IT Services - Thailand

Thailand

In 2024, the projected revenue for the IT Services market in Thailand is expected to reach US$2.41bn.
Within this market, IT Outsourcing dominates with a projected market volume of US$0.96bn in the same year.
Looking ahead, the revenue is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 6.81%, resulting in a market volume of US$3.35bn by 2029.
Moreover, in 2024, the average Spend per Employee in the IT Services market is projected to reach US$59.81.
It is worth noting that in a global context, United States is expected to generate the highest revenue, amounting to US$522.00bn in the year 2024.
Thailand's IT Services market is experiencing a surge in demand for cloud computing solutions to support the country's digital transformation initiatives.

Key regions: United States, China, India, Japan, Germany

Definition:
The IT Services market encompasses a wide range of services used by organizations to create, manage, and deliver information, and it includes services that provide assistance with various other business functions. The primary goal of IT services is to ensure that information technology infrastructure, applications, and systems are effectively implemented, operated, and optimized to support an organization's business objectives and requirements. The specific range of services offered may vary depending on the service provider and the client's requirements.

Structure:

IT Services contains four distinct markets that are based on different services:

IT Consulting & Implementation covers advisory services that help businesses evaluate their technology strategies and align them with their business strategies or internal processes.
Business Process Outsourcing (BPO) refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers).
IT Outsourcing refers to the external contracting of all IT-related services instead of relying on company-owned resources. In an IT context, these activities include IT administration, IT application, and web hosting services.
The Other IT Services market covers revenues for areas that are not specifically mentioned in the other markets, such as system integration, software installation and support, and IT education and training.

Additional Information:

The IT Services market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Cognizant, Hewlett Packard Enterprise, and TCS.

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Analyst Opinion

The IT Services market in Thailand has been experiencing a steady growth in recent years.

Customer preferences: Thai customers have become increasingly reliant on technology, with a rising demand for IT services, such as cybersecurity, cloud computing, and data analytics. The COVID-19 pandemic has accelerated the adoption of digital services, leading to a surge in demand for IT services in Thailand.

Trends in the market: One of the trends in the IT Services market in Thailand is the growing demand for cloud computing services. Many businesses in Thailand are migrating to the cloud to reduce costs and improve efficiency. The rise of e-commerce in Thailand has also led to an increase in demand for cybersecurity services. Another trend is the adoption of artificial intelligence (AI) and machine learning (ML) technologies, which are being used to improve business operations and customer experiences.

Local special circumstances: Thailand has a large and growing startup ecosystem, which is driving innovation in the IT Services market. The Thai government has also been promoting the development of the digital economy, with initiatives such as the Thailand 4.0 policy, which aims to transform the country into a high-income nation through technology and innovation.

Underlying macroeconomic factors: The Thai economy has been growing steadily in recent years, with a GDP growth rate of around 3% in 2019. The government has been investing in infrastructure and promoting foreign investment, which has helped to boost the economy. The IT Services market in Thailand is also benefiting from the country's strategic location, which makes it an attractive location for multinational companies to set up regional headquarters.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.