Thailand Construction Market Size Expands to Surpass Value of USD 34.2 Billion by 2030
Thailand Construction Market is thriving due to the government's infrastructure development projects, rapid urbanization, increasing foreign direct investments, thriving tourism and hospitality sector, an increasing demand for residential and commercial buildings, and expansion of transportation and energy sectors.
Report Ocean, a leading strategic consulting and market research firm, in its recent study, estimated Thailand Construction Market size by value at USD 26.68 billion in 2023. During the forecast period between 2024 and 2030, Report Ocean expects Thailand Construction Market size to expand at a CAGR of 5.30% reaching a value of USD 34.23 billion by 2030. The driving factors for Thailand Construction Market include the increasing number of government's infrastructure development projects, such as transportation networks and smart city initiatives, aimed at boosting economic growth. The expansion of urban areas and tourism infrastructure further fuels demand for residential, commercial, and hospitality projects. Foreign direct investments (FDI), public-private partnerships, and the country's strategic location within ASEAN contribute to market growth. Additionally, environmental sustainability trends and the adoption of advanced construction technologies enhance productivity and efficiency in the sector.
Opportunity - Adoption of Advanced Construction Technologies
The adoption of advanced construction technology is expected to further drive Thailand Construction Market in the coming years. Innovations, such as Building Information Modeling (BIM), prefabrication, and 3D printing, are enhancing project efficiency, reducing costs, and minimizing waste. These advanced technologies also improve accuracy in design and project execution, leading to quicker project completion times. As the Thai government promotes infrastructure development and smart city initiatives, the use of modern construction technology is becoming more prevalent, boosting market expansion.
Impact of Escalating Geopolitical Tensions on Thailand Construction Market
Escalating geopolitical tensions in the Middle East region are affecting the grwoth Thailand Construction Market, with rising oil prices and shipping blockages causing inflation, higher interest rates, project delays, reduced profitability, and deterring foreign investments. Thailand's trade and investments are at risk due to the ongoing conflict in Ukraine, rise of protectionism, and uncertainty surrounding the US-China rivalry. The conflict disrupts global supply chains, increasing energy prices and affecting Thai businesses. This results in financial pressures on contractors and developers, causing project delays and reduced profitability. The Finance Ministry and NESDC recommend diversifying trade partners, strengthening domestic demand, and promoting regional cooperation to mitigate risks. The impact depends on the conflict's duration, US and China's economic recovery, and Thai government actions.
New Construction Activity Segment Leads Thailand Construction Market
The new construction segment dominates Thailand Construction Market, driven by infrastructure development, urbanization, and government initiatives. The growing middle class population and affordable housing demand drive growth. Thailand's strategic location attracts multinational companies and investors, making it the largest contributor to the industry. Sustainable and green building practices further enhance its appeal.
Competitive Landscape
Thailand Construction Market is fiercely competitive, with numerous companies vying for a larger market share. Major companies in the market include Italian-Thai Development Public Company Limited, SCG International Corporation Company Limited, Siam Global House Public Company Limited, Land and Houses Public Company Limited, Dohome Public Company Limited, CRC Thai Watsadu Limited, Drainage and Sewerage Department, Bangkok Komatsu Company Limited, SPCC Joint Venture, and Caterpillar (Thailand) Limited. These companies use various strategies, including increasing investments in their R&D activities, mergers and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in Thailand Construction Market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Thailand Construction Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Thailand Construction Market and industry insights to help decision-makers make sound strategic decisions. Further, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
