Thailand IT And Security - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

Key Highlights

• Following the widespread proliferation of the Internet, Thailand is transitioning into a digital economy, opening up new revenue sources for several industries, including telecommunications service providers, digital entertainment and gaming, and consumer electronics.
• With digital transformation, organizations have become increasingly dependent on applications and extensions that make IT a critical competitive advantage for most organizations. Moreover, IT outsourcing has become more than a simple cost-reduction technique with cloud migrations and cloud service options. This new form is driven by organizational initiatives regarding business growth, customer experience, and competitive disruption.
• Several government initiatives to propel digital technology development and adoption are further supporting market growth. For instance, in November 2023, the Thai government and Google strategically collaborated to boost the country's digital competitiveness and accelerate artificial intelligence innovation. Through this agreement, both parties are expected to work jointly to implement four foundational pillars that are essential for the country to thrive in the AI economy. The agreement includes advancing digital infrastructure investments, promoting secure and responsible AI adoption to transform public service delivery, anchoring on cloud-first policies, and making digital skills more accessible to the country.
• Various governmental defense agencies and companies are moving more data to the cloud, designing new digital systems, and increasing the number of endpoints in their network infrastructure. As a result of their increasing reliance on third parties and service providers, attackers have new opportunities to penetrate supply chains.
• The increasing number of cyberattacks in the country, the increasing demand for digitalization and scalable IT Infrastructure, the rising need to tackle risks from third-party vendor risks, the evolution of MSSPs, and the adoption of a cloud-first strategy are driving the growth of cybersecurity solutions and services in the country. However, the shortage of skilled IT professionals to meet the demand leads to businesses having difficulty in their operations, challenging the market's growth in Thailand.
• The COVID-19 pandemic has accelerated the adoption of digital technologies and digital transformation initiatives across various end-user industries in the country. The rising investment in cloud computing, collaborative tools, and IT infrastructure-related solutions to ensure business connectivity resulted in increased reliance on digital technologies and remote work, which has heightened security concerns, resulting in increased demand for security solutions in the market.

Thailand IT And Security Market Trends

Cloud Security is Expected to Drive Market Growth

• Cloud computing services in Thailand have seen remarkable growth in recent years. The transformation is part of the government's attribution initiatives to promote digitalization and cloud technologies. Many industries in Thailand have adopted cloud computing to modernize their business processes and gain a competitive advantage in their respective markets.
• Cloud computing has become increasingly popular in Thailand due to the country's strong internet infrastructure and high-speed internet connections. Additionally, the expanding presence of local and international cloud service providers has given Thai businesses access to a diverse range of cloud-based solutions and services. As a result, the demand for cloud security across end-users is expected to increase over the forecast period to secure cloud environments and respond to rising cyber threats.
• In July 2023, Cloud Computing Solutions Co. Ltd (CCS), a cloud computing services provider, and Tencent Cloud, the cloud business of global technology company Tencent, signed an MoU to offer leading Cloud-AI solutions from Tencent Cloud for business enterprises, including IaaS, PaaS, and SaaS in Thailand. This partnership aims to boost customer trust and satisfaction with an after-sales service, driving business growth for companies of all sizes and industries in Thailand in the midst of digital transformation.
• Thailand is at the forefront of Asia's cloud adoption trend. According to a "The Next-Generation Cloud Strategy in Asia" survey from Alibaba Cloud, the adoption of cloud is rapidly increasing in Thailand. A vast majority of Thai businesses (95%) are expected to significantly increase investment in the cloud across countries like Indonesia (94%), the Philippines (91%), Hong Kong Special Administration (83%), and Singapore (83%). The survey results indicated that many businesses chose the public cloud based on reliable local support and a strong reputation for security. Such developments related to cloud technology and related trends are anticipated to create demand for cloud security over the coming years.

IT Hardware and Devices Are Expected to Hold a Significant Market Share

• Thailand has been actively promoting digital transformation across various sectors, including government, healthcare, education, and businesses. This push toward digitalization requires IT hardware and device investments to support modernization efforts and improve efficiency by streamlining 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 a more inclusive digital world, devices such as tablets became necessity rather than a luxury, driving demand in the country.
• Thailand has been one of the most vibrant economies in the Association of Southeast Asian Nations (ASEAN) region. The country's IT sector has expanded; it is becoming increasingly attractive to foreign investors. Businesses and government agencies are increasingly going digital, and more consumers are becoming tech-savvy, increasing the demand for IT hardware and devices.
• The IT sector has been growing significantly in Thailand, driven by the increasing usage of technology, offering vast business potential to companies to meet the demands of sophisticated users. In July 2023, HP announced the shifting of production of consumer and commercial laptops to Thailand and Mexico to diversify the supply chain beyond China.

Thailand IT And Security Industry Overview

• March 2024: Sangfor Technologies, a key provider of Cloud Computing and Cybersecurity solutions, strategically partnered with VST ECS (Thailand) Co. Ltd to expand Sangfor's customer base in Thailand by leveraging VST ECS's expertise and experience in IT solution distribution, combined with Sangfor's technology.
• September 2023: Fujitsu Limited and Fujitsu Thailand Limited acquired Thailand-based SAP consultancy Innovation Consulting Services (ICS) and strengthened its capabilities in SAP consulting and managed services across the Asia-Pacific region. This was the seventh acquisition by Fujitsu Limited since 2021 as part of its programmatic merger and acquisition strategy to become a global leader in digital transformation.
• July 2023: HP announced its plan to shift production of millions of consumer and commercial laptops to Thailand and Mexico to diversify its PC supply chain beyond China.

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