Thailand IT and Security Market - Growth, Trends, COVID-19 Impact, and Forecast(2022 - 2027)

Thailand IT and Security Market - Growth, Trends, COVID-19 Impact, and Forecast(2022 - 2027)

The Thailand IT and Security Market is expected to register a CAGR of approximately 6.88% over the forecast period (2021 - 2026). Increasing demand for digitization and scalable IT infrastructure is anticipated to drive the growth of the market in the region.

Key Highlights

• With digital transformation, organizations have become dependent on the success of creative applications and extensions that IT could provide. IT has become a critical competitive edge for most organizations. Moreover, IT outsourcing has become more than a simple cost reduction technique with cloud migrations and cloud services options. Therefore, this new form is driven by organizational motivations in terms of business growth, customer experience, and competitive disruption.
• The increasing demand for cloud outsourcing indicates that companies prefer cloud platforms from public sources for data storage purposes. Also, the businesses operating over the cloud are likely to get concerned about the security threats and will look to eliminate all possible threats by outsourcing IT security services. This way, the demand for expert knowledge of the vendor will be required, along with an easy delegation of the responsibilities.
• Further, distinction in offerings amid multiple players' presence has led to the development of specialized teams. Other than developing technical teams, new contract models turn IT outsourcing and services value-driven and interpersonal.
• Moreover, the country is one of the major exporters of IT hardware and related market. According to the Ministry of Commerce (Thailand), the country accounted for an import of TBH 23.98 billion till January 2021 and exported TBH 375.01 billion till July 2021.
• The COVID-19 outbreak has been forcing multiple organizations to review their IT strategies as a top priority. Various organizations have also emphasized the importance of having the right development solutions that can enable the employees to seamlessly work remotely and limit the impact on productivity.
• Furthermore, the increase in R&D activities that target enhanced operational capabilities is expected to provide a strong impetus for market growth during the forecast period.

Key Market TrendsDemand for Enterprise Software to Grow Significantly

• Enterprise Software is also known as enterprise application software. The solutions offered under these satisfy the needs of organizations (such as businesses, schools, internet-based user groups, governments, among others) as a whole rather than just serving the purpose of individual needs.
• Moreover, the software is classified as human resource management, payroll management, customer support, email marketing systems, and enterprise resource planning. To enhance the purpose of these solutions, vendors in the market are partnering and collaborating to launch one-stop solutions for the end-users.
• For instance, in April 2021, Business Engineering Corporation and its local subsidiary Toyo Business Engineering Singapore Pte. Ltd. Collaborated with AG Net Pte. Ltd to provide a one-stop solution called the AGHRM that integrates both accounting and Human Resource Management solutions in the cloud for both Thailand and Singapore markets.
• In addition to the collaboration, the companies aim to provide the solution along with ERP package and Payroll services which genuinely makes it a one-stop solution for various organizations to invest in and eliminates the need for purchasing individual solutions.
• Such developments drive the market as the impact of COVID-19 has increased the telecommuting-based work arrangements, including administrative departments, where the increasing number of companies are still facing challenges like inefficient accounting processing and employee labor management.

Finance Sector to Hold Significant Share in the IT Security Market

• Thailand's digital economy is proliferating, especially following the COVID-19 pandemic. The Thailand government's digital transformation strategy (and the Thailand 4.0 strategy) and the introduction of the Personal Data Protection Act (PDPA) in 2020 indicate that the country might soon introduce an open banking framework.
• The increasing digitalization of the financial sector has increased data security challenges in the country. To tackle these challenges, in September 2021, the Bank of Thailand issued guidelines on data governance to provide financial institutions with recommendations on ensuring data governance in compliance with accepted international principles.
• The banking sector in the country is witnessing a surge in the use of internet banking and mobile applications. To implement these services in banking infrastructure, banks require robust IT infrastructure in place.
• For instance, Kasikornbank (KBank) has been providing a K PLUS banking app for its customers. This application adopted Agile in early 2020. Every day, more than 5 million users log in to K PLUS app, with around 12 million daily transaction volumes. The application has achieved the highest number of app downloads of 16.4 million downloads (both iOS and Android) for 36 consecutive months (from January 2018 to December 2020), which ranked number one among mobile banking apps in Thailand.
• A similar trend has been observed across Thailand's finance sector, wherein the implementation of modern IT solutions for operations in organizations such as banks is expected to sustain during the forecast period.

Competitive Landscape

The Thailand IT and Security Market is competitive owing to the presence of several global players such as Cisco Inc, Microsoft Corporation, HP Inc., and Samsung Electronics. These players are focusing on further expanding their client base across the region and are adopting both organic and inorganic growth strategies.

• September 2021 - Microsoft (Thailand) and National Telecom Public Company Limited (NT) signed a Memorandum of Understanding for a digital transformation partnership. The agreement covers Microsoft's support for NT's own internal and external digital transformation – from enhancing NT's operations and workforce to joint product and service development as well as collaborative business opportunities.
• June 2021 - Microsoft Thailand and Advanced Info Services PCL (AIS) – Thailand's leading telecommunication and digital life service provider – announced a full-scale strategic partnership to drive the growth of Thailand's digital economy and innovation across Thai enterprises through a fusion of world-class cloud services and Thailand's best network. This extensive partnership will see both parties co-develop and offer cloud services that best meet the needs of Thai organizations.

Additional Benefits:

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

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