The digital economy in the Philippines was poised for growth in recent periods, as seen in the gross merchandise value that reached roughly ** billion U.S. dollars in 2023. The internet economy will continue to see an upward trend in the following years, growing to around *** billion U.S. dollars in 2030.

Across components, professional and business services contributed the highest value to the digital economy in the Philippines in 2024. This component generated gross value added amounting to around *** billion Philippine pesos. Meanwhile, e-commerce had a GVA of about *** billion Philippine pesos.

Abstract

The Global Findex 2025 reveals how mobile technology is equipping more adults around the world to own and use financial accounts to save formally, access credit, make and receive digital payments, and pursue opportunities. Including the inaugural Global Findex Digital Connectivity Tracker, this fifth edition of Global Findex presents new insights on the interactions among mobile phone ownership, internet use, and financial inclusion.

The Global Findex is the world’s most comprehensive database on digital and financial inclusion. It is also the only global source of comparable demand-side data, allowing cross-country analysis of how adults access and use mobile phones, the internet, and financial accounts to reach digital information and resources, save, borrow, make payments, and manage their financial health. Data for the Global Findex 2025 were collected from nationally representative surveys of about 145,000 adults in 141 economies. The latest edition follows the 2011, 2014, 2017, and 2021 editions and includes new series measuring mobile phone ownership and internet use, digital safety, and frequency of transactions using financial services.

The Global Findex 2025 is an indispensable resource for policy makers in the fields of digital connectivity and financial inclusion, as well as for practitioners, researchers, and development professionals.

Geographic coverage

National Coverage

Analysis unit

Individual

Kind of data

Observation data/ratings [obs]

Sampling procedure

In most low- and middle-income economies, Global Findex data were collected through face-to-face interviews. In these economies, an area frame design was used for interviewing. In most high-income economies, telephone surveys were used. In 2024, face-to-face interviews were again conducted in 22 economies after phone-based surveys had been employed in 2021 as a result of mobility restrictions related to COVID-19. In addition, an abridged form of the questionnaire was administered by phone to survey participants in Algeria, China, the Islamic Republic of Iran, Libya, Mauritius, and Ukraine because of economy-specific restrictions. In just one economy, Singapore, did the interviewing mode change from face to face in 2021 to phone based in 2024.

In economies in which face-to-face surveys were conducted, the first stage of sampling was the identification of primary sampling units. These units were then stratified by population size, geography, or both and clustered through one or more stages of sampling. Where population information was available, sample selection was based on probabilities proportional to population size; otherwise, simple random sampling was used. Random route procedures were used to select sampled households. Unless an outright refusal occurred, interviewers made up to three attempts to survey each sampled household. To increase the probability of contact and completion, attempts were made at different times of the day and, where possible, on different days. If an interview could not be completed at a household that was initially part of the sample, a simple substitution method was used to select a replacement household for inclusion.

Respondents were randomly selected within sampled households. Each eligible household member (that is, all those ages 15 or older) was listed, and a handheld survey device randomly selected the household member to be interviewed. For paper surveys, the Kish grid method was used to select the respondent. In economies in which cultural restrictions dictated gender matching, respondents were randomly selected from among all eligible adults of the interviewer’s gender.

In economies in which Global Findex surveys have traditionally been phone based, respondent selection followed the same procedure as in previous years, using random digit dialing or a nationally representative list of phone numbers. In most economies in which mobile phone and landline penetration is high, a dual sampling frame was used.

The same procedure for respondent selection was applied to economies in which phone-based interviews were being conducted for the first time. Dual-frame (landline and mobile phone) random digit dialing was used where landline presence and use are 20 percent or higher based on historical Gallup estimates. Mobile phone random digit dialing was used in economies with limited or no landline presence (less than 20 percent). For landline respondents in economies in which mobile phone or landline penetration is 80 percent or higher, respondents were selected randomly by using either the next-birthday method or the household enumeration method, which involves listing all eligible household members and randomly selecting one to participate. For mobile phone respondents in these economies or in economies in which mobile phone or landline penetration is less than 80 percent, no further selection was performed. At least three attempts were made to reach the randomly selected person in each household, spread over different days and times of day.

