Construction in Thailand - Key Trends and Opportunities to 2025 (H1 2021)

Despite the disruption caused by the Coronavirus (COVID-19) pandemic, the construction industry's output grew by 2.3% in real terms in 2020; this followed growth of 2.3% and 1.6% in 2018 and 2019, respectively. Although Thailand imposed a lockdown in mid-2020, construction activity remained relatively resilient, with most work progressing without much disruption. However, certain projects are expected to face delays and subsequent cost overruns, as the pandemic has caused supply chain disruptions and labor shortages in the construction industry.

GlobalData expects the construction industry to grow by 1.9% in real terms in 2021, supported by government plans to attract foreign investment, revive the tourism industry, and develop affordable housing, transport, and renewable energy infrastructure. In February 2021, the State Enterprise Policy Office (SEPO) approved the government's investment in four public-private partnership (PPP) projects worth THB163 billion (US$5.4 billion) for 2021. The SEPO also revised the 2020-2027 draft plan, under which it approved 77 projects worth THB1 trillion (US$29.3 billion) for the period of 2021-2027. Over the remainder of the forecast period, the industry is expected to register an average annual growth of 4% between 2022-2025, supported by improving investor and consumer confidence, and government investment on road, rail, renewable energy, and housing projects. The government's pre-COVID-19 plans to develop transport infrastructure are also expected to drive the industry's growth over the forecast period. Under the Southern Economic Corridor (SEC) project, the government plans to invest THB106.8 billion (US$3.4 billion) towards the development of 116 projects during the period of 2019-2022.

Progress has been made on flagship Eastern Economic Corridor (EEC) projects, with the government signing Public-Private Partnership Agreements (PPPA) for four out of the six developments. These include the High-Speed Rail linking Donmueang, Suvarnabhumi and U-Tapao Airports (HSR), the U-Tapao International Airport, the Map Ta Phut Industrial Port (Phase 3) and the Laem Chabang Port Phase III. PPPAs for the remaining two projects - Digital Park/EEC Digital Innovation Zone (EECd) and Thai Airways Maintenance Repair and Overhaul (TGMRO) Campus project - are also expected to be signed by the end of 2021. The projects are expected to be completed by 2025 and entail an investment of THB669 billion (US$20.7 billion). Overall, the EEC program, which was approved by the Thai cabinet in June 2016, involves infrastructure developments and upgrades across Rayong, Chachoengsao and Chonburi provinces in Thailand, and is expected to require an investment of US$44 billion. The program includes the construction of railways, airports, and ports, as well as the development of industries, business zones and cities.

This report provides detailed market analysis, information, and insights into the Thai construction industry, including -

• The Thai construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Thai construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Thailand. It provides -

• Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Thailand, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.

Table of Contents

Table of Contents

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

• 3.1 Economic Performance
• 3.2 Political Environment and Policy
• 3.3 Demographics
• 3.4 COVID-19 Status

4 Construction Outlook

• 4.1 All Construction
• Outlook
• Latest news and developments
• Construction Projects Momentum Index
• 4.2 Commercial Construction
• Outlook
• Project analytics
• Latest news and developments
• 4.3 Industrial Construction
• Outlook
• Project analytics
• Latest news and developments
• 4.4 Infrastructure Construction
• Outlook
• Project analytics
• Latest news and developments
• 4.5 Energy and Utilities Construction
• Outlook
• Project analytics
• Latest news and developments
• 4.6 Institutional Construction
• Outlook
• Project analytics
• Latest news and developments
• 4.7 Residential Construction
• Outlook
• Project analytics
• Latest news and developments

5 Key Industry Participants

• 5.1 Contractors
• 5.2 Consultants

6 Construction Market Data

7 Appendix

• 7.1 What is this Report About?
• 7.2 Definitions
• 7.3 GlobalData Construction
• Contact Us

List of Tables

List of Tables

• Table 1: Construction Industry Key Data
• Table 2: Thailand, Key Economic Indicators
• Table 3: Thailand, Commercial Construction Output by Project Type (real % change), 2016-2025
• Table 4: Thailand, Top Commercial Construction Projects by Value
• Table 5: Thailand, Industrial Construction Output by Project Type (real % change), 2016-2025
• Table 6: Thailand, Top Industrial Construction Projects by Value
• Table 7: Thailand, Infrastructure Construction Output by Project Type (real % change), 2016-2025
• Table 8: Thailand, Top Infrastructure Construction Projects by Value
• Table 9: Thailand, Energy and Utilities Construction Output by Project Type (real % change), 2016-2025
• Table 10: Thailand, Top Energy and Utilities Construction Projects by Value
• Table 11: Thailand, Institutional Construction Output by Project Type (real % change), 2016-2025
• Table 12: Thailand, Top Institutional Construction Projects by Value
• Table 13: Thailand, Residential Construction Output by Project Type (real % change), 2016-2025
• Table 14: Thailand, Top Residential Construction Projects by Value
• Table 15: Thailand, Key Contractors
• Table 16: Thailand, Key Consultants
• Table 17: Thailand, Construction Output Value (Real, US$ Million)
• Table 18: Thailand, Construction Output Value (Nominal, THB Billion)
• Table 19: GlobalData Construction Market Definitions

List of Figures

List of Figures

• Figure 1: South and South-East Asia, Construction Output (real % change), 2020 and 2021
• Figure 2: Thailand, Construction Projects Pipeline by Sector (US$ Billion)
• Figure 3: Thailand, COVID-19 Confirmed Cases
• Figure 4: Thailand, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate), 2016-2025
• Figure 5: Thailand, Construction Output Value, by Sector (Real, US$ Million), 2016-2025
• Figure 6: Thailand, Construction Value-Add (THB Million, 2002 Constant Prices)
• Figure 7: Thailand, Gross Fixed Capital Formation in Construction (THB Million, 2002 Constant Prices)
• Figure 8: Thailand, Construction Projects Momentum Index
• Figure 9: Thailand, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 10: Thailand, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 11: Thailand, Foreign Tourist Arrival (Number, Thousand)
• Figure 12: Thailand, Average Retail Sales Index (2002=100)
• Figure 13: Thailand, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 14: Thailand, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 15: Thailand, Manufacturing Value-Add at Constant Market Prices (THB Million)
• Figure 16: Thailand, Manufacturing Value-Add at Constant Market Prices (THB Million)
• Figure 17: Thailand, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 18: Thailand, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 19: Thailand, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 20: Thailand, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 21: Thailand, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 22: Thailand, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 23: Thailand, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 24: Thailand, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 25: Thailand, Land Development Licenses (Number)
• Figure 26: Thailand, Housing Price Index
• Figure 27: Thailand, Headquarters of Key Contractors (% of Total Project Pipeline)
• Figure 28: Thailand, Headquarters of Key Consultants (% of Total Project Pipeline)