Thailand Construction Industry Market Size & Forecast - by Value and Volume (area and units), 40+ Market Segments Across Residential, Commercial, Industrial, Institutional, Infrastructure Construction, City Level Construction by Value and Construction Cos

According to ConsTrack360, construction market in Thailand is expected to grow by 5.1% on annual basis to reach THB 489.6 billion in 2025.

The construction market in the country experienced robust growth during 2020-2024, achieving a CAGR of 7.6%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 4.0% during 2025-2029. By the end of 2029, the construction sector is projected to expand from its 2024 value of THB 466.0 billion to approximately THB 600.3 billion.

This report provides a detailed data-centric analysis of the construction sector in Thailand, offering a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in the country, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.

It offers a comprehensive analysis of market dynamics in the construction sector through a range of KPIs such as value, volume, and number of units. The building construction covers detailed segmentation over 30+ segments in residential, commercial, industrial, and institutional sectors.

ConsTrack360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Key Insights

Thailand Residential Construction Industry
Thailand’s residential construction sector presents strong investment opportunities, particularly in high-rise condominiums and sustainable housing projects. The growing demand for urban housing and government support for affordable and eco-friendly developments make the sector attractive to local and foreign investors.However, rising material costs, land scarcity, and regulatory challenges could slow new developments. Developers must adopt cost-efficient and sustainable construction practices to navigate these challenges while capitalizing on market trends. Strategic planning and policy alignment will be essential for sustaining long-term growth in Thailand’s residential construction market.

Macroeconomic Factors
• Thailand’s residential construction sector is influenced by economic factors such as inflation, rising material costs, and shifts in housing demand. Inflation has increased the cost of construction materials, making new residential projects more expensive and impacting affordability. Supply chain disruptions have further contributed to rising costs, forcing developers to find cost-efficient construction methods.
• Another key trend shaping the industry is the increased demand for high-rise condominiums in major urban centers like Bangkok, Pattaya, and Chiang Mai. With land availability shrinking and prices rising, developers are focusing on vertical expansion to maximize space utilization. Meanwhile, smart home technology and green building solutions are becoming more prominent as consumers seek energy-efficient and automated housing.
• Despite positive trends, the sector faces challenges, including regulatory complexities that cause delays in project approvals. Land availability is another issue, particularly in high-demand urban areas where rising land costs limit development opportunities. Moreover, tightening mortgage lending regulations have made homeownership more difficult for first-time buyers, affecting overall demand.

Project Landscape
• Thailand’s government and private sector invest in residential construction projects to meet growing demand. In the Eastern Economic Corridor (EEC), large-scale housing projects are being developed to accommodate workforce expansion and attract foreign investment. These projects are expected to support economic growth by providing housing for professionals and industrial workers.
• Government-backed affordable housing projects are also gaining momentum, particularly for low-income households. The Housing for All initiative aims to provide low-cost housing options and encourage urban renewal. Additionally, mid-range housing developments are expanding, catering to Thailand’s growing middle class and urban migration trends.
• The private sector dominates the luxury and high-rise condominium market, with major developers focusing on upscale residential projects in prime locations. Meanwhile, the public sector concentrates on affordable housing and infrastructure improvements to support long-term urban development. Foreign direct investment (FDI) continues to flow into high-end real estate projects, reinforcing Thailand’s position as a prime destination for residential property investment.

Government Policies & Programs
• The Thai government has implemented several initiatives to support residential construction. The Housing for All policy encourages homeownership and rental housing expansion, particularly in urban and industrial zones. Tax incentives and subsidies are offered for developers building affordable housing units, helping address housing shortages.
• Environmental sustainability is also a major focus, with new policies promoting the construction of green-certified residential buildings. Developers who comply with energy efficiency standards receive tax benefits and expedited project approvals. Additionally, first-time homebuyers are supported through low-interest loan programs, making homeownership more accessible.
• At the regulatory level, the Bangkok Metropolitan Administration (BMA) has imposed zoning restrictions to control urban sprawl and promote balanced city development. On a national scale, the government is encouraging smart and sustainable housing projects through incentives for eco-friendly designs and energy-efficient construction practices. These interventions aim to align Thailand’s residential construction with global sustainability goals.