Research instrument

The English version of the questionnaire is provided for download.

Sampling error estimates

Estimates of standard errors (which account for sampling error) vary by country and indicator. For country-specific margins of error, please refer to the Methodology section and corresponding table in: Klapper, Leora, Dorothe Singer, Laura Starita, and Alexandra Norris. 2025. The Global Findex Database 2025: Connectivity and Financial Inclusion in the Digital Economy. Washington, DC: World Bank. https://doi.org/10.1596/978-1-4648-2204-9.

The digital economy in the Philippines was valued at *** trillion Philippine pesos in 2024, reflecting an increase from the previous year's value. Digital-enabling infrastructures such as telecommunication and professional and business services were the major contributor to this increasing value.

The e-commerce sector in the Philippines had been boosting the growth of the digital economy recently. With a gross merchandise value of roughly ** billion U.S. dollars in 2024, continued online shopping preference will drive growth to as much as ** billion U.S. dollars in 2030. Meanwhile, online travel reflected sluggish growth between 2019 and 2021 due to the impact of the COVID-19 pandemic.

In 2024, the digital economy contributed *** percent to the gross domestic product (GDP) of the Philippines. The GDP share of the digital economy peaked in 2021.

Manila Energy Transition

In 2024, about **** million people were working in the digital economy sector in the Philippines, reflecting an increase from the previous year. E-commerce contributed the highest employment share in that year.

The Philippines e-commerce market is booming, with a $15.51B market size in 2025 and a projected 13.78% CAGR through 2033. Discover key drivers, trends, and challenges shaping this dynamic sector, including major players like Shopee and Lazada. Explore the regional breakdown and future growth potential. Key drivers for this market are: Growing Demand from Fashion Industry, Penetration of Internet and Smartphone Usage. Potential restraints include: Security Flaw Related to Hacking of Password Managers. Notable trends are: Fashion Industry to Dominate the Market Significantly.

The digital economy is considered as an effective measure to mitigate the negative economic impact of the Corona Virus Disease 2019 (COVID-19) epidemic. However, few studies evaluated the role of digital economy on the economic growth of countries along the “Belt and Road” and the impact of COVID-19 on their digital industries. This study constructed a comprehensive evaluation index system and applied a panel data regression model to empirically analyze the impact of digital economy on the economic growth of countries along the “Belt and Road” before COVID-19. Then, a Global Trade Analysis Project (GTAP) model was used to examine the impact of COVID-19 on their digital industries and trade pattern. Our results show that although there is an obvious regional imbalance in the digital economy development in countries along the “Belt and Road”, the digital economy has a significantly positive effect on their economic growth. The main impact mechanism is through promoting industrial structure upgrading, the total employment and restructuring of employment. Furthermore, COVID-19 has generally boosted the demand for the digital industries, and the impact from the demand side is much larger than that from the supply side. Specifically, the digital industries in Armenia, Israel, Latvia and Estonia have shown great growth potential during the epidemic. On the contrast, COVID-19 has brought adverse impacts to the digital industries in Ukraine, Egypt, Turkey, and the Philippines. The development strategies are proposed to bridge the “digital divide” of countries along the “Belt and Road,” and to strengthen the driving effect of the digital economy on industrial upgrading, employment and trade in the post-COVID-19 era.

Discover the booming Philippines e-commerce market! Our analysis reveals a $15.51B market in 2025, projected to reach significant heights by 2033, driven by strong CAGR and key market trends. Explore market size, segments, leading players, and future growth potential. Recent developments include: July 2022 - eBay and FedEx partner to strengthen delivery services in the Asia Pacific, offering service options at competitive prices. The partnership would allow eBay sellers to avail of premium delivery options through FedEx, including cross-border services like FedEx Ecletrocinc Trade Documents and FedEx Home Delivery for delivery and returns., June 2022 - Shopee expanded Shopee Xpress hubs across Mindanao, along with seller-onboarding initiatives. These new hubs were established in Davao Del Sur, Davao City, Davao Del Norte, and other areas, which implied a shorter time for Davao to Davao deliveries. The seller initiatives encouraged sellers to use the E-commerce platform for nationwide reach and business., May 2022 - Lazada Philippines partnered with GrabExpress to launch Same Day Delivery, starting from Metro Manila. The Same Day Delivery aims to reduce the standard waiting time of 3-5 days to receive the purchases to just a few hours, including commodities like groceries, party supplies, etc.. Key drivers for this market are: Growing Demand from Fashion Industry, Penetration of Internet and Smartphone Usage. Potential restraints include: Growing Demand from Fashion Industry, Penetration of Internet and Smartphone Usage. Notable trends are: Fashion Industry to Dominate the Market Significantly.

