Bangkok--18 Dec--IDC
Thailand's ICT Market will need to shift in its reliance on large, government-associated ICT investments to other sources of growth. This shift will be critical for the ICT market to remain healthy in 2014.
This was revealed in the annual Predictions briefing by IDC Research Thailand where the firm presented the top 10 trends expected to impact business and technology decisions in the Thai market in the upcoming year.
Michael Araneta, head of operations for IDC Research Thailand states that ICT investments will grow to a projected 7.2% in 2014 over the previous year, in a clear sign that the market is moderating. Araneta states, "The political tension is definitely one factor, as several decision-makers are taking a wait-and-see approach for how ongoing issues will be resolved. The market is also seeing the holding back of government-backed schemes such as the One Tablet per Child, Free Wi-Fi, and Smart Cities. However, there are other factors too such as rising household debt, slowing corporate and consumer sentiment, and the emergence of disruptive technologies that change IT strategies of Thai companies." Araneta remarked, "The slowdown is caused not just by political turbulence."
IDC notes that the local ICT market needs to quickly shift towards IT projects that are led by large private enterprises. Fortunately, there will still be strong spending from several sectors that are working on a clear business-as-usual mode such as manufacturing, financial services, telecoms and logistics. Araneta continues, "The use of Thailand as a hub for the ASEAN Economic Community (AEC) is also gaining momentum, and is bringing new sources of growth to the ICT market in general."
IDC Research Thailand's top ten predictions for 2014 are the following
1. Annual ICT spending growth will moderate to 7.2%, but will present a steep inflection point in the second half of 2014.
2. The industry's renewed focus on Business Continuity Planning (BCP) will make Thailand a testing ground for new disruptive technologies in the ASEAN region.
3. In order to move towards CYOD, Thai companies need to develop their mobility masterplans.
4. New players will accelerate competition in Fiber to the x (FTTX).
5. Digital TV uptake will be strong, but will come below plan for 2014.
6. Japanese manufacturing firms will make Thailand relevant in the Internet of Things (IoT) discussion.
7. 40% of ICT spending in Myanmar will be originated from or coursed through Thailand.
8. The phablet is the winning consumer device for 2014.
9. The next-5 markets will grow by at least 15%, making Metropolitan Bangkok less a center for ICT spending.
10. High growth in mobile financial transactions will bring Thailand closer to a digital economy.
Despite political tensions, the Thai market will see the first successful use cases of disruptive technologies such as Big Data and Cloud Computing. These will make Thailand relatively ready to take on the Third Platform of IT in the next three years.
Araneta concludes, "What is most important in 2014 is that ICT investments need to show quick return on investments. Among Big Data pilots for example, Thai firms need to see improvements in customer insights and marketing, and see an uplift in revenues from their initiatives. Consequently, Big Data projects will be driven by internal motivations, and not influenced so much by factors beyond their control."
For more information about this report, “Top 10 Predictions for Thailand's ICT Market in 2014: Other Sources of Growth”, December 2013” (forthcoming), please contact Phawadee Pongsupan at +662 645 2370 or
[email protected]. To set up an interview with Michael Araneta, please contact Sasithorn Sae-iao at +662-651-5585 ext.113 or
[email protected].
For press inquiries, please contact:
Michael Araneta
Head of Operations
IDC Thailand
Direct: +66 2 645 2370 ext 510
[email protected]
Sasithorn Sae-iao
Senior Marketing Executive
IDC Thailand
Direct: +66 2 645 2370 ext 500
[email protected]