{"id":142486,"date":"2024-11-15T10:46:52","date_gmt":"2024-11-15T03:46:52","guid":{"rendered":"http:\/\/www.thestorythailand.com\/?p=142486"},"modified":"2024-12-28T00:42:58","modified_gmt":"2024-12-27T17:42:58","slug":"google-digital-economy","status":"publish","type":"post","link":"https:\/\/www.thestorythailand.com\/en\/google-digital-economy\/","title":{"rendered":"Thailand&#8217;s Digital Economy soars in Southeast Asia"},"content":{"rendered":"\n<p>Thailand&#8217;s digital economy is projected to reach $46 billion in Gross Merchandise Value (GMV) in 2024, remaining the second-largest and second-fastest growing digital economy in Southeast Asia, according to the latest e-Conomy SEA 2024 report by Google, Temasek, and Bain &amp; Company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Digital sectors exhibiting positive growth trends<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>E-commerce<\/strong>, which remains the largest contributor to Thailand\u2019s digital economy, is poised to grow by 19% to $26 billion in GMV in 2024. Major e-commerce platforms have been at the forefront of this growth as they continue to innovate and introduce new features, such as video commerce, to enhance the online shopping experience. These interactive shopping experiences and engaging video content captivate Thai consumers and fuel online sales.<\/li>\n\n\n\n<li><strong>Food delivery &amp; Transport<\/strong> is projected to generate over $4 billion in combined GMV, reflecting a 6% year-on-year growth. Transport has already rebounded to exceed pre-pandemic levels, fueled by a strong resurgence in tourism. With profitability in focus, food delivery will remain to be a key battleground, given the highly fragmented F&amp;B landscape in Thailand.<\/li>\n\n\n\n<li><strong>Online travel<\/strong> is the fastest growing sector in Thailand, projected to drive GMV to $10 billion in 2024. This represents a 32% increase from 2023 \u2013 the fastest growing online travel sector in SEA.\u00a0 New visa measures, including visa exemptions for visitors from 93 countries (up from 57), a digital nomad visa scheme, and visa on arrival (VOA) schemes, have further boosted inbound travel, with 45% of travel spent in Thailand coming from travelers within Asia Pacific. Spending on overseas travel by Thais has also surged by 270% since 2020, with close to 70% of Thai travelers spending within Asia Pacific.<\/li>\n\n\n\n<li><strong>Online media<\/strong>, including advertising, video-on-demand, music-on-demand, and gaming, has shown consistent growth at 7% to reach a GMV of $6 billion this year. The sector continues to show strong and steady growth, driven by the increasing popularity of digital content, games and streaming services.<\/li>\n\n\n\n<li><strong>Digital financial services<\/strong> have experienced strong growth. Digital payments grew by 5% in 2024 and are expected to record a Gross Transaction Value (GTV) of $141 billion. Meanwhile, digital lending is poised to reach $14 billion in loan book balance in 2024, representing 28% growth rate \u2013 the second-fastest growing digital lending sector in SEA. Growth in digital lending and digital wealth will further accelerate towards 2030. In addition, digital payment adoption is expected to grow further through the government\u2019s new Digital Wallet program which will drive Thailand towards a cashless society.\u00a0<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"449\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" src=\"https:\/\/www.thestorythailand.com\/wp-content\/uploads\/2024\/11\/e-Conomy-SEA-2024-Report.jpg\" alt=\"e-Conomy SEA 2024 Report\" class=\"wp-image-142481\" srcset=\"https:\/\/www.thestorythailand.com\/wp-content\/uploads\/2024\/11\/e-Conomy-SEA-2024-Report.jpg 800w, https:\/\/www.thestorythailand.com\/wp-content\/uploads\/2024\/11\/e-Conomy-SEA-2024-Report-300x168.jpg 300w, https:\/\/www.thestorythailand.com\/wp-content\/uploads\/2024\/11\/e-Conomy-SEA-2024-Report-768x431.jpg 768w, https:\/\/www.thestorythailand.com\/wp-content\/uploads\/2024\/11\/e-Conomy-SEA-2024-Report-748x420.jpg 748w, https:\/\/www.thestorythailand.com\/wp-content\/uploads\/2024\/11\/e-Conomy-SEA-2024-Report-150x84.jpg 150w, https:\/\/www.thestorythailand.com\/wp-content\/uploads\/2024\/11\/e-Conomy-SEA-2024-Report-696x391.jpg 696w\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">AI supercharging Thailand\u2019s digital landscape<\/h3>\n\n\n\n<p>Artificial Intelligence (AI) is transforming Thailand&#8217;s digital landscape. Bangkok Metropolitan Region leads in AI interest and demand, with education, gaming, and marketing among the top industries driving AI search interest. There is also a demand for mobile apps with AI features such as content creation, photo effects, and video editing. Meanwhile, businesses are leveraging AI for targeted advertising, personalized customer engagement, and creating immersive experiences. AI has become essential for enhancing efficiency, improving customer experience, and fostering innovation.