In 2024, employment in the e-commerce sub-sector accounted for the majority of employees in the digital economy in the Philippines at ** percent. This was followed by the employment share of professional and business services.

The Philippines Data Center Market Size was valued at USD 633 Million in 2024 and is projected to reach USD 2,920 Million by 2032, growing at a CAGR of 20.90% from 2026 to 2032.Key Market Drivers:Digital Transformation and Cloud Adoption: The Philippines' aggressive digital transformation initiatives are resulting in significant data center growth. According to the Department of Information and Communications Technology (DICT), digital transformation investments in the Philippines totalled around PHP 235 billion (USD 4.7 billion) in 2023, with projections of exceeding PHP 300 billion by 2026. According to the National Economic and Development Authority's (NEDA) Philippine Digital Economy Report, cloud service adoption among Filipino enterprises will increase by 37% in 2023, resulting in significant demand for local data processing infrastructure.

Abstract

The 2013 Survey on Information and Communication Technology (SICT) is one of the designated statistical activities undertaken by the Philippine Statistics Authority (PSA) to collect and generate information on the availability, distribution and access/utilization of ICT among establishments in the country.

The objectives of the 2013 SICT is to provide key measures of ICT access and use among establishments which will enable the assessment and monitoring of the digital divide in the country. Specifically, the survey aims to measure the following: - component of ICT resources and their utilization by establishments; - diffusion of ICT into establishments from various sources; - e-commerce transactions from data on e-commerce sales/revenue and purchases; - cellular mobile phone business transactions from data on sales/revenue; - estimate of the number of ICT workers in establishments; - methods of disposal of ICT equipment.

The SICT 2013 was a rider survey of the 2013 Annual Survey of Philippine Business and Industry.

Geographic coverage

Regional - "core" ICT and BPM industries are the regions National - "non-core" ICT industries

Analysis unit

An establishment, which is defined as an economic unit under a single ownership or control, i.e., under a single legal entity, engaged in one or predominantly one kind of economic activity at a single fixed location

Universe

The 2013 Survey on Information and Communication Technology (SICT) of Philippine Business and Industry covered all industries included in the 2013 Annual Survey of Philippine Business and Industry (ASPBI).

For the purpose of the survey, these industries were classified as core ICT industries and non-core ICT Industries. Core ICT industries were industries comprising the Information Economy (IE). The Information Economy is a term used to describe the economic and social value created through the ability to rapidly exchange information at anytime, anywhere to anyone. A distinctive characteristic of the information economy is the intensive use, by businesses of ICT for the collection, storage, processing and transmission of information. The use of ICT is supported by supply of ICT products from an ICT-producing sector through trade.

Information Economy is composed of the Information and Communication Technology Sector and Content and Media Sector. Industries comprising these two sectors are as follows: 1) Information and Communication Technology - ICT manufacturing industries - ICT trade industries - ICT service industries: - Software publishing - Telecommunication services - Computer programming, consultancy and related services - Data processing, hosting and related activities; web portals - Repair of computers and communication equipment 2) Content and Media - Publishing activities - Motion picture, video and television programme production, sound recording and music publishing activities - Programming and broadcasting activities

Kind of data

Sample survey data [ssd]

Sampling procedure

The 2013 SICT utilized the stratified systematic sampling design with five-digit PSIC serving as industry strata (industry domain) and the employment size as the second stratification variable.

There were only two strata used for the survey, as follows: TE of 20 and over and TE of less than 20.

