Let’s do a deep dive on the Thailand tech industry.
Thailand is fast becoming a key player in Southeast Asia’s rapidly evolving digital economy. Once largely associated with manufacturing and tourism, the country is now leveraging its geographic advantages, competitive talent pool, and government-backed digital transformation efforts to cultivate a thriving technology sector.
Read our Thailand country guide
A Market on the Move
Thailand’s digital economy contributed 6% to the country’s GDP in 2023—a figure projected to reach 11% by 2027. This growth is powered by increasing digital adoption, a surge in startup activity, and the expansion of regional tech giants into the Thai market.
E-commerce remains the largest segment, with the Bangkok Post reporting that the total e-commerce market—including B2C and B2B transactions—hit 1 trillion baht (approx. US $29 billion) in 2024, and is expected to grow to 2 trillion baht (~US $58 billion) by 2030. Meanwhile, fintech, healthtech, and agritech are seeing accelerated adoption, driven by both consumer demand and government incentives.
Bangkok as a Regional Tech Hub
Bangkok is positioning itself as a digital hub within ASEAN. The city is home to several tech accelerators and incubators, including True Digital Park, Southeast Asia’s largest startup campus. The government’s Eastern Economic Corridor (EEC) initiative is also directing substantial investments into smart cities, 5G infrastructure, and digital logistics, particularly in the provinces of Chonburi and Rayong.
A number of multinational companies—including Huawei, Microsoft, and Tencent—have established research and development centres or regional offices in Thailand, drawn by the country’s connectivity, investment incentives, and growing digital infrastructure.
Read more: Thailand Energy Sector: A Nation on the Path to a Greener Future
Government Policy: Fueling the Digital Economy
Thailand 4.0, the national strategy launched in 2016, continues to shape policy direction. This innovation-driven economic model emphasises digital transformation across all sectors, with specific focus on advanced technologies like artificial intelligence, big data, and robotics.
Notably, the Board of Investment (BOI) offers generous tax incentives for tech firms, particularly those in software development, AI, and biotech. In 2023, tech investments approved by the BOI totalled over $2 billion, a 22% year-on-year increase.
Meanwhile, the Ministry of Digital Economy and Society (MDES) continues to support digital literacy programs and cybersecurity readiness. As part of its Digital ID framework, Thailand introduced its National Digital ID platform in 2023, enabling secure and seamless identity verification for fintech and government services.
Startup Ecosystem: From Unicorn Dreams to Real-World Solutions
Thailand’s startup ecosystem is maturing, with over 1,000 startups active as of 2022. Bangkok-based Flash Express became the country’s first unicorn in 2021, signalling a new era of scalability and international interest. Other fast-growing players like Finnomena (wealthtech) and QueQ (queue management app) reflect the diversification and depth of Thailand’s startup scene.
The government’s “Startup Thailand” initiative, along with venture capital inflows from Japan, South Korea, and Singapore, are accelerating this momentum.
Thailand Tech Talent and Challenges
Thailand benefits from a relatively young, tech-savvy population. Universities such as Chulalongkorn and King Mongkut’s Institute of Technology produce thousands of engineering and IT graduates each year. However, the industry faces challenges in scaling specialised talent, particularly in artificial intelligence, cybersecurity, and blockchain.
The government has launched retraining programs and is working with private sector stakeholders to bridge the skills gap. Yet, attracting and retaining global digital talent remains a hurdle—particularly given regional competition from Singapore, Vietnam, and Indonesia.
Looking Ahead for the Thailand Tech Sector
The Thailand tech sector is on a trajectory toward deeper integration with global value chains and increased prominence in the region. As regulatory frameworks mature and digital infrastructure strengthens, the market presents vast opportunities for both local and international players.
For companies seeking to enter or scale within Thailand’s digital economy, the timing has never been better. With a stable political environment, government support, and an increasingly sophisticated consumer base, Thailand offers a compelling launchpad into Southeast Asia.
Partner with Eos Global Expansion
As the first full-service Employer of Record (EOR) provider to enter Japan and a pioneer in Asia-Pacific market entry, Eos Global Expansion is your trusted partner for navigating Thailand’s dynamic tech landscape. From hiring skilled digital talent and managing local compliance to establishing operations swiftly and seamlessly, we empower tech companies to scale faster and smarter.
Ready to expand into Thailand’s booming tech sector? Contact Eos Global Expansion today to unlock your growth in Southeast Asia. Check our full-range of EOR services here or book a free consultation now.
Photo by Andreas Brücker on Unsplash
