- Language: English
- 864 Pages
- Published: October 2012
- Region: Global
Thailand Information Technology Report Q4 2011
- Published: October 2011
- Region: Thailand
- 61 Pages
- Business Monitor International
Business Monitor International's Thailand Information Technology Report provides industry professionals and strategists, corporate analysts, information technology associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Thailand's information technology industry.
The Thai IT market is the largest in the South East Asia region and despite some ongoing risk factors is projected to grow at a CAGR of 9% over the 2011-2015 period. The total value of Thai domestic spending on IT products and services should reach US$6.4bn in 2011 an US$9.0bn by 2015. A national PC penetration rate of around 15% indicates plenty of untapped market potential, and particularly fast growth is forecast in upcountry areas.
A number of factors should support momentum in 2011, including a government plan to provide 800,000 tablet computers to Grade 1 school children, and SME informatisation initiatives. The IT market is expected to grow about 13% in 2011, consolidating a recovery that was strong in 2010 despite a number of exogenous disturbances, including political disturbances and severe flooding.
BMI's view is the fundamentals of growing affordability and rising PC penetration, supported by government ICT initiatives, will keep the market in positive territory during the forecast period. There are a number opportunities including cloud computing, in which Thailand has been ranked one of the early adopter countries in the region.
In August 2011, Thailand's revealed plans to distribute iPads to Prathom One (Grade 1) schoolchildren across Thailand. The distribution of the devices will be accompanied by instruction for both teachers and students in how to use the devices as learning tools. It has been estimated that the procurement could be in the order of 800,000 devices.
The government has announced a new fund to encourage Thai small and medium-sized enterprises (SMEs) to utilise cloud computing, which it sees as a cost-effective way for smaller companies to access IT. Government assistance will also be an important driver of this segment, with Thai SMEs eligible to receive between THB200,000-400,000 (up to US$13,000) to adopt cloud computing. Thailand has around 2.8mn SMEs.
In H111, Acer, Samsung and other vendors were cutting the prices of their tablet devices on the Thai market as they attempted to take market share from Apple's market-leading iPad. In Summer 2011, Lenovo launched two new tablet devices in Thailand, aimed at the corporate sector, which is expected to be a growth opportunity in 2012. Meanwhile Japanese vendor Toshiba said that it would not participate in the government's tablets for schools programme, ostensibly due to concerns about corruption.
In 2011, Microsoft announced the target of doubling the revenue of its Thai operating unit by 2015, driven by a new consumer lifestyle products division to be launched soon. In April 2011, Microsoft launched a new partnership with telecoms giant True, which will offer access to Microsoft services via a new data centre. The cloud services will focus on digital content, email, communications and collaboration.
The Thai government has an ambitious target to increase the local software market share of Thai software companies to 40% in 2010, and 50% in 2011. Locally produced software vendors claimed around 20% of the Thai market in 2008.
According to BMI projections, Thailand's computer hardware market will be worth about US$4.1bn in 2011, up from an estimated US$3.8bn in 2010. In 2011, the consumer segment is expected to continue its dominance and will comprise nearly two-thirds of the market. PC penetration of about 15% represents considerable latent growth potential.
The Thai PC market has matured and there is greater segmentation. There is also a first-buyer market for desktops, particularly in large provincial cities such as Chiang Mai and Hat Yan. However, even firsttime buyers have higher expectations concerning functionality and performance. The main driver of the computer market will be notebooks, which comprised nearly two-thirds of PC sales in 2010.
In 2011, Thai software sales are projected by BMI at US$733mn and software CAGR from 2011-2015 should be in the region of 10%. The baht's recent appreciation has allowed retailers to reduce local prices, and this boosted vendors' sales of legal software in 2010. Growing PC penetration as well as new technologies and business models, including 3G mobile and WiMAX, and industry trends such as cloud computing are all market drivers.
There is a growing emphasis on cost efficiency as enterprises look to enhance productivity through automating these and other functions. Business intelligence software is another growth area, due to the issue of data proliferation. Thailand's software market is developing, despite the problem of software piracy, which still accounts for about 76% of software.
IT services spending is forecast to reach about US$1.5bn in 2011, up from US$1.2bn in 2010. Sectoral CAGR is projected at 13% over the forecast period as the market approaches US$2.3bn by 2015. Vendors are focusing on opportunities developing from cloud computing and are expanding into smaller cities.
IT services accounts for about 22% of total IT spending. Over the past few years, the size of deals has increased in key verticals such as banking and telecoms. Despite the financial crisis, some elements of bank spending on IT will be relatively immune, particularly those driven by regulatory compliance. Meanwhile, telecoms is another big spending IT vertical, with mobile operators investing to expand capacity and launch new services.
Thailand's internet penetration is set to pass 17% within BMI's five-year forecast period, from about 16% in 2008. Broadband penetration will grow from 2.3% in 2009 to 6.6% in 2014, according to BMI estimates.
By 2009, the Thailand Internet Service Provider Association forecast that Thailand could have between 5mn and 10mn broadband subscribers, although BMI opted for a more conservative estimate of 1.5mn subscribers. The level of growth in the broadband sector will also be fuelled by the award of WiMAX licences. SHOW LESS READ MORE >
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