The Philippine digital economy is sustaining a powerful double-digit growth and remains firmly on track to hit $36 billion in gross merchandise value (GMV) by 2025, according to the 10th edition of the e-Conomy SEA 2025 Report.
Published by Google, Temasek and Bain & Company, the report highlights the country’s 16 percent year-on-year growth, led by innovative platforms, a tech-positive regulatory environment and consumers showing increasing spending power and curiosity about artificial intelligence (AI).
The momentum is accelerating the use of e-commerce, digital payments and on-demand services across the country, it said.
All key digital economy sectors are sustaining double-digit growth. E-commerce remains the largest contributor to the Philippines’ GMV, accounting for more than 60 percent of the overall digital economy.
A major growth driver for the Philippines is video commerce, which is witnessing explosive growth in a high-volume low-cost market. There are now around 475,000 sellers and stores utilizing video commerce, a 90 percent year-on-year growth from 2024, resulting in a transaction volume of P1.2 billion, up 35 percent year-on-year.
Video commerce contributes significantly to overall e-commerce GMV, with 28 percent from fashion and accessories and 23 percent from beauty and personal care.
The Philippines sits at the top alongside Vietnam as the fastest-growing transport and food sector at 20 percent. The online travel sector saw 14-percent growth year-on-year and reached P4 billion GMV in 2025, buoyed by the post-pandemic travel boom and higher fares.
Online media has the fastest growth rate at 16 percent year-on-year, on par with Vietnam and Indonesia, largely thanks to the growth from advertising and gaming.
Digital financial services (DFS) is also expanding rapidly, with digital wealth growing by 36 percent and insurance surging by 27 percent. The country records the second-fastest growing digital payments sector at 20 percent and P150 billion gross transaction value, behind only Indonesia.
Filipinos are showing strong momentum in AI adoption. The Philippines is among the five Southeast Asian markets that rank in the top 20 global markets showing interest in multimodal AI.
Widespread and regular use is evident, with 78 percent of Filipino digital users saying they use AI-powered tools to help them discover content and make tasks easier. Active workforce adoption is also noted, with the enrollment growth in generative AI courses growing 4.8X, the second highest in the region. Strong consumer interest is driving commercial momentum, as apps marketing their AI features have seen revenue surge by 79 percent.
“The Philippines is a digital powerhouse, sustaining its double-digit growth and firmly on track to hit $36 billion in GMV by 2025,” said Prep Palacios, country manager of Google Philippines.
“This momentum is not a temporary spike; it’s a sustained, systemic transformation—a convergence of innovative platforms, a tech-positive regulatory environment and our uniquely AI-curious Filipinos consumers with real spending power,” he said.
Bennett Aquino, partner at Bain & Company, said the growing consumer interest and adoption of AI signals the country’s readiness to turn digital momentum into long-term value creation.
