Major e-commerce platforms controlled 99% of the online shopping market across ASEAN member states in 2025, according to a report released by Momentum Works (14/04).

Platforms operated by Sea Limited, Alibaba Group, and ByteDance dominate the sector through Shopee, Lazada, and TikTok Shop.

The report highlights how large, well-funded technology groups continue to consolidate their market position in Southeast Asia.

Shopee Leads While TikTok Shop Accelerates Growth

Shopee maintained its leading position in ASEAN, holding around 50% or more market share across major economies in the region.

The platform recorded $83.2 billion in gross merchandise value in 2025, rising from $66.8 billion in 2024.

TikTok Shop ranked second with $45.6 billion in sales, doubling its performance from $22.6 billion the previous year and marking the fastest growth among competitors.

Lazada held third place with $18 billion in sales, showing little change from the prior year.

Smaller Players Exit Amid Intensifying Competition

Smaller e-commerce platforms such as Bukalapak and Sendo have withdrawn from selling physical goods.

“The major players are consolidating their power, and they are competing against each other,” said Jianggan Li, CEO of Momentum Works. “Many of the smaller players, be it platforms, be it logistic players, etc, are exiting the market.”

The report attributes this trend to the ability of dominant platforms to leverage technology and scale to maintain their advantage.

AI and Video Content Drive Sales Expansion

Artificial intelligence is emerging as a disruptive force in e-commerce, particularly in content production and demand generation.

The report notes that AI is being used to rapidly create video content to boost sales, reducing the need for traditional production setups.

This shift is driven by TikTok Shop’s growth and Shopee’s investments in content, contributing to $49.7 billion in sales from video-based commerce out of the region’s total $157.6 billion.

“With platforms owning key levers such as traffic, tools, and user experience, they are likely to play a central role in how A.I. is developed and applied across the ecosystem,” the report stated.

Logistics Growth and Subsidies Support Ecosystem

Major platforms are also promoting subsidies, vouchers, and discounts funded by companies, sellers, and brands to drive consumer engagement.

Logistics providers are benefiting from increased e-commerce activity, with J&T Express reporting a 26.2% year-on-year increase in parcel volume in the first quarter of 2026.

“In Southeast Asia and other markets, we have seized growth opportunities, continued to strengthen our infrastructure,” said Charles Hou, group vice president at the company. “Rapid growth in parcel volume underscores our enhanced market expansion and operating capabilities.”

Thailand recorded 51.8% year-on-year growth in e-commerce sales, while Malaysia posted 47.6%, both exceeding the overall ASEAN growth rate of 22.8%.

PHOTO: KATADATA/MUHAMMAD ZAENUDDIN

This article was created with AI assistance.

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