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Thailand Construction Market Size (2024 - 2029)

The Thailand construction industry is projected to experience significant growth over the forecast period, driven by increased consumer and investor confidence and substantial government expenditures in various sectors such as housing, transportation, and renewable energy. The market's expansion is further supported by strategic investment in key economic corridors, despite previous declines in gross fixed capital formation. The Bangkok Metropolitan Region, particularly the central business area, remains a focal point for construction projects, although growth is challenged by limited land availability and high costs.

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Market Size of Thailand Construction Industry

Thailand Construction Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 26.68 Billion
Market Size (2029) USD 34.05 Billion
CAGR (2024 - 2029) > 5.00 %
Market Concentration Low

Major Players

Thailand Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

Thailand Construction Market Analysis

The Thailand Construction Market size is estimated at USD 26.68 billion in 2024, and is expected to reach USD 34.05 billion by 2029, growing at a CAGR of greater than 5% during the forecast period (2024-2029).

  • The National Economic and Social Development Council (NESDC) reports that Thailand's construction industry had a year-over-year loss of 5.5% in Q1 2022, following a 0.8% decline in Q4 2021. Additionally, in Q1 2022, the total gross fixed capital formation in the construction industry decreased by 5.4% YoY.
  • The Thailand Board of Investment (BOI) accepted investment proposals totaling THB209.5 billion (USD 6.6 billion) for industrial and infrastructure projects in June 2022. Additionally, rising consumer and investor confidence is anticipated to help the construction industry's expansion, as are government expenditures in housing, transportation, renewable energy, and rail projects. The expansion of the industry will also be aided by investment in the Southern Economic Corridor (SEC) and Eastern Economic Corridor (EEC) programs. A total of THB669 billion (USD 21.2 billion) in authorized initiatives has been authorized in the EEC, and four of the corridor's six major projects are now under construction and being developed through public-private partnerships (PPPs). The government is still optimistic that private investment would reach THB300 billion (USD 9.5 billion) in the EEC despite the economic hardship.
  • Approximately 70% of Thailand's total rentable office space is located in the Bangkok Metropolitan Region (BMR). The central business area (CBD) of Bangkok is where office projects are most frequently found in addition to upscale hotels, apartment complexes, and iconic retail centres. The Silom, Sathorn, Ploenchit, Wireless Road, Asoke, and upper end of Sukhumvit (up to Soi 24) are all included in the CBD. The BTS, MRT, and motorways connecting this neighbourhood to Bangkok's outside regions provide excellent communication linkages. But success has a cost, and the CBD's ability to grow is constrained by a lack of appropriate land and the high cost of what is available.

Thailand Construction Industry Segmentation

The Thailand construction market covers the growing construction projects in different sectors, like commercial construction, residential construction, industrial construction, infrastructure (transportation construction), and energy and utility construction.

The Thailand Construction Market is segmented by Sector (Residential, Commercial, Industrial, Infrastructure (Transportation), Energy, and Utilities) by Type (New Construction, Additions, Alteration).

The report offers market size and forecasts for Thailand's Construction Market in value (USD) for all the above segments.

By Sector
Residential
Commercial
Industrial
Infrastructure (Transportation)
Energy and Utilities
By Type
New Construction
Addition
Alteration
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Thailand Construction Market Size Summary

The Thailand construction industry is poised for significant growth over the forecast period, driven by increased government investment in infrastructure and economic corridors. The government's focus on enhancing transportation networks, including mass rapid transit systems and road expansions, is expected to play a crucial role in boosting the sector's development. The Eastern Economic Corridor (EEC) and Southern Economic Corridor (SEC) initiatives are central to this growth, with substantial public-private partnerships facilitating major projects. Despite previous declines in the industry, rising consumer and investor confidence, along with strategic government expenditures in housing, transportation, and renewable energy, are anticipated to spur expansion. The Bangkok Metropolitan Region, with its dense concentration of office spaces and commercial developments, remains a focal point, although land scarcity and high costs pose challenges to further growth.

The market landscape is characterized by a consolidated structure, with a few large contractors dominating the scene. Key players such as Italian-Thai Development and SCG International Corporation hold significant market shares, reflecting their influence in major projects. The government's commitment to accelerating infrastructure development, including upgrades to key ports like Laem Chabang, underscores the strategic importance of the construction sector in enhancing Thailand's economic competitiveness. The ongoing development of megaprojects and the expansion of transport infrastructure are expected to stimulate economic activity and attract further private investment, reinforcing the construction industry's pivotal role in Thailand's economic landscape.

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Thailand Construction Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Thailand was emphasizing renewable energy projects and sustainable construction practices

      2. 1.2.2 Thai government was investing in various infrastructure projects to improve connectivity, transportation

    3. 1.3 Market Restraints

      1. 1.3.1 Construction projects in Thailand often experienced delays and cost overruns due to factors such as unforeseen site conditions

      2. 1.3.2 Political and Economic Uncertainty

    4. 1.4 Market Opportunities

      1. 1.4.1 The adoption of construction technology, Building Information Modeling (BIM), and other digital tools enhanced project management, design, and collaboration among stakeholders.

    5. 1.5 Value Chain / Supply Chain Analysis

    6. 1.6 Porter's Five Forces Analysis

      1. 1.6.1 Bargaining Power of Suppliers

      2. 1.6.2 Bargaining Power of Buyers/Consumers

      3. 1.6.3 Threat of New Entrants

      4. 1.6.4 Threat of Substitute Products

      5. 1.6.5 Intensity of Competitive Rivalry

    7. 1.7 Current Economic and Construction Market Scenario

    8. 1.8 Technological Innovations in the Construction Sector

    9. 1.9 Impact of Government Regulations and Initiatives on the Industry

    10. 1.10 Impact of COVID-19 on the market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Sector

      1. 2.1.1 Residential

      2. 2.1.2 Commercial

      3. 2.1.3 Industrial

      4. 2.1.4 Infrastructure (Transportation)

      5. 2.1.5 Energy and Utilities

    2. 2.2 By Type

      1. 2.2.1 New Construction

      2. 2.2.2 Addition

      3. 2.2.3 Alteration

Thailand Construction Market Size FAQs

The Thailand Construction Market size is expected to reach USD 26.68 billion in 2024 and grow at a CAGR of greater than 5% to reach USD 34.05 billion by 2029.

In 2024, the Thailand Construction Market size is expected to reach USD 26.68 billion.

Thailand Construction Market Report Snapshots

Thailand Construction Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)