Construction in Thailand – Key Trends and Opportunities to 2024

Thailand’s construction industry regained growth momentum in 2018, with output expanding by 2.7% in real terms – up from -2.8% in 2017. Growth during the review period (2014-2018) averaged 4.6% a year, and was supported by positive developments in regional economic conditions and government investments in transport, residential and energy construction projects.

The industry is expected to continue to expand over the forecast period (2019-2023), albeit at a slower pace compared to the review period. Growth will be driven by the government’s efforts to develop the country’s transport infrastructure, coupled with efforts to boost the residential construction market. In the first half of 2019, the government announced plans to allocate THB4 billion (US$125.6 million) to finance five low-cost housing projects in the country, while in the 2020 budget, the government allocated THB650 billion (US$20.4 billion) towards capital expenditures. The focus on the development of the energy sector is also expected to drive industry growth. The government plans to add 56,431MW of new power capacity by 2037 under the updated power development plan (PDP 2018-2037).

Investments to develop infrastructure in Chachoengsao, Chonburi and Rayong provinces under the Eastern Economic Corridor (EEC) scheme are also expected to support growth in the industry over the forecast period. In order to attract foreign manufacturing companies, create a value-based economy and reduce social disparity, the government is developing the EEC, a new industrial zone. In October 2018, the government agreed to approve four more large-scale infrastructure projects under the ECC scheme.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 3.48% over the forecast period.

Key Highlights

– GlobalData expects the residential construction market to account for 40.3% of the industry’s total value in 2023, supported by ongoing urbanization and government efforts to balance housing demand and supply through the construction of low-cost housing units. In late 2018, the Government Housing Bank (GH Bank) launched the one-million-unit low-cost housing scheme in a bid to provide affordable housing to the country’s low-income population. Under the new scheme, GH Bank approved THB4.3 billion (US$135.1 million)-worth of loans to 6,300 people, and is expected to approve loans worth THB10 billion (US$314.1 million) in 2019.

– To transform Thailand into a gateway to South Asia and develop a link to the Eastern Economic Corridor, in January 2019 the government approved THB106.8 billion (US$3.4 billion) to develop the Southern Economic Corridor (SEC) over the next four years. The plan seeks to develop 116 projects in Chumphon, Surat Thani, Nakhon Si Thammarat and Ranong provinces during the period of 2019-2022.

– Infrastructure construction market’s growth over the forecast-period will be driven by public and private sector investments in the development and modernization of the country’s transport infrastructure. In the first half of 2019, the State Railway of Thailand (SRT) announced plans to invest THB90 billion (US$3 million) to develop and upgrade railway tracks in the country’s southern region, in a bid to reduce travel time and encourage tourism in the region.

– In January 2019, the National Energy Policy Council approved the updated power development plan (PDP 2018-2037). Under this plan, the country’s power production capacity is expected to increase by 67.5%, going from 46,090MW in 2017 to 77,211MW in 2037. The plan seeks to add 56,431MW of new power capacity by 2037, of which 20,766MW is from renewable energy projects. Consequently, public and private sector investments in power infrastructure development to meet the government’s targets will drive the energy and utilities construction market’s growth over the forecast period.

– 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 THB11.5 trillion (US$355.9 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 60.3% of the pipeline value being in projects in the pre-execution and execution stages as of October 2019

GlobalData’s Construction in Thailand – Key Trends and Opportunities to 2023 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 (2014-2018) and forecast (2019-2023) 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 OUTLOOK: AT-A-GLANCE

