Construction in Thailand - Key Trends and Opportunities to 2022

  • ID: 4715290
  • Report
  • Region: Thailand
  • 49 pages
  • GlobalData
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Construction in Thailand - Key Trends and Opportunities to 2022

Summary

Construction activity in Thailand was weak in 2017, due to erratic public investment, difficulties in land acquisition and an unstable political environment. Moreover, labor shortages due to the new immigration law hindered industry growth in 2017. The country’s construction industry consequently contracted by 3.0% in real terms that year, which was a sharp downturn following annual growth rate of 8.6% in 2016 and 17.1% in 2015.

The industry’s output value is expected to pick up over the forecast period (2018-2022), with investment in public infrastructure, renewable and nuclear energy, commercial and industrial projects, and improvements in consumer and investor confidence. In June 2018, the government announced plans to build two new airports in Chiang Mai and Phuket by 2025. Moreover, the government’s investment to support the establishment of a regional transport network under the Twelfth National Economic and Social Development Plan (2017-2021) is expected to support industry growth over the forecast period. Under this, the government plans to construct bridge at Kolok River in Tak Bai and Sungai Kolok, and build a maritime transport network to connect Indonesia, Malaysia and Thailand by 2022.

In real terms, the construction industry’s output value is forecast to rise at a compound annual growth rate (CAGR) of 3.04% over the forecast period.

"Construction in Thailand - Key Trends and Opportunities to 2022" report provides detailed market analysis, information and insights into the Thai construction industry, including -
  • The Thai construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Thai construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Key Highlights
  • We expect the infrastructure construction market to record a forecast-period CAGR of 6.17% in nominal terms, driven by the government’s investment in infrastructure development. To develop the country’s roads, rail and airports, the government increased its investment on the Transportation Action Plan from THB855.3 billion (US$25.2 billion) in 2017 to THB2.0 trillion (US$62.0 billion) in 2018.
  • Forecast period growth in the residential construction market will be supported by government efforts to build houses for middle-and low-income groups through its social housing program, coupled with growing urbanization. In September 2018, the National Housing Authority (NHA) and Krung Thai Bank (KTB) launched a new housing loan scheme. Under this, the government announced plans to spend THB10.0 billion (US$306.8 million) to provide loans to builders to construct affordable houses in the country for low- and middle-income people.
  • We expect the energy and utilities construction market to record a forecast-period CAGR of 5.25% in nominal terms, driven by the government plans to meet rising energy demand. The government plans to increase the total installed capacity of the country from 42,433MW in 2017 to 70,335MW by 2036; this is expected to drive investment towards new power plants in the coming years.
  • Growth of the industrial construction market over the forecast period will be supported by the government’s focus to develop the country’s manufacturing sector. In February 2018, the government announced plans to provide income tax and import tax exemption to auto manufacturing companies for up to eight years, on the basis of type and scale of their production. Moreover, the government plans to increase the number of aircraft spare part manufacturers from 28 factories in 2017 to 40 by 2020.
  • The total construction project pipeline in Thailand - and including all mega projects with a value above US$25 million - stands at THB9.7 trillion (US$287.0 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards early-stage projects, with 55.0% of the pipeline value being in projects in the pre-planning and planning stages as of November 2018.
Scope
  • This report provides a comprehensive analysis of the construction industry in Thailand.
  • Historical (2013-2017) and forecast (2018-2022) valuations of the construction industry in Thailand, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants.
Reasons to Buy
  • Identify and evaluate market opportunities using standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.
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1. EXECUTIVE SUMMARY

2. CONSTRUCTION OUTLOOK: AT-A-GLANCE

3. LATEST NEWS AND INDICATORS

4. KEY DRIVERS AND RISKS
4.1. Economic Performance
4.2. Political Environment
4.3. Demographics
4.4. Risk Profile

5. CONSTRUCTION OUTLOOK
5.1. All Construction
5.1.1. Outlook
5.1.2. Project analytics
5.2. Commercial Construction
5.2.1. Outlook
5.2.2. Project analytics
5.3. Industrial Construction
5.3.1. Outlook
5.3.2. Project analytics
5.4. Infrastructure Construction
5.4.1. Outlook
5.4.2. Project analytics
5.5. Energy and Utilities Construction
5.5.1. Outlook
5.5.2. Project analytics
5.6. Institutional Construction
5.6.1. Outlook
5.6.2. Project analytics
5.7. Residential Construction
5.7.1. Outlook
5.7.2. Project analytics