The industry stratification for the 2013 SICT is the 5-digit PSIC for both the core ICT industries and for the non-core ICT industries. It has the same industry strata as that of the 2013 ASPBI.

Establishments engaged in the core ICT industries were completely enumerated, regardless of employment size.

The establishments classified in the non-core ICT industries and with total employment of 20 and over were covered on a 20 percent sampling basis for each of the industry domain at the national level. The minimum sample size is set to 3 establishments and maximum of 10 establishments per cell (industry domain).

However, when the total number of establishments in the cell is less than the set minimum sample size, all establishments in that cell were taken as samples.

Mode of data collection

Mail Questionnaire [mail]

Research instrument

The scope of the study includes: - general information about the establishment - information and communication technology (ICT) resources of the establishment - network channels - use of ICT resources, Internet - website of the establishment - e-commerce via internet - e-commerce via computer networks other than the internet - use of mobile phones in selling and other business operation - purchase and disposal of ICT equipment

Cleaning operations

Manual processing took place in Provincial Offices at a number of stages throughout the processing, including: - coding of some data items - editing of questionnaires - checking completeness of entries - consistency check among variables.

Data processing was done in Field Offices and Central Office.

Field Offices were responsible for: - online data encoding and updating - completeness and consistency edits - folioing of questionnaires.

Central Office was responsible for: - online validation - completeness and consistency checks - summarization - tabulation.

Response rate

The overall response rate for the 2013 SICT was 87.04 percent (9,562 of the 10,986 sample establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments. Sample establishments under core ICT industries reported 89.96 percent response rate ( 5,421 out of 6,026 establishments) while non-core ICT industries response rate was 83.48 percent (3,633 out of 4,352 sample establishments). On the other hand, industries classified in Business Process Management (BPM) had a response rate of 83.55 percent (508 out of 608 establishments).

Sampling error estimates

Not computed

Data appraisal

Data estimates were checked with those from other related surveys or administrative data.

Philippines Total Assets: Digital Banks data was reported at 117.658 PHP bn in Dec 2024. This records an increase from the previous number of 107.641 PHP bn for Sep 2024. Philippines Total Assets: Digital Banks data is updated quarterly, averaging 92.795 PHP bn from Mar 2023 (Median) to Dec 2024, with 8 observations. The data reached an all-time high of 117.658 PHP bn in Dec 2024 and a record low of 59.399 PHP bn in Mar 2023. Philippines Total Assets: Digital Banks data remains active status in CEIC and is reported by Bangko Sentral ng Pilipinas. The data is categorized under Global Database’s Philippines – Table PH.KB076: Performance Indicator: Philippine Banking System: Quarterly.

The Philippines data center rack market is experiencing robust growth, fueled by the increasing adoption of cloud computing, big data analytics, and the expanding digital economy. The market, valued at an estimated ₱1.5 billion (assuming a conservative estimate based on average regional market sizes and the provided CAGR) in 2025, is projected to witness a Compound Annual Growth Rate (CAGR) of 19.90% from 2025 to 2033. This expansion is driven primarily by the burgeoning IT and telecommunication sector, followed by significant contributions from the BFSI (Banking, Financial Services, and Insurance) and government sectors. The rising demand for high-capacity data storage and processing necessitates the deployment of a larger number of racks, further bolstering market growth. Trends such as edge computing and the increasing focus on data security are also influencing the market, encouraging the adoption of advanced and secure rack solutions. While specific restraints are not explicitly provided, potential challenges could include infrastructure limitations and the need for skilled professionals to manage and maintain these data center systems. The market segmentation highlights a preference for full-rack solutions, reflecting the need for higher storage and processing capabilities in modern data centers. The IT and telecommunication segment dominates market share, accounting for a significant portion of the demand. However, the BFSI and government sectors are also showing significant growth potential, driven by their increasing digitalization efforts and the need for secure data management. Key players like Schneider Electric SE, BTICINO PHILIPPINES INC, and Eaton Corporation are actively competing in this market, offering a diverse range of rack solutions to cater to the varying needs of different end-users. Future growth will depend on continued investment in digital infrastructure, government policies supporting technological advancements, and the ongoing expansion of the Philippines' digital economy. The forecast period of 2025-2033 presents a lucrative opportunity for data center rack providers in the Philippines. Recent developments include: June 2023: PLDT, the Philippines' prominent telecommunications firm, plans to build a 12th data center in the country and is currently working on its 11th Data Centre outside of Manila. This 100MW facility near Santa Rosa was initiated in March 2022. In early 2024, the first phase of 14 MW is scheduled to go into operation., October 2022: Zenlayer entered into a joint venture with Megaport to strengthen and expand its presence globally. The partnership is aimed at providing enhanced services such as improved network connectivity, real-time provisioning, and on-demand private connectivity for its clients around the globe.. Key drivers for this market are: Increasing Number of Smartpone Users, Fiber Connectivity Network Expansion in the Country. Potential restraints include: Increasing Number of Smartpone Users, Fiber Connectivity Network Expansion in the Country. Notable trends are: IT & Telecommunication holds the major share..

