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Industry Outlook Analysis

30 Dec 2021


Thailand’s BEV measures may boost sales to 25,000 units in 2025, though lack of electric vehicle charging points still presents major obstacle to greater adoption (Current Issue No.3297)

The government will soon announce measures to boost domestic demand for battery electric vehicles (BEVs), with the aim of maintaining their prices at a level closer to those of petrol-driven cars. KResearch views that car manufacturers who would benefit from the initiatives may be limited to those e... Read more

23 Dec 2021


Metaverse: Applications in the manufacturing industry to increase supply chain efficiency (Current Issue No.3294)

In recent times, the concept of the ‘metaverse’ has been attracting more attention worldwide. Operators planning to utilize the metaverse in their businesses are primarily focused on seeking new forms of business opportunities in the consumer market, whether it is a new retail sales channel that cre... Read more

30 Nov 2021


Thai Pet Food Exports Projected to Grow 20% in 2022, but Accelerated Branding to Tap Premium Segment Needed (Current Issue No.3287)

KResearch is of the view that Thai pet food exports will continue to enjoy bright prospects ahead. For 2022, we expect that the value of Thai pet food shipments will reach roughly USD2.4 billion, an increase of 20 percent, which would be a slight decline from the 23 percent growth projected for 2021... Read more

18 Nov 2021


Thai motorcycle market remains stagnant with projected growth of merely 1% in 2021... electric motorcycles see expansion with entry of new operators though they may face difficulties (Current Issue No.3286)

This year, Thailand’s motorcycle market has been seriously affected by the COVID-19 outbreak, diminishing consumers’ purchasing power. As the principal buyers, grassroots customers have been particularly affected. For the entirety of 2021, KResearch projects that total motorcycle sales may be aroun... Read more

7 Oct 2021


Covid-19 Temporarily Bolsters Thai Preowned Car Prices ... Eyeing Online Used Car Platform Startups (Current Issue No.3276)

Although the COVID-19 pandemic has affected new car production and sales, it has created two new developments in the second-hand car markets, both at home and abroad: 1) rising prices of used cars, and 2) the use of online channels for buying and selling preowned vehicles. However, prices of used ca... Read more

6 Oct 2021


Thailand’s smart factory solutions market… set to grow over 10 percent in 2021, amid gradual economic recovery (Current Issue No.3275)

Amid the ongoing COVID-19 crisis, smart factory solutions (SFS) service has tended to grow at an accelerated pace, as opposed to the gradual growth seen during the pre-pandemic period. This has been boosted by demand from large companies forced to make adjustments to lessen their dependence on manua... Read more

13 Sep 2021


Mooncake Market, 2021: Turnover Set to Shrink 5.7% as Consumer Purchasing Power Remains Weak (Current Issue No.3267)

The Mid-Autumn Festival, which falls on September 21, 2021, presents another challenging year for the mooncake business due to the protracted COVID-19 pandemic, which is much worse than the previous year. As a result, consumer purchasing power remains weak, and this may affect the decision to purcha... Read more

23 Aug 2021


Increased Investment Risk Seen in Thai Tire Industry after US Imposed AD Duties, but 2021 Tire Exports to the US Projected to Grow over 2.6% (Current Issue No.3258)

Following more than a year of an anti-dumping investigation into tires imported from Thailand, the US has finally ruled that passenger vehicle and light truck tires imported from Thailand are subject to anti-dumping (AD) duties. As a result, prices of such Thai tires in the US have risen, although t... Read more

9 Aug 2021


Turnover of Alternative Proteins Derived from Food Innovations Set to Reach THB4.5 Billion in 2021 amid Numerous Challenges (Current Issue No.3254)

Alternative proteins, which are among food techs, have emerged as one of the top consumer trends and thrived over the past few years. KResearch is of the view that the alternative protein market in Thailand is set to grow in the future as such products are now available through numerous channels whi... Read more

5 Aug 2021


Thai Polylactic Acid Exports Set to Grow at least 38% in 2021, but May Pressured by Tighter Supply in 2022 (Current Issue No.3251)

Amid the current global green trends, Thailand’s polylactic acid (PLA) exports have gradually increased at a faster rate than growth in global PLA demand over the years. The rise is primarily attributable to the fact that Thai PLA producers have been able to bolster their annual manufacturing capaci... Read more

29 Jul 2021


Thai auto market could see sales drop to 720,000 due to prolonged COVID-19 outbreak, while exports may offer little support to production (Current Issue No.3249)

With the most recent wave of the COVID-19 pandemic, the Delta variant has established itself as a major global threat, having spurred a surge in the number of cases across many countries, including Thailand. It may also impact economies worldwide over the long term if the outbreak is not successfull... Read more

9 Jul 2021


Turnover in 2021 Snack Business Projected to Shrink 4.0% amid Eroding Consumer Purchasing Power (Current Issue No.3242)

KResearch is of the view that the prolonged COVID-19 pandemic, which recently prompted the government to reimpose lockdowns and curfews in high-risk zones, has caused consumers to embrace frugality or thrift. As snacks are generally perceived as non-essential products, their consumption rate is set ... Read more

