Thailand ICT Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Thailand ICT Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Thailand ICT Market size is estimated at USD 19.84 billion in 2024, and is expected to reach USD 29.77 billion by 2029, at a CAGR of 8.45% during the forecast period (2024-2029).

The Increased Technology Adoption Across Diverse Industries to Drive the ICT Sector in Thailand

Key Highlights

• Thailand's information and communication technology (ICT) industry is experiencing rapid growth fueled by the widespread adoption of technology in society. This surge presents significant business opportunities for innovative firms catering to discerning users and customers. Thailand, with its rich history in international business and a populace known for its openness and curiosity, provides an optimal setting for the development and swift commercialization of new products and services, particularly in the ICT realm. As various industries increasingly embrace technological advancements, the ICT market in Thailand is poised for continued expansion.
• Thailand's technology sector has experienced remarkable growth in recent years, positioning the nation as a leading Southeast Asian player. Thailand's ICT industry is witnessing rapid growth, drawing heightened interest from foreign investors. As businesses, government entities, and households embrace digitalization, Thai consumers are becoming increasingly tech-savvy, evident from the brisk sales of the latest IT gadgets in local stores.
• Furthermore, after the COVID-19 pandemic, Thailand promptly integrated digital technologies across both public and private sectors. This transition is bolstered by government initiatives, positioning Thailand as a potential regional ICT hub. Key sectors, including Manufacturing, BFSI, Retail, and Government, significantly harness the country's ICT capabilities.

Thailand's Digital Economy and Investments in the Convergent Technologies Poised for Growth

Key Highlights

• The information and communications technology (ICT) industry plays a pivotal role in the digital economy, acting as a key indicator of its performance. The proliferation of ICT across various business sectors bolsters productivity, underpinning the digital economy. In Thailand, as the digital economy flourishes, ICT is driving economic expansion by extending the reach of technologies like high-speed internet, mobile broadband, and advanced computing. Moreover, the very expansion of these technologies fuels further growth.

Thailand's fragmented ICT market, coupled with a surge in data breaches and a lack of robust infrastructure, poses significant hurdles to its growth.

Key Highlights

• Thailand grapples with a deficit of skilled ICT professionals, especially in cybersecurity, cloud computing, and data management. This skills gap hampers companies' abilities to adopt and sustain advanced ICT solutions, subsequently diminishing the overall quality of services. Although initiatives have been launched to bolster ICT education and training, the benefits will take time to manifest, potentially stunting the industry's growth.

Furthermore, government-led initiatives and local banks are propelling the growth of digital payments in Thailand. Projects such as PromptPay have significantly boosted adoption rates, witnessing exponential growth in recent years. The region's surge in digital payments and fintech services can be attributed to heightened internet and smartphone usage, alongside advancements in logistics and e-payment systems, driving the market.