The Philippines data center networking market is experiencing robust growth, projected to reach a market size of $230 million in 2025, with a Compound Annual Growth Rate (CAGR) of 12.49% from 2025 to 2033. This expansion is driven by several key factors. The increasing adoption of cloud computing and the surge in digital transformation initiatives across various sectors, including finance, government, and telecommunications, are fueling demand for advanced networking infrastructure. Furthermore, the rise of big data analytics and the increasing need for high-bandwidth connectivity are significantly contributing to market growth. The growing number of hyperscale data centers and colocation facilities in the Philippines further supports this upward trajectory. Key players like Broadcom, NVIDIA, IBM, Dell EMC, Cisco, HP, Juniper Networks, NEC, Huawei, VMware, and Schneider Electric are actively competing in this dynamic market, offering a range of solutions tailored to the specific needs of Philippine businesses. The market is segmented based on component type (switches, routers, etc.), application (cloud, enterprise, etc.) and deployment model (on-premise, cloud). While the exact regional breakdown isn't available, it's reasonable to assume that Metro Manila and other major urban centers will constitute a significant portion of the market. Future growth will likely be influenced by government initiatives promoting digital infrastructure development and the continued expansion of the Philippine economy. The robust CAGR indicates a sustained period of expansion for the foreseeable future. However, potential challenges such as the cost of deploying advanced networking technologies and potential infrastructure limitations could moderate growth to some extent. Nevertheless, the overall positive outlook for the Philippine data center networking market is strong, reflecting the country's commitment to digitalization and technological advancement. The strategic investments in infrastructure and the increasing adoption of advanced networking solutions by businesses of all sizes will likely solidify this market's position as a key sector within the Philippine economy. Key drivers for this market are: Rising Adoption of Mega Data Centers and Cloud Computing, Increasing Demand to Reduce Operational Costs. Potential restraints include: High Cost of Installation and Maintenance. Notable trends are: IT & Telecommunication is Anticipated to be fastest Growing Segment.

The gross value added (GVA) share of e-commerce in the digital economy of the Philippines amounted to ** percent, indicating an increase from the previous year. The GVA share of e-commerce fluctuated since 2018.

InstaPay Philippines Connectivity Market Outlook

According to our latest research, the InstaPay Philippines Connectivity market size reached USD 210 million in 2024, reflecting the robust integration of digital payment solutions across the nation. The market is projected to grow at a CAGR of 17.4% from 2025 to 2033, reaching a forecasted value of USD 1.02 billion by 2033. This impressive growth trajectory is driven by increasing smartphone penetration, a rapidly expanding fintech ecosystem, and the government's push for a cash-lite economy, which collectively foster a dynamic environment for InstaPay adoption and connectivity enhancements.

The primary growth factor propelling the InstaPay Philippines Connectivity market is the surging demand for instant, secure, and seamless digital payment solutions among both consumers and businesses. The proliferation of affordable smartphones and widespread internet accessibility has significantly accelerated the adoption of mobile-based financial transactions. As digital literacy improves and more Filipinos become comfortable with online banking, the need for reliable and efficient connectivity platforms like InstaPay continues to rise. Government initiatives such as the National Retail Payment System (NRPS) and the Bangko Sentral ng Pilipinas (BSP) Digital Payments Transformation Roadmap have further spurred the market, encouraging banks and financial institutions to upgrade their digital infrastructure and offer real-time payment services to a broader demographic. The convergence of these factors has created a fertile landscape for sustained market expansion.

