Top software vendor revenue market growth in Thailand for 2H2023 Revealed by IDC
BANGKOK, 30 May 2024 – Software vendor revenue in Thailand reached 44.5 billion THB in 2H2023, grew by 12.4% Year-over-Year (YoY) in local currency, according to International Data Corporation’s (IDC) Worldwide Semiannual Software Tracker 2H2023. Artificial Intelligence Platforms grew the most at 90.1% YoY in local currency, largely due to the substantial interest in AI from both public and private organizations.
ChatGPT’s launch in 2022 has captured global attention due to its natural language capabilities. Integrating Generative AI (GenAI) features into software products and services, such as Microsoft 365’s Copilot which has improved efficiency and user-friendliness, making GenAI adoption more accessible for businesses.
The Thai government has recognized AI’s potential. The National AI Strategy and Action Plan (2022–2027) was endorsed in July 2022, and the national AI committee was established in August 2022. According to the Open Data Portal for Monitoring and Evaluating Government Projects under National Strategy, a budget of 6.41 billion THB in 2022 and 7.35 billion THB in 2023 have been allocated for public sector AI projects, including training, infrastructure, research, and regulations. Additionally, the government initiated the Open ThaiGPT project in April 2023 to develop a Thai large language model (LLM). An example is the “Doctor at Home” service, available via LINE, which provides preliminary symptom assessments and answers health-related questions. Not only does the government sector recognize the importance of AI, but the private sector also acknowledges the benefits of AI. Even before the advent of generative AI, Thai organizations had already embraced AI technology in various applications such as credit scoring and fraud detection in the financial sector, as well as personalized marketing in retail and e-commerce.
“With the launch of generative AI, there has been a surge of interest in AI and GenAI technology, leading to increased AI adoption in organizations. The more adoption of AI technology and its intensive applying to create more innovation will help organizations stay competitive and drive Thailand’s economic growth, ” says Kavisara Korkong, Market Analyst, Software Research, IDC Asia/Pacific. For example, EASYRICE, a digital technology agriculture company applies AI technology to address quality control in rice inspection. This AI solution can analyze defects on the rice surface, reducing human error in rice inspection, saving both cost and time.
Thailand’s cloud-first policy has also attracted major investments from hyperscale cloud providers. AWS plans to invest over 190 billion THB in data centers over 15 years, Google plans to establish its first cloud region in Thailand, and Microsoft will build a full Azure Region in Thailand.
“IDC believes the arrival of hyperscale cloud providers will boost productivity, digitization, and innovation in Thailand. This investment will also create job opportunities and enhance Thai tech talent, making them more competitive globally,” ends Korkong.
As mentioned above, IDC anticipates continuous development of AI-based solutions in Thailand and the widespread adoption of applying AI technology across various sectors. According to International Data Corporation’s (IDC) Worldwide Semiannual Software Tracker 2H2023, software vendor revenue in Thailand in Artificial Intelligence Platform is expected to post 5 years CAGR of 40.5% in baht terms from 2023-2028.
To promote this adoption, the government should devise plans tailored based on the unique characteristics of each industry sector and focus on upskilling tech talents broadly. In promoting AI adoption, the government should ensure that all developers and AI-based applications consider the potential ethical implications surrounding AI.
To know more about the IDC Worldwide Semiannual Software Tracker, please contact Kavisara Korkong at kkorkong@idc.com. For media inquiries, please contact Fenny Tjandradinata at ftjandradinata@idc.com or Jane Yap at jyap@idc.com.
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