Industry-Specific Developments
• Technological advancements are key in improving efficiency within Thailand’s residential construction sector. Developers are increasingly adopting prefabricated construction techniques, which help reduce costs and speed up project timelines. Additionally, AI-driven real estate market analysis predicts housing demand and optimizes new project locations.
• Sustainability is another significant trend, with developers focusing on energy-efficient housing solutions. This includes using smart energy management systems, solar panel integration, and water conservation technologies. Consumers are becoming more environmentally conscious, leading to a rise in demand for eco-friendly residential projects.
• However, workforce availability remains a challenge as the construction industry faces a shortage of skilled labor. Many developers are investing in training programs to upskill workers and ensure the timely completion of projects. Government-led initiatives are also in place to support vocational training in construction-related trades, helping to meet industry demand for skilled workers.

Thailand Commercial Construction Industry
Thailand’s commercial construction sector presents significant opportunities, particularly in mixed-use developments, flexible office spaces, and sustainable commercial properties. The expansion of Bangkok’s business districts, government incentives, and increasing FDI are expected to drive long-term growth in the sector. Developers who integrate technology, sustainability, and flexibility into their projects will have a competitive edge.However, the industry faces rising construction costs, high vacancy rates in traditional retail spaces, and regulatory compliance challenges. Addressing these issues requires strategic planning, adaptive reuse of commercial properties, and a focus on high-growth areas such as sustainable office buildings and experience-driven retail spaces. Developers and investors who align with these trends will be best positioned to capitalize on Thailand’s evolving commercial real estate market.

Macroeconomic Factors
• Thailand’s commercial construction sector is transforming due to economic shifts, inflationary pressures, and changing business demands. Rising construction costs, driven by inflation and supply chain disruptions, have significantly increased the cost of materials, impacting commercial property development. Developers are now focusing on cost-efficient construction methods to mitigate financial risks and maintain project feasibility.
• One key trend in Thailand’s commercial construction is the rise of mixed-use developments, which integrate office spaces, retail, and residential units into a single project. This trend is particularly evident in Bangkok, where land scarcity and increasing property prices push developers to maximize space usage. Additionally, the demand for flexible office spaces and co-working hubs is rising as businesses adapt to hybrid work models following the COVID-19 pandemic.
• However, the sector faces challenges, such as declining demand for traditional retail spaces due to e-commerce growth. Many brick-and-mortar businesses struggle to compete with online shopping, leading to higher vacancy rates in retail malls. Similarly, office space vacancies remain high outside major business districts as companies re-evaluate their long-term real estate needs in response to remote work trends.

Project Landscape
• Thailand’s commercial property market is seeing large-scale developments, particularly in Bangkok and key economic zones. The “One Bangkok” project, Thailand’s largest mixed-use development, is a landmark project that will redefine Bangkok’s commercial landscape. This project includes office towers, luxury hotels, high-end retail spaces, and residential units, reflecting the trend toward integrated urban development.
• Retail construction is also evolving, with high-end retail developments in areas like Sukhumvit and Silom catering to Thailand’s growing affluent population and tourism sector. Major global brands continue to invest in premium retail spaces despite the challenges of e-commerce competition. Developers are also redesigning shopping centers into experience-driven retail spaces, incorporating entertainment, dining, and digital integration to attract consumers.
• The private sector is the primary driver of commercial real estate investments, with foreign investors showing strong interest in high-end office and retail spaces. Public sector involvement focuses on infrastructure development, such as improving transportation networks to support business districts. The commercial construction sector is expected to benefit from Thailand’s overall economic recovery, fueled by increased foreign direct investment (FDI) and tourism.

Government Policies & Programs
• The Thai government has introduced several incentives to support commercial construction, particularly in green and sustainable buildings. Tax breaks and incentives for LEED-certified and energy-efficient office buildings encourage developers to integrate eco-friendly practices. Government initiatives also support the adaptive reuse of older office buildings, converting them into residential or mixed-use properties to reduce commercial vacancy rates.
• Additionally, foreign investment laws have been adjusted to make it easier for international companies to own and develop commercial real estate in Thailand. These relaxed regulations have increased FDI in Bangkok’s commercial property market. Infrastructure development initiatives, including mass transit expansions, are also being implemented to improve accessibility to business districts and drive demand for commercial spaces.
• Regulatory changes have introduced stricter fire safety and building standards, particularly in high-rise commercial properties. These updates require developers to incorporate advanced fire suppression and safety systems, adding additional compliance costs. However, these regulations are critical for ensuring long-term building safety and investor confidence.