6 Jul 2021


EV contract manufacturing – new business model for the EV industry amid challenge of building a strong customer base (Current Issue No.3239)

The technological transition to electric vehicles (EVs) on a global scale has led to the emergence of a new business model that differs from the model currently adopted by mainstream automakers. Such model comes in the form of EV contract manufacturing (EVCM) on an open EV platform which allows new ... Read more

25 Jun 2021


Global Economic Recovery Set to Support 2021 Thai PCB Export Growth to over 20% (Current Issue No.3232)

The world’s economic recovery from the COVID-19 pandemic has led KReseach to assess that Thai printed circuit board shipments will grow roughly 20.1-24.1 percent in 2021, or equivalent to USD1,573-1,626 million. The increase is expected to be bolstered by strong demand for products in the ICT catego... Read more

24 Jun 2021


EU Carbon Border Adjustment Mechanism (CBA) Presents Another Challenge for Thai Exports (Current Issue No.3231)

In 2023, it is expected that the European Union (EU) will use a Carbon Border Adjustment (CBA) mechanism for goods and services that are imported from third non-EU countries as part of the European Green Deal – an ambitious package of measures aimed at preserving Europe’s natural environment. During... Read more

28 May 2021


Auto exports may reach 890,000-950,000 units in 2021; entry of Chinese carmakers set to increase export opportunities over the next three years (Current Issue No.3227)

KResearch has assessed that Thai auto exports in 2021 should improve from the previous year, thanks in large part to the economic recovery of major trading partners in Oceania and Asia. At the same time, an increasing number of Japanese car manufacturers are using Thailand as a production base for e... Read more

7 May 2021


Post-COVID Supply Chain Realignment and Change in Global Investment Flows: Thailand Projected to Benefit USD1.1-1.4 Billion from Increasing FDI in Existing Industries (Current Issue No.3218)

A new paradigm in global investment flows is being seen as the COVID-19 pandemic has triggered massive supply chain adjustments. Realizing the fragility of global supply chains and the intensifying trade and technology war between the US and China, multi-national companies have begun to diversify ri... Read more

29 Apr 2021


Chip shortage 2021: Thai vehicle production falls short by 40,000 units, while car manufacturers implement supply-side structural reform for automotive chips to support long-term demand (Current Issue No.3214)

Since late 2020, the global automotive industry has been experiencing a microprocessor chip shortage. The principal reason for this crisis is the fragile structure of the automotive chip manufacturing industry. Demand and supply volatility for these chips has been triggered by multiple factors, incl... Read more

29 Apr 2021


2021 Domestic Car Sales to Shrink 1.5% due to COVID-19, but Higher Exports to Boost Car Production to at least 1.8 Million Units (Current Issue No.3215)

Although the government did not announce lockdown restrictions to cope with the latest wave of COVID-19, the highest number of daily infections since the start of the pandemic here has not only triggered concern among Thai consumers about their future income, but also affected overall domestic consu... Read more

5 Apr 2021


Value of Enterprise HDD Exports Set to Grow 2-5% in 2021, Driven by Cloud Computing Trends (Current Issue No.3208)

Thai HDD exports overall are projected to record steady contraction in terms of volume and value during 2021, pressured by disappointing consumer HDD shipments, resulting from a transition towards the SSD technology. It is projected that the volume and value of consumer HDD shipments will shrink wit... Read more

2 Apr 2021


National EV Strategic Plan: A Stepping Stone for the Thai Automotive Industry, but Markets and Integrated Supply Chain are Prerequisites (Current Issue No.3206)

On March 24, 2021, the National Electric Vehicle Policy Committee set a new target for Thailand’s electric vehicle production, with the objective of promoting the country to become one of the world’s important production bases for zero-emission vehicles (ZEVs). Under this challenging target, 100 per... Read more

31 Mar 2021


Thai Lithium-ion Battery Industry Set to Thrive in line with xEVs, Though Thailand Needs to Upgrade its Position from being only an Assembly Base (Current Issue No.3203)

The Thai lithium-ion battery industry is set to post steady growth ahead, thanks to increased investment from mainstream auto makers to accommodate growth in the production of their electric vehicles (xEVs) in Thailand and from entrepreneurs in the Thai energy industry, who have seen business opport... Read more

16 Mar 2021


Thailand’s xEV market to grow by at least 69 percent in 2021; share of domestic xEV sales to account for more than half of total automobile sales in less than 10 years (Current Issue No.3196)

KResearch projects that the sales of Hybrid Electric Vehicles (HEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) in 2021 will likely amount to 48,000-50,000 units, or growth of 63-70 percent YoY. Such innovative vehicles are set to become the standard models for numerous car brands, providing the f... Read more

12 Mar 2021


Consumers Are Willing to Pay More for Eco-Friendly Products and Services if Prices Do Not Exceed 20% of Regular Prices (Current Issue No.3194)

KResearch is of the view that although Thais have increasingly attached importance to environmental problems, their decision to purchase eco-friendly products and services may depend on many factors. These include whether such products and services help address environmental issues, or not, and thei... Read more

