Thailand Ict Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Thailand Ict Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Thai ICT market revenue is expected to grow at a CAGR of 7.5% over the next five years. Global leaders like BM, Huawei Technologies, Cisco Systems, Dell Technologies, and Amazon dominate the Thai ICT market. The ICT market across the country is growing rapidly due to increased spending on hardware and software services.

• According to the OECD (The Organisation for Economic Co-operation and Development), GDP grew by 3.5% in 2021. The county's GDP is growing significantly with increasing IT investments that would create new growth opportunities for the Thai ICT market.
• The Thai government has partnered with IT companies to develop the digital infrastructure further. For instance, the Thai and Vietnamese governments signed a memorandum of understanding (MoU) to develop IT infrastructure, cloud computing, social network management, digital transformation, and the digital economy.
• Key players in the ICT market have plans to expand their 5G network across urban and rural areas. For instance, Ericsson is partnering with King Mongkut University of Technology Thonburi (KMUTT) to support Thai students in building 5G ICT skills for the future.
• Advancements in the IT sector will prevent the ICT market from cyberattacks. The Hybrid-cloud based platform secures the data stored in the system. For instance, Oracle offers hybrid cloud services in Thailand. Further, Dell Technologies plans to expand hybrid cloud services in Thailand.
• The COVID-19 pandemic automatically forced IT companies in Thailand to quickly dial up their cloud computing deployments to support work-from-home employees. Post-COVID-19 cloud usage has been accelerating hybrid cloud environments to bring digital transformation initiatives in Thailand.

• Key Players in the ICT market are widely adopting cloud computing for application development and testing, resource management, data storage, backup, orchestration services, etc. Cloud computing technology is adopted across various sectors, including IT and telecom, healthcare, BFSI, manufacturing, retail, media, and entertainment. For instance, IBM and Red Hat are transferring their storage portfolio, including Red Hat Ceph Storage and Red Hat OpenShift Data Foundation (ODF), to faster hybrid, multi-cloud deployments.
• BFSI sectors in the country have led to the increasing deployment of cloud-based services for secured payment gateways. For instance, IBM collaborated with several organizations, including Kasikorn Bank, in applying technology to support bank transactions. Bank of Ayudhya is enabling its partners to access various digital services and AI and robotics ventures in developing National Digital Corporate Identity to support Know Your Customer (KYC) procedures.
• Key players in the ICT market upgrade their existing data centers with cloud computing solutions primarily drives the market growth. For Instance, Google Cloud announced it is bringing its first cloud services to Thailand to meet the growing demand locally and worldwide.
• Furthermore, the increasing investments by the government in promoting the development of numerous technologies, such as 5G, AI, IoT, machine learning, Big Data, etc. Additionally, the emergence of digital transformation is expected to drive the growth of the ICT market. For instance, AWS’s ongoing commitment to support the Thailand government’s Thailand 4.0’s digital initiatives.
• According to DEPA, the Growth rate of Digital Services is expected to grow by 37.76% in 2021. Advanced technology like AI and cloud computing are expected to bring advanced digital services into the market, which is expected to bring new growth opportunities for the ICT Market.

• The government is taking initiatives to boost the country's IT sector because of the growing demand for digital transformation. For instance, Thailand's Board of Investment (BOI) adopted a new Five-Year Investment Promotion Strategy, which targets industries and sectors that promote Thailand's long-term development.
• The demand for greater agility and flexibility in the IT infrastructure is driving the growth of the ICT market. For instance, Huawei Technologies plans to invest USD 23 million to build its third data center in Thailand. Such infrastructure development projects will further increase the demand for hardware and IT services.
• Telecommunications players must upgrade their network capabilities, install fiber-optic and sub-sea systems and cables, purchase modern networking equipment/storage/servers, and utilize cloud and cybersecurity services. The 5G rollout requires digital transformation solutions, including 5G-ready consumer devices. There are opportunities for telecom companies to support medium to long-term telecommunications expansion projects, which would create new growth opportunities for the ICT market.
• The transition to 4G and 5G is still rising in the country due to expanding new networks and increasing demand for high-speed connectivity services. For instance, AIS partnered with Samsung to launch Voice over 5G New Radio (VoNR), enabling voice calls on AIS’ 5G Standalone (SA) network.
• According to Ookla Speedtest Global Index, Thailand ranked 5th with a median fixed broadband download speed of 196.46 Mbps in October 2022. Smartphone penetration is growing significantly and thus increasing the demand for fixed broadband services.

The Thai 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 IBM, Huawei Technologies, Cisco Systems, Dell Technologies, Amazon, and many others.

• In February 2022, Amazon Web Services (AWS) signed an MOU with the Ministry of Digital Economy and Society of Thailand (MDES) to bring digital transformation to Thailand.
• In May 2022, SAP announced its plans to accelerate cloud transformation for organizations in the private and public sectors to increase efficiency, flexibility, and agility.

• The market estimate (ME) sheet in Excel format
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