAGROverviewGrowthInvestmentsGMV($B)Overall digital economy98107338312722.221.61222391525277.390.41.11.32Lending loan bookPayments(GTV)With digital payments nearly ubiquitous,DFS growth to 2025 will be drivenby digitalisation of investments and lending via digibanks and fintechsInvestment(A

285、UM)Remittance(GTV)Insurance(APE/GWP)20192021202220252019202120222025201920212022202520192021202220252019202120222025+6%+9%+9%+34%+3%+14%+11%+21%+16%+101%+4%+6%+48%+24%+20%Digital financial services($B)111Note:BNPL loan book calculated using 3 month average loan tenure for BNPL loans.GTV=Gross Transa

286、ction Values;AUM=Assets Under Management;APE=Annual Premium Equivalent;GWP=Gross Written Premiums.Source:Bain analysisCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGROverviewGrowthInvestmentsDeal value grew from$4B in H1 2021 to$7B a year later,throning Singapore as the regions most favoured investment coun

287、tryPrivate funding value($B)Deal count6758521,2135696445727512487112201920202021H1 2021H2 2021H1 2022Source:Bain analysisOverviewGrowthInvestmentsThe allure of DFS endures,raising$1.9B in H1 2022;healthtech is rapidly gaining ground with 15%of investment pool at$1.1B Indonesia:Usage of digital servi

288、ces to remain strong,despite adoption tapering from pandemic peaksPrivate funding value($B)DFSE-commerceTransportTravelOthersDigital media75124831%29%9%49%20%9%19%27%39%8%51%25%3%2%61%28%15%1%11%45%25%12%5%5%53%728%2%1%8%1%1%0%0%0%0%113201920202021H1 2021H2 2021H1 2022Deal count6758521,213569644572N

289、ote:Others include foodtech,B2B SaaS,Web3,cleantech,agritech,etc.Source:Bain analysisOverviewGrowthInvestmentsThailandVideo-on-demand53%using at least once a weekQuestions:1-X10.How would you describe your intent to use e-commerce,online groceries,transport,food delivery in the next 12 months?;2,3-U

290、sage derived from adoption of X usage frequency/time(among paying users in the past three months);4-On average,how much more would you be willing to pay for products/services that are more sustainable(e.g.reducing fuel/carbon emissions,etc)?Base:Users by verticals in Thailand,n=1,340Source:Google-co

291、mmissioned Ipsos e-Conomy SEA Research 2022E-commerceTransportFood deliveryGroceries39%Thailand:Digital consumers in numbersUsage intent 1MoreSameLessIntent to use the service in the next 12 months22%55%23%25%57%18%36%51%13%32%52%16%adoption across urban digital users95%78%55%62%54%56%E-commerce Gro

292、ceriesTransportFood deliveryTravelVideo-on-demandMusic-on-demandGamingMedia usage frequency 2ThailandSEA average%using 1 hour per dayMedia usage time 3GamingMusic-on-demandThailandSEA averageVideo-on-demandMusic-on-demandGaming63%33%51%28%45%29%29%23%33%12%12%18%22%Declared willingness to pay morefo

293、r a sustainable product or service 4115Video-on-demandThailandSEA averageGamingMusic-on-demandThailandSEA averageVideo-on-demandMusic-on-demandGaming33%33%28%27%29%29%23%33%12%12%18%22%OverviewGrowthInvestmentsGrowing at 17%YoY and expected to reach$53B by 2025,the digital economy is fuelled by e-co

294、mmerce,but travel recovery will take timeE-commerceOnline travelTransport and foodOnline media20192021202220252019202120222025TransportFood delivery2019202120222025201920212022202520192021202220252030-48%139%22%28%10%12%99%8%13%64%12%20%35%17%15%11625975534.65.1721223212.7316303553100-165Source:Bain

295、 analysisCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGROverviewGrowthInvestmentsGMV($B)Overall digital economyPayments(GTV)DFS accelerated through the pandemic and is still growing;momentum to 2025 will be led by lending and investments at 40%and 45%CAGR,respectivelyInvestment(AUM)Lending loan bookRemitta

296、nce(GTV)Insurance(APE/GWP)20192021202220252019202120222025201920212022202520192021202220252019202120222025231021021131618625213811.62.140.51.11.43+12%+11%+0%+81%+33%+44%+41%+50%+39%+39%+52%+32%+20%+29%+26%CAGRCAGR Digital financial services($B)117Note:BNPL loan book calculated using 3 month average

