Thai digital industry performs strongly
Thailand's digital industry has grown at a rate of 3.88% since 2023, bringing its total value to a staggering 2.02 trillion baht, according to a study released on Tuesday by the Digital Economy Promotion Agency (DEPA) and the IMC Institute.
The report showed that, despite global economic headwinds, the software sector outperformed, growing by 12.80% and reaching a value of 215.19 billion baht.
Kasititorn Pooparadai, DEPA senior executive vice-president, highlighted the sector's remarkable performance, attributing it to increased investments in cutting-edge technologies such as artificial intelligence, data analytics, cloud computing, and cybersecurity.
"These investments are crucial for organisations seeking to gain a competitive edge and align with global trends. Furthermore, technologies addressing sustainability have played a pivotal role in driving this growth," she said.
Meanwhile, the digital services sector also demonstrated strong performance, expanding by 9.28% to reach 307.63 billion baht. This growth was largely fuelled by surging demand across various sub-sectors, including e-retail, e-logistics, and financial technology.
Notably, the health technology and educational technology sub-sectors exhibited extraordinary growth rates of 85.71% and 82.26% respectively albeit from smaller base values.
Furthermore, the hardware and smart-devices industry, while experiencing more modest growth at 1.76%, still achieved a substantial value of 1.46 trillion baht. The sector benefited from a significant 52.68% increase in smart device imports, reaching 176.46 billion baht.
However, Associate Professor Thanachart Numnonda, IMC Institute director, cautioned that the global economic slowdown, impacting consumer purchasing power – especially in the consumer electronics sector – may limit further growth in this industry.
The survey also shed light on employment trends within the digital industry. The digital services sector saw a notable increase of nearly 10% in personnel, primarily driven by the e-logistics sector.
In contrast, the software and hardware industries maintained relatively stable employment figures, reflecting cautious hiring practices in response to global economic uncertainties.
Despite challenges, the outlook for Thailand's digital industry remains optimistic. Forecasts suggest the industry could reach a value of up to 2.94 trillion baht by 2026, driven by increasing demand for emerging technologies, particularly artificial intelligence (AI).
As Thailand continues to position itself as a key player in the global digital economy, the DEPA and its partners remain committed to fostering innovation, strengthening the country's digital infrastructure, and enhancing the delivery of digital services to the public.
This growth trajectory not only underscores Thailand's resilience in the face of global economic pressures but also highlights the country's potential as both a producer and consumer of digital products and services in the years to come.
