• by February 8, 2001

The number of active Internet users in the Asian-Pacific Region will increase dramatically accounting for more than 27% of the world's total online population by 2004, according to a new report from eMarketer.

The eAsia Report reveals that the active Internet population in the region will rise from 49 million users last year to 173 million net users in 2004, a 38% compound annual growth rate (CAGR).

"Currently, the internet penetration in Asia is still relatively low compared with the rest of the world, accounting for only 21% of the world's online population," said Eddie Cheung, analyst at eMarketer. "By the end of 2004, however, Asia will see internet population rise to slightly more than a quarter of the world's total," he added.

The report shows Japanese Internet users currently account for more than 36% of the total Asian internet population. This high percentage will quickly dissipate as Internet development in China continues to gain strength. By the end of 2004, eMarketer estimates that China's Internet users will account for 17.4% of Asia's total Internet population. Japan's user base will shrink to 18.5%.

The report notes Asia Pacific's e-commerce revenues have grown dramatically over the past year with revenues reaching $39.4 billion at year-end 2000. eMarketer estimates revenues will continue to climb to more than $338 billion by the end of 2004.

"Even though total Asian e-commerce revenues will increase substantially over the next few years," stated Cheung, "the region as a whole still accounts for only a fraction of the total revenues on a worldwide basis". eMarketer expects total Asian e-commerce, as a world percentage, to peak at 14% by 2001, but to shrink to 10.6% by the end of 2004.