IT Industry of Thailand

Thailand’s economy relies heavily on the IT sector, which raises GDP levels significantly. According to the National Economic and Social Development Council, the IT sector will contribute roughly 4.5% of Thailand’s GDP in 2020. (NESDC).

The manufacturing of hardware, software, telecommunications, and digital services are just a few examples of the diverse industries that make up the IT sector. Companies like Advanced Info Service (AIS), True Corporation, and the Thai division of IBM are some of the major participants in Thailand’s IT sector. There are also an increasing number of startups and innovation hubs.

A number of reasons, such as government backing for digital transformation, an expanding local market, and a competent workforce, have contributed to the rise of Thailand’s IT industry. The business has also profited from Thailand’s advantageous location in Southeast Asia’s center, which offers quick access to other markets in the area.

Moving ahead, it is anticipated that the IT sector will keep being crucial to Thailand’s economic expansion and development. The government has established lofty goals for the growth of the nation’s digital economy, hoping to increase the sector’s GDP contribution to 18% by 2027. A number of efforts, including investments in digital infrastructure, encouragement of startups and innovation, and promotion of e-commerce and other digital services, are anticipated to be the main drivers of this.

The government’s initiatives to encourage digital transformation and the rising usage of digital technology have both contributed to the recent rapid growth of Thailand’s digital economy. A variety of companies and sectors, including e-commerce, fintech, digital content, and smart cities, are included in the nation’s digital economy.

The following are some significant data points regarding Thailand’s digital economy:

• Size: In 2020, Thailand’s digital economy was estimated to be worth 140 billion baht (USD 4.4 billion), or around 5% of the nation’s GDP. By 2027, it is anticipated to increase to about 20% of GDP.

• E-commerce: Thailand’s e-commerce market is expected to reach a projected value of $20.3 billion by 2025 and is expected to expand quickly. With around 51 million users (about 73% of the population) in 2020, the country will have a sizable and quickly expanding internet user base.

• Fintech: A number of digital payment and financial services companies operate in Thailand, where the fintech industry is also expanding quickly. The government has put up a number of initiatives to aid fintech businesses and encourage innovation in the sector.

• Digital content: The market for digital material in Thailand is expanding, especially in fields like gaming, social media, and online entertainment. Social media is widely used in the nation, with sites like Facebook, LINE, and Instagram enjoying particular popularity.

• Smart cities: Thailand is making investments in smart city efforts as well, and a number of projects are currently under way with the goals of boosting urban infrastructure, fostering sustainable development, and increasing citizen quality of life.

Thailand’s digital economy is expanding rapidly overall and offers a variety of opportunities for companies and investors. Thailand is a desirable location for businesses aiming to increase their digital footprint in Southeast Asia due to the government’s support for digital transformation and innovation, a competent workforce, and a developing local market.

In recent years, Thailand’s IT sector has expanded quickly thanks to a mix of government assistance, a booming domestic market, and a competent labor pool. The following are some of the major drivers of Thailand’s IT sector growth:

Support from the government: The Thai government has been aggressively fostering the development of the nation’s IT sector by providing tax benefits and other incentives to attract foreign investment and promote domestic startups. To establish a solid foundation for the business, it has also made investments in infrastructure and education.

Growing domestic market: Thailand’s population is over 69 million, and its middle class is expanding quickly and becoming more tech-savvy and connected. Due to this, there is now a sizable and expanding domestic market for IT goods and services, especially in sectors like e-commerce, social media, and mobile devices.

Skilled workforce: Thailand has a well-educated and highly skilled workforce, notably in sectors such as software development, engineering, and design. A significant number of graduates in these professions are produced annually by the nation’s universities and technical schools, resulting in a robust talent stream for the sector.

Thailand’s central location in Southeast Asia makes it an advantageous site for businesses wishing to tap into the region’s burgeoning economies. The nation has excellent transportation links to other nations in the area, and its ports and airports offer quick access to markets throughout Asia and beyond.

These factors have led to tremendous expansion in Thailand’s IT sector in recent years, especially in sectors like e-commerce, fintech, and digital content. Companies like True Corporation, Advanced Info Service (AIS), and the Thai division of IBM are among the major players in Thailand’s IT sector. There are also an increasing number of startups and innovation hubs.

The industry does, however, confront some difficulties, such as a lack of qualified labor in some fields and a limited venture capital market in comparison to other nations in the region. Yet, the future seems bright for Thailand’s IT sector, with great potential for further expansion and innovation.