6. KEY INDUSTRY PARTICIPANTS
6.1. Contractors
6.2. Consultants

7. APPENDIX
7.1. What is this Report About?
7.2. Definitions

8. ABOUT
8.1. at a Glance
8.2. Construction
8.3. Disclaimer
8.4. Contact Us

List of Tables
Table 1: Construction Outlook
Table 2: Thailand, Key Economic Indicators
Table 3: Thailand, Construction Output Value (nominal, THB Million)
Table 4: Thailand, Construction Output Value (nominal, US$ Million)
Table 5: Thailand, Top Commercial Construction Projects by Value
Table 6: Thailand, Top Industrial Construction Projects by Value
Table 7: Thailand, Top Infrastructure Construction Projects by Value
Table 8: Thailand, Top Energy and Utilities Construction Projects by Value
Table 9: Thailand, Top Institutional Construction Projects by Value
Table 10: Thailand, Top Residential and Mixed-Use Construction Projects by Value
Table 11: Thailand, Key Contractors
Table 12: Thailand, Key Consultants
Table 13: Construction Market Definitions
Table 14: Construction Risk Index Ratings and Scores

List of Figures
Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix
Figure 2: Thailand, Construction Projects Pipeline by Sector (THB Trillion)
Figure 3: Thailand, Construction Permits (Total Numbers)
Figure 4: Thailand, Risk Profile, Q3 2018
Figure 5: Thailand, Risk Comparison Review
Figure 6: Thailand, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)
Figure 7: Thailand, Construction Output Value, Growth Matrix
Figure 8: Thailand, Construction Output Value, by Sector (THB Billion), 2013-2022
Figure 9: Thailand, Construction Projects Pipeline, Projected Annual Spending by Stage (THB Billion), 2017-2022
Figure 10: Thailand, Construction Projects Pipeline, Value by Stage (THB Billion)
Figure 11: Thailand, Commercial Construction Output by Project Type (THB Billion), 2013-2022
Figure 12: Thailand, Commercial Construction Projects Pipeline, Value by Stage (THB Billion)
Figure 13: Thailand, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (THB Billion)
Figure 14: Thailand, Industrial Construction Output by Project Type (THB Billion), 2013-2022
Figure 15: Thailand, Industrial Construction Projects Pipeline, Value by Stage (THB Billion)
Figure 16: Thailand, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (THB Billion)
Figure 17: Thailand, Infrastructure Construction Output by Project Type (THB Billion), 2013-2022
Figure 18: Thailand, Infrastructure Construction Projects Pipeline, Value by Stage (THB Billion)
Figure 19: Thailand, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (THB Billion)
Figure 20: Thailand, Energy and Utilities Construction Output by Project Type (THB Billion), 2013-2022
Figure 21: Thailand, Energy and Utilities Construction Projects Pipeline, Value by Stage (THB Billion)
Figure 22: Thailand, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (THB Billion)
Figure 23: Thailand, Institutional Construction Output by Project Type (THB Billion), 2013-2022
Figure 24: Thailand, Institutional Construction Projects Pipeline, Value by Stage (THB Billion)
Figure 25: Thailand, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (THB Billion)
Figure 26: Thailand, Residential Construction Output by Project Type (THB Billion), 2013-2022
Figure 27: Thailand, Residential Construction Projects Pipeline, Value by Stage (THB Billion)
Figure 28: Thailand, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (THB Billion)
Figure 29: Thailand, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 30: Thailand, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)
Figure 31: Thailand, Headquarters of Key Consultants (% of Total Project Pipeline)
Figure 32: Thailand, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)
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