Exploring the Fastest Growing Industries in Southeast Asia in 2023 & Beyond – Scooptimes

Being one of the most remarkable and profitable regions in the world,  Southeast Asia has recognized itself as a global hub of business. As the digital landscape changes and investments in foreign industries experience a rise, businesses are welcoming new opportunities to expand and win new markets. 

ADB Suggests Rapid Economic Growth

Southeast Asia, also known as ASEAN (the Association of Southeast Asian Nations), is expected to grow at a faster pace than other regions. Asian Development Bank (ADB) highlights that economic growth reached 5.5% in the ASEAN region in 2022. This figure is expected to grow accordingly in the coming years too. Maybe this is why, many companies hire qualified translation agencies to enter the leading Southeast Asian market. Most of the companies normally hire translators for Filipino translation services to approach the Philippine market. 

The economic outlook of various leading industries appears to be the main reason for this promising growth rate in Southeast Asia. 

The Fastest Growing Industries of Southeast Asia

If you want to establish your presence in the Southeast Asian region in the coming years,  you should know where to invest. You will have to identify areas having good potential and scope to generate fruitful outcomes. 

Based on research and latest analysis, we have made a list of the five fastest-growing industries in Southeast Asia. They have been seen as high-potential markets and are expected to seek massive growth in years to come.  

1.E-commerce:

This one is obvious, right? With the advent of technology, more businesses are now shifting to innovative ways to reach their customers. The E-commerce industry has now replaced traditional retail stores. In Southeast Asia, online shopping has shown a massive rise in demand. As the middle class grows, more people are now changing their lifestyle, turning to online stores to shop from the comfort of their own homes. According to Statista, e-commerce sales are likely to reach $159 billion by 2024. Moreover, this growth is expected to increase at an annual rate of 12% for the next four years. 

Adding on, the accessibility to the internet and technology is the major driving force for this unprecedented growth in Southeast Asia. These companies are also focusing on logistics, making it easier for businesses to purchase online. Additionally, companies providing translation services, such as Malay translation services, can allow you to understand the potential of the Southeast Asian market in a better way. 

• Food Industry

Here comes the second high-potential sector. Much like the e-commerce industry, the online food industry is also projected to grow by a large margin in the Southeast Asian region. One of the very obvious reasons why this region is observing a rise in online food delivery services is the COVID-19 pandemic and an increasing inclination for food security. Research on the Southeast Asian market also suggests that Southeast Asian customers prefer to order food at their doorsteps. Moreover, the expenditure on online food delivery will grow more than two times over the next five years, from a 12.1% annual growth rate to 24.4%. In addition, the demand for prepared meals is expected to grow even higher—at an estimated USD 170.5 billion in sales. 

• Fintech

Along with food and ecommerce, another industry that has been successfully digitalized is finance. Gone are the days when people had to wait (for hours) in lines outside banks to pay their bills. Today, automated financial services, or financial technology, are on the rise. This sector is showing a sharp rise in popularity, especially in the Southeast Asian market. As more startups enter the market and offer innovative solutions like mobile bill payments and online lending, the fintech market is expected to strengthen in the coming years. Even companies that want Filipino translation services for their financial documents need to adopt these innovative means in the Southeast Asian market. 

According to statistics, the fintech sector is expected to show significant growth in the Southeast Asian region in the coming years. As more people gain access to financial services via digital platforms, it is evident that this industry will show a rise in popularity. In addition, the rise in the use of blockchain technology and digital currencies is also opening up lucrative opportunities for businesses. 

• EdTech

Edtech, or education technology, is also another industry that is expected to show a rise in popularity in the coming years. Online classes are replacing the outdated traditional classroom as digital transformation sweeps the region and internet usage rises. The main reason for an increase in e-tech in Southeast Asia is very clear. Yes, it’s the geographical distance. As a substantial amount of population is dispersed over large geographical distances, it becomes difficult for teachers to cover long distances. This ultimately leads to the use of mobile technology to deliver and conduct classes online. In addition, the increasing availability of the Internet is also increasing the demand for online education.

• Renewable energy

As environmental concerns increase, the Southeast Asian region is witnessing a rise in the use of renewable energy sources. This renewable energy market includes wind, solar, hydroelectric power, and biofuels. Companies in the region are investing in renewable energy to meet their energy consumption requirements. As the emphasis on reducing the carbon footprint increases, more companies are shifting to renewable energy sources. In addition, the cost competitiveness offered by these energy sources is a lucrative opportunity for companies to adopt this mode of energy. Moreover, government policies and regulations call on companies to invest in renewable energy sources. This means that translation companies, such as those that offer Malay translation services, are also shifting from old fossil fuels to renewable energy sources for their consumption. 

Final Words

As you already know, Southeast Asia is the hub of economic activity. It is, without any doubt, a lucrative region to invest in. Consequently, a large number of companies are expanding their reach in the Southeast Asian market. With the right technology and incentives, these companies can grow substantially in this region, while investing in some lucrative sectors that are expected to grow fast.