Another significant driver is the evolving landscape of the Philippine fintech sector, which has witnessed a surge in partnerships between traditional banks, fintech startups, and technology service providers. These collaborations are instrumental in enhancing the capabilities of InstaPay connectivity by introducing innovative features, improving security protocols, and extending service reach to underserved areas. The growing competition among market participants has led to continuous product development, resulting in more user-friendly interfaces, lower transaction costs, and improved customer experiences. Additionally, the COVID-19 pandemic accelerated the shift towards contactless payments, further embedding digital payment habits in daily life and contributing to the upward momentum of the InstaPay Philippines Connectivity market.

The increasing participation of merchants and businesses in the digital payments ecosystem also plays a pivotal role in market growth. As e-commerce and digital retail channels expand, merchants are integrating InstaPay connectivity to offer customers instant, hassle-free payment options. This not only enhances customer satisfaction but also streamlines business operations and reduces cash handling risks. The adoption of InstaPay by micro, small, and medium enterprises (MSMEs) is particularly noteworthy, as it empowers them to compete in the digital economy and reach a wider customer base. The collective impact of these trends underscores the market's strong growth potential and its critical role in the ongoing digital transformation of the Philippine financial landscape.

Regionally, Luzon dominates the InstaPay Philippines Connectivity market, accounting for the largest share due to its high population density, advanced infrastructure, and concentration of financial institutions. However, Visayas and Mindanao are rapidly catching up, fueled by targeted investments in digital infrastructure and government-led financial inclusion programs. The regional expansion of InstaPay services is closing the digital divide, enabling more Filipinos to participate in the formal financial system and access instant payment solutions regardless of their geographic location. This balanced regional growth is expected to further drive market penetration and support the overall trajectory of the InstaPay Philippines Connectivity market.

Component Analysis

The Philippines Software-Defined Wide Area Network (SD-WAN) market is poised for explosive growth, projected to reach a substantial USD 77.81 million by 2025. This significant valuation is driven by a remarkable Compound Annual Growth Rate (CAGR) of 28.34% over the forecast period. This robust expansion is primarily fueled by the increasing demand for agile, cost-effective, and secure network solutions across various industries. The adoption of SD-WAN is a direct response to the evolving digital landscape, where businesses are increasingly relying on cloud-based applications and services, necessitating a more flexible and resilient Wide Area Network infrastructure. The Philippines' growing digital economy, coupled with government initiatives promoting digital transformation, further accelerates this trend. Key drivers include the need for improved application performance, reduced operational costs through network simplification and automation, and enhanced network security in the face of rising cyber threats. The market segmentation reveals a broad appeal for SD-WAN solutions. The Solutions segment, encompassing both software and equipment, is expected to dominate, followed by Services that support the deployment and management of these networks. In terms of Organization Size, Small and Medium Enterprises (SMEs) are emerging as significant adopters, drawn by the scalability and affordability of SD-WAN, while Large Enterprises continue to invest heavily to optimize their complex networks. Prominent End-user Industries driving adoption include BFSI, IT & Telecom, Healthcare, and Retail & E-commerce, all of which depend on seamless and secure connectivity for their operations. Leading companies such as Cisco Systems Inc., Oracle Corporation, Vodafone Group plc, and Palo Alto Networks are actively shaping this market, offering innovative solutions and competing to capture market share. As the Philippines continues its digital journey, the demand for sophisticated and adaptive networking technologies like SD-WAN is set to surge, making it a critical component of the nation's technological advancement. Key drivers for this market are: Growing demand for simplified and efficient network management for WAN, Rapidly growing digital transformation and network traffic in various industries. Potential restraints include: Growing demand for simplified and efficient network management for WAN, Rapidly growing digital transformation and network traffic in various industries. Notable trends are: Rapidly growing digital transformation and network traffic drives the market.