Thailand Construction Industry Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Thailand Construction Market Analysis

The Thailand Construction Market size is estimated at USD 28.01 billion in 2025, and is expected to reach USD 35.75 billion by 2030, at a CAGR of greater than 5% during the forecast period (2025-2030).

Thailand's construction industry is experiencing significant transformation driven by technological advancement and infrastructure modernization. As of 2022, there were approximately 141,600 construction companies operating in Thailand, demonstrating the sector's robust competitive landscape. The industry has seen notable innovations in construction methodologies, exemplified by the development of Thailand's first-ever 3D-printed medical facility in 2023, showcasing the potential for advanced construction technologies to revolutionize healthcare infrastructure development. The construction materials market has also evolved, with construction steel and cement combined holding the largest share at 39% of the construction material market in 2022.

The commercial and industrial construction sectors are witnessing substantial growth through strategic developments and investments. In 2023, Evolution Data Centres (EDC) and Central Pattana PCL formed a joint venture to develop a 34MW carrier-neutral data center in Bangkok, scheduled for completion in 2024. Similarly, KAWASAKI Kisen Kaisha's Container Service expanded its presence by opening a new warehouse in Bangkok's Bang Na area, featuring a 15-meter-high ceiling and specialized e-commerce facilities. These developments reflect the increasing demand for modern commercial and industrial infrastructure.

The construction price index has shown significant movement, reaching 131.9 for standard homes in the fourth quarter of 2022, indicating the dynamic nature of construction costs and their impact on project development. The industry is seeing a shift toward sustainable and energy-efficient construction practices, with companies increasingly incorporating green building standards and environmental considerations into their projects. This trend is particularly evident in the Bangkok Metropolitan Region, which hosts approximately 70% of Thailand's total rentable office space and serves as a hub for innovative construction projects.

The sector is witnessing a surge in large-scale industrial developments, particularly in the automotive and technology sectors. A notable example is BYD Auto's commencement of construction on a new right-hand drive vehicle facility in Thailand's Eastern Economic Corridor (EEC) special zone in 2023, with operations scheduled to begin in 2024 and an annual capacity of 150,000 units. The Thailand Board of Investment's acceptance of investment proposals totaling THB209.5 billion for industrial and infrastructure projects demonstrates the government's commitment to fostering industrial growth through construction initiatives. These developments are reshaping the industrial landscape and creating new opportunities for construction companies specializing in industrial facilities.

Thailand Construction Market Trends

Infrastructure Projects Driving the Market

Thailand's construction market is experiencing significant momentum driven by extensive infrastructure development initiatives. The government has launched 20 strategic projects across five key sectors, with a particular focus on reducing energy and transport costs while enhancing connectivity with neighboring countries. The rail sector commands the largest share of infrastructure investment at 65.9%, followed by mass rapid transit networks in the Bangkok Metropolitan Region at 22.1%, demonstrating the government's commitment to modernizing public transportation. The remaining investment is strategically allocated across intercity road systems (8.9%), air transportation (2.9%), and water transportation (0.2%), creating a comprehensive infrastructure development approach.

The country's robust road network infrastructure, comprising 66,794 kilometers of public roads, continues to expand with several major projects underway. Notable developments include the Pattaya-Map Ta Phut Expressway valued at 20.2 billion BT, the Bang Pa-in-Saraburi-Nakhon Ratchasima Expressway at 84.6 billion BT, and the Bang Yai Van Phong Kanchanaburi Expressway at 55.6 billion BT. These projects, along with the development of ring roads around Bangkok and modern four-lane highways outside the BMR, demonstrate the government's commitment to enhancing transportation infrastructure throughout the country.

Growing Public-Private Partnership (PPP) Model

The Thai construction industry is witnessing a significant surge in public-private partnership (PPP) projects, particularly in large-scale infrastructure developments. The government's strategic approach to infrastructure development through PPP models is evident in major projects such as the U-Tapao International Airport development, where U-Tapao International Aviation Company Limited, consisting of Bangkok Airways PLC, BTS Group Holdings PLC, and Sino-Thai Engineering and Construction PLC, signed a 50-year PPP contract with the Eastern Economic Corridor Office of Thailand. This project, valued at THB 290 billion, demonstrates the successful implementation of the PPP model in large-scale construction initiatives.

The effectiveness of the PPP model is further illustrated through projects like the High-Speed Rail Linking Three Airports Project, valued at THB 225 billion, which connects Don Mueang, Suvarnabhumi, and U-Tapao airports. The consortium of major construction companies, including Charoen Pokphand Holding PLC and China Railway Construction Corporation Ltd., exemplifies how PPP arrangements facilitate the execution of complex infrastructure projects. Additionally, the Map Ta Phut Industrial Port Phase III Project, with an investment of THB 55.4 billion, showcases how PPP models are being successfully implemented across various sectors of infrastructure development.

Increased Investment in Renewable Energy

Thailand's construction market is experiencing substantial growth driven by significant investments in renewable energy infrastructure projects. The government's commitment to reducing greenhouse gas emissions by 20-25% by 2030 has catalyzed numerous construction projects in the renewable energy sector. The implementation of the New Solar Rooftop Regulations 2020 has created opportunities for construction companies, as solar PV owners can now connect to the grid for electricity trading, necessitating the development of power transmission and distribution infrastructure.

