Thailand Digital Transformation - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Thailand Digital Transformation - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Thailand Digital Transformation Market size is estimated at USD 8.35 billion in 2024, and is expected to reach USD 12.34 billion by 2029, growing at a CAGR of 8.12% during the forecast period (2024-2029).

Thailand Digital transformation market is experiencing robust growth driven by rapid technological adoption, increasing internet penetration, and supportive government policies.

• Technological advancements, particularly in AI, ML, IoT, and cloud computing, are spearheading digital transformations across various sectors. These advancements enable businesses to optimize operations, enhance customer engagement, and revolutionize their business models.

• The Thai government is actively driving digital transformation through various initiatives. The 'Thailand 4.0' policy is at the forefront, designed to elevate the nation to a high-income status by leveraging innovation and technology. This strategy emphasizes the development of smart cities, the enhancement of digital skills, and the cultivation of a robust digital economy. The 'Eastern Economic Corridor (EEC)' project is pivotal, complementing this with a vision to pivot the region into a center for technological innovation and advanced industries.

• Businesses in Thailand are swiftly embracing cutting-edge technologies to maintain their competitive edge. Cloud computing, favored for its scalability and cost-efficiency, is streamlining operations. Furthermore, the adoption of big data analytics and AI is empowering companies to make data-informed decisions. Notably, financial institutions are utilizing AI for fraud detection and personalized services, while retailers harness big data for precise marketing and inventory management.

• Recognizing the surging demand for digital services, Thailand is significantly bolstering its digital infrastructure. The rollout of 5G networks is a game-changer, promising heightened connectivity and paving the way for innovations like autonomous vehicles and telemedicine. Concurrently, the nation's broadband penetration is rising, bridging the digital divide between urban and rural areas.

• However, amidst these advancements, challenges loom. A pronounced digital skills gap poses a significant hurdle, with a dearth of professionals adept at managing advanced technologies. Moreover, as digitalization deepens, so do concerns over cybersecurity increases. Safeguarding data privacy and fortifying critical infrastructure against cyber threats are imperative tasks to sustain the growth of the digital economy.

Thailand Digital Transformation Market Trends

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• In 2016, Thailand unveiled its 20-year Digital Thailand Plan, aligning with its ambition to become a digital leader in Southeast Asia. This comprehensive strategy outlines clear, measurable policy goals segmented into distinct phases.
• Thailand's digital roadmap has been delineated into distinct phases. The initial phase concentrated on bolstering digital infrastructure, while the subsequent phase emphasized enhancing digital inclusion. As of 2023, Thailand is embarking on Phase 3, aiming to attain complete digital transformation by 2027. The ultimate phase, Phase 4, aspires to position Thailand as a frontrunner in the global digital economy.
• Thailand's digital strategy focuses on several pivotal pillars: establishing a robust nationwide digital infrastructure, leveraging digital technologies to drive economic growth, fostering a more inclusive and fair society through digital initiatives, enhancing public services with e-government solutions, preparing the workforce for the digital age, and instilling trust in digital technologies.
• Thailand stands out for its proactive strides in bolstering its 5G ecosystem. It emerges as a Southeast Asian pioneer, having effectively rolled out 5G technology. Recent data from Erricson reveals that over 80% of Thailand's populace now enjoys 5G coverage.
• In August 2023, a Telenor Group survey on mobile device usage in Thailand revealed that around 36% of respondents predominantly utilized a 5G connection to power their mobile devices, while 6% did not utilize a 5G network connection at all.

North America Expected to Hold Significant Market Share During the Forecast Period

• Thailand is poised to witness an acceleration in its digital transformation, driven by generative artificial intelligence (AI), cybersecurity, advanced cloud services, sustainable technologies, and workforce readiness. Undeterred by economic fluctuations and geopolitical uncertainties, businesses are steadfast in their digital initiatives. Their goals include cost reduction, heightened productivity, and enhanced resilience against emerging threats.
• The Thai government is gearing up to launch new artificial intelligence (AI) initiatives, aligning with the second phase of its national AI strategy. Among the six flagship projects in the pipeline, highlights include fostering an AI-ready workforce and introducing the Thai Large Language Model (ThaiLLM). These projects are currently awaiting approval from the National AI Committee.
• In May 2024, the "MHESI for AI" policy, spearheaded by Thailand's Ministry of Higher Education, Science, Research and Innovation (MHESI), is designed to equip Thais with the skills to leverage artificial intelligence (AI) for the country's advancement. According to the MHESI, Thailand faces significant challenges in AI adoption, primarily due to a scarcity of skilled professionals and a dearth of practical AI applications. The ministry is integrating AI education into university programs, ensuring both students and faculty possess the necessary AI literacy for effective utilization to address the lack of skilled professionals.
• Thailand is fast-tracking its AI strategy from 2022 to 2027, with the goal of positioning itself as Southeast Asia's premier AI hub by 2027. The strategy targets elevating Thailand's AI Readiness Index from 59th place in 2021 to the top 50 by 2025. Additionally, it aims to ensure that a minimum of 600,000 Thai citizens are well-versed in AI law and ethics. The initiative is projected to yield business and social impacts amounting to THB 48 billion (USD 1.32 billion) by 2027.
• In a 2023 survey by ETDA in Thailand, 22% of respondents reported using artificial intelligence (AI) for customer service, notably employing chatbots in their e-commerce ventures—furthermore, an additional 20% leveraged AI for business model development.

Thailand Digital Transformation Industry Overview

The Thailand Digital Transformation Industry market is fragmented, with the presence of major players and numerous regional companies. Key players in the market are adopting strategies such as partnerships, agreements, innovations, and acquisitions to enhance their service offerings and gain a sustainable competitive advantage.

• July 2024 - Ericsson Thailand has revealed its bold initiative to spearhead Thailand's digital transformation, leveraging the robust 5G infrastructure it's establishing. The company's newest 5G Innovation and Experience Studio in Thailand Digital Valley is poised to pioneer fresh 5G applications crafted in collaboration with partners and ecosystem stakeholders. A pivotal element of Ericsson's Thai strategy is the recently inaugurated 5G Innovation and Experience Studio at Thailand Digital Valley, a venture undertaken in partnership with the Royal Thai Government, facilitated by the Digital Economy Promotion Agency (DEPA).

• May 2024 - Microsoft unveiled substantial plans to bolster Thailand's technological landscape. These plans include the establishment of new cloud and AI infrastructure, offering AI training to more than 100,000 individuals, and bolstering the country's developer community. These initiatives are an extension of Microsoft's existing memorandum of understanding (MoU) with the Royal Thai Government, aimed at shaping Thailand's digital-first, AI-driven future.

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