Thailand Unlocks Digital Future: Major Push to Boost Software and Services

A new analysis reveals the significant growth potential of the Kingdom's software and digital service sectors, prompting a strategic four-pronged plan to overcome challenges and elevate their economic contribution

 

Thailand's burgeoning software and digital service industries hold immense potential to catalyse economic growth and create new jobs, yet their current contribution to the nation's Gross Domestic Product (GDP) and overall employment remains modest, a new government analysis reveals.

 

According to findings from the Trade Policy and Strategy Office (TPSO) under the Ministry of Commerce, the value of Thailand's software and digital service businesses reached 567,057 million Baht in 2023, marking a robust 9.79% expansion year-on-year.

 

The TPSO has identified three key segments poised for sustained growth and high profitability: the Software and Software Services sector, Digital Services, and Digital Content.

 

These areas are seen as crucial for driving the country's digital transformation and supporting its broader digital economy.

 

This comes as the world fully embraces the digital era, with artificial intelligence, software, and online platforms becoming indispensable business tools.

 

Global spending on IT services, as reported by Gartner, grew by 3.8% in 2023 to US$4.9 trillion, with a projected surge to US$5.3 trillion in 2024, a 7.5% increase.

 

TradeMap data further highlights the consistent growth in global telecommunications, computer, and information services trade.

 

While Thailand's information and communication sector contributed 2.82% to the national GDP in 2023 (and 4.63% of the service sector's GDP), this indicates significant room for expansion.
  



 

Poonpong Naiyanapakorn, Director of the TPSO, revealed that an analysis of Thai legal entities in 2023 identified the three groups with significant potential:

Software and Software Services: Valued at 215,191 million Baht in 2023, this segment was the highest-growing within the software and digital service group, expanding by 12.80% year-on-year. It also recorded the highest average revenue growth over the past five years (2019-2023) and showed profitability across all regions, comprising 7,877 active legal entities.

Digital Services: Valued at 307,630 million Baht in 2023, this group grew by 9.28% from the previous year, and comprises 19,235 active legal entities.

Digital Content: Valued at 44,236 million Baht in 2023, this group, despite a modest 0.01% growth, remains one to watch due to its convenient and rapid access to consumers. It has 6,370 active legal entities and generated total revenue of 109 billion Baht in 2023.

 

Despite these promising trends, Thailand's software and digital service businesses face several hurdles. Key challenges include intellectual property (IP) ownership for Thai entrepreneurs and limited access to funding for smaller enterprises.

  



 

To unlock this potential and enhance the sector's competitiveness, the TPSO has put forward four key policy recommendations:

Laying the Foundation for Innovation: This includes developing infrastructure such as Digital Park Thailand and improving internet speed and secure servers.

Funding Technology: This involves implementing enhanced measures to improve access to financial resources for digital entrepreneurs.

Strengthening Digital IP: This aims to enhance measures for copyright protection and supporting Thai entrepreneurs in securing IP ownership.

Expanding Trade and Investment Goals: This focuses on positioning Thailand as an ASEAN digital investment hub to boost revenue and expand Thai service businesses, establishing them as a new pillar of the economy.

(2025/05/24-00:00)