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During 2025-2027, the total revenue of Thailand’s data center industry is projected to grow at an average annual rate of 7.5-8.5%, driven by the digital transformation of government agencies and enterprises. This transition emphasizes large-scale data processing for strategic marketing planning, supported by continuous advancements in digital technology.

Services include hotels, private hospitals, mobile phone services, Data Center, Digital Services, Restaurant and Automotive Dealerships

Rate cuts take center stage as economic data start to slow down

Hotel business in downtown Bangkok continues to grow through the period 2019-2021 in line with growth in the number of visitors to the capital, especially to the city center. It is forecast that in these three years, the number of foreign and domestic tourists staying in hotels in Bangkok will rise by 4% and 7% per year, respectively, and this will then help to lift the occupancy rate for hotel accommodation in downtown Bangkok to 79-80%, compared to a national occupancy rate of 71.5-72.5%.

Services include hotels, private hospitals, mobile phone services, Data Center, Digital Services, Restaurant and Automotive Dealerships

Services include hotels, private hospitals, mobile phone services, Data Center, Digital Services, Restaurant and Automotive Dealerships

Services include hotels, private hospitals, mobile phone services, Data Center, Digital Services, Restaurant and Automotive Dealerships

Thai medical devices sector should see average annual growth of 8.0-10.0%. This outlook is supported by: (i) government policy that aims to establish Thailand as both a medical hub and a regional center for the export of medical devices by 2020; (ii) rising rates of ill-health in the Thai population (especially from heart disease, stroke, cancer and diabetes), which, together with the steady ageing of the population, is fueling increased demand for the use of modern, high-tech diagnostic equipment; (iii) the increasing trend for non-Thais (both expatriates and medical tourists) to use Thai medical services as confidence in the standard of care rises; and (iv) the plans put in place by healthcare providers to expand and/or build new hospitals.

The Thai electronics industry is forecast to return to healthy rates of growth over the three years from 2021 to 2023 thanks to a number of different developments on the technology front. In particular, demand for electronics parts will be boosted by the development and rollout of 5G technology and the need for equipment that supports this, and by the increasing market penetration of smart cars, which will in turn encourage a greater uptake of hyperconnected internet of things (IoT) applications. These changes to the commercial landscape will then drive stronger demand for integrated circuits (ICs) and hard disk drives (HDDs), especially for the large-capacity HDDs that are used in data center and cloud computing applications, where demand for big data applications is growing rapidly. In terms of consumer demand, the COVID-19 pandemic has also helped to precipitate a sudden explosion in working from home and distance learning that has then translated into stronger sales of PCs, notebooks, tablets and smartphones. Meanwhile, the shortage of ICs that was weighing on the industry (especially for use in auto assembly) should begin to dissipate in 2Q21, because production capacity has now risen on greater investment expansions from technology-leaders.

Opportunities and challenges of Thai data centers in ASEAN