THURSDAY, March 28, 2024
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Spending on IT tipped to top Bt539 bn by 2022

Spending on IT tipped to top Bt539 bn by 2022

SPENDING on information technology is forecast to reach Bt539.6 billion by 2022, marking growth of 19.4 per cent from the expected spending this year.

This year, IT spending in Thailand is estimated to come in at Bt452 billion. The hardware market will lead the way with spending of Bt308 billion, followed by IT services on Bt100 billion and software Bt43.8 billion. 
Prapussorn Pechkaew, a senior market analyst at IDC Thailand, said hardware would account for 66.98 per cent of spending, followed by IT serves with 23 per cent and software 10.02 per cent. 
The IT market growth this year is estimated to increase 6.53 per cent compared with last year. This year, IT services are forecast to have the highest growth in spending at 7.99 per cent, followed by software on 7.6 per cent, and hardware at Bt5.92 per cent, compared with last year.
Prapussorn said the factors that will drive IT spending are the uptake of new technologies by enterprises, as they boost their capabilities in cloud computing, cyber security, robotics and artificial intelligence (AI). The government’s Thailand 4.0 scheme is also playing a role.
The top 10 technologies that will spur market growth over the next three years “are those relating to the digital economy, digital native, expansion to the edge, AppDev revolution, new developed class, digital innovation and growth through specialisation, AI the new UI (user interface), expanding/scaling trust and consolidation and multi-cloud”, Prapussorn said.
For the digital economy, by 2022, over 61 per cent of Thailand’s GDP will be digitalised, with growth in every industry driven by digitally enhanced offerings, operations, and relationships. This trend will see US$72 billion spent on IT-related purchases from 2019 to 2022.
With the digital-native IT, by 2022 around 60 per cent of Thailand’s IT spending will be on third platform technologies, as over 30 per cent of all enterprises are building digital-native IT environments to thrive in the digital economy.
Under expand to the edge, by 2022, Thailand's organisations will increase their cloud deployments, including those for edge computing, and 25 per cent of endpoint devices and systems will execute AI algorithms.
By 2022, the AppDev revolution will account for around 70 per cent of Thailand’s new apps and will feature micro-services architecture that will improve the ability to design, debug, update and leverage RTF codes. As well, around 25 per cent of all production apps will be cloud-native.
The new developer class is a new class of professional developers producing code without custom scripting. This will expand the developer population by 20 per cent in Thailand, accelerating the digital transformation by 2024
Regarding the explosion in digital innovation, IDC says that from 2018 to 2023 4 million new logical apps will be created in Thailand. They will benefit from new tools and platforms.
By 2022, growth through specialisation will see around 15 per cent of public cloud computing based on non-x86 processors (including quantum) in Thailand. By that year, organisations will spend more on vertical software as a service (SaaS) apps than horizontal apps.
Under AI the new UI, by 2024 AI-enabled user interfaces and process automation will replace one-third of today's screen-based apps in Thailand. By 2022, around 20 per cent of enterprises will use conversational speech tech for customer engagement.
In the area of expanding and scaling trust, by 2023 around 25 per cent of servers will encrypt data at rest and in motion in Thailand and over 20 per cent of security alerts will be handled by AI-powered automation and 3.5 million people will have blockchain-based digital identities.
By 2022 the top-four cloud mega-platforms will host 80 per cent of infrastructure as a service (IaaS) and platform as a service (PaaS) deployments in Thailand. By 2023, around 70 per cent of Thailand’s top 100 organisations will mitigate look-in through multi-cloud, hybrid technologies and tools. 
 “We foresee a steady growth in the adoption of emerging technologies in the country mainly because Thailand is working to improve its economic growth by shifting its economy from an industry-driven country to one that is driven by high-tech innovations,” said Prapussorn.
 

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