Thailand cloud computing services market is expected to grow at a strong CAGR of over 15% over the forecast period, primarily driven by the digital revolution and growing adoption of cloud services among organizations. As per the RationalStat Analysis, the public cloud market in Thailand stood at nearly US$ 600 million in 2020. The country has over 48 million internet users, meaning reliance on digital infrastructure for a rapidly growing society and economy is on the rise, and multiple Chinese and US Cloud providers are gearing up in the country to provide cloud services to the market.
The cloud computing services sector in Thailand is dominated by a mix of international operators and local players. Since 2016, the Bank of Investment (BOI) has announced an incentive scheme for cloud computing services that passed certain criteria with an 8-year Corporate Income Tax (CIT) exemption without a cap, attracting more capital investment into the country.
Market dynamics: Increased organizational efficiency and product innovations have been primary growth factors for the market
An increase in organizational efficiency, enabled collaboration and productivity, and improved availability are some of the primary growth factors driving the market growth. The public cloud‘s agility, flexibility, and scalability allow enterprises and governments easy access to technologies that improve efficiency and reduce time-to-market, which enables an increase in its adoption across the organizations’ levels.
Cloud-based collaboration software and virtual desktop capability have been a driving factor for organizations to spend on public cloud due to the short deployment time during the pandemic crisis. accelerated product innovation to improve customer experience. Moreover, most organizations in Thailand operate across multiple markets, which demands high availability irrespective of the geographical location of data and application.
Further, the adoption of cloud computing services accelerates product innovation to improve customer experience. Legacy companies are learning from digital leaders and realizing that the public cloud enables accelerated product delivery, which helps deliver a better customer experience – vital for sustainable growth in this decade.
The increasing penetration of the internet and smartphones is one of the major factors driving the growth of the Thailand cloud computing services market. The country is experiencing rapid urbanization and an increase in population. In 2017, internet penetration in Thailand was 47.4% of the total population, and it is expected to reach 68% by the end of 2023.
Furthermore, there has been an increase in big data consumption, which is propelling market growth even further. Cloud computing, artificial intelligence (AI), 5G technology, and other technologies are driving market growth. Ericsson 5G RAN products and solutions from the Ericsson Radio System portfolio, such as Ericsson Spectrum Sharing, were made available to provide 5G services in Bangkok metropolitan area.
Infrastructure-as-a-Service (Iaas) providers market share in Southeast Asian Countries, 2021 (%)
Market Structure and Competition Landscape
Thailand cloud computing services market is characterized by the presence of a mix of foreign and local players offering a broad range of services to a wide range of customers in the country. AWS and Microsoft Azure among other foreign players enjoys a healthy market share in the country’s IaaS landscape. AWS also purchased three plots of land to the south of the EEC for self-build deployments earlier this year, strategically located near the cable landing stations at the Laem Chabang Port.
Early in 2018, Chinese tech titans entered the market, followed by Alibaba, which launched its Cloud region late last year with multi-megawatt deployments into colocation facilities across Thailand. Since its operation in the country, Huawei has managed to attain 5% market share in the Thailand cloud computing services market.
Some of the key players operating in the market include Alibaba, Alphabet Inc. (Google Inc.), Amazon.com Inc., Cisco Systems Inc., Hewlett Packard Enterprise, IBM Corp., Microsoft Corp., Oracle Corp., Salesforce Inc., SAP SE, VMware Inc., True IDC, CAT Telecom, and AIS among others.
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Key Market Segmentation
RationalStat has segmented the Thailand cloud computing services market on the basis of service model, deployment model, end use, and region.
- By Service Model
- Infrastructure-as-a-Service (IaaS)
- Platform-as-a-Service (PaaS)
- Software-as-a-Service (SaaS)
- By Deployment Model
- By End Use
- Banking, Financial Services, and Insurance (BFSI)
- IT & Telecommunications
- Government and Public Sector
- Retail and Consumer Goods
- Energy and Utilities
- Media and Entertainment
- Healthcare and Life Sciences
- Others (Education, Travel and Hospitality, and Transportation and Logistics)
- By Region
- North Thailand
- Eastern Thailand
- Central Thailand
- South Thailand
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RationalStat has developed a state-of-the-art research methodology to crunch numbers and provide the best possible real-time insights to clients. We combine a varied range of industry experience, data analytics, and experts’ viewpoint to create a research methodology for market sizing and forecasting.
RationalStat combines a mix of secondary sources as well as primary research to assess the market size and develop a forecast. Key steps involved in accurately deriving the market numbers are:
- Defining the problem by understanding the type of market and data required by the client.
- Data gathering and collection through relevant paid databases, publicly available sources, company reports, annual reports, surveys, and interviews.
- Formulating a hypothesis to create market numbers, forecasts, influencing factors, and their relevance.
- Evaluating and analyzing the data by referring to data sources utilized and leveraged.
- Validating, interpreting, and finalizing the data by combining the details gathered from primary and secondary sources with the help of experienced analysts.
- Annual reports, company filings, investor presentations, product catalogs, and company documents
- Industry and market-related documents available in the public domain
- Paid databases including Bloomberg, Factiva, S&P Capital IQ, FactSet, Refinitiv Eikon, ICIS, EUWID, and Thomson Reuters, among others
- Whitepapers, research papers, and industry blogs.
Why Buy this Report?
The report is intended for Thailand’s cloud computing services market manufacturers and suppliers, government organizations, educational organizations, regulatory agencies, and market research firms, among others. The report provides an in-depth analysis of market size, consumption patterns, ongoing market trends and challenges, and future market opportunities. The report will serve as a source for a 360-degree analysis of the market thoroughly delivering insights to clients to find the right answers to their business questions.
Frequently Asked Questions (FAQs)
The Thailand Cloud computing services market is expected to grow at a CAGR of over 15% during the forecast period 2022-2028.
Central Thailand is dominating the Thailand Cloud computing services market in 2021.
Improved availability of cloud computing services across the country is the key driver of the Thailand Cloud computing services Market.
Major companies operating in the Thailand Cloud computing services market include Alibaba, Alphabet Inc. (Google Inc.), Amazon.com Inc., Cisco Systems Inc., Hewlett Packard Enterprise, IBM Corp., Microsoft Corp., Oracle Corp., Salesforce Inc., SAP SE, VMware Inc., True IDC, CAT Telecom, and AIS among others.