Report Overview

An increasing number of infrastructure development projects, growing investments in residential, commercial, and industrial sectors, the Thai Govenement’s strategic investments in housing, transportation, tourism, and renewable energy sectors are expected to drive Thailand Construction Market during the forecast period between 2024 and 2030.

Thailand Construction Market – Industry Trends & Forecast Report, 2030

Thailand Construction Market size by value was estimated at USD 26.68 billion in 2023. During the forecast period between 2024 and 2030, Thailand Construction Market size is expected to expand at a CAGR of 5.30% reaching a value of USD 34.23 billion by 2030. Thailand Construction Market is driven by government infrastructure projects, increased investments in residential, commercial, and industrial sectors, and strategic initiatives to boost tourism and energy projects. Additionally, rising consumer and investor confidence and government expenditures in housing, transportation, and renewable energy contribute to market growth

Construction – Overview

Construction industry involves the creation, maintenance, and repair of buildings and infrastructure. This includes residential, commercial, and industrial buildings, as well as roads, bridges, airports, and utilities. The industry is vital for economic development, providing jobs and enabling the growth of other sectors. Technological advancements, sustainability, and innovation are driving the industry forward, making it more efficient and environmental friendly.

Thailand Construction Market

Growth Drivers

Expanding Tourism & Hospitality Sector

The expansion in the tourism industry significantly drives Thailand Construction Market. As tourism grows, there is increased demand for hotels, resorts, and related infrastructure, leading to more construction projects. This growth is supported by government initiatives to enhance tourism infrastructure, making Thailand an attractive destination for both domestic and international travelers. Consequently, the construction sector benefits from these developments, contributing to the overall economic growth of the country.

Challenges

Rising Costs of Construction Materials

The rising costs of construction materials significantly restrain Thailand Construction Market. Increased prices of essential materials like steel and cement, driven by global supply chain disruptions and inflation, elevate project costs. This leads to financial pressures on contractors and developers, causing project delays and reduced profitability. Consequently, these challenges hinder the overall growth of construction sector in Thailand, despite the increasing demand for infrastructure and development projects.

Impact of Escalating Geopolitical Tensions on Thailand Construction Market

Further spreading and intensifying geopolitical tensions among the countries across the major regions, especially in the Middle East, could adversely affect Thailand Construction Market. Rising oil prices and disruptions in global shipping contribute to higher inflation, driving up the cost of construction materials and financing. This creates financial strain for contractors and developers, leading to project delays and reduced profitability. Additionally, the ongoing Ukraine conflict, protectionist trade policies, and uncertainty from the US-China rivalry disrupt global supply chains and push energy prices higher. These factors pose risks to Thailand's trade and investment landscape. To mitigate these challenges, Thai authorities recommend diversifying trade partnerships, boosting domestic demand, and fostering regional cooperation.

Thailand Construction Market

Segmental Coverage

Thailand Construction Market – By Material Type

By material type, Thailand Construction Market is divided into Concrete Construction, Steel Construction, Wood Construction, Composite Materials Construction, and other segments. The concrete construction segment holds the largest share of Thailand Construction Market by material type. The segment’s dominance is attributed to concrete's widespread use in residential, commercial, and infrastructure projects due to its durability, strength, and cost-effectiveness. Concrete is particularly favored in Thailand for high-rise buildings, bridges, and roads, driven by urbanization and government infrastructure initiatives. The segment benefits from the country's growing construction activities, particularly in transportation and public infrastructure development, positioning concrete as the preferred material in the market.

Thailand Construction Market – By Construction Activity

Based on construction activity, Thailand Construction Market is divided into New Construction, Renovation, Maintenance & Repair, and Demolition segments. The new construction segment holds the largest share of Thailand Construction Market by construction activity, due to ongoing infrastructure development, urbanization, and government initiatives to enhance transportation and public facilities. The Thai government’s focus on expanding residential, commercial, and industrial projects, including smart cities and transit systems, has fueled the demand for new buildings. The new construction segment benefits from both domestic and foreign investment, making it the largest contributor to the overall growth of the construction industry in Thailand.

Thailand Construction Market – By End User

By end user, Thailand Construction Market is divided into Real Estate Development, Energy & Utilities, Healthcare, Education, and Government & Public Services segments. The real estate development segment is the largest end user in Thailand Construction Market, due to ongoing urbanization, increasing demand for residential and commercial properties, and rising investments in infrastructure projects. Major developments in Bangkok and other urban centers, along with the expansion of industrial estates and retail spaces, further drive growth in this segment. The Thai Government policies promoting affordable housing and foreign investments in real estate also contribute to its leading position in Thailand Construction Market.

Competitive Landscape

Key players in the highly competitive Thailand Construction Market include Italian-Thai Development Public Company Limited, SCG International Corporation Company Limited, Siam Global House Public Company Limited, Land and Houses Public Company Limited, Dohome Public Company Limited, CRC Thai Watsadu Limited, Drainage and Sewerage Department, Bangkok Komatsu Company Limited, SPCC Joint Venture, and Caterpillar (Thailand) Limited. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Material Type

• Concrete Construction

• Steel Construction

• Wood Construction

• Composite Materials Construction

• Others

By Construction Activity

• New Construction

• Renovation

• Maintenance & Repair

• Demolition

By End User

• Real Estate Development

• Energy & Utilities

• Healthcare

• Education

• Government & Public Services