Industry-Specific Developments
• Technology is playing a major role in shaping Thailand’s commercial construction sector. AI-driven property management solutions are widely adopted, helping developers and building managers optimize space utilization, energy efficiency, and security. These technologies improve tenant experience and lower operational costs, making commercial properties more competitive.
• Sustainability is also a priority, with green-certified commercial buildings on the rise. Developers are increasingly pursuing LEED (Leadership in Energy and Environmental Design) and WELL certifications, focusing on environmental impact and occupant well-being. Sustainable office spaces with advanced ventilation, energy-efficient systems, and smart lighting solutions are in high demand, particularly among multinational corporations.
• Workforce availability remains a concern as the construction industry faces a shortage of skilled labor in high-rise commercial projects. The government addresses this through vocational training programs to upskill workers in advanced construction techniques, digital construction tools, and sustainability practices. Ensuring an adequately trained workforce is crucial to maintaining Thailand’s commercial construction growth.

Thailand Institutional Construction Industry
Thailand’s institutional construction sector presents significant investment opportunities, particularly in healthcare and education infrastructure. The growing demand for modern hospitals, research centers, and smart learning environments makes this sector a key priority for public and private stakeholders. Developers who integrate digital technology and sustainability features into institutional buildings will benefit from long-term growth trends.However, budget constraints, labor shortages, and regulatory compliance requirements must be carefully managed. Public-private partnerships (PPPs) and foreign investments will be critical in financing large-scale institutional projects. By embracing technological advancements, green building solutions, and workforce training initiatives, Thailand’s institutional construction sector can achieve sustainable growth while addressing the nation’s healthcare and educational needs.

Macroeconomic Factors
• A growing demand for healthcare and educational infrastructure drives Thailand’s institutional construction sector. The government is prioritizing investment in hospitals, medical centers, schools, and universities to support its expanding population and improve public services. The increasing need for modern healthcare facilities is particularly significant due to Thailand’s aging population and rising demand for high-quality medical care.
• However, budget constraints continue to limit the scale and speed of new institutional construction projects. While public funding remains the primary financing source, Thailand increasingly relies on public-private partnerships (PPPs) to meet infrastructure needs. This collaboration is crucial in bridging the funding gap and ensuring the timely delivery of new institutional projects.
• Sustainability and digital transformation are also shaping Thailand’s institutional construction sector. Smart hospitals and digital classrooms are becoming key trends, with institutions adopting advanced technology to improve efficiency and service delivery. Developers and policymakers focus on long-term sustainability, integrating energy-efficient designs and smart building technologies into new projects.

Project Landscape
• Thailand’s government is investing in major hospital expansion projects to strengthen the country’s healthcare infrastructure. New public hospitals and medical research centers are being constructed, particularly in Bangkok and regional economic zones. These projects aim to enhance healthcare access and reduce congestion in existing facilities.
• Another critical focus area is the modernization of educational institutions. Schools and universities are upgrading their infrastructure to accommodate digital learning environments, improved connectivity, and smart classroom technology. The Thai government has launched several initiatives to enhance STEM education facilities, ensuring students are prepared for the evolving job market.
• Private sector involvement in institutional construction is growing, particularly in the healthcare sector. Thailand is a leading destination for medical tourism, prompting private hospital chains to expand their facilities and build new high-end medical centers. International schools and universities also invest in state-of-the-art campuses to attract students from across the region.

Government Policies & Programs
• The Thai government has introduced increased funding for healthcare infrastructure, focusing on expanding public hospitals and upgrading existing medical facilities. Special incentives for projects incorporating telemedicine, digital healthcare solutions, and energy-efficient hospital designs are available. These measures aim to enhance patient care while reducing long-term operational costs.
• Thailand also benefits from EU Recovery Funds and international financial support for institutional construction projects. These funds help drive investment in research centers, public health infrastructure, and education sector improvements. As part of these initiatives, Thailand is enhancing university research facilities and medical training centers to support the healthcare industry.
• New regulatory changes are pushing for higher energy efficiency standards in institutional buildings. Schools, hospitals, and government offices must comply with green building certification requirements to ensure long-term sustainability. These policies are helping Thailand transition towards net-zero carbon public infrastructure, aligning with global environmental goals.

Industry-Specific Developments
• The adoption of smart technology in hospitals and schools is revolutionizing Thailand’s institutional construction sector. AI-powered patient monitoring systems, automated medical records, and digital learning tools are becoming common features in new healthcare and education projects. These advancements improve efficiency and enhance the user experience in institutional buildings.
• The push for sustainability in institutional construction is accelerating. Many new hospitals and educational institutions are incorporating solar panels, smart energy management systems, and water recycling technologies to reduce environmental impact. These green initiatives align with Thailand’s commitment to reducing carbon emissions and promoting sustainable infrastructure development.
• Despite these advancements, workforce availability remains challenging in the institutional construction sector. There is a shortage of skilled labor in healthcare infrastructure development, particularly in installing advanced medical equipment and smart classroom technologies. The Thai government invests in vocational training programs to ensure a steady supply of qualified professionals for institutional projects.

