The Philippine digital economy continues its powerful ascent, posting a 16% year-on-year surge and staying firmly on track to reach $36 billion in Gross Merchandise Value by 2025. This is according to the 10th edition of the e-Conomy SEA 2025 Report, “From Digital Decade to AI Reality: Accelerating the Future in ASEAN,” published by Google, Temasek and Bain & Company. The report underscores how innovative digital platforms, a tech-positive regulatory environment, and increasingly digital-savvy Filipino consumers with rising purchasing power are driving sustained momentum across e-commerce, digital payments, online services and AI-enabled sectors.
All major digital economy pillars in the country are now growing at double-digit rates. E-commerce remains the largest contributor to the Philippines’ GMV, representing more than 60% of the total market. AI-powered platforms are reshaping customer journeys, making shopping more personalized and frictionless. A standout finding is the explosive rise of video commerce, now used by around 475,000 sellers and stores—up 90% from last year—resulting in 1.2 billion transactions, a 35% increase from 2024. This fast-growing segment is driven strongly by fashion and accessories, which contribute 28% of video commerce GMV, and beauty and personal care, which account for 23%.
The travel sector continues to rebound across Southeast Asia, recording an 11% climb to $51 billion in GMV and $24 billion in revenue across flights and accommodations. In the Philippines, online travel posted a 14% increase, reaching $4 billion GMV in 2025. Elevated fares, broader recovery in tourism and country-led promotions have all contributed to this growth. Visa policies and international campaigns remain influential in shaping Filipino travel routes and destinations.
Online media is also expanding steadily. Regional GMV jumped 14% largely due to rising ad expenditure—which grew to 16% from 14% the previous year—and the continued strength of gaming, now at 6% from 5%. The Philippines is one of Southeast Asia’s fastest-growing online media markets with a 16% year-on-year expansion, alongside Vietnam and Indonesia.
Digital financial services continue to scale rapidly across the region, posting 19% growth in digital payments, 18% in digital lending, 24% in digital wealth and 16% in digital insurance. The Philippines mirrors this momentum, particularly in digital wealth, which surged by 36% to reach $2 billion in assets under management, while digital insurance grew by 27% to reach $0.1 billion in AUM and gross written premiums. The country also ranks as the second-fastest-growing digital payments market in Southeast Asia, up 20% with a gross transaction value of $150 billion, trailing only Indonesia.
Transport and food delivery are likewise sustaining their upward trajectory. Across the region, food delivery GMV grew 14% to $22 billion with revenue rising 18% to $2.4 billion, while transport GMV increased 16% to $11.1 billion with revenue up 17% to $1.8 billion. The Philippines, together with Vietnam, leads these categories with 20% growth—an acceleration driven by more efficient logistics, improved transport availability and AI-driven personalization aimed at sustainable profitability.
A major theme of this year’s report is the Philippines’ rapid and widespread adoption of artificial intelligence. The country is one of only five Southeast Asian markets ranking among the top 20 globally in interest in multimodal AI—solutions capable of processing text, images, audio and video simultaneously. AI use is becoming deeply embedded in everyday digital behavior, with 78% of Filipino users relying on AI-powered tools to discover content and simplify tasks. Nearly half cite time savings in research and comparison as their primary motivation for using AI features.
The Philippine workforce is also embracing AI upskilling at one of the fastest paces in the region, with enrollments in generative AI courses expanding 4.8 times, second only to Vietnam’s 5.2 times growth. About 77% of Filipino workers have taken steps to learn AI tools, demonstrating a proactive stance toward future work readiness.
Commercial adoption is accelerating as well. Apps emphasizing AI features have seen revenues climb 79%, with users upgrading for benefits such as time and money savings, better deal discovery and enhanced fraud protection. Notably, 94% of Filipinos say they are willing to share data access—including browsing behavior and social connections—with AI agents, reflecting a high level of trust and perceived value.
Prep Palacios, Country Manager of Google Philippines, notes that the country’s momentum reflects a deep and systemic digital shift. “The Philippines is a digital powerhouse, sustaining its double-digit growth and firmly on track to hit $36 billion in GMV by 2025. This momentum is not a temporary spike; it’s a sustained, systemic transformation driven by innovative platforms, a tech-positive regulatory environment, and uniquely AI-curious Filipino consumers with real spending power. With digital adoption accelerating nationwide, the real story is that our digital economy is becoming truly ubiquitous. The imperative now is to strategically leverage this momentum so that more Filipinos are equipped to benefit from AI,” she said.
Bennett Aquino, Partner at Bain & Company, emphasizes the resilience of the region’s digital landscape. “Southeast Asia’s digital economy has shown extraordinary growth and remarkable resilience despite periods of investor caution and shifting macroeconomic conditions. The Philippines remains one of the region’s fastest-growing digital economies, fueled by strong momentum in e-commerce, transport and food delivery, and supported by a digitally confident population. With rising AI adoption, the opportunity now lies in how businesses harness AI as a catalyst for long-term value creation while navigating the country’s unique structural realities,” he said.
As the Philippines moves toward the $36 billion GMV milestone, the e-Conomy SEA 2025 Report signals a clear message: the country is entering a new era where digital acceleration and AI readiness are no longer future ambitions—they are economic realities reshaping how Filipinos shop, travel, work and live.