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.

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.

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.

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, 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.

Manila Energy Transition

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.

The Philippines e-commerce market is experiencing robust growth, with a market size of $15.51 billion in 2025 and a projected Compound Annual Growth Rate (CAGR) of 13.78% from 2025 to 2033. This signifies a substantial expansion of the online retail sector, driven by increasing internet and smartphone penetration, a burgeoning young population comfortable with online transactions, and the rising popularity of digital payment methods. The convenience and accessibility offered by e-commerce platforms are further fueling this growth, especially in a geographically dispersed archipelago like the Philippines. Key players like Shopee, Lazada, and smaller, specialized platforms like BeautyMNL are competing to capture market share, leading to innovative strategies in logistics, customer service, and marketing. Factors like improved logistics infrastructure, government initiatives to promote digitalization, and the increasing adoption of social commerce are contributing to this positive growth trajectory. The market's growth is not without challenges. Competition is fierce, requiring companies to continually innovate and adapt to changing consumer preferences. Issues such as inconsistent internet connectivity in certain areas, concerns over online security and fraud, and a lack of digital literacy in some segments of the population remain potential restraints. However, ongoing infrastructure improvements and government-led digital literacy programs are actively addressing these concerns. The diverse segments within the market, including fashion, beauty, electronics, and groceries, present opportunities for both established players and new entrants to specialize and cater to niche consumer demands. Looking ahead, the continued expansion of e-commerce in the Philippines appears assured, with further potential for growth driven by increased financial inclusion and the adoption of advanced technologies like artificial intelligence and big data analytics. 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 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.

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.

In Philippines Data Center Construction Market, Data centers are critical infrastructure for the digital economy, supporting services such as cloud computing, enterprise applications, and data storage.

The Philippines data center server market is experiencing robust growth, projected to reach $2.70 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 19.90% from 2025 to 2033. This expansion is driven by several key factors. Firstly, the increasing adoption of cloud computing and digital transformation initiatives across various sectors, including IT & Telecommunications, BFSI (Banking, Financial Services, and Insurance), Government, and Media & Entertainment, fuels the demand for high-performance servers. Secondly, the growing need for enhanced data storage and processing capabilities to support the expanding digital economy in the Philippines is a significant driver. Finally, government initiatives aimed at improving digital infrastructure and promoting technological advancements further stimulate market growth. The market is segmented by form factor (blade, rack, and tower servers) and end-user, reflecting diverse application needs and varying server deployment strategies. Leading vendors like HP Enterprise, Dell Inc., IBM, and others are actively competing in this market, offering a range of server solutions tailored to specific customer requirements. While challenges like initial infrastructure investment costs and cybersecurity concerns exist, the overall positive economic outlook and the government's push for digitalization are likely to mitigate these restraints in the long term. The forecast period of 2025-2033 presents significant opportunities for data center server vendors in the Philippines. The sustained high CAGR suggests strong market potential for both established players and new entrants. Growth will be particularly pronounced in segments leveraging advanced technologies, such as AI and big data analytics, which require specialized server infrastructure. The competitive landscape will likely intensify, with companies focusing on providing innovative solutions, enhancing customer service, and establishing strategic partnerships to capture market share. Understanding the specific needs of different end-user segments will be critical for success. Future market analysis should consider factors like evolving data privacy regulations, the increasing importance of sustainability in data center operations, and the impact of geopolitical events on technology investments. Recent developments include: August 2023 - Hewlett Packard Enterprise announced that phoenixNAP is expanding its Bare Metal Cloud platform with cloud-native HPE ProLiant RL300 Gen11 servers, using energy-efficient processors from AmpereComputing. The expanded services support AI inferencing, cloud gaming, and other cloud-native workloads with improved performance and energy efficiency., June 2023 - Kingston Technology announced the release of its 32 GB and 16 GB Server Premier DDR5 5600 MT/s and 5200 MT/s ECC Unbuffered DIMMs and ECC SODIMMs. Server Premier is Kingston's industry-standard server class memory solution sold by the specification for use in white-box systems and is the Intel platform validated and qualified by leading motherboard/system manufacturers.. Key drivers for this market are: Government Rollout Towards Fiber Connectivity and 5G Deployment, Demand for Cloud Computing Among Enterprises. Potential restraints include: Government Rollout Towards Fiber Connectivity and 5G Deployment, Demand for Cloud Computing Among Enterprises. Notable trends are: IT and Telecom to Hold Significant Growth.

