Thailand Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027

Thailand Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027

Summary

The construction industry in Thailand is expected to expand by 2.6% in real terms in 2023, supported by a rebound in the tourism sector, coupled with investment in the transport and electricity sectors. According to the Fiscal Policy Office (FPO), state agencies set a combined investment budget of THB664 billion ($19.6 billion) in Fiscal Year (FY) 2023 (October 2022 to September 2030). Some of the key state agencies’ investment plans include THB113 billion ($3.3 billion) by the Highways Department, THB70.6 billion ($2.1 billion) by the Royal Irrigation Department, THB45.6 billion ($1.3 billion) by the Department of Rural Road, and THB33.3 billion ($1 billion) by the Department of Public Works and Town and Country Planning. Additionally, rising foreign direct investment (FDI) in the country will also provide a boost to the industry’s growth this year. According to the Thailand Board of Investment (BOI), the total number of FDI applications received in the first half of 2023 rose by 33% year-on-year (YoY), to 507 projects, while the investment value of these projects rose by 141% YoY, to THB304 billion ($9 billion). In the short term, however, rising construction costs, rising interest rates, elevated inflation rates, and a political deadlock could pose a downside risk to the industry’s outlook.

GlobalData expects the Thai construction industry to record an average annual growth rate of 4% from 2024 to 2027, supported by investment in transport, electricity, manufacturing, and housing infrastructure projects. In late July 2023, the Department of Highways (DoH) unveiled a 20-year plan to develop the country’s interprovincial motorway network, which will see the construction of 1,926km of new highways across the country over the next two decades. The DoH had contracted companies to conduct a feasibility study for its updates to the Motorway-Rail Map (MR Map) project, with the study expected to be presented to the Ministry of Transport for consideration by the end of 2023. According to the recommendations of the study, the first phase of upgrades will span over a period of five years and will include nine projects totaling THB457 billion ($13.5 billion); this will result in the construction of 331km of new highways.

This report provides detailed market analysis, information, and insights into the Thai construction industry, including -

• The Thai construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Thai construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Thailand. It provides -

• Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Thailand, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.