Market Trends of Thailand IT And Security Industry
Increasing Demand For Digitalization And Scalable IT Infrastructure
- Thailand is working towards improving its economy's growth by moving from an industrialized country into one that runs on high-tech innovation. In view of the increased competition brought about by this digitized economy, Thai business leaders are adopting new technology that enables their businesses to succeed.
- Regarding future technology plans, the adoption of emerging technologies is expected to grow as businesses look to replace outdated infrastructure. Technologies like artificial intelligence (AI), Internet of Things (IoT), and robotic process automation (RPA) are transforming the customer experience across fintech sectors, enabling the preference for scalable IT infrastructure in the wake of increased P2P transfers and payments, contactless bank cards, and cryptocurrency management via digital channels.
- In addition, the government support for digital projects in the country is further propelling digitalization momentum, creating demand for IT and Security related solutions and services. For instance, in January 2022, the Thailand government allocated THB 2.4 billion (USD 72 million) in FY2022 for the implementation of six digital projects under the Thailand Digital Government Development Plan (2023-27).
- In June 2023, Factorytalk, one of the leading providers of IT solutions and compliance consulting services to the life sciences and pharmaceutical sectors, announced the expansion of its sister company, BatchLine, in Thailand. With this expansion, the company aims to offer advanced software and digital solutions to 'GxP' regulated manufacturing companies in the country seeking to digitalize their operations and increase their competitiveness in the rapidly evolving industry landscape.
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IT Hardware and Devices to Hold Significant Share in the Market
- Thailand has been actively promoting digital transformation across various sectors, including government, healthcare, education, and businesses. This push towards digitalization requires IT hardware and device investments to support modernization efforts and improve efficiency by streamlining the business operations.
- During the pandemic, the Thai government recommended schools and universities conduct activities online, which resulted in tremendous demand for IT hardware and devices like desktops, tablets, and laptops. With the advent of more inclusive digital world, devices such as tablets became necessity rather than luxury and drove demand in this country. For instance, according to the Thailand Ministry of Commerce, in the first five months of 2022, Thailand imported around THB 139.8 billion (USD3.86 billion) worth of computers and accessories. Imports under this category had increased import value from 2020 to 2021.
- Thailand has been one of the most vibrant economies in the Association of Southeast Asian Nations (ASEAN) region. The country's IT industry has increased and is becoming increasingly attractive to foreign investors. Businesses and government agencies are increasingly going digital, and more and more consumers are becoming tech-savvy, proliferating the demand for IT hardware and devices.
- Additionally, driven by the increasing usage of technology in multiple aspects of society, the information technology sector has been growing significantly in Thailand, offering a vast business potential for companies to meet sophisticated users and demanding customers. In July 2023, HP the manufacturers of PC and printers announced the shifting of production of consumer and commercial laptops to Thailand and Mexico to diversify supply chain beyond China.
