Frost & Sullivan Forecast Indonesia's E-Commerce Market to Grow at 31,1% to Reach USD 3,800 Millions in 2019

Jan 29, 2016, 02:18 ET from Frost & Sullivan

JAKARTA, Indonesia, Jan. 29, 2016 /PRNewswire/ -- Frost & Sullivan forecast that Asia Pacific Internet of Things (IoT) spending will grow at 26,8% to reach USD 79,3 billion in 2020. Ajay Sunder, Vice President of Digital Transformation Practice in APAC said that most of the growth will come from IoT services, majority of which will be powered by IoT Cloud platforms from major players such as Amazon Web Service IoT platform, Azure IoT Suite, Hana IoT Cloud and Predix.

He also forecasted that the Asia Pacific Data Center space is expected to grow at a CAGR of 7,8% from 2015 to 2020 to reach 386 million square feet.  Ajay Sunder said that the factors driving the building frenzy are strong economic growth in Asia Pacific, entry of global players into APAC, emergence of local players in emerging markets such as Indonesia, India, China and Myanmar, and strong demand for cloud services from new businesses.

E-Commerce Outlook 2016

Frost & Sullivan forecast that Indonesia's E-Commerce market size to grow at a CAGR of 31,1% to reach USD 3,800 Million by 2019 mainly due to positive demographics profile, robust economic growth, high mobile adoption and the large number of e-commerce players offering a wide variety of products online to Indonesian consumers.

Spike Choo, Country Director of Frost & Sullivan Indonesia, added that poor logistics infrastructure and inaccessibility of banking services are some of the key challenges that still need additional investment and time before e-Commerce can truly take off.

While cash is still the predominant payment mode for offline transaction, he noted that both Credit & Debit cards and E-Money transactions will continue to grow steadily as a result of continuous push by Banks and Telecom Providers to drive end-user adoption.

As a result, he predicts that online transaction will overtake Cash-on-delivery as the default payment mode of choice for Indonesians.

Cyber Security Outlook 2016

Charles Lim, Senior Industry Analyst for Cyber Security, Frost & Sullivan Asia Pacific said that cyber-attacks are now increasingly shifting towards physical systems. He warned that industrial control systems are now attracting the attention of hackers and stressed that companies need to focus on Industrial Control Systems Security as one of their top priorities in 2016.

"Industrial Control Systems, which automate and control many critical infrastructure facilities, are now increasingly connected to the Internet. As a result, hackers could potentially take over control of these facilities, thereby causing major inconvenience or worse, endangering the lives of citizens by disrupting or interfering with the operations of these facilities," he added.

Charles expects Indonesia will follow in the footsteps of other ASEAN countries by stepping up its cyber defense in critical infrastructures through a number of initiatives including enacting new regulatory policies and providing more funds for the new National Cyber Security Agency (BCN) to tackle cyber threats.

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SOURCE Frost & Sullivan