Overview
The Thai government has ambitions of turning Thailand into a digital infrastructure hub for ASEAN. According to the National Broadcasting and Telecommunications Commission (NBTC), adopting 5G could contribute $9.3 billion to the Thai economy in 2035, equivalent to 10 percent of GDP. The Thai government aims for this sector to contribute 25 percent of national GDP by 2027 through an economic and social transformation scheme known as “Thailand Industry 4.0”. The scheme encourages digital creativity and innovation, the development of new technology, and the transition to a digitally driven economy.
In October 2022, NBTC approved the merger of Thai mobile operators Total Access Communication (DTAC) and True in what was Southeast Asia’s largest ever telecom merger. The new entity, True Corporation, became Thailand’s largest service provider with the aggregation of True’s 33.8 million subscribers with DTAC’s 21.2 million users. The merger left the market with only two major players.
Thailand’s telecom market expects moderate growth due to the stronger private consumption in the second half of 2022. In 2023, consumption continued to grow in line with the broader economy due to strength in the tourism sector. The COVID-19 pandemic inspired widespread adoption of digital solutions in key economic sectors including retail, manufacturing, transport, and distribution. This digital adoption increases demand for devices and technologies incorporating internet of things (IoT) through mobile networks.
Similarly, government policies including the promotion of the digital economy, the development smart cities, and the allocation of 5G frequencies ensures that mobile telecom infrastructure extends across Thailand, stimulating stronger demand from consumers in new parts of the country. Currently, 5G in Thailand is mostly deployed in the internet and network services space. However, 5G has far greater untapped potential. Most Thai businesses, particularly small and medium sized enterprises, are still in the early stages of digital transformation. There are many opportunities for 5G technologies to improve their operations.
Leading Sub-Sectors
- Internet of Things
- ICT Security and Solutions
- Cloud Computing
- Telecommunication Infrastructure
- Network Management
- 5G infrastructure and applications
Thailand’s Telecommunication Sector Equipment (Millions USD)
| 2021 | 2022 | 2023 (est) | 2024 (est) | |
| Total Local Production | 7,248 | 7,120 | 7,300 | 7,373 |
| Total Exports | 1,724 | 1,520 | 1,700 | 1,734 |
| Total Imports | 2,597 | 2,500 | 2,600 | 2,643 |
| Imports from the U.S. | 276 | 276 | 280 | 285.6 |
| Total Market Size | 8,121 | 8,120 | 8,200 | 8,282 |
| Exchange Rates | 31 | 32 | 33 | 32 |
(Total market size = (total local production + imports) – exports)
Source: NBTC
Opportunities
Opportunities for telecom equipment and service providers are growing in Thailand, driven by Thailand’s goal to become a regional digital infrastructure hub in ASEAN. Additionally, the pandemic accelerated digital transformation of Thailand’s business sector due to increasing numbers of people working from home, and studying online, growth in e-commerce and internet-delivered services, and uptake of data services.
Telecommunication products and technologies from the United States are well known for high adoption rate of new advanced technologies, IoT, wearable technology, and autonomous/connected cars. Deployment of 5G in Thailand in Thailand provides reliable and fast connectivity required for these technologies.
The major players in the 5G infrastructure market are Huawei (China), Ericsson (Sweden), Samsung (South Korea), Nokia Networks (Finland), ZTE (China), NEC (Japan), CISCO (US), CommScope (US), Comba Telecom Systems (Hong Kong), Alpha Networks (Taiwan), Siklu Communication (Israel), and Mavenir (US).