An increasing number of internet users will likely spur the growth of Thailand's online market to US$37 billion (1.33 trillion baht) by 2025, according to a joint research conducted by Google and Temasek.
The E-economy SEA: Unlocking the $200-billion opportunity in Southeast Asia study projected that of the total online market, e-commerce and travel would account for 88%.
E-commerce is set to grow 29% a year from $900 million in 2015 to $11 billion in 2025. During the same period, the online travel market should grow five-fold to $21.7 billion, or 18% per year.
It said Thailand was a fast-growing internet market. It was forecast to expand to 59 million users in 2020, up from 38 million in 2015, or by 9% a year on average.
Among the factors supporting the growth is demographics. According to the study, Thailand is a young, increasingly affluent country with around 58% of the population below the age of 40. In 2011, the country’s status was upgraded to upper middle income by the World Bank.
Thailand is also a highly connected country, with 57% of the population having access to the internet. Over 85 million mobile subscribers, representing a 125% penetration rate, are on 3G and LTE (Long-Term Evolution, a standard for high-speed wireless communication for mobile phones).
Internet speeds in Thailand are also the second fastest in Southeast Asia after Singapore, with downloads speeds of 19.82 megabits per second, compared to 122.43 Mbps of the city-state.
As well, spending on digital advertisements is projected to jump six-fold to $4.35 billion by 2025.
The report also claimed Thailand, home to 358 startups, is a great place to run new businesses.
The study suggested Thailand overcome key challenges -- logistics and connectivity; complexity of payments; market readiness; fraud and cybersecurity -- with the most pressing need being investment.
“I’m confident we can overcome the challenges. Already there are great examples of Thai businesses and startups leading the way in Southeast Asia and beyond,” said Ben King, country manager of Google Thailand.
