THE country’s booming e-commerce landscape — fueled by an explosive rise in video commerce — is powering the country’s digital economy to sustained double-digit growth, keeping it firmly on track to reach US$36 billion in GMV by 2025, according to the 10th e-Conomy SEA report by Google, Temasek and Bain & Company.
The study shows the sector expanding 16 percent year-on-year, anchored by a fast-evolving ecosystem of innovative platforms, supportive regulation, and increasingly AI-savvy consumers. E-commerce remains the largest driver of GMV, accounting for over 60 percent of the digital economy.
A key finding: video commerce is skyrocketing, reshaping how Filipinos shop online. The number of sellers using video commerce has surged to 475,000, up 90 percent year-on-year, generating 1.2 billion transactions, a 35 percent increase from 2024. Fashion, accessories, beauty and personal care dominate the category, contributing half of video commerce GMV.
Double-digit gains
across sectors
Online travel continued its post-pandemic rebound, with the Philippines posting 14 percent growth and $4 billion in GMV amid higher fares and sustained regional demand.
Online media expanded 16 percent, the fastest pace in Southeast Asia, driven by higher digital ad spending and gaming.
Digital financial services grew across all segments, with digital payments rising 20 percent to $150 billion in transaction value — second fastest in the region. Digital wealth jumped 36 percent, while insurance grew
27 percent,
Transport and food delivery posted 20 percent growth, making the Philippines one of the region’s fastest-rising markets as platforms push AI-enabled logistics and personalization to improve efficiency and margins.
AI adoption accelerates
The study also revealed that the Philippines ranks among the world’s top markets in multimodal AI interest, with 78 percent of users relying on AI tools for discovery and task simplification. Nearly 43 percent cite time savings as the main driver of adoption.
Workforce uptake is also accelerating, with enrollment in generative AI courses rising 4.8×, second only to Vietnam. About 77 percent of Filipino workers are already upskilling to stay competitive.
Commercial momentum is strong: apps featuring AI functions saw revenues jump 79 percent backed by high consumer trust—94 percent of Filipinos are willing to share data with
AI agents.
Google Philippines country manager Prep Palacios said the country is undergoing “a sustained, systemic transformation” driven by a tech-positive ecosystem and AI-curio-
us consumers.
Bain & Company partner Bennett Aquino added that the Philippines’ digital momentum—bolstered by e-commerce, transport, and finance—positions it to translate AI adoption into long-term economic value./ KOC