The software sector outperformed three other digital sectors last year with strong growth of 12.8%, reaching a value of 215 billion baht.
The growth is attributed to investment in advanced technology such as artificial intelligence (AI), data analytics, cloud computing and cybersecurity, according to a joint survey by the Digital Economy Promotion Agency (Depa) and IMC Institute.
The software sector is projected to maintain a growth rate of 9-10% between 2024 and 2026, according to the survey.
The value of the four sectors -- software, hardware and smart devices, digital services, and digital content -- is projected to reach 2.94 trillion baht by 2026, driven by increasing demand for emerging technologies, particularly AI.
Kasititorn Pooparadai, senior executive vice-president at Depa, said despite global economic and political uncertainties, the digital industry in 2023 was resilient, posting modest growth of 3.88% from 2022, bringing the total value to 2.02 trillion baht.
The digital service sector expanded by 9.28% to 308 billion baht, while the hardware and smart device industry gained 1.76% to 1.46 trillion.
Digital content grew only 0.01% to 44.2 billion baht.
For 2024-2026, the hardware and smart device industry is expected to grow by 11-16%, while digital services is projected to gain 13-14% between 2024 and 2025, then decline in 2026.
Digital content is expected to see growth of around 3-5%.
Thanachart Numnonda, director of the IMC Institute, said the survey breaks down the software industry into software and software services.
The value of the software industry was 81.4 billion baht, with growth of 4.31%, while software services gained 134 billion baht, up 18.7%.
In 2023, the value of software produced and used within Thailand was 159 billion baht, with growth of 14.9%.
In contrast, software exports fell by 1.63% to 2.41 billion baht, while imports increased by 7.55% to 53.3 billion baht.
The growth of the hardware and smart device sector last year was supported by a 5.90% increase in imports, reaching 464 billion baht, while exports declined by 0.07% to 993 billion baht. The value of smart device imports grew by 52.7% to 176 billion baht.
The global economic slowdown is affecting consumer purchasing power, especially in the consumer electronics sector, limiting growth in the hardware and smart device industry, according to the survey.
Demand for computers reached a saturation point last year because of a concentrated purchase cycle during the pandemic, which could also contribute to a slowdown, noted the survey.
Mr Thanachart said the growth of the digital service industry in 2023 was driven by surging demand for digital services, as consumers rapidly adapt to the widespread use of digital tools across sectors.
The survey revealed nearly a 10% increase in personnel in the digital services industry, primarily driven by the e-logistics sector, which employed 41,963 people.
This aligns with the e-logistics market value, which is the highest among the various service types.
In contrast, the software and hardware and smart device industries saw little to no change in employment numbers. This stability is attributed to business owners managing hiring practices in response to the global economic and political climate, which has led to stagnant purchasing power in the global market.