Thailand Digital Economy to Hit THB 1.28 Trillion in 2022
Thailand’s digital economy is projected to grow 17 percent year-on-year (YOY) and hit US$35 billion or 1.28 trillion baht in 2022, with e-commerce as the main driver, according to the e-Conomy SEA Report 2022. This report is the seventh edition of the Southeast Asia report, jointly released by Google, global investment company Temasek and American management consulting firm Bain & Company.
By 2025, Thailand’s digital economy is expected to reach $53 billion, with a 15% compound annual growth rate. The digital economy is further projected to double within the $100 billion to $165 billion range by 2030.
“For Thailand, e-commerce remains the primary driver of digital economy growth in 2022,” said Google Thailand director Jackie Wang. “Thailand’s e-commerce market is also the second largest in Southeast Asia after Indonesia.”
Thai e-commerce is expected to grow 8% YOY to $22 billion this year and reach $32 billion by 2025.
Meanwhile, transport and food delivery could hit $3 billion this year, up 12% YOY, and grow to 20% to $5 billion by 2025.
However, online media such as video-on-demand, music-on-demand, and gaming are seen to decline by 10% to reach $5 billion this year, after reaching its peak period during the Covid-19 pandemic. Still, a 12% growth is in the future for this sector to $7 billion in gross merchandise value (GMV) by 2025.
With the pandemic most restrictions lifted, and travel is seeing a strong recovery. The sector expanded by 139% in 2022 to reach $5 billion in GMV from last year. It is forecast to reach $9 billion by 2025, with a 22% compound annual growth rate.
Thai Digital Financial Services (DFS) saw double-digit growth in 2022 across all sectors – payments, remittance, lending, investment, and insurance, owing to the continued behavior shift to online. DFS accounted for the highest share of total investor funding in Thailand, with more than $150 million raised in the first half of this year alone.