Digital Technology Booming in Thailand

Thailand is enjoying a digital tech boom. Thanks to massive investments in connectivity infrastructure and start-ups in areas such as e-commerce, fintech, logistics and smart manufacturing, Thailand stands to become more connected than ever.

This paper investigates the effect of advanced technology and import penetration on labor market outcomes, specifically changes in workers’ skills/position and income as well as industrial adaptation. This blog will show you about the new digital technology in Thailand


5G technology forms the backbone of a digital economy, enabling consumers to utilize applications and services requiring high-speed data transmission, while enterprises use it to digitalise operations and make better business decisions with real-time analysis of real data. With Thailand’s population being so highly connected and technologically knowledgeable, demand for 5G services has skyrocketed; Huawei Technologies research suggests Thailand could reach over 40 million 5G users by 2023!

Mobile operators in Thailand have responded to the growing demand for 5G by rolling out nationwide deployment of this technology, making Thailand home to some of the fastest networks globally. Furthermore, 5G deployment has opened the way to innovations across healthcare, retail and transportation while helping increase productivity and efficiency at factories.

Ericsson has predicted that data traffic growth in South Korea will explode exponentially between now and 2025, doubling every two years and reaching nearly 80GB per subscriber. To accommodate such massive data traffic increases efficiently and sustainably, Ericsson is investing heavily in creating effective network solutions.

The government recently revealed its plan to develop fifth generation wireless communications, or 5G, by 2020 in order to boost economic growth and secure competitive advantages for the nation. Kanit Sangsubhan of the EEC Office noted that 5G will offer high-speed connections between electronic devices as well as allow businesses to collect large amounts of data that they can then use for developing digital platforms and applications while increasing production rates.

In 2018, AIS, one of the country’s premier telecom service providers, unveiled its inaugural commercial 5G network offering speeds up to 10 Gbps and an average download of 1GB per second. Working alongside partners to construct intelligent telecom infrastructure and deploy autonomous networks that adapt instantly for enhanced connectivity between all stakeholders involved.

AIS, as the country’s top telecom operator, has already tested key network capabilities like mmWave Standalone (SA), network slicing and FR2+FR1 3CC Aggregion. These advancements will allow AIS to accelerate 5G deployment while maximising industrial capability under Industry 4.0.

Smart Manufacturing

As Thailand looks to rebound from the COVID-19 pandemic and stay competitive globally while capitalizing on its strengths, manufacturing will play a significant role. Here digital technology can be leveraged to upgrade factory systems and increase productivity.

Building a smarter factory requires implementing multiple solutions, from connectivity and analytics, through predictive technologies and production pattern digitalisation, all connected through the Internet. The goal is for factories to respond more rapidly to changing market conditions and consumer needs while decreasing operational costs while improving efficiency – ultimately improving profits by cutting operational expenses and increasing efficiency.

As an example, being able to analyse machine performance using data gathered by sensors can save companies both time and money by automating routine processes. Another way of making factories more productive is speeding up production – artificial intelligence or machine learning can provide great assistance here to enhance productivity.

Investment in smart manufacturing technologies can also reduce energy use by optimizing machinery use, eliminating waste and optimizing production processes to increase their efficiency. This can support businesses’ environmental, social and governance (ESG) strategies as well as Thailand’s commitment to becoming carbon neutral by 2050.

Production gains can bring business opportunities; however, manufacturing companies often face difficulties in implementing smart technologies. Two main obstacles include lack of technical expertise and insufficient workers possessing relevant skillsets.

To overcome such barriers, some companies are teaming up with suppliers to create custom apps tailored specifically to their needs. For instance, AIS and OMRON are working together on factory automation solutions tailored specifically for Thailand’s unique industrial environment.

Thai manufacturers face numerous challenges due to a diminishing workforce. According to projections by the National Economic and Social Development Board, working-age people will decline from 65% in 2020 to 56% by 2040 – which presents many companies that rely heavily on manual labour with a significant burden. Smart manufacturing technologies may offer one solution by replacing manual labor with automation.