<\/p>\n\n\n\n<p>Investments are growing to meet this demand. In H1 2024, investments to build data centers in Thailand reached $6 billion, boosting planned data center capacity by 550% &#8211; marking the largest capacity growth in SEA.&nbsp;<\/p>\n\n\n\n<p><strong>Jackie Wang<\/strong>, Country Director of Google Thailand, said, \u201cThailand&#8217;s digital economy thrives, thanks to the government support, from the nationwide digital wallet program to a new four-year strategy to establishing Thailand as a leading digital hub in Southeast Asia for data centers and AI, aimed at attracting global tech companies through incentives and streamlined processes. Google is proud that we\u2019ve been able to contribute to this growth story with Google\u2019s recent investments into Thailand.\u201d<\/p>\n\n\n\n<p><strong>Willy Chang<\/strong>, Partner at Bain &amp; Company, said, \u201cSoutheast Asia\u2019s digital economy continues to perform strongly, with double-digit GMV and revenue growth, along with a surge in profitability across sectors led by key players. Thailand plays a significant role in driving this growth and continues to be at the forefront of many shifting consumer behaviors, such as rapid digital payment adoption. Additionally, Thailand is also emerging as a hotbed for AI and AI infrastructure.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Private funding in Thailand\u00a0<\/h3>\n\n\n\n<p>Private funding in Thailand rebounds to $200 million in the first half of 2024, with 92% of total funding directed towards DFS. Last year, the report outlined four enablers to revitalize the funding landscape: realistic entry valuations, proven monetisation models, a clear path to profitability, and dependable exit pathways. The first three have been achieved but developing dependable exit pathways is a work in progress as capital market conditions continue to be challenging. <strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Digital trust: a key pillar for Thailand\u2019s economy<\/h3>\n\n\n\n<p>As Thailand\u2019s digital economy grows, maintaining digital trust and unlocking the value of AI, including strengthening inclusivity, are crucial for sustainable growth. Thais are seeking trusted security features such as encryption and two-factor authentication, while platforms are increasingly adopting AI-powered fraud detection and compliance measures to bolster trust amid the rising frequency and sophistication of cyber crimes. As digital payments gain popularity in Thailand, fostering a secure and transparent environment will be critical for driving adoption and ensuring the long-term growth of the digital economy.<\/p>\n\n\n\n<p>\u201cTo keep pace with the rapid digital adoption in Thailand, improvements in digital security are essential. Deploying AI is crucial to strengthen defenses against cyberattacks and online scams. Collaboration among government and industry players will be vital in creating a secure, inclusive, and resilient digital environment. And we\u2019re so proud to be partnering with MDES to safeguard Thais against scams with the enhanced Google Play Protect feature which was introduced earlier this year at Safer Songkran,\u201d <strong>Jackie<\/strong> added.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.thestorythailand.com\/en\/19\/11\/2024\/142220\/\">Thailand&#8217;s digital economy is the second fastest growing in Southeast AsiaBusinesses still lack digital tools to reach sustainability goals, survey finds<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.thestorythailand.com\/en\/21\/11\/2024\/142322\/\">WHA Showcasing business potential, highlighting vision to become a tech and sustainable company<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Thailand&#8217;s digital economy is projected to reach $46 billion in Gross Merchandise Value (GMV) in 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