25 Feb 2021


Thai Chip Packaging Business, 2021: Growing 5.2%, Thanks to 5G Adoption and Recovery in Global Automotive Market (Current Issue No.3193)

The COVID-19 pandemic has significantly bolstered global demand for microchips. This is because it has triggered changes in the business sector and prompted consumers to increasingly use digital technology in their businesses and daily life while also accelerating the transition towards 5G technolog... Read more

17 Feb 2021


Myanmar politics present high risk to auto production over the long term; faltering demand could see Thailand’s car exports to Myanmar grow by only 2% in 2021 (Current Issue No.3189)

Following the coup d’ètat in Myanmar, investors’ concerns towards the unrest and upcoming government actions have intensified. The automotive industry has already dealt with frequent changes in policy and regulations over the past few years. From KResearch’s viewpoint, Myanmar was until recently an ... Read more

28 Jan 2021


Fishery product export 2021: New COVID-19 wave to have short-term impact; while rising cost and intense competition may cause contraction of -5% to 0% (Current Issue No.3184)

KResearch assesses that the new wave of COVID-19 outbreak in Thailand may affect trade partners’ confidence in food safety in the short run. Subsequent challenges for Thai fishery product exporters will likely be limited consumer demand and fierce competition in the fishery market as rivals prepare ... Read more

27 Jan 2021


Non-alcoholic beverage market projected to reach THB 200 billion in 2021; functional and specialty beverages outperform the market (Current Issue No.3182)

The COVID-19 situation, both domestic and international, continues to be fraught with uncertainty as purchasing power comes under pressure and consumers tend to spend more cautiously. Moreover, the COVID-19 prevention and control measures in Thailand include restrictions regarding on-premise dining ... Read more

14 Jan 2021


Thai Auto-Tire Makers Facing US Anti-Dumping Duties: Long-term Cost Cuts Needed to Maintain Competitiveness (Current Issue No.3179)

On December 30, 2020, the US Department of Commerce announced affirmative preliminary determinations in the antidumping duty (AD) investigations of passenger vehicle and light truck tires (passenger tires) from Thailand, Taiwan, South Korea and Vietnam. It preliminarily determined that exporters fro... Read more

9 Dec 2020


Air Conditioner Exports: Product Restructuring Needed to Brace for Competition from Key Rival Vietnam and Technological Transition (Current Issue No.3169)

Thai air conditioner exports are set to face numerous challenges ahead. These include competition from new rivals like Vietnam in the inverter air conditioner segment (normal model), plus the fact that consumers in emerging markets have increasingly purchased inverter air conditioners, and this has ... Read more

4 Dec 2020


Food and beverage exports 2021: Growth projected at 1-5%; adjustment to ‘New Normal’ represents the most urgent issue (Current Issue No.3165)

KResearch projects that the total value of Thai food and beverage exports for 2020 will stand at USD 24.9 billion, equivalent to growth of 3.0 percent YoY as the COVID-19 crisis has driven up demand for food products among Thailand’s trade partners. Moreover, Thai manufacturers have been able to mai... Read more

18 Nov 2020


From Trump to Biden: Thai auto parts exporters should hasten to adjust their strategies to cope with several major changes in the US (Current Issue No.3161)

Entering 2021, the Thai auto parts industry may have to contend with new challenges that have emerged in the US, one of its primary importers. Of late, the US has announced the suspension of GSP privileges, which included many auto parts that are produced in Thailand. For this reason, Thai auto part... Read more

2 Nov 2020


Indonesia Set to Become Thailand’s Rival in BEV Production (Current Issue No.3156)

Electric vehicles (EVs) have increasingly made their presence felt within ASEAN, in particular investment in EV production in Thailand and Indonesia. Currently, Thailand has an edge over Indonesia in terms of EV manufacturing, thanks to the government’s clear policy of supporting the EV industry. Si... Read more

28 Oct 2020


Key Industries May Recover at Different Paces in 2021, Though Most of Them Unlikely to Resume Growth at Pre-COVID-19 Levels (Current Issue No.3153)

Under assumptions that there is no serious resurgence of the coronavirus (COVID-19) pandemic in Thailand, which allows the relevant authorities to gradually relax international travel restrictions, and the majority of people in Thailand receives COVID-19 vaccines in late 2021 while the domestic poli... Read more

8 Oct 2020


5G Smartphone Market, 2020: Taking Some Time to Reach Mass Market (Current Issue No.3147)

Due to increased competition in the telecom sector and a staggering investment in 5G networks at more than THB10 billion, Thai telecom operators are now accelerating the expansion of their 5G user bases by inducing more consumers to use 5G smartphones, which will in turn help boost the uptake of 5G ... Read more

1 Oct 2020


Issues regarding the policy to promote the use of domestic steel (Business Brief No.3146)

For the past several years, Thailand’s steel industry has encountered challenges that stem from price competition against steel imports from China due mainly to steel oversupply in the global market. Since 2014, Chinese steel manufacturers have cleared out their excessive stock via exports to market... Read more