Thailand Industrial Construction Industry
Thailand’s industrial construction sector presents strong investment opportunities, particularly in logistics, high-tech manufacturing, and renewable energy infrastructure. The country’s strategic location, government incentives, and rapid adoption of Industry 4.0 technologies make it a competitive destination for industrial expansion. Developers who integrate automation, sustainability, and digitalization into their projects will benefit from long-term industry trends.However, the sector also faces rising construction costs, labor shortages, and stricter environmental regulations. Addressing these issues will require innovative construction techniques, workforce development programs, and close collaboration between the government and private sector. Thailand can position itself as a leading industrial hub in Southeast Asia by leveraging green industrial initiatives, advanced manufacturing investments, and logistics infrastructure expansion.

Macroeconomic Factors
• Thailand’s industrial construction sector is experiencing strong growth, fueled by logistics expansion, manufacturing upgrades, and renewable energy infrastructure development. The rise of e-commerce and international trade has driven the need for large-scale logistics and warehousing facilities, particularly in major economic zones such as the Eastern Economic Corridor (EEC).
• The Thai government also promotes industrial diversification by attracting foreign direct investment (FDI) in advanced manufacturing, such as electric vehicle (EV) production, semiconductor manufacturing, and biotechnology. This shift aligns with Thailand’s Thailand 4.0 policy, which focuses on transitioning the country into a high-tech industrial economy.
• However, the sector faces rising material costs, supply chain disruptions, and geopolitical uncertainties affecting global trade. Additionally, labor shortages in specialized industrial construction fields pose a risk to project timelines, necessitating increased investment in workforce development and automation.

Project Landscape
• Thailand’s industrial sector is expanding rapidly, with new logistics hubs in Bangkok, Chonburi, and Rayong to support rising trade volumes. Large-scale distribution centers and fulfillment hubs are being constructed to accommodate e-commerce growth, and international logistics firms are increasing their presence in Thailand.
• The EV and battery manufacturing industry is a key driver of industrial construction, with companies such as BYD and Foxconn investing in new production plants. The government has designated special investment zones to support EV supply chain development, including battery storage, component manufacturing, and charging station infrastructure.
• Additionally, Thailand is prioritizing renewable energy infrastructure, with solar farms, wind energy projects, and hydrogen production facilities being developed. These projects align with Thailand’s commitment to achieving carbon neutrality by 2050, driving industrial construction towards sustainable and energy-efficient facilities.

Government Policies & Programs
• The Thai government offers subsidies and tax incentives to promote industrial construction in high-tech manufacturing and logistics. Special economic zones in the EEC provide benefits such as corporate tax breaks, import duty exemptions, and streamlined permitting processes for industrial developers.
• Thailand’s Board of Investment (BOI) has introduced incentives for companies investing in automated and digitalized factories, supporting the transition to Industry 4.0. These policies encourage the adoption of robotics, AI-driven production systems, and smart supply chains, making industrial projects more efficient and competitive.
• Stricter environmental regulations also shape industrial construction, requiring developers to incorporate sustainable materials, waste management systems, and energy-efficient designs. Companies that meet LEED and ISO 14001 environmental standards receive additional incentives, reinforcing Thailand’s commitment to green industrial development.

Industry-Specific Developments
• Technological advancements are crucial in optimizing industrial construction efficiency. Developers are integrating AI-driven project management, modular construction techniques, and digital twin simulations to streamline factory and warehouse development. These innovations reduce construction timelines and improve long-term operational efficiency.
• Sustainability is a major focus, prioritizing green industrial zones and energy-efficient factories. Many new industrial buildings incorporate solar panels, water recycling systems, and smart energy grids to reduce environmental impact. The shift towards carbon-neutral manufacturing responds to regulatory requirements and consumer demand for sustainable production.
• Despite these advancements, workforce shortages in specialized industrial construction roles remain challenging. Thailand invests in vocational training and upskilling programs to address the demand for skilled workers in robotics, automation, and advanced engineering. Collaboration between the public and private sectors will ensure a steady supply of skilled labor for industrial projects.

Thailand Infrastructure Construction Industry
Thailand’s infrastructure construction sector presents strong investment opportunities, particularly in high-speed rail, smart cities, and renewable energy infrastructure. The government’s commitment to modernizing transport networks and integrating clean energy solutions makes infrastructure development a key driver of Thailand’s economic expansion. Developers who embrace digital construction methods and green building practices will benefit from evolving industry trends.However, inflation, budget constraints, and workforce shortages must be carefully managed. The success of infrastructure projects will depend on public-private partnerships, efficient project management, and technological innovation. By prioritizing sustainable and smart infrastructure, Thailand can strengthen its role as a regional hub for trade, logistics, and energy transformation.

