Construction activity in Thailand was weak in 2017, due to erratic public investment, difficulties in land acquisition and an unstable political environment. Moreover, labor shortages due to the new immigration law hindered industry growth in 2017. The country's construction industry consequently contracted by 3.0% in real terms that year, which was a sharp downturn following annual growth rate of 8.6% in 2016 and 17.1% in 2015.
The industry's output value is expected to pick up over the forecast period (2018-2022), with investment in public infrastructure, renewable and nuclear energy, commercial and industrial projects, and improvements in consumer and investor confidence. In June 2018, the government announced plans to build two new airports in Chiang Mai and Phuket by 2025. Moreover, the government's investment to support the establishment of a regional transport network under the Twelfth National Economic and Social Development Plan (2017-2021) is expected to support industry growth over the forecast period. Under this, the government plans to construct bridge at Kolok River in Tak Bai and Sungai Kolok, and build a maritime transport network to connect Indonesia, Malaysia and Thailand by 2022.
In real terms, the construction industry's output value is forecast to rise at a compound annual growth rate (CAGR) of 3.04% over the forecast period.
GlobalData's "Construction in Thailand - Key Trends and Opportunities to 2022", 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.
Key Highlights
- GlobalData expects the infrastructure construction market to record a forecast-period CAGR of 6.17% in nominal terms, driven by the government's investment in infrastructure development. To develop the country's roads, rail and airports, the government increased its investment on the Transportation Action Plan from THB855.3 billion (US$25.2 billion) in 2017 to THB2.0 trillion (US$62.0 billion) in 2018.
- Forecast period growth in the residential construction market will be supported by government efforts to build houses for middle-and low-income groups through its social housing program, coupled with growing urbanization. In September 2018, the National Housing Authority (NHA) and Krung Thai Bank (KTB) launched a new housing loan scheme. Under this, the government announced plans to spend THB10.0 billion (US$306.8 million) to provide loans to builders to construct affordable houses in the country for low- and middle-income people.
- GlobalData expects the energy and utilities construction market to record a forecast-period CAGR of 5.25% in nominal terms, driven by the government plans to meet rising energy demand. The government plans to increase the total installed capacity of the country from 42,433MW in 2017 to 70,335MW by 2036; this is expected to drive investment towards new power plants in the coming years.
- Growth of the industrial construction market over the forecast period will be supported by the government's focus to develop the country's manufacturing sector. In February 2018, the government announced plans to provide income tax and import tax exemption to auto manufacturing companies for up to eight years, on the basis of type and scale of their production. Moreover, the government plans to increase the number of aircraft spare part manufacturers from 28 factories in 2017 to 40 by 2020.
- The total construction project pipeline in Thailand - as tracked by GlobalData, and including all mega projects with a value above US$25 million - stands at THB9.7 trillion (US$287.0 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards early-stage projects, with 55.0% of the pipeline value being in projects in the pre-planning and planning stages as of November 2018.
Scope
- This report provides a comprehensive analysis of the construction industry in Thailand.
- Historical (2013-2017) and forecast (2018-2022) 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.
