U.S. firm says Thai economy will be 61 percent digital by 2022
As much as 61 percent of Thailand’s gross domestic product will come from industries driven by digitally enhanced products and services by 2022 as the Kingdom embraces the digital development of its advancing economy, according to IDC, a United States-based global market intelligence company.
That shift towards a digital economy will create a wealth of opportunities for companies designing and selling information technology (IT) products to serve and facilitate new models for business and the economy. IDC predicted that Thailand’s transformation would drive $72 billion in IT-related spending from 2019 through 2022.
“The race to reinvent is inevitable,” said Anchalee Sudechawongsakul, software market analyst for IDC Thailand. “We foresee a steady growth in adoption of emerging technologies in the country, mainly because Thailand is working to improve economic growth by shifting its economy from an industry-driven country to one that is driven by high-tech innovations.”
By 2022, growth in every Thai industry will be driven by digitally enhanced offerings, operations and relationships, the Thai arm of the US-based market-intelligence company said.
“Innovation will continue to disrupt every industry and business leader should focus on technologies that enable business outcomes. This is the right time to realize that enabling the digital industry will drive other industries to grow as well,” Anchalee said.
The Thai government is committed to enabling the growth of the digital economy through its 20-year national strategy called Thailand 4.0. The strategy promotes higher-technology S-Curve industries, innovation, research and development, and green technologies.
Disruption is a part of the digital revolution, however, and disruption will produce more intense competition, Anchalee said. To cope with that highly competitive environment, IDC is urging business leaders to embrace emerging technologies so their companies can benefit and profit from the unexpected opportunities that this new type of economy will create.
Local businesses need to demonstrate the ability to visualize how the markets and customers will change and reinvent themselves to better respond to the needs of these future stakeholders through new and emerging technologies, capabilities and business models, according to IDC.