The construction and development sector is further stimulated by the government's ambitious target of installing 90 MW/year of floating solar energy farms from 2023 to 2025. This initiative is evidenced by recent developments such as PTTEP's "Lan Sang Arun" solar power project and the commercial operation of a 3 MW solar power plant with a 4 MW battery energy storage system in Mae Hing Son province. Additionally, the partnership between Acciona Energia and Blue Circle for five wind farms with a total capacity of 436 MW, scheduled for completion by 2030, demonstrates the sustained growth in renewable energy construction projects.

Growing Amounts of Foreign Direct Investment

Foreign direct investment is significantly propelling Thailand's construction industry growth, particularly in industrial and commercial developments. The country's strategic position as a manufacturing base among ASEAN countries, supported by its robust infrastructure and logistics connections, continues to attract substantial foreign investment. This is exemplified by recent developments such as BYD Auto's building of a new right-hand drive vehicle facility in Thailand's Eastern Economic Corridor special zone, which began in March 2023 and is scheduled to commence operations in 2024 with an annual capacity of 150,000 units.

The impact of foreign investment is further demonstrated through projects like the USD 9 billion Eastern Aviation City development at U-Tapao-Rayong-Pattaya International Airport, awarded to One Works, a global design and consulting firm. Additionally, significant foreign investments are evident in the logistics sector, as illustrated by the partnership between Thailand and Alibaba to establish the country's first digital free trade hub, featuring a 40,000 square meter facility in the Eastern Economic Corridor. These investments are driving the building of new manufacturing facilities, warehouses, and supporting infrastructure, contributing to the market's sustained growth.

Segment Analysis: By Sector

Residential Segment in Thailand Construction Market

The residential construction segment continues to dominate the Thailand construction market, holding approximately 37% market share in 2024, with a market value of USD 10.55 billion. This segment's strong performance is driven by increasing urbanization, population growth, and changing lifestyles, particularly in major cities like Bangkok, Chiang Mai, and Phuket. The segment has shown remarkable resilience despite rising construction costs, with housing prices increasing between 5% and 10% due to higher material costs and labor shortages. Foreign buyers, particularly from China, Russia, and America, have significantly contributed to the segment's growth, making up nearly 25% of nationwide transfer value, especially in the condominium market.

Infrastructure Segment in Thailand Construction Market

The infrastructure segment is emerging as the fastest-growing sector in Thailand's construction market, with a projected growth rate of approximately 7% from 2024 to 2029. This robust growth is primarily driven by the government's significant investment in mega-infrastructure projects, particularly in the Eastern Economic Corridor (EEC). Key projects include the high-speed railway linking three airports, the U-Tapao International Airport expansion, and various mass transit developments in Bangkok. The Thai government's commitment to infrastructure development is further evidenced by its allocation of 45% of the construction budget to rail and public transportation projects, while 35% is designated for road transport development, demonstrating a clear focus on enhancing the country's transportation network.

Remaining Segments in Thailand Construction Market

The other segments in Thailand's construction sector, including commercial, industrial, energy and utilities, and institutional sectors, each play vital roles in the market's overall ecosystem. The energy and utilities segment is particularly noteworthy with its focus on renewable energy projects and power generation facilities. The commercial sector continues to evolve with the development of office spaces, retail centers, and hospitality projects, while the industrial segment is driven by manufacturing plant construction and warehouse development. The institutional segment, though smaller, remains crucial for the development of educational facilities, healthcare infrastructure, and government buildings, contributing to the country's social infrastructure development.

Segment Analysis: By Type

New Construction Segment in Thailand Construction Market

The new construction segment dominates the Thai construction market, commanding approximately 89% market share in 2024, with a value of USD 25.31 billion. This segment's prominence is driven by significant infrastructure development initiatives, including highways, bridges, airports, and public transportation systems like the Bangkok Mass Transit System (BTS) and Mass Rapid Transit (MRT). The segment's robust performance is further supported by ongoing residential construction activities, particularly in major cities like Bangkok, Chiang Mai, and Phuket, where urbanization and population growth continue to drive demand for new housing units, condominiums, and apartments. Additionally, the expansion of commercial and office buildings in central business districts, coupled with the booming hospitality sector in tourist destinations like Pattaya and Koh Samui, contributes significantly to the segment's market leadership.

Addition Segment in Thailand Construction Market

The addition segment represents the second-largest category in the market, focusing on expanding existing structures to accommodate growth and meet evolving requirements across residential, commercial, and industrial sectors. This segment is particularly driven by the expansion of manufacturing facilities and warehouses, especially in key industrial areas like the Eastern Economic Corridor (EEC). The segment's growth is supported by various factors, including the increasing demand for industrial leasing across multiple industries, particularly in the automotive and electronic components sectors. Furthermore, the expansion of logistics and e-commerce facilities, exemplified by developments like digital free trade hubs and cross-border e-commerce facilities, continues to fuel the segment's expansion in the Thai construction market.

Remaining Segments in Thailand Construction Market

The alteration segment plays a vital role in the Thailand construction industry, focusing on renovations and modifications of existing buildings and structures. This segment is particularly active in the hospitality sector, where hotels and resorts undergo regular upgrades to maintain competitiveness and enhance guest experiences. The segment also encompasses government building renovations, retail space modifications, and educational facility improvements. The growing emphasis on sustainable building practices and energy efficiency upgrades has further enhanced the importance of this segment, as property owners increasingly seek to modernize their facilities while adhering to evolving environmental standards and regulations.