Macroeconomic Factors
• Thailand’s infrastructure construction sector is experiencing robust growth, driven by public investment in transportation, energy, and smart city projects. The government prioritizes infrastructure development to support economic expansion, improve connectivity, and enhance logistics efficiency. Major projects include high-speed rail, expressway expansions, and metro system upgrades.
• However, rising construction costs and inflation are increasing financial pressure on infrastructure projects. The cost of raw materials, such as steel and cement, has surged due to supply chain disruptions and global market fluctuations. These rising expenses impact project feasibility and budget allocations, requiring the government to explore alternative funding mechanisms such as public-private partnerships (PPPs).
• Sustainability is also a key factor in Thailand’s infrastructure development strategy. The government emphasizes green and resilient infrastructure, incorporating renewable energy, smart traffic management, and flood prevention systems. These initiatives align with Thailand’s carbon neutrality goal by 2050, ensuring that infrastructure projects are environmentally sustainable and future-proof.

Project Landscape
• Thailand is undergoing significant transportation infrastructure expansion, with major projects to improve connectivity within and across Southeast Asia. The Bangkok–Nong Khai high-speed rail, part of China’s Belt and Road Initiative, will link Thailand to Laos and China, boosting trade and tourism. Additionally, metro rail expansions in Bangkok and Phuket aim to reduce urban congestion and improve public transit.
• Road and expressway construction is another major area of development. Expanding the Bangkok-Chonburi Expressway and the Motorway No. 7 extension will enhance logistics efficiency by connecting industrial zones to major ports and airports. These projects are expected to reduce transportation costs and support economic growth by improving freight movement.
• Thailand invests in renewable energy projects, smart grids, and energy storage systems in the energy infrastructure sector. Large-scale solar and wind farms are under development to reduce reliance on fossil fuels. Additionally, the country is modernizing its power transmission networks, ensuring more efficient energy distribution and integrating clean energy sources into the national grid.

Government Policies & Programs
• The Thai government has allocated significant infrastructure development funding, focusing on transportation and energy projects. The Eastern Economic Corridor (EEC) Development Plan is a major initiative that includes new airports, seaports, and industrial parks to attract foreign investment and enhance Thailand’s position as a regional logistics hub.
• Thailand also receives financial support from the Asian Development Bank (ADB) and the World Bank for infrastructure expansion. These funds are being used to modernize public transport systems, upgrade highways, and expand digital infrastructure. As part of Thailand’s smart city initiative, government-backed projects include 5G network deployment, smart traffic monitoring, and AI-driven urban planning.
• In addition to public investments, the government encourages private sector participation through PPP frameworks. Large-scale infrastructure projects like airport expansions and high-speed rail networks are being developed in collaboration with private investors. This strategy helps reduce the government's financial burden while ensuring efficient project execution.

Industry-Specific Developments
• Technology is essential in improving efficiency, sustainability, and cost-effectiveness in infrastructure construction. AI-driven project management, digital twins, and predictive maintenance solutions optimize project execution and reduce delays. These technologies allow developers to analyze project risks and improve infrastructure lifespan.
• Sustainability is a growing priority, with low-carbon construction materials, energy-efficient designs, and water conservation systems being integrated into infrastructure projects. Government incentives are encouraging green-certified buildings and transit systems, aligning with Thailand’s environmental goals. Electric buses, solar-powered street lighting, and waste-to-energy plants are expanding in urban areas.
• The sector also faces workforce shortages in specialized infrastructure fields, such as civil engineering and renewable energy construction. The government is launching training programs for engineers, urban planners, and construction workers to address this issue. These initiatives aim to equip workers with the skills needed for large-scale infrastructure projects and ensure long-term sector growth.

Scope

• Market Data and Insights: This report provides market size and forecast across 40+ construction segments for ten years from 2019 – 2028 in Thailand. KPIs covered include the following:
• Market size by value
• Market size by volume of construction
• Number of units

• Thailand Economic Indicators

• Thailand Top Cities Construction Data

• Thailand Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Housing type (multi family, single family)
• Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)
• Price point/income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

• Thailand Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier – 1, Tier – 2, Tier – 3 segmentation)
• Green building by Price point/income level (luxury, mid-tier, affordable)

• Thailand Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Other commercial building construction
• Construction stage (new construction, re-development & maintenance)

• Thailand Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction Show more