The Philippines' digital economy is maintaining strong double-digit growth, firmly positioning the country to achieve US$36 billion in Gross Merchandise Volume (GMV) by 2025, according to the latest regional study.
Video Commerce Revolutionizes Online Shopping
The recently released 10th e-Conomy SEA report by Google, Temasek, and Bain & Company reveals that the nation's booming e-commerce landscape is being supercharged by an explosive rise in video commerce. The sector has expanded by 16 percent year-on-year, driven by innovative platforms, supportive regulations, and consumers increasingly comfortable with artificial intelligence.
E-commerce remains the dominant force in the digital economy, accounting for over 60 percent of total GMV. The most striking development is the skyrocketing popularity of video commerce, which has fundamentally changed how Filipinos shop online.
The number of sellers utilizing video commerce has surged to 475,000, representing a massive 90 percent increase compared to the previous year. These sellers generated an impressive 1.2 billion transactions, marking a 35 percent rise from 2024 figures. Fashion, accessories, beauty, and personal care products dominate this category, contributing half of all video commerce GMV.
Broad-Based Digital Growth Across Sectors
The digital expansion extends well beyond e-commerce, with multiple sectors posting significant gains. Online travel has continued its post-pandemic recovery, with the Philippines recording 14 percent growth and $4 billion in GMV, supported by higher fares and sustained regional demand.
Online media expanded at 16 percent, the fastest pace in Southeast Asia, fueled by increased digital advertising spending and gaming activity. Digital financial services showed robust growth across all segments, with digital payments rising 20 percent to $150 billion in transaction value—the second fastest growth rate in the region.
Other notable performers include digital wealth services, which jumped 36 percent, and insurance, which grew 27 percent. Transport and food delivery posted 20 percent growth, making the Philippines one of the region's fastest-rising markets as platforms implement AI-enabled logistics and personalization to enhance efficiency and profit margins.
AI Adoption Accelerates Nationwide
The study highlights the Philippines' remarkable embrace of artificial intelligence, ranking among the world's top markets for multimodal AI interest. Approximately 78 percent of users now rely on AI tools for discovery and task simplification, with nearly 43 percent citing time savings as their primary motivation for adoption.
Workforce uptake is accelerating rapidly, with enrollment in generative AI courses increasing 4.8 times—second only to Vietnam in the region. About 77 percent of Filipino workers are already upskilling to maintain their competitive edge.
Commercial momentum remains strong, with applications featuring AI functions seeing revenues jump 79 percent, backed by exceptionally high consumer trust. An impressive 94 percent of Filipinos express willingness to share data with AI agents.
Google Philippines Country Manager Prep Palacios described the country as undergoing "a sustained, systemic transformation" driven by a technology-positive ecosystem and AI-curious consumers. Bain & Company partner Bennett Aquino added that the Philippines' digital momentum—bolstered by e-commerce, transport, and finance—positions the nation to effectively translate AI adoption into long-term economic value.
