Despite economic headwinds, SET-listed IT product distributor Synnex (Thailand) is investing 50 million baht in a new warehouse and plans to showcase technology solutions to sustain its growth trajectory.
The company anticipates 13% revenue growth this year, driven by demand for artificial intelligence (AI)-enabled devices and its strategic transition towards becoming a business solutions provider by 2027.
"We decided to construct a warehouse to replace the existing facility, integrating advanced automation systems, while embracing AI to enhance productivity without needing to expand our workforce," Sutida Mongkolsuthree, chief executive of Synnex (Thailand), told the Bangkok Post.
The new warehouse, set to become operational this November, is valued at 50 million baht. The firm also wants to showcase technology solutions tailored for six sectors, including manufacturing, healthcare, education and government.
"We are transforming into a total business solution provider within two years as we see demand for IT solutions, including a cloud computing service," said Ms Sutida.
In the second half of this year, Synnex foresees demand in commercial and enterprise markets that need to replace devices with new ones with AI features and Windows 11 software, due to the end of Windows 10 support in October this year.
"There are 3 million PCs that need to be refreshed, while PCs purchased since 2018 need to be upgraded," she said.
Moreover, banking and telecom firms are investing in cloud services and AI to increase productivity and reduce costs.
Meanwhile, the video surveillance market is reporting steady growth, driven by increasing security demand across both residential and commercial sectors, said Ms Sutida.
In the consumer market, the long-awaited launch of the Nintendo Switch 2 this month is expected to revive gaming demand, following a slowdown in demand in the first quarter.
The smartwatch market continues to expand, driven by growing consumer demand for advanced health and wellness tracking features. Modern smartwatches now include an electrocardiogram monitoring, blood oxygen measurement and stress tracking.
In the first quarter of 2025, she said the company posted total revenue of 11.2 billion baht from sales and services, marking 16.2% growth year-on-year.
Synnex's sales of Apple devices recorded revenue of 565 million baht, growing 17% year-on-year, thanks to the launch of iPad A16, Air7 and the MacBook Air with M4 chip in early March.
The mobile and accessories segment posted sales of 766 million baht, representing a growth of 83%, driven by advancements in AI technology that accelerated consumer device upgrade cycles mainly in Samsung, Huawei and Honor.
The enterprise and solutions segment grew 9% to 62 million baht, driven by rising demand for professional software like Autodesk.
Ms Sutida said the company expected to achieve 13% revenue growth in 2025 from 42 billion baht last year as Thailand's IT sector continues to benefit from the ongoing wave of digital transformation including significant investment in data centre expansion by global tech firms, the adoption of AI and automation to enhance business efficiency and rising demand for cloud computing across all industries.
The digital economy is expected to record substantial growth in e-commerce and digital payments, driven by shifting consumer behaviour, she said.