In 2023, Singapore's gross merchandise value (GMV) of the internet economy amounted to 22 billion U.S. dollars. The country's internet economy in 2025 is predicted to reach 29 billion U.S dollars.

The gross merchandise value of the digital economy in Singapore saw a decline of 25 percent while emerging markets in Southeast Asia experienced moderate growth in 2020 compared to 2019. It was forecast that the digital economy in Southeast Asia will significantly grow in the coming years.

In 2022, the revenue for the Internet of Things (IoT) market in Singapore amounted to around 5.47 billion U.S. dollars, an increase by more than one billion U.S. dollars compared to the previous year. Statista Digital Market Insight estimated that the revenue for the IoT industry in the country will continue to increase and reach more than 11 billion U.S. dollars by 2028.

The Southeast Asia data center market is experiencing robust growth, projected to reach a market size of $9.78 billion in 2025, exhibiting a Compound Annual Growth Rate (CAGR) of 6.8% from 2019 to 2033. This expansion is fueled by several key drivers. The burgeoning digital economy across Southeast Asia, particularly in countries like Singapore, Malaysia, Thailand, and Indonesia, is creating a massive demand for data storage and processing capabilities. Increased cloud adoption by businesses of all sizes, along with the rising popularity of big data analytics and the Internet of Things (IoT), further contribute to this growth. Government initiatives promoting digital transformation and investments in robust digital infrastructure are also playing a crucial role. The market is segmented by end-user (BFSI, Energy, IT, Others) and component (IT infrastructure, Electrical construction, Mechanical construction, General construction, Security solutions). The BFSI sector is expected to remain a significant contributor, followed by the IT and Energy sectors, driven by their increasing reliance on data-intensive operations and the need for reliable data centers. Competition is intense, with leading companies employing various competitive strategies, including mergers and acquisitions, strategic partnerships, and expansion into new markets. However, challenges such as high infrastructure costs, regulatory hurdles, and power constraints pose potential restraints to market growth. The forecast period of 2025-2033 anticipates continued expansion, driven by ongoing digitalization efforts and the increasing adoption of advanced technologies like edge computing and 5G. The Rest of Southeast Asia segment is poised for significant growth given the expanding digital footprint in less developed nations within the region. The market's growth will likely be influenced by factors such as government policies regarding data sovereignty and cybersecurity, the availability of skilled labor, and the overall economic stability of the region. Companies are strategically investing in sustainable and energy-efficient data center solutions to mitigate environmental concerns and lower operational costs, creating opportunities for environmentally conscious technologies and practices within the sector.

In 2024, Indonesia had the largest internet economy size among selected countries across Southeast Asia, of which the internet economy value reached approximately 90 billion U.S. dollars. Comparatively, Singapore had an internet economy value of about 29 billion U.S. dollars in 2024.

The Asia Pacific data center market is experiencing robust growth, driven by the increasing adoption of cloud computing, the proliferation of big data, and the expanding digital economy across the region. The surge in e-commerce, digital media consumption, and the need for robust IT infrastructure to support these activities are key factors fueling demand. Significant investments in digital infrastructure by governments and private enterprises in countries like China, India, Japan, and Singapore are further propelling market expansion. While the market is segmented by data center size (small to massive), tier type (Tier 1-4), absorption (utilized/non-utilized), colocation type (hyperscale, retail, wholesale), and end-user (BFSI, cloud, etc.), the hyperscale segment is witnessing particularly strong growth fueled by the needs of major cloud providers. The increasing demand for low latency and high bandwidth is leading to the development of edge data centers, particularly in densely populated areas. However, challenges remain. High infrastructure costs, particularly land acquisition and power supply constraints, represent significant restraints. Regulatory complexities and data sovereignty concerns also impact market development, although government initiatives are increasingly focused on improving regulatory frameworks to encourage investment. The forecast period (2025-2033) anticipates continued growth, although the rate may fluctuate slightly year-on-year due to economic factors and geopolitical events. The focus on sustainability, including the use of renewable energy sources in data center operations, will be a key trend shaping the industry's future. Competition amongst established players and new entrants is intense, pushing innovation and driving efficiency improvements. The market is poised for considerable expansion, driven by ongoing digital transformation across diverse sectors and a significant increase in data generation. Recent developments include: December 2022: HGC Global Communications has established an agreement with Digital Realty to boost customers’ edge connectivity. Under the agreement, Digital Realty will use edgeX by HGC services for over-the-top (OTT) customers in its three Singapore data centres.November 2022: Equinix announced its 15th international business exchange (IBX) data centre in Tokyo, Japan. The company said that it has made an initial investment of USD 115 million on the new data centre, touted TY15. The first phase of TY15 will provide an initial capacity of approximately 1,200 cabinets, and 3,700 cabinets when fully built out.September 2022: NTT Ltd announced the commencement of the construction of its sixth data centre in Cyberjaya. NTT plans to initially invest over USD 50 million in the sixth data centre, which is also known as Cyberjaya 6 (CBJ6). Further, CBJ6 and CBJ5 will have a total facility load of 22MW, spanning a combined 200,000 sq ft.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

Singapore Ecommerce Market size was valued at USD 8.9 Billion in 2024 and is projected to reach USD 29.57 Billion by 2032, growing at a CAGR of 16.2% from 2026 to 2032.

