Thailand Information Technology Report Q1 2016
BMI View: We expect Thailand's IT market will exhibit robust medium term growth as it continues tostrengthen in 2016 after the challenges in 2013 and 2014 that suppressed IT spending growth. We forecasta CAGR of 6.8% from 2016-2019, with the market expected to reach a value of THB220.1bn in 2019. Therewill be considerable opportunities across all three IT market segments, but we highlight the retail hardwaremarket and cloud computing services as the stand out opportunities. The strong household income growthforecast will enable vendors to target sales to both first-time buyers and multiple device households rightacross Thailand, while investments in datacentre and network infrastructure, alongside increased supply ofsolutions, will unlock the potential of cloud computing services. The outlook is positive but we cautiondownside risks exist, most notably political risks around the military government, while global economicheadwinds have the potential to negatively impact Thailand's economic growth trajectory.
Latest Updates And Industry Developments
Computer Hardware Sales: THB95.2bn in 2016 to THB107.2bn in 2019, a CAGR of 4.4%. Householdincome growth and deferred purchases from the previous period of uncertainty will drive robust hardwarespending, with vendors expected to benefit from significant opportunities in the first-time buyer andupgrade/replacement markets.
Software Sales: THB16.4bn in 2016 to THB22.2bn in 2019, a CAGR of 9.0%. Modernisation pressureswill drive large enterprise spending and increased supply of software-as-a-service expected to boostadoption rates among Thailand's large base of small- and medium-sized enterprises.
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