A report by Google, Temasek and Bain & Company projects Southeast Asia’s digital economy to reach $368 billion in gross merchandise value in 2026, representing 17% year-over-year growth. The report was published on October 21 and identifies artificial intelligence as an increasingly important driver.
The projection reflects activity across digital commerce and services, while rapid adoption of generative AI is changing how companies approach customer support, marketing, software and operations. The report says 243 million people in the region, or 58% of the workforce, have adopted generative AI in under three years.
The next challenge is turning experimentation into measurable economic value. Businesses need reliable infrastructure, skills, data governance and practical use cases that improve productivity or customer experience.
The forecast is specific to Southeast Asia and should not be generalized to every market. It nevertheless illustrates how digital adoption can create opportunities for platforms, payment providers, cloud services and local entrepreneurs.
Source: Temasek, Google and Bain & Company, October 21, 2026 — https://www.temasek.com.sg/en/news-and-resources/news-room/news/2026/southeast-asia-digital-economy-set-for-368b-gmv-in-2026-tracking-to-1t-by-2035
