Singapore's e-commerce market will be worth $7.4 billion by 2025, says Google and Temasek

Online retail will make up 6.7% of all sales.

Singaporeans' penchant for online shopping is projected to grow at a robust pace over the next ten years. A report by Google and Temasek revealed that the city-state's e-commerce market will reach US$5.4 billion ($7.4 billion) by 2025, with online transactions making up 6.7% of all retail sales.

This compares with just US$1 billion in sales and a 2.1% market share in 2015. The online retail space is projected to have a 10-year compound annual growth rate (CAGR) of 18%.

The growth of online commerce will be even more explosive in other parts of Southeast Asia, fuelled by the region's young population, rising internet speeds, increased internet penetration and the growing purchasing power of the middle class.

Indonesia's e-commerce market will balloon to US$46 billion by 2025, making up 8% of retail sales. E-commerce in Vietnam and the Philippines will make up 4.7% of retail sales in a decade, a far cry from just 0.5% and 0.6% in 2015. In Thailand and Malaysia, meanwhile, online sales will rise to US$11.1 billion and US$8.2 billion, respectively.

The report can be read in full here.