Market Trends of Thailand ICT Industry
This section covers the major market trends shaping the Thailand ICT Market according to our research experts:
Growing demand for Cloud Technology
- Key Players in the ICT market are widely adopting cloud computing for application development and testing, resource management, data storage, backup, orchestration services, etc. Cloud computing technology is adopted across various sectors, including IT and telecom, healthcare, BFSI, manufacturing, retail, media, and entertainment. For instance, IBM and Red Hat are transferring their storage portfolio, including Red Hat Ceph Storage and Red Hat OpenShift Data Foundation (ODF), to faster hybrid, multi-cloud deployments.
- BFSI sectors in the country have led to the increasing deployment of cloud-based services for secured payment gateways. For instance, IBM collaborated with several organizations, including Kasikorn Bank, in applying technology to support bank transactions. Bank of Ayudhya is enabling its partners to access various digital services and AI and robotics ventures in developing National Digital Corporate Identity to support Know Your Customer (KYC) procedures.
- Key players in the ICT market upgrade their existing data centers with cloud computing solutions primarily drives the market growth. For Instance, Google Cloud announced it is bringing its first cloud services to Thailand to meet the growing demand locally and worldwide.
- Furthermore, the increasing investments by the government in promoting the development of numerous technologies, such as 5G, AI, IoT, machine learning, Big Data, etc. Additionally, the emergence of digital transformation is expected to drive the growth of the ICT market. For instance, AWS's ongoing commitment to support the Thailand government's Thailand 4.0's digital initiatives.
- According to DEPA, the Growth rate of Digital Services is expected to grow by 37.76% in 2021. Advanced technology like AI and cloud computing are expected to bring advanced digital services into the market, which is expected to bring new growth opportunities for the ICT Market.
Understand The Key Trends Shaping This Market
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IT and Telecom Industry Vertical Segment is Expected to Bring New Opportunities for the Market
- The government is taking initiatives to boost the country's IT sector because of the growing demand for digital transformation. For instance, Thailand's Board of Investment (BOI) adopted a new Five-Year Investment Promotion Strategy, which targets industries and sectors that promote Thailand's long-term development.
- The demand for greater agility and flexibility in the IT infrastructure is driving the growth of the ICT market. For instance, Huawei Technologies plans to invest USD 23 million to build its third data center in Thailand. Such infrastructure development projects will further increase the demand for hardware and IT services.
- Telecommunications players must upgrade their network capabilities, install fiber-optic and sub-sea systems and cables, purchase modern networking equipment/storage/servers, and utilize cloud and cybersecurity services. The 5G rollout requires digital transformation solutions, including 5G-ready consumer devices. There are opportunities for telecom companies to support medium to long-term telecommunications expansion projects, which would create new growth opportunities for the ICT market.
- The transition to 4G and 5G is still rising in the country due to expanding new networks and increasing demand for high-speed connectivity services. For instance, AIS partnered with Samsung to launch Voice over 5G New Radio (VoNR), enabling voice calls on AIS' 5G Standalone (SA) network.
- According to Ookla Speedtest Global Index, Thailand ranked 5th with a median fixed broadband download speed of 196.46 Mbps in October 2022. Smartphone penetration is growing significantly and thus increasing the demand for fixed broadband services.
