The Digital Economy Promotion Agency (depa) has released the latest findings on digital technology adoption across Thailand's industrial sector for 2024, showing that most industries have now reached Industry 2.0. This means that a growing number of Thai manufacturers are beginning to integrate electronic devices, digital platforms and custom solutions into their operations to improve efficiency and streamline production.
The survey points to a positive trend?digital adoption is