Southeast Asia’s ecommerce sector experienced significant growth in 2022, with a gross merchandise value (GMV) reaching $99.5 billion, according to a report by Momentum Works, a venture company headquartered in Singapore. This figure represents a 1.8-fold increase compared to the previous year, despite the economic challenges faced by the region during the pandemic.
Momentum Works emphasized that the Southeast Asian ecommerce market has demonstrated resilience and is expected to continue its impressive growth trajectory in the coming months. The report highlighted Shopee as a leading contributor to the region’s GMV, accounting for nearly half of Southeast Asia’s total at $47.9 billion. Lazada secured the second spot across all countries except Indonesia, with a GMV of $20.1 billion.
Indonesia emerged as the dominant player, accounting for 52% of the region’s total GMV. Meanwhile, Malaysia and Singapore stood out in terms of GMV per capita, indicating the strong buying power and adoption of ecommerce in these countries.
Momentum Works identified four key trends shaping the Southeast Asian ecommerce landscape. Firstly, geopolitical shifts and changes in supply chain dynamics have had a notable impact. Secondly, investments in logistics and financial technology (fintech) have witnessed a significant boost, contributing to the growth of the sector. Thirdly, the operational disruptions caused by TikTok have influenced consumer behavior and provided new avenues for ecommerce engagement. Lastly, ecommerce has been increasingly adopted by various industries, expanding its reach beyond traditional retail sectors.
Looking ahead, the report forecasted that Southeast Asia’s GMV could reach $175 billion by 2028, assuming stable conditions. However, it also projected an upward trend to $232 billion if the overall situation improves. Jianggan Li, Founder and CEO of Momentum Works, expressed optimism about the industry’s growth prospects in the coming years. He predicted that Shopee and Lazada would continue to be the dominant players, potentially splitting the market share. Additionally, he highlighted the adoption of omnichannel strategies by countries and the growing emphasis on brands building their own loyalty programs.
Li emphasized that the ecommerce landscape is dynamic, with continuously shifting currents. He suggested that the future may not entail a steady state but rather be shaped by how leading platforms navigate these currents.
Momentum Work will continue to actively contribute to the development of the tech and new economy ecosystem by building, scaling, and managing tech ventures across emerging markets.