eServices - Malaysia

Malaysia

The eServices market in Malaysia is forecasted to achieve a revenue of MYR US$2,783.00m by the year 2024.
This market is expected to display a compound annual growth rate (CAGR 2024-2029) of 10.99%, resulting in a projected market volume of MYR US$4,688.00m by 2029.
In terms of the Online Food Delivery market, a revenue growth of 15.8% is anticipated for the year 2025.
As for the Online Food Delivery market, it is projected to have a market volume of MYR US$2,765.00m in 2024.
In a global comparison, China is expected to generate the highest revenue, amounting to US$495.50bn in 2024.
Moving on to the Online Food Delivery market, the average revenue per user (ARPU) is projected to reach MYR US$184.50 in 2024.
Additionally, the number of users in this market is expected to reach 19.4m users by 2029.
Lastly, the user penetration rate in the Online Food Delivery market is estimated to be 43.2% in 2024.
The eServices market in Malaysia is experiencing a surge in demand for online payment platforms, driven by the country's growing digital economy.

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Analyst Opinion

The eServices market in Malaysia has been experiencing significant growth in recent years.

Customer preferences: One of the key factors driving the growth of the eServices market in Malaysia is the increasing preference for convenience and efficiency among consumers. With the rapid advancements in technology, more and more Malaysians are embracing digital solutions for their everyday needs. From online shopping to online banking, consumers are increasingly turning to eServices to save time and effort. Additionally, the COVID-19 pandemic has further accelerated the adoption of eServices, as people have been forced to stay at home and rely on digital platforms for their daily activities.

Trends in the market: One of the major trends in the eServices market in Malaysia is the rise of e-commerce. Online shopping has become increasingly popular among Malaysians, with a growing number of consumers choosing to purchase products and services online. This trend is driven by factors such as the convenience of shopping from home, a wide range of product options, and competitive prices offered by e-commerce platforms. In addition, the increasing availability of secure payment options and reliable delivery services has further boosted the growth of e-commerce in Malaysia. Another trend in the eServices market is the increasing demand for digital financial services. Malaysians are increasingly using online banking, mobile payment apps, and other digital financial platforms to manage their finances. This trend is driven by factors such as the convenience of conducting financial transactions online, the availability of innovative financial products and services, and the growing awareness of the benefits of digital banking.

Local special circumstances: One of the unique aspects of the eServices market in Malaysia is the country's diverse population. Malaysia is home to a multicultural society, with Malays, Chinese, Indians, and other ethnic groups living together. This diversity has created a unique market for eServices, as businesses need to cater to the different preferences and needs of these diverse consumer groups. For example, e-commerce platforms in Malaysia often offer products and services in multiple languages to cater to the linguistic diversity of the population.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the eServices market in Malaysia. The country's strong economic growth, rising disposable incomes, and increasing internet penetration rate have created a favorable environment for the adoption of eServices. Additionally, the government's efforts to promote digitalization and e-commerce through various initiatives and policies have also played a significant role in driving the growth of the eServices market in Malaysia.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.