Market Trends of thailand data center Industry
Increasing number of digital consumers boost the data center demand in country
- The total number of smartphone users in the country was 57 million in 2022, which is expected to increase and register a CAGR of 0.83% during the forecast period to reach 60.2 million by 2029.
- Thailand shows a strong level of digital readiness with a high penetration rate for internet usage, social media engagement, mobile connections, online shopping, and digital payments, according to the "Digital 2022: Thailand." An increase in domestic e-commerce merchants also promotes sales growth. Cross-border spending is half (50%) of Thailand's total e-commerce spend. The Thai mobile commerce market is already the dominant e-commerce sales channel in the country, used for 52% of all online shopping transactions and worth USD 13.6 billion. This makes the country one of the regional forerunners for mobile commerce.
- Thailand was expected to end 2022 with a 5G coverage of over 85% of the country's population. With newer partnerships and development, the usage of 5G in smartphones is increasing. For instance, in July 2022, Ericsson and the King Mongkut University of Technology Thonburi (KMUTT) announced a partnership to support Thai students in building 5G ICT skills for the future. As the pioneer in launching 5G commercial service in Southeast Asia, Thailand is well positioned to develop its ambitious Industry 4.0 wireless ecosystem to enhance the consumer mobile experience and support the digitization of its manufacturing, energy, and healthcare industries.
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The increasing investments for the expansion of 5G network by Operators drives the growth of the market
- Thailand has one of the highest penetration rates of 5G in the ASEAN region, with 9.2%, only behind Singapore, with 13.9%. Thailand's 5G subscriptions are expected to reach 70 million by 2027, or 73% of the total subscriptions in mobile services, according to Digital Economy and Society (DES).
- Thailand was one of the first markets to launch 5G in the Asia-Pacific region, with AIS and TrueMove H both launching commercial 5G services during Q1 2020. Driving 5G adoption in the market is one of the primary objectives for AIS and TrueMove H, and each had targeted 2 million 5G connections by the end of 2021. In 2021, users saw the fastest average overall and 5G download speeds on AIS' network. The operator won overall Download Speed Experience with a score of 19.4 Mbps, 1.7 Mbps (9.7%) ahead of second-placed TrueMove H. AIS also won the 5G Download Speed Experience award, clocking in at 180.3 Mbps and commanding a major lead of 57.4 Mbps (46.7%) over the runner-up TrueMove H. DTAC lagged behind its rivals.
- OpenGov Asia recently reported that the Thai Ministry of Digital Economy and Society (MDES), Digital Economy Promotion Agency (DEPA), and a Chinese multinational technology company announced the launch of the Thailand 5G Ecosystem Innovation Center (5G EIC) in Bangkok. This launch aims to accelerate 5G innovation through ecosystem collaboration and boost the digital economy. The rise of data centers in the nation is facilitated by the rising mobile internet speeds, which directly impacts data traffic and raises the demand for more racks.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Growing number of smartphone users, digitalization of different services, and increasing digital payments across the country boosts the market growth
- The increasing investments in fiber infrastructre improvements across the nation drives the market growth
- The increasing fiber infrastructre across the country drives the market growth
