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Southeast Asia Digital Economy Projected to Hit $368 Billion

According to Google. Google's 11th e-Conomy SEA report highlights generative AI as a primary driver for regional economic growth toward a $1 trillion valuation.

By TigerIQ News DeskPublished 10/21/2026, 11:17 AM4 min readShare · LinkedInShare · Email
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KEY TAKEAWAYS
  • • The regional digital economy is on track to exceed $1 trillion by 2035.
  • • Generative AI adoption is scaling four times faster than mobile internet.
  • • 75% of users are willing to let AI agents handle transactions autonomously.

Economic Growth Projections

The 11th e-Conomy SEA report, published by Google, Temasek, and Bain & Company, indicates that Southeast Asia's digital economy is growing at 17% year-on-year. It is expected to reach $368 billion in Gross Merchandise Value in 2026, with a trajectory toward $1 trillion by 2035.

AI Adoption and Trust

Generative AI has become an essential daily tool for 243 million people in the region. Consumer trust is rising, with 62% of users reporting higher confidence in AI tools compared to last year, clearing the path for the emergence of agentic commerce where AI handles complex tasks.

Infrastructure and Governance

To support a projected 60-fold increase in AI usage, the region must expand data center capacity by approximately three times over the next five years. Success also depends on strict energy efficiency standards and the implementation of the ASEAN Digital Economy Framework Agreement.

SOURCES & METHODOLOGY
  1. 1. blog.google
    Open source
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