The Thailand industry outlook for 2024-2026 highlights key factors impacting various industries, considering the macroeconomic environment and sector-specific dynamics. This period presents both opportunities and challenges that influence the attractiveness of each industry. In this context, comprehensive Market Research Thailand will be crucial in navigating these evolving trends and making informed business decisions.
Macroeconomic Environment
Global Economy (2024-2026)
Global growth is forecasted to remain low, averaging 3.1%, slightly up from 2023’s 3.0%. Factors such as the fading post-COVID boost, China’s slowdown, and US-China geopolitical tensions will disrupt supply chains and world trade. High interest rates and tight monetary policies will strain debts but may ease inflationary pressures by late 2024.
Thailand’s Economic Landscape
The global shift towards a service-oriented economy is significant for Thailand, where services accounted for 60.2% of GDP in 2022. The integration of advanced technologies like AI, IoT, and robotics is essential for enhancing efficiency and competitiveness in traditional and emerging sectors.
Structural Changes and Technological Advancements in Thailand
The rise of technologies such as AI, IoT, robotics, blockchain, and 3D printing is crucial for the Thailand industry outlook 2024. Embracing these innovations can enhance efficiency and competitiveness, particularly in manufacturing and traditional service sectors like tourism.
Technological Highlights
- AI and Generative AI: Revolutionizing industries by automating creative processes and improving efficiency.
- IoT and Robotics: Enhancing manufacturing and service delivery through advanced sensors and automation.
- Blockchain and 3D Printing: Offering new service platforms and precise, low-cost production methods.
- Drones and Synthetic Biology: Innovating logistics and food production, meeting consumer demand for healthier options.
Trade and Investment in Thailand
Decoupling between major economies, notably the US and China, is shortening global value chains. This shift towards re-shoring, near-shoring, and friend-shoring impacts global trade patterns, making regional trade blocs and free trade agreements (FTAs) increasingly important. Thailand’s participation in FTAs has boosted competitiveness, with 14 FTAs currently in place, covering 60.9% of exports in 2022. Ongoing negotiations with the UAE, Sri Lanka, and the European Free Trade Association are set to further enhance trade prospects.
Sectoral Outlooks in Thai Industry Landscape
Modern Trade
Retail sales are projected to grow by 5.0-5.5% annually, driven by economic growth, increased tourist arrivals, and the expansion of e-commerce. The market research Thailand highlights a positive outlook for department stores, supermarkets, and convenience stores, with players focusing on digital technologies and omnichannel platforms.
Financial Services
Credit card spending is expected to rise by 14.0-15.0% annually, supported by economic growth and the recovery of the tourism sector. Issuers will target high-income consumers and adapt to competition from mobile banking and e-wallets.
Logistics and Warehousing
Demand for warehousing space will grow by 5.3% annually, driven by economic growth, e-commerce expansion, and new industrial estates. Modern, built-to-suit facilities using digital technologies will meet rising demand.
Digital Services and Software
Industry revenue will continue to grow by 12.0-12.5% annually, led by digital services and software. Businesses will increasingly rely on online platforms, AI, and big data analytics to drive growth and innovation.
Conclusion
In summary, the Thailand industry outlook 2024-2026 reveals a dynamic landscape with significant opportunities for growth through technological adoption and strategic trade agreements. Emphasizing the development of modern services and digital technologies will be crucial for Thailand’s sustainable long-term growth. Comprehensive Market Research Thailand will be indispensable in navigating these evolving trends and making informed business decisions.