Key Market Drivers:

Increasing Internet Penetration and Mobile Usage: Singapore's high internet penetration and extensive mobile device usage have greatly aided the growth of e-commerce. Online retail sales via mobile devices were valued at USD 3.5 Billion in 2023, representing a 26.3% compound annual growth rate (CAGR) between 2018 and 2023.

Agriculture and food in Canada: Government Initiatives Promoting the Digital Economy: The Singaporean government's dedication to developing a digital economy has aided e-commerce growth. Programs focused at improving digital literacy and infrastructure have produced an environment that encourages internet enterprises to grow. This enabling ecosystem has allowed the e-commerce market to increase by 10.43% annually, reaching USD 18.1 Billion in 2024.

In 2022, the automotive segment of the Internet of Things (IoT) market in Singapore recorded the highest revenue among other segments, at around 1.58 billion U.S. dollars. Statista Digital Market Insight estimated that the overall revenue of the IoT industry in the country will continue to grow and reach over 11 billion U.S. dollars by 2028.

As surveyed in 2021 to assess the use of digital platforms for investments in Singapore, 31.7 percent of investors indicated that they preferred to use traditional online brokerage platforms. This was followed by online-only trading platforms used by 26.8 percent of investors, and cryptocurrency exchanges by 19.3 percent.

In 2023, the compound annual growth (CAGR) of the digital economy in Singapore increased by 12 percent. This was a slight decrease compared to the previous year.

According to the national business survey conducted in Singapore in November 2020, 26 percent of businesses and enterprises surveyed stated that the COVID-19 pandemic had accelerated digital transformation a great deal in the industry. The national and global lockdowns imposed during the COVID-19 pandemic has had an adverse impact on businesses and the economy. Digital transformation has helped some industries to shorten the gaps left by shutdowns and social distancing measures during the pandemic.

According to the national business survey conducted in Singapore in November 2020, 45 percent of businesses and enterprises surveyed stated that they used collaborative technology and tools to increase their productivity during the COVID-19 pandemic. Collaborative technologies allow companies to organize remote workers into virtual teams to perform different tasks.

As of 2024, Singapore ranked as the most digitally competitive country in the world. Digital competitiveness rankings aim to analyze a country's ability to adopt digital technologies and implement these technologies within enterprises and government organizations. Switzerland and Denmark rounded out the top three, while the United States ranked fourth.

As of the first half of 2020, start-ups within the urban solutions and sustainability sector in Singapore secured the most funding that amounted to around 1.89 billion Singapore dollars. It is followed by start-ups that specialize in the service / digital economy sector that gathered 1 billion Singapore dollars in investments.

According to the annual Global Connectivity Index (GCI), Singapore scored 81 index points, the highest in the Asia-Pacific region. In comparison, Pakistan was ranked the lowest among the included Asia-Pacific countries, with 28 index points. The GCI reflects the nation's ICT investment, maturity, and digital economic performance.

According to the Network Readiness Index (NRI), Singapore led the Asia-Pacific region in 2021, with 80 index points. South Korea followed in second with 75.56 index points. The NRI measures the readiness of an economy for digital transformation in terms of technology, people, governance, and impact.

As of the second quarter of 2019, the price for one Gigabyte amounted to approximately 0.4 U.S. dollars, a decrease of approximately 0.1 U.S. dollars compared to 2017. Compared to its neighboring countries like Singapore and Malaysia, the data price in Indonesia was the lowest.

Affordable price versus broadband infrastructure
As smartphone users tend to communicate through mobile apps such as Whatsapp or Messenger more than via text message or phone call, the affordability of mobile internet is crucial. Good broadband infrastructure and economic growth in the country determine whether the internet providers can fulfill the demand while maintaining affordable prices. In late 2019 Indonesia’s government completed the Palapa Ring Project, an infrastructure project that aimed to provide access to 4G internet services across the country. With this, Indonesia’s digital economy is expected to grow faster.

PT Telkomsel, the largest mobile internet provider

Other than communication related apps, shopping and social media apps had the highest reach levels among Indonesian smartphone users. On average, a smartphone user in Indonesia spent about 32.6 minutes per day for communication. In 2018, PT Telkom Indonesia Group had a share of 84.5 percent of the fixed broadband market in Indonesia. Besides being the largest telecommunications and network provider in Indonesia, Telkomsel is also the most popular mobile internet provider to browse the internet, followed by Indosat and XL.

The number of households with internet access in Indonesia was forecast to continuously increase between 2024 and 2029 by in total 3.8 million households (+6.49 percent). After the fifteenth consecutive increasing year, the number of households is estimated to reach 62.36 million households and therefore a new peak in 2029. Notably, the number of households with internet access of was continuously increasing over the past years.Depicted is the number of housholds with internet access in the country or region at hand.The shown data are an excerpt of Statista's Key Market Indicators (KMI). The KMI are a collection of primary and secondary indicators on the macro-economic, demographic and technological environment in up to 150 countries and regions worldwide. All indicators are sourced from international and national statistical offices, trade associations and the trade press and they are processed to generate comparable data sets (see supplementary notes under details for more information).Find more key insights for the number of households with internet access in countries like Singapore and Vietnam.