Advanced Data Centers

Thailand’s digital economy is flourishing rapidly, driving an increased need for data centers. 5G adoption promises to accelerate this demand even further while also driving up bandwidth requirements for networking infrastructure. Furthermore, Thailand’s commitment to becoming an ASEAN Digital Hub makes it an attractive location for data center operators who wish to establish themselves there.

Thailand’s data center market is currently dominated by major international colocation providers like Equinix, Digital Realty and NTT Communications. These providers offer colocation, cloud connectivity and managed services as well as partnerships with local providers that extend their market reach.

Thailand’s market for data centers is expanding quickly due to increased internet access and rapid expansion in e-commerce, as well as government initiatives supporting secure data storage solutions. Therefore, Thailand can expect its data center industry to continue flourishing for some time yet.

Approximately 48 million Thais are estimated to access the internet this year, which represents a considerable proportion of global internet usership and should increase data center demand. Furthermore, due to Thailand’s high-speed broadband connectivity and robust submarine cable network it provides an ideal setting for hosting data centers.

Asia is experiencing an explosion of data growth, shifting away from company servers located within office buildings to dedicated data centers with built-in redundancy, availability and disaster risk mitigation capabilities. This has spurred hyperscale Cloud providers to invest in Thailand with some establishing operations here.

A recent report released by an established IT infrastructure research firm has provided clear evidence of Thailand’s vast opportunities in data centers. The report identified key market segments and highlighted their drivers, challenges, and growth restraints as well as outlining competitive landscape and providing profiles of key market players.

Thailand data center market investors include private equity firms, corporate investment funds for infrastructure and pension investments, as well as sovereign wealth funds. Some of the industry leaders include AIS Business (CSL), KT Business, SIA Engineering & Technology PCL, Telehouse, Frasers Property Thailand, CSI Group Limited (NTPC Public Company Limited), Genesis Data Center OneAsia Network Nautilus Data Technologies CtrlS Datacenters SSI Development PCL as top investors in Thailand’s data center market.

Digital Skills

Thai companies and universities are working tirelessly to meet the increasing global demand for digital technology by developing the skills required for driving innovation in Thailand. A comprehensive digital skills ecosystem is vital to Thailand’s economy; digital tech has altered how we work and consume.

Thai workers’ lack of digital skills has an adverse impact on productivity and competitiveness, according to research conducted by Equity Education Fund and World Bank. Their survey revealed that more than 17 million youth and adults lack basic reading literacy and digital skills necessary for accessing critical information, services and opportunities – creating what could become a nationwide brain drain that jeopardises the nation’s progress towards digital economies.

Though new technologies present many obstacles, their development remains encouraging. According to a 2022 Deloitte survey, over half of the nation’s businesses had already adopted digital technologies by 2022. Furthermore, the government recently launched its Digital Economy Roadmap as a guide toward an increasingly digital future for companies and entrepreneurs.

Thailand has seen an increasing number of startups emerge over time, contributing significantly to its development of digital skills. Most are focused on fintech and e-commerce ventures while those specializing in edtech, healthtech or agritech have since emerged more quickly.

These companies are leading the charge in Thailand towards digital skills promotion by creating training programs and project opportunities for young people. One such company is TCCtech, offering digital training for college and university students throughout Thailand as well as internship opportunities through university partners. TCCtech collaborates with university partners to offer real world training experiences with real projects for fresh graduates as well as experienced professionals alike.

Human workers will remain an essential component of technology advancement; machines cannot perform certain tasks like understanding context and interpreting data effectively. Therefore, current workforce must continue learning in order to remain relevant in this ever-evolving economic landscape.

Thailand is enjoying a digital tech boom. Thanks to massive investments in connectivity infrastructure and start-ups in areas such as e-commerce, fintech, logistics and smart manufacturing, Thailand stands to become more connected than ever. This paper investigates the effect of advanced technology and import penetration on labor market outcomes, specifically changes in workers’ skills/position and…