Thailand ICT Market Trends

Enterprise Software to be the Largest Software Segment

• As Thailand's workforce evolves with enhanced skills and diversity, businesses turn to sophisticated HCM solutions. These solutions aid in talent acquisition, performance management, training, and succession planning. HCM systems empower organizations to cultivate a robust workforce, streamline HR processes, and synchronize talent strategies with overarching business goals.
• In February 2023, Akrivia HCM, an enterprise HRMS platform, unveiled its ambition to onboard over 500 personnel within the year. The Visakhapatnam-based startup, currently boasting a workforce of 400, sees over 350 of its team dedicated to Akrivia HCM, its flagship Human Capital Management software. This aggressive hiring aligns with the company's strategic expansion into international markets, particularly in Southeast Asia and Gulf Cooperation Council nations, including Singapore, Thailand, the Philippines, Vietnam, Indonesia, Malaysia, the UAE, Saudi Arabia, and Qatar.
• Moreover, the growing BYOD trend in the region is poised to drive the adoption of CRM solutions further. As employees engage with multiple enterprises, the BYOD trend underscores a shift towards flexibility and network accessibility, enhancing workplace productivity. While CRM solutions bolster an enterprise's image, the BYOD trend ensures employees have real-time access to vital data, streamlining customer query resolutions and amplifying CRM effectiveness.
• In August 2023, Salesforce rolled out its new offering, Starter. This intuitive, all-in-one CRM application integrates deals, services, and marketing functionalities seamlessly. Designed for small and burgeoning businesses, Starter aids in managing customer relationships, centralizing vital data, and boosting operational efficiency. With features like marketing campaign templates, segmentation, analytics, an email builder, and AI-driven email optimization, starter empowers small businesses to amplify their lead-generation efforts.
• In Thailand, small and medium enterprises (SMEs) increasingly adopt Customer Relationship Management (CRM) solutions to bolster customer interactions and optimize business operations. These CRM systems empower SMEs to efficiently manage customer data, monitor interactions, and elevate customer satisfaction through tailored communication and focused marketing initiatives.
• SMEs in Thailand are experiencing notable growth, reaping benefits like streamlined operations, organized data, and accurate sales forecasting. As reported by The Office of Small and Medium Enterprises Promotion in April 2023, the service sector employed around 1.02 million individuals in small enterprises (SEs), while medium enterprises (MEs) in the manufacturing sector employed roughly 700.97 thousand, marking the highest employment figures across industries for this business size.

IT and Telecom Industry to be the Largest End User

• The IT and Telecom sector for the Thailand ICT Market includes telecommunication services (voice, data, messaging, OTT, and PayTV services), telecommunication infrastructure (fixed networks, mobile networks, and telecom towers), telecom operators (Advanced Info Service (AIS), TrueMove, Total Access Communication Public Company Limited (DTAC), National Telecom (NT), and mobile virtual network operators (MVNO)) and technology such as Internet of Things (IoT), ICT security and solutions, cloud computing, network management, and 5G infrastructure and applications among others.
• Thailand's telecommunications market has experienced significant growth recently, fueled by rising demands for connectivity (both 5G and fixed broadband) and a broad embrace of digital technologies. The Thai government envisions transforming Thailand into a digital infrastructure hub for ASEAN.
• The National Broadcasting and Telecommunications Commission (NBTC) projects that 5G adoption could inject USD 9.3 billion into the Thai economy by 2035, accounting for 10 % of the GDP. Furthermore, through its "Thailand Industry 4.0" initiative, which promotes digital creativity, technological advancement, and a shift to a digital economy, the government targets a 25 % contribution of this sector to the national GDP by 2027.
• Thailand's push towards 5G has seen significant investments in its ICT market. These investments span spectrum allocations, network towers, and fiber-optic backbones, with both private and public sectors playing pivotal roles. Leading telecom giants, including Advanced Info Service (AIS) and True Corporation, are spearheading extensive network rollouts, particularly in urban locales, to bolster 5G accessibility nationwide.

Thailand ICT Industry Overview

The Thailand ICT market is fragmented, with many players operating in the market. Several key players in the ICT market are in constant efforts to bring advancements. A few prominent companies are entering into collaborations and expanding their footprints in developing regions to consolidate their positions in the market. The major players are Cisco Systems Inc., IBM Corporation, Dell Technologies Inc., Huawei Investment & Holding Co. Ltd, Amazon Web Services Inc. (AWS) (Amazon.com, Inc.)

The degree of competition depends on ICT services, with slight differentiation in hardware and software and multiple companies offering the same services in the same market. However, competition is low for IT services such as big data, mobility, and the Internet of Things that provide product differentiation.

The major factors governing this force are a sustainable competitive advantage through innovation, levels of market penetration, barriers to exit, powerful competitive strategy, and firm concentration ratio. The degree of competition depends on factors affecting the market studied, such as brand identity, powerful competitive strategy, and degree of transparency.

Vendors offering innovative and integrated solutions have the upper hand over those offering only hardware components or software solutions. These providers' bargaining power is higher than that of those operating in enterprise divisions, as differentiation depends on the application area.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support