297、loan tenure for BNPL loans.GTV=Gross Transaction Values;AUM=Assets Under Management;APE=Annual Premium Equivalent;GWP=Gross Written Premiums.Source:Bain analysisCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGROverviewGrowthInvestmentsDeal value is on the rise,driven by several large Series-C investments in DFS and

298、e-commercePrivate funding value($B)Deal count11010717459115420.20.50.60.20.40.3118201920202021H1 2021H2 2021H1 2022Source:Bain analysisOverviewGrowthInvestmentsDFSE-commerceTransportTravelOthersDigital mediaDFS overtakes e-commerce,nabbing nearly half of all funding and raising$150M in H1 2022 alone

299、Private funding value($B)0.20.50.60.20.43%45%28%13%2%52%33%15%59%2%7%15%81%4%4%17%48%1%21%48%30%3%18%0.322%10%9%2%2%2%1%2%119201920202021H1 2021H2 2021H1 2022Deal count1101071745911542Note:Others include foodtech,B2B SaaS,Web3,cleantech,agritech,etc.Source:Bain analysisOverviewGrowthInvestmentsVietn

300、amVideo-on-demand85%using at least once a weekQuestions:1-X10.How would you describe your intent to use e-commerce,online groceries,transport,food delivery in the next 12 months?;2,3-Usage derived from adoption of X usage frequency/time(among paying users in the past three months);4-On average,how m

301、uch more would you be willing to pay for products/services that are more sustainable(e.g.reducing fuel/carbon emissions,etc)?Base:Users by verticals in Vietnam,n=2,383Source:Google-commissioned Ipsos e-Conomy SEA Research 2022E-commerceTransportFood deliveryGroceriesVietnam:Digital consumers in numb

302、ersUsage intent1MoreSameLessIntent to use the service in the next 12 months10%60%30%17%54%29%25%52%23%18%60%22%adoption across urban digital users96%85%66%61%54%60%E-commerce GroceriesTransportFood deliveryTravelVideo-on-demandMusic-on-demandGamingMedia usage frequency 2VietnamSEA average%using 1 ho

303、ur per dayMedia usage time 3GamingMusic-on-demandVietnamSEA averageVideo-on-demandMusic-on-demandGaming84%33%23%28%16%29%19%23%9%12%4%18%9%Declared willingness to pay morefor a sustainable product or service 412155%OverviewGrowthInvestmentsThe digital economy hits$23B in 2022 and is on course for$50

304、B by 2025;the regions fastest growing market due to a booming e-commerce sectorE-commerceOnline travelTransport and foodOnline mediaTransportFood delivery201920212022202520192021202220252019202120222025201920212022202520192021202220252030555126344.3611143212313182349120-200-56%153%39%22%5%12%47%26%3

305、7%35%17%21%15%28%31%122Source:Bain analysisCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGROverviewGrowthInvestmentsGMV($B)Overall digital economyPayments(GTV)DFS to flourish,with the biggest leaps happening in lending at 56%CAGR;digital investments to take off only after 2025Investment(AUM)Lending loan boo

306、kRemittance(GTV)Insurance(APE/GWP)+13%+21%+22%+124%+50%+106%20192021202220252019202120222025201920212022202520192021202220252019202120222025+114%+166%+56%+55%+31%+23%0.75582991430.080.050.012180.3511.82.450.040.10.20.6+87%+41%+46%Digital financial services($B)123Note:BNPL loan book calculated using

307、3 month average loan tenure for BNPL loans.GTV=Gross Transaction Values;AUM=Assets Under Management;APE=Annual Premium Equivalent;GWP=Gross Written Premiums.Source:Bain analysisCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGRCAGROverviewGrowthInvestmentsDeal activity grows by 60%but deal value drops by half,ref

308、lecting investor caution in deploying late-stage capitalPrivate funding value($B)Deal count151140233891441480.90.72.61.41.30.7124201920202021H1 2021H2 2021H1 2022Source:Bain analysisOverviewGrowthInvestmentsE-commerce raises$230M in H1 2022 to become the investor favourite,followed by online media a

309、t$190MIndonesia:Usage of digital services to remain strong,despite adoption tapering from pandemic peaksPrivate funding value($B)TransportTravelOthersDigital media0.90.72.61.41.31%50%8%16%55%2%1%2%2%38%28%9%31%0%0%31%33%1%24%0%42%23%18%59%0%20%31%26%15%0%26%0.712%DFSE-commerce2%125201920202021H1 2021H2 2021H1 2022Deal count15114023389144148Note:Others include foodtech,B2B SaaS,Web3,cleantech,agritech,etc.Source:Bain analysisOverviewGrowthInvestmentsThrough the waves,towards a sea of opportunity