SINGAPORE, April 14 (Xinhua) -- Southeast Asia's ecommerce sector sustained strong momentum in 2025, with platform gross merchandise value (GMV) rising 22.8 percent year on year to 157.6 billion U.S dollars, Singapore's consultancy Momentum Works said Tuesday.

A woman chooses durians imported from Thailand at a supermarket in Nanning, south China's Guangxi Zhuang Autonomous Region, Sept. 7, 2023. (Photo: Xinhua)

In its fourth "Ecommerce in Southeast Asia" report, the firm said growth was driven by leading platforms returning to expansion while continuing to enhance infrastructure, fulfilment capabilities and customer experience.

However, the report noted that the industry is entering a new phase where competition is shifting from rapid expansion to greater control over demand generation, logistics and margins.

According to the report, Thailand and Malaysia emerged as the fastest-growing markets, posting GMV increases of 51.8 percent and 47.6 percent, respectively. Other key markets, including Vietnam, the Philippines and Singapore, recorded double-digit growth exceeding 20 percent, while Indonesia remained the region's largest ecommerce market with a 37 percent share, despite growth slowing to 2.2 percent.

The report highlighted that Southeast Asia has effectively become a three-player platform market dominated by Shopee, Lazada and TikTok Shop, which collectively control 98.8 percent of platform GMV in 2025.

Despite strong growth, the report cautioned that much of the region's affordability remains supported by subsidies, vouchers and discounts rather than structurally lower costs, suggesting that ecommerce pricing has yet to reach its true floor.

It also noted that cross-border ecommerce demand remains resilient despite tightening regulations, with larger players better positioned to adapt and expand their regional footprint.

Looking ahead, the report identified artificial intelligence as a key "disruptive force" shaping the future of ecommerce, particularly in areas such as content creation and demand generation, with major platforms expected to play a central role in its development and deployment.