The Philippines data center rack market is experiencing robust growth, projected to reach a market size of $XX million in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 19.90% from 2025 to 2033. This expansion is driven by the increasing adoption of cloud computing, the surge in digital transformation initiatives across various sectors, and the growing demand for high-speed internet and reliable data storage solutions within the Philippines. Key players such as Hewlett Packard Enterprise, Schneider Electric SE, Dell Inc, Black Box Corporation, BTICINO PHILIPPINES INC, Vertic Group Corp, and Eaton Corporation are actively shaping the market landscape through innovative product offerings and strategic partnerships. The market is segmented by type (e.g., 19-inch racks, 23-inch racks), by application (e.g., IT infrastructure, cloud services), and geographic location, with significant growth anticipated across major metropolitan areas experiencing rapid digital infrastructure development. Government initiatives promoting digitalization and increased foreign investments in the IT sector further contribute to this positive market outlook. The growth trajectory is expected to be influenced by factors such as increasing energy costs, potential regulatory changes, and the ongoing global chip shortage, which may impact supply chains and pricing. However, the strong underlying demand for data center infrastructure, driven by the evolving digital economy, is expected to mitigate these challenges. Continued innovation in rack technology, including advancements in cooling and power efficiency, will be critical in sustaining the market's momentum. The competitive landscape remains dynamic, with existing players consolidating their positions and new entrants emerging, resulting in continuous pressure to enhance product offerings and provide comprehensive support services. The long-term forecast suggests continued substantial growth, making the Philippines data center rack market an attractive investment opportunity. Key drivers for this market are: Increasing Number of Smartpone Users, Fiber Connectivity Network Expansion in the Country. Potential restraints include: Increasing Cybersecurity Threats and Ransomware Attacks, Low Availability of Resources. Notable trends are: IT & Telecommunication holds the major share..

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.

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.

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 Philippines Software-Defined Wide Area Network (SD-WAN) market is experiencing robust growth, projected to reach a market size of $77.81 million in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 28.34% from 2019 to 2033. This expansion is fueled by several key drivers. The increasing adoption of cloud-based applications and services by businesses across various sectors—BFSI, IT & Telecom, Healthcare, Retail & E-commerce, and Manufacturing—demands efficient and secure network connectivity. SD-WAN's ability to optimize network performance, reduce costs associated with traditional MPLS networks, and enhance security is a significant factor driving its market penetration. Furthermore, the growing need for improved network agility and scalability, especially among large enterprises, is accelerating SD-WAN adoption. The market is segmented by offering (solutions and services), organization size (SMEs and large enterprises), and end-user industry, with large enterprises currently leading the adoption rate due to their greater need for advanced networking solutions. However, SMEs are rapidly adopting SD-WAN solutions, driven by cost-effectiveness and ease of management. Competitive pressures from established players like Cisco, Oracle, Vodafone, NTT, Palo Alto Networks, Fortinet, Telstra, and Nokia, along with emerging vendors, are also shaping the market landscape, fostering innovation and driving prices down, making SD-WAN more accessible to a broader range of businesses. The forecast period (2025-2033) anticipates continued strong growth, driven by ongoing digital transformation initiatives across industries and increasing reliance on hybrid work models. The Philippines' expanding digital economy and government initiatives to promote digital infrastructure development further contribute to this positive outlook. While challenges may exist related to the initial investment costs and the requirement for skilled IT personnel, the long-term benefits of improved network performance, security, and cost optimization are expected to outweigh these obstacles, resulting in sustained market expansion. The competitive landscape will likely remain dynamic, with vendors focusing on innovative solutions, strategic partnerships, and aggressive marketing to capture market share in this rapidly evolving sector. Comprehensive Coverage Philippines Software-Defined Wide Area Network (SD-WAN) Market Report This report provides a detailed analysis of the Philippines Software-Defined Wide Area Network (SD-WAN) market, offering in-depth insights into market size, growth drivers, challenges, and future trends. The study covers the period from 2019 to 2033, with 2025 as the base year and forecasts extending to 2033. This comprehensive research will equip businesses, investors, and stakeholders with the knowledge needed to navigate this dynamic market. The report meticulously analyzes market segments based on offerings (solutions, services), organization size (SMEs, large enterprises), and end-user industries (BFSI, IT & Telecom, Healthcare, Retail & E-commerce, Manufacturing, Others). Recent developments include: June 2024: Philippine president Ferdinand Marcos Jr. has approved the proposed Philippine Digital Infrastructure Project, which aims to boost broadband connectivity nationwide, particularly in remote areas of the country. This project, backed by a World Bank loan of PHP 16.1 billion (equivalent to USD 288 million), received its approval., March 2024: PLDT Enterprise, the corporate division of PLDT Inc. (PLDT), the telecommunications and digital services provider, unveiled its strategic alliance with Charoen Pokphand Foods Philippines Corp. (CPF Philippines). Through this collaboration, PLDT harnesses its connectivity and digital solutions to enhance operational efficiency, ensure business continuity, and bolster climate resilience in the aqua and agro-industry sectors.. 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.

Philippines Non Performing Assets to Gross Assets: Digital Banks data was reported at 2.277 % in Dec 2024. This records a decrease from the previous number of 3.003 % for Sep 2024. Philippines Non Performing Assets to Gross Assets: Digital Banks data is updated quarterly, averaging 2.985 % from Mar 2023 (Median) to Dec 2024, with 8 observations. The data reached an all-time high of 5.021 % in Mar 2024 and a record low of 1.742 % in Jun 2023. Philippines Non Performing Assets to Gross 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.

Philippines Gross ROPA: Inclusive of Performing SCR: Digital Banks data was reported at 0.000 PHP bn in Dec 2024. This stayed constant from the previous number of 0.000 PHP bn for Sep 2024. Philippines Gross ROPA: Inclusive of Performing SCR: Digital Banks data is updated quarterly, averaging 0.000 PHP bn from Mar 2023 (Median) to Dec 2024, with 8 observations. The data reached an all-time high of 0.000 PHP bn in Dec 2024 and a record low of 0.000 PHP bn in Dec 2024. Philippines Gross ROPA: Inclusive of Performing SCR: 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.