Digital economy seen growing 19% in 2024

Thailand’s digital economy continues to record strong double-digit growth, fuelled by the rise of e-commerce, particularly video commerce and online travel services.
In 2024, the country’s digital economy is expected to grow 19% over last year to US$46 billion on the basis of gross merchandise value (GMV).
The country’s digital economy expanded 26% in 2023 to generate a GMV of $39 billion and it is projected to reach a GMV of $100-165 billion in 2030, according to a report jointly produced by Google, Temasek and Bain & Company titled “e-Conomy SEA 2024 – Profits on the Rise, Harnessing SEA’s Advantage”.
While the growth aligns with Southeast Asia’s digital economy, which has now entered a more mature phase with slower growth compared to 2023, Thailand remains the second-largest digital economy and e-commerce market in the region.
In the first half of 2024, investment worth around $6 billion was committed to build artificial intelligence (AI)-ready data centres in Thailand. The country has 60 megawatts of current data centre capacity with additional capacity planned that would see it expand by over 550% from its present level, the report says.
The report covers six countries in the region and focuses on six leading sectors in the digital economy, namely e-commerce, online travel, food delivery, online media, food delivery and financial services.
The GMV of Thailand’s e-commerce sector has gained significant momentum and is projected to grow 19% to $26 billion in 2024, up from just 9% growth last year.
The GMV of the e-commerce sector is projected to reach $60 billion by 2030, driven by the rising popularity of video commerce, as interactive shopping experiences and engaging content captivates Thai consumers, fuelling online sales.
The GMV of online travel is also expected to expand 32% to $10 billion in 2024 and is projected to reach $20 billion in 2030. Thailand’s tourism sector is growing as visa measures are relaxed, including exemptions for visitors from 93 countries (up from 57), as well as the digital nomad visa, and visa-on-arrival schemes.
The GMV of transport and food is expected to grow 6% to $4 billion compared with 14% growth in 2023. It is projected to reach $10 billion by 2030.
Digital payment in the country is projected to expand 5% to $141 billion in terms of gross transaction value (GTV) in 2024, with GTV expected to reach $250-310 billion in 2030.
The report expects growth in digital wealth and lending will accelerate towards 2030. Digital lending will have loan book balance of $14 billion this year, representing 28% growth. It is projected to reach $50-60 billion in 2030.
Digital wealth will have assets under management of $17 billion in 2024 and it is projected to grow to $110 billion in 2030.
According to the report, the Bangkok Metropolitan Region leads in AI interest and demand, while the leading industries driving such demand are education, gaming and marketing.
In the region, video commerce is boosting Southeast Asia’s e-commerce, gaining 20% of the sector’s total GMV in 2024, compared to less than 5% in 2022.
The report found that following years of investment in growth, key players in Southeast Asia’s digital economy have progressed towards profitability by doubling down on monetisation strategies.
With sustainable growth as the ultimate goal, they will continue innovating to generate revenue and become more cost-efficient, the report notes.
The key players’ profitability has consistently grown at double-digits or above over the past three years, demonstrating that GMV and profit growth can happen in parallel.