As we approach 2025, Emerging Markets (EM) are at the forefront of a digital transformation that promises to reshape economies and unlock unprecedented opportunities. Thanks to rising internet penetration, significant investments in digital infrastructure, and the rapid expansion of middle-class populations, these regions are poised for substantial growth, particularly in the internet and ecommerce sectors.
Key regions leading this revolution include India, Southeast Asia, and Latin America—each offering unique opportunities for businesses, investors, and innovators. From India’s booming fintech and e-commerce landscape to Southeast Asia’s surging digital economy and Latin America’s rapid adoption of online platforms, these markets and many more across the developing world are evolving into dynamic hubs of technological progress.
For investors, the benefits of tapping into digitizing Emerging Markets are extensive. These economies often boast high growth rates, relatively untapped consumer bases, and favorable demographics, including young, tech-savvy populations. As digitalization accelerates, sectors like e-commerce, fintech, and digital payments are thriving, creating an environment ripe for innovation and potential growth. EM governments are increasingly supportive, rolling out policies to attract foreign investment, spur homegrown startups, and encourage technological advancement.
Into 2025 and beyond, we expect a few critical trends to continue driving this growth. Here's a look at some of the opportunities ahead that paint a strong picture of why investors should keep a close eye on these digital powerhouses. The future of innovation is global, and Emerging Markets are ready to take center stage.
Overview
Emerging Markets Trends to Watch in 2025
- Growing Internet Penetration
- Investments in Digital Infrastructure
- Ecommerce Adoption Rates Will Soar
- India Will Emerge as The Leading Digital Economy in the Developing World
- Quick Commerce will Redefine the EM Consumer Experience
Growing Internet Penetration
Rapid digital transformation is underway, with internet penetration projected to grow over 10% annually across emerging markets. India is expected to have approximately 900 million active internet users by 2025, up from 759 million in 2022. This growth represents a significant increase, especially in rural areas, which are expected to account for a majority of new users. Latin America and Southeast Asia are also experiencing rapid connectivity growth due to affordable smartphones and expanding 4G/5G networks. This connectivity boom drives user engagement across digital platforms, from social media to e-commerce, which in turn creates opportunities for online marketplaces, digital wallets, and streaming services.
Investments in Digital Infrastructure
EM governments and private enterprises are heavily investing in digital infrastructure, most notably India’s “Digital India” initiative, which is accelerating rural connectivity. These improvements in foundational infrastructure will continue to support digital transactions and e-commerce expansion. Venture capital investments into regional tech startups are also strong, with the number of unicorn startups growing steadily in Southeast Asia and Latin America, highlighting investor confidence and presenting early-stage opportunities with high growth potential.
Ecommerce Adoption Rates Will Soar
Markets like Brazil, India, and Indonesia are experiencing double-digit growth in ecommerce. Bain & Company projects Southeast Asia’s internet economy to surpass $300 billion by 2025. While online retail will continue to lead, sectors like digital financial services, ed-tech, and health tech show impressive growth. Digital banking and microfinancing solutions are particularly in demand due to limited traditional banking infrastructure. This continues to create a compelling case for diversified exposure to the entire EM tech ecosystem.
One of the most compelling aspects of emerging markets’ digital transformation is the remarkable growth seen in the e-commerce and internet sectors, far outpacing the performance of broad-based market indexes. While traditional sectors may experience steady, incremental growth, the digital economy in emerging markets is expanding at an exponential rate.
Source: EMQQ Global LLC, Bloomberg LP, EMQQ Index is not an investable product and the included time series data preceded the inception date of the live track record.
India Will Emerge as The Leading Digital Economy in the Developing World
With over 800 million internet users, India already ranks as one of the largest online populations globally, and ongoing expansion of affordable 4G and 5G networks will only deepen digital access, especially in rural regions. Government initiatives, like “Digital India” and the Unified Payments Interface (UPI), have created a robust digital infrastructure and helped to accelerate the adoption of e-commerce, digital payments, and online services at an unprecedented rate.
At the same time, India’s middle class is expected to reach nearly 400 million people by 2025, with increased disposable income and a preference for online shopping, digital payments, and convenience services. Platforms like Reliance Jio and Flipkart, along with foreign giants such as Amazon and Walmart, are competing to capture these new consumers, further fueling growth.
Quick Commerce Will Redefine the EM Consumer Experience
By 2025, “quick commerce” (q-commerce) — the delivery of goods in under an hour — will be a major force reshaping retail across EM. Emerging Markets are uniquely positioned to embrace q-commerce due to densely populated cities where demand is high for quick access to essentials such as groceries, meals, and pharmaceuticals.
The shift toward q-commerce also reflects the unique payment preferences in these regions. Many providers are adapting to cash-on-delivery and digital wallet payments, making q-commerce accessible even to the unbanked population. In 2025, q-commerce will likely expand beyond urban centers, facilitated by investments in digital payments and infrastructure, and become an integral part of everyday life in emerging markets — transforming consumer expectations around speed and accessibility in retail.
The internet and ecommerce landscape is primed for significant growth in 2025 across Emerging Markets, supported by expanding connectivity, innovative digital platforms, and infrastructure investment. While regulatory challenges exist, investors who prioritize regionally adaptive, tech-forward companies and platforms are well-positioned to benefit from the substantial growth potential in these dynamic, digitizing markets.
The India Internet Index (INQQ), the Next Frontier Internet Index (FMQQ) and the Emerging Markets Internet Index (EMQQ) all track these Emerging Markets trends, providing investors with a targeted approach to the booming EM tech sector.