Thailand ICT Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 19.84 Billion |
| Market Size (2029) | USD 29.77 Billion |
| CAGR (2024 - 2029) | 8.45 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Thailand ICT Market Analysis
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
- 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
- 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.
- 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.
Thailand ICT Market Leaders
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Cisco Systems Inc.
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IBM Corporation
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Dell Technologies Inc.
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Huawei Investment & Holding Co. Ltd
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Amazon Web Services Inc. (AWS) (Amazon.com, Inc.)
*Disclaimer: Major Players sorted in no particular order
Thailand ICT Market News
- October 2024: Thailand, in collaboration with Huawei Cloud Stack, is making significant strides in its digital transformation journey. Huawei Cloud has set up three Availability Zones (AZs) in Thailand. In addition, Huawei has launched a local OpenLab innovation center, aiming to work closely with customers and partners, ensuring a steady stream of innovations tailored to the local market demands.
- May 2024: Amazon Web Services (AWS) unveiled its ambitious plan to set up the AWS Asia-Pacific (Bangkok) Region, committing a substantial investment of USD 5 billion (THB 183 billion) by the year 2037. Slated to commence operations in early 2025, this new region aims to bolster the efforts of developers, startups, and entrepreneurs. Additionally, it seeks to extend its cloud services to government agencies, educational institutions, and non-profit organizations through its data centers located in Thailand.
Thailand ICT Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Stakeholder Analysis
4.3 Industry Attractiveness-Porter's Five Force Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rising Demand for 5G
5.1.2 Rising Need to Explore and Adopt Digital technologies and Initiatives
5.2 Market Restraint
5.2.1 Fragmented Nature of the Market and Growing Incidence of Data Breaches and Lack of Supporting Infrastructure
5.3 Assessment of the Impact of Macroeconomic Trends on the Market
6. KEY TECHNOLOGY INVESTMENTS
6.1 Cloud Technology
6.2 Artificial Intelligence
6.3 Cyber Security
6.4 Digital Services
7. MARKET SEGMENTATION
7.1 By Type
7.1.1 Hardware
7.1.1.1 Storage devices
7.1.1.2 Networking equipment (switches, routers, access points, network security appliances, etc.)
7.1.1.3 Computing devices (PCs, tablets, smartphones, etc.)
7.1.1.4 Others (Peripherals including printers, copiers, etc.)
7.1.2 Software
7.1.2.1 Enterprise Software (ERP, CRM, SCM, HCM, BI etc.)
7.1.2.2 IT Management (ITSM, Storage & Archiving, Network software, etc.)
7.1.2.3 BPM and Other software (collaboration tools, business process management, etc.)
7.1.3 IT Infrastructure
7.1.3.1 Data Centerss
7.1.3.2 High-performance computing, including processors and servers
7.1.4 Public Cloud Service
7.1.4.1 Infrastructure as a Service (IaaS)
7.1.4.2 Platform as a Service (PaaS)
7.1.4.3 Software as a Service (SaaS)
7.1.5 IT Services
7.1.5.1 Application (or Software) Services
7.1.5.2 Professional Technology Services ("IT Consulting & Implementation Services, Deployment and Support, Training and Education Services)
7.1.5.3 Outsourcing and Managed Service (BPO Services, Application management, IT outsourcing, Network and endpoint outsourcing services)
7.1.6 Telecommunication Services
7.1.6.1 Voice Services
7.1.6.2 Data Services
7.2 By Size of Enterprise
7.2.1 Small and Medium Enterprises
7.2.2 Large Enterprises
7.3 By Industry Vertical
7.3.1 BFSI
7.3.2 IT and Telecom
7.3.3 Government
7.3.4 Retail and E-commerce
7.3.5 Manufacturing
7.3.6 Energy and Utilities
7.3.7 Other Industry Verticals
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Cisco Systems Inc.
8.1.2 IBM Corporation
8.1.3 Dell Technologies Inc.
8.1.4 Huawei Investment & Holding Co. Ltd
8.1.5 Amazon Web Services Inc. (AWS) (Amazon.com, Inc.)
8.1.6 Google LLC (Alphabet Inc.)
8.1.7 Microsoft Corporation
8.1.8 Oracle Corporation
8.1.9 SAP SE
8.1.10 Cognizant Technology Solutions Corporation
8.1.11 Wipro Limited
- *List Not Exhaustive
9. INVESTMENT ANALYSIS
10. FUTURE OF THE MARKET
Thailand ICT Industry Segmentation
The Thailand ICT market is defined based on the revenues generated from the type such as hardware, software, IT infrastructure, public cloud services, IT services and telecom services that are being used in various end-user industry across the country.
The Thailand ICT market is segmented by type (hardware (storage devices, networking equipment (switches, routers, access points, network security appliances, etc.),computing devices (PCs, tablets, smartphones, etc.),others (peripherals including printers, copiers, etc.)), software (enterprise software (ERP, CRM, SCM, HCM, BI etc.), IT Management (ITSM, Storage & Archiving, Network software, etc.) , BPM and other software (collaboration tools, business process management, etc.), IT infrastructure (data centers,high-performance computing, including processors and servers), public cloud service (infrastructure as a service (IaaS), platform as a service (PaaS) software as a service (SaaS)), IT services (application (or software) services, professional technology services (IT consulting & implementation services, deployment and support, training and education services) outsourcing and managed service (BPO services, application management, IT outsourcing, network and endpoint outsourcing services)), telecommunication services (voice services, data services)), size of enterprise (small and medium enterprise and large enterprise), and industry vertical (BFSI, IT & telecom, government, retail, and e-commerce, manufacturing, energy and utilities and other industry verticals). The market sizes and forecasts are provided in terms of value in USD for all the above segments.
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| By Size of Enterprise | |
| Small and Medium Enterprises | |
| Large Enterprises |
| By Industry Vertical | |
| BFSI | |
| IT and Telecom | |
| Government | |
| Retail and E-commerce | |
| Manufacturing | |
| Energy and Utilities | |
| Other Industry Verticals |
Thailand ICT Market Research FAQs
How big is the Thailand ICT Market?
The Thailand ICT Market size is expected to reach USD 19.84 billion in 2024 and grow at a CAGR of 8.45% to reach USD 29.77 billion by 2029.
What is the current Thailand ICT Market size?
In 2024, the Thailand ICT Market size is expected to reach USD 19.84 billion.
Who are the key players in Thailand ICT Market?
Cisco Systems Inc., IBM Corporation, Dell Technologies Inc., Huawei Investment & Holding Co. Ltd and Amazon Web Services Inc. (AWS) (Amazon.com, Inc.) are the major companies operating in the Thailand ICT Market.
What years does this Thailand ICT Market cover, and what was the market size in 2023?
In 2023, the Thailand ICT Market size was estimated at USD 18.16 billion. The report covers the Thailand ICT Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Thailand ICT Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the major challenges faced by Thailand's ICT Market?
Major challenges faced by the ICT Market in Thailand are a) Cybersecurity threats b) Shortage of skilled ICT professionals c) Regulatory hurdles that may affect the pace of technological adoption
What are the major challenges faced by Thailand's ICT Market?
Major challenges faced by the ICT Market in Thailand are a) Cybersecurity threats b) Shortage of skilled ICT professionals c) Regulatory hurdles that may affect the pace of technological adoption
Thailand ICT Industry Report
The Thailand ICT market is experiencing robust growth, driven by increasing internet penetration, smartphone adoption, and government initiatives aimed at digital transformation in sectors like healthcare, education, and finance. This growth is further supported by government policies such as tax incentives and digital infrastructure enhancements, making Thailand an attractive destination for both local and international investors. Key market segments such as cloud services, e-commerce, and IoT applications are enhancing operational efficiencies and enabling data-driven decision-making. Despite facing challenges like cybersecurity threats, a shortage of skilled professionals, and the need for further infrastructure development, the opportunities in the ICT market in Thailand are abundant. Emerging technologies like AI and ML, along with the development of smart cities and digital healthcare platforms, are set to transform various industries. The competitive landscape is vibrant with a mix of established players and new entrants. For a detailed Thailand ICT market analysis, including market share, size, revenue growth rate, and a forecast outlook, access a free report PDF download from Mordor Intelligence™ Industry Reports.