3 LATEST NEWS AND INDICATORS

4 KEY DRIVERS AND RISKS

4.1. Economic Performance

4.2. Political Environment

4.3. Demographics

4.4. Risk Profile

5 CONSTRUCTION OUTLOOK

5.1. All Construction

5.1.1. Outlook

5.1.2. Project analytics

5.2. Commercial Construction

5.2.1. Outlook

5.2.2. Project analytics

5.3. Industrial Construction

5.3.1. Outlook

5.3.2. Project analytics

5.4. Infrastructure Construction

5.4.1. Outlook

5.4.2. Project analytics

5.5. Energy and Utilities Construction

5.5.1. Outlook

5.5.2. Project analytics

5.6. Institutional Construction

5.6.1. Outlook

5.6.2. Project analytics

5.7. Residential Construction

5.7.1. Outlook

5.7.2. Project analytics

6 KEY INDUSTRY PARTICIPANTS

6.1. Contractors

6.2. Consultants

7 APPENDIX

7.1. What is this Report About?

7.2. Definitions

8 ABOUT GLOBALDATA

8.1. GlobalData at a Glance

8.2. GlobalData Construction

8.3. Disclaimer

8.4. Contact Us

List of Tables

List of Tables

Table 1: Construction Outlook

Table 2: Thailand, Key Economic Indicators

Table 3: Thailand, Construction Output Value (nominal, THB Million)

Table 4: Thailand, Construction Output Value (nominal, US$ Million)

Table 5: Thailand, Top Commercial Construction Projects by Value

Table 6: Thailand, Top Industrial Construction Projects by Value

Table 7: Thailand, Top Infrastructure Construction Projects by Value

Table 8: Thailand, Top Energy and Utilities Construction Projects by Value

Table 9: Thailand, Top Institutional Construction Projects by Value

Table 10: Thailand, Top Residential and Mixed-Use Construction Projects by Value

Table 11: Thailand, Key Contractors

Table 12: Thailand, Key Consultants

Table 13: GlobalData Construction Market Definitions

Table 14: Construction Risk Index Ratings and Scores

List of Figures

List of Figures

Figure 1: Key Markets, Construction Output Growth Matrix and Risk Matrix

Figure 2: Thailand, Construction Projects Pipeline by Sector (THB Billion)

Figure 3: Thailand, Gross Fixed Capital Formation (THB Million)

Figure 4: Thailand, Total Land Development Licences Issued (Number)

Figure 5: Thailand, House Price Index of Single-detached House

Figure 6: Thailand, Risk Profile

Figure 7: Thailand, Risk Comparison

Figure 8: Thailand, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)

Figure 9: Thailand, Construction Output Value, Growth Matrix

Figure 10: Thailand, Construction Output Value, by Sector (THB Million), 2014-2023

Figure 11: Thailand, Construction Projects Pipeline, Projected Annual Spending by Stage (THB Billion), 2018-2023

Figure 12: Thailand, Construction Projects Pipeline, Value by Stage (THB Billion)

Figure 13: Thailand, Commercial Construction Output by Project Type (THB Million), 2014-2023

Figure 14: Thailand, Commercial Construction Projects Pipeline, Value by Stage (THB Billion)

Figure 15: Thailand, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (THB Billion), 2018-2023

Figure 16: Thailand, Industrial Construction Output by Project Type (THB Million), 2014-2023

Figure 17: Thailand, Industrial Construction Projects Pipeline, Value by Stage (THB Billion)

Figure 18: Thailand, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (THB Billion), 2018-2023

Figure 19: Thailand, Infrastructure Construction Output by Project Type (THB Million), 2014-2023

Figure 20: Thailand, Infrastructure Construction Projects Pipeline, Value by Stage (THB Billion)

Figure 21: Thailand, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (THB Billion), 2018-2023

Figure 22: Thailand, Energy and Utilities Construction Output by Project Type (THB Million), 2014-2023

Figure 23: Thailand, Energy and Utilities Construction Projects Pipeline, Value by Stage (THB Billion)

Figure 24: Thailand, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (THB Billion), 2018-2023

Figure 25: Thailand, Institutional Construction Output by Project Type (THB Million), 2014-2023

Figure 26: Thailand, Institutional Construction Projects Pipeline, Value by Stage (THB Billion)

Figure 27: Thailand, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (THB Billion), 2018-2023

Figure 28: Thailand, Residential Construction Output by Project Type (THB Million), 2014-2023

Figure 29: Thailand, Residential Construction Projects Pipeline, Value by Stage (THB Billion)

Figure 30: Thailand, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (THB Billion), 2018-2023

Figure 31: Thailand, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 32: Thailand, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)

Figure 33: Thailand, Headquarters of Key Consultants (% of Total Project Pipeline)

Figure 34: Thailand, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)

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