Southeast Asia Digital Economy Set to Reach USD368bn in 2026

The Southeast Asia digital economy is projected to expand 17% to USD368bn in gross merchandise value during 2026, supported by e-commerce growth and increasing artificial intelligence adoption.

According to the e-Conomy SEA 2026 report by Bain, Google and Temasek, regional digital economic activity could reach USD1.1tr by 2035.

E-commerce is expected to account for USD226bn in gross merchandise value this year, potentially increasing to USD820bn by 2035.

Artificial intelligence is creating new opportunities for digital businesses, particularly online retailers using short-form video content to attract customers.

However, concerns about low-quality and inauthentic AI-generated content could constrain adoption.

Investment activity is also recovering. Funding for later-stage digital companies reached USD2.9bn during the first half of 2026, compared with USD1.3bn a year earlier and USD2.1bn in the second half of 2025.

The projections highlight opportunities for family offices and private equity investors seeking exposure to Southeast Asia's expanding digital businesses.