Indonesia’s E-Commerce Sector Set for 15.2% CAGR Through 2032 Amid Tech and Payment Innovations

According to the latest market research study published by P&S Intelligence, the Indonesia e-commerce market is set to expand from a robust USD 75.1 billion in 2024 to an impressive USD 85.8 billion by 2025, ultimately reaching USD 230.5 billion by 2032, driven by a powerful 15.2% CAGR during 2025–2032. Key growth catalysts include the dramatic rise in smartphone adoption, tech‑savvy urban consumers, and improved internet infrastructure. With smartphones facilitating over 70% of online transactions, major platforms like Shopee and Tokopedia are strategically positioned to capitalize on this trend.

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Government initiatives are also playing a pivotal role. The rollout of the Quick Response Code Indonesia (QR‑IS) and enhanced data‑protection regulations are fostering safer digital payment ecosystems. Additionally, the widespread adoption of digital wallets—led by GoPay, DANA, and OVO—is reshaping consumer behavior by offering seamless, secure, and efficient transaction options.

Key Insights

• The electronics segment captured the largest share (35%) of e-commerce revenue in 2024, with roughly one‑third of consumers purchasing laptops, smartphones, and accessories online.
• The apparel & footwear category is the fastest‑growing, buoyed by social commerce and mobile‑first consumer trends.
• B2C platforms dominate the market with a 75% share in 2024, propelled by robust internet access, smartphone adoption, and aggressive promotions like flash sales, free shipping, and cashback offers.
• B2B e-commerce is the fastest-growing platform segment, with a 15.9% CAGR, as SMEs increasingly embrace digital solutions for procurement and supply‑chain efficiency.
• Digital wallets held the largest payment share (45%) in 2024, supporting 40% of online transactions thanks to user‑friendly QR‑based payments.
• The BNPL (buy‑now‑pay‑later) option is expanding fastest among payment methods, with 68% of users adopting installment plans.
• Marketplace models led in business structure, holding a 70% share in 2024, with approximately 47% of shoppers purchasing through multi-seller platforms.
• The hybrid model is growing fastest, driven by platforms like Bukalapak and Shopee that offer both marketplace breadth and inventory‑led quality, with a 16.1% CAGR.
• Standard delivery services account for 60% of shipments, while same‑day/next‑day delivery is the fastest-growing service segment—around 80% of consumers expect rapid shipping.
• Social commerce and live‑stream shopping are reshaping user engagement: about 60% of consumers purchase via live‑stream, and 70% of those aged 18–34 shop online regularly.
• Strengthened trust in digital security is fueling adoption: 48% of consumers cite secure payments as a reason to shop online, though 78% remain concerned about data privacy. In response, companies are implementing improved return policies, real‑time delivery tracking, advanced cybersecurity measures, and comprehensive government‑backed data protection initiatives.
• The market remains fragmented geographically, characterized by large national players (e.g., Shopee, Tokopedia, Lazada) and numerous regional champions that cater to culturally diverse customer preferences.
• Strategic investments and partnerships—most notably TikTok’s USD 1.5 billion investment in Tokopedia in December 2023 and the GoTo merger in May 2021—are accelerating growth, innovation, and competitive positioning in Indonesia’s dynamic e-commerce landscape.

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South Korean E-Commerce Sector Booms with 6.3% CAGR, Fuelled by Digital Infrastructure and Evolving Consumer Trends

According to the latest market research study published by P&S Intelligence, the South Korean e‑commerce market reached USD 102.0 billion in 2024 and is projected to expand at a robust CAGR of 6.3% from 2025 to 2032, reaching USD 164.4 billion by 2032. This notable growth is fueled by a blend of factors—most notably, ever‑improving internet infrastructure, near-universal smartphone penetration, and evolving consumer behavior that favors mobile-first shopping. Over 99% of the population has internet access and more than half of online retail transactions occurred via digital channels in 2023.

Key enablers shaping this expansion include technological innovations—such as streamlined payment gateways and AI-powered personalization—plus regulatory frameworks designed to support secure online transactions. Credit and debit cards remain the dominant payment method, while hybrid business models (combining online and occasional offline presence) are emerging as the fastest-growing category. Together, these drivers are not only scaling the market but also fostering diversification and sophistication in the e‑commerce ecosystem.

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Key Insights

• The market segmentation analysis reveals contrasting growth dynamics: while credit/debit card usage leads payments, hybrid business models—which integrate online convenience with selective offline engagement—are becoming the fastest-growing model. The market remains fragmented, with many players vying for niche dominance, from vertical specialists to large multi-category platforms.
• From a regional and geographical standpoint, South Korea benefits from nearly universal internet access (~99% penetration), setting a strong digital foundation. The urban–rural digital divide is minimal, and dense metropolitan areas—especially Seoul and Busan—continue to lead in adoption and sales volume.
• Technological advancements are central to market transformation: investments in robust mobile infrastructure, high-speed broadband, and growth in mobile-first consumer behavior support smoother transactions and richer customer experiences. Enhanced digital payment ecosystems and AI-powered recommendation systems further heighten platform capabilities .
• On competitive dynamics, the landscape is marked by fragmentation: established platforms co-exist with agile newcomers, and there's momentum toward consolidation through strategic partnerships. Market leaders are strategically investing in personalization, logistics optimization, and backend automation—creating fertile ground for emerging opportunities.
• Emerging opportunities include expansion of hybrid commerce—merging digital storefronts with physical pop-up or pickup points—and growth in next-gen services like one-hour delivery, social commerce, and subscription-based models. There's also rising interest in segment-specific verticals (e.g., beauty, groceries, electronics), where niche players can achieve competitive advantage.
• Innovation-driven growth is being accelerated by government and private-sector efforts to bolster secure digital payments, encourage fintech solutions, and streamline logistics networks. These measures support rapid scaling and increased consumer confidence in cross-border online purchases.

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