Market Trends of Thailand Motor Insurance Industry
This section covers the major market trends shaping the Thailand Motor Insurance Market according to our research experts:
Increase in GDP Per Capita
Focus Economics Consensus Forecast projects Thailand's GDP to grow by 3.9% in 2022 and expected to expand by 4.3% in 2023. In recent years, the government of Thailand has made a concentrated effort to develop the insurance sector. The government has implemented a series of insurance development plans toward this end. The rise in per capita income coupled with government initiatives is expected to drive the demand for motor insurance market.
Increasing Production and Sales of Electric Vehicles is Expected to Drive the Market
With the Thai government's current zero-emission vehicle (ZEV) plan, Thailand's demand growth for EVs is projected to increase to 402k in 2025, rising to 2m in 2030, and 6.4m by 2035. The total of new commercial vehicles for the e-truck and e-bus categories is expected to grow from 31k in 2025 to 430k in 2035. The number of charging stations is forecast to rise to 2,460 in 2025, 13,450 in 2030, and 40,500 in 2035, up from a mere 693 stations as of Sep-21.
In its most recent move to approve the comprehensive EV promotion plan by the National Electric Vehicle Policy Committee (NEVPC), the Thai government has clearly signaled that Thailand is dedicated to fully converting the country's existing internal combustion engine (ICE)-based automotive industry into an EV industry. According to the Electric Vehicle Association of Thailand (EVAT), Thailand is now at the forefront of its ASEAN peers in transitioning its automotive industry from an ICE-based industry to an EV industry. Increased demand for EV is set to be the main driving force for the motor insurance industry.
