Thailand's online market is set to grow over the next decade to reach US$37 billion -- with e-commerce and travel to make up over 88% of the total, according to a study jointly conducted by Google and Temasek.
The study, "E-conomy SEA: Unlocking the $200 billion opportunity in Southeast Asia", looked at the opportunities in Southeast Asia across six countries.
Thailand has been highlighted as a fast-growing internet market, expanding 9% annually and is projected to hit 59 million users by 2020, up from 38 million in 2015, which is good news for local businesses.
This is driven by the fact that Thailand is a young, increasingly affluent country with 58% of the population below the age of 40. According to the World Bank, Thailand became an "upper-middle income" economy in 2011.
The country is also a highly-connected, with 57% of the population having access to the internet. There are over 85 million mobile subscribers (125% penetration rate) using 3G and 4G services.
Thailand's high-speed wireless broadband connections are also extremely fast -- the second fastest in Southeast Asia with downloads speeds of 19.8 megabits per second, according to the study.
The study also found that opportunities for e-commerce are set to grow at a compound annual growth rate of 29%, up from $900 million in 2015 to $11 billion in 2025.
Opportunities for the online travel industry also abound, with the Thai online travel market expected to grow by 5.2 times and reach $21.7 billion by 2025.
Thailand's online rides are predicted to grow to $1.9 billion by 2025.
With all this potential, it's no surprise that digital ad spending is projected to grow by 6.2 times to $4.35 billion by 2025, with compound annual growth rates of 20%.
The report also highlights Thailand as a great place to run a startup. The country is already home to 358 startups.
The report also indicates that the country needs to overcome several key challenges including logistics and connectivity; complexity of payments; market readiness; fraud and cybersecurity, with investment being the most pressing need.
Ben King, country manager of Google Thailand, said with all of the advantages the internet brings with it, there's never been a better time to start a business in Thailand. He said Google is committed to helping businesses, from the largest e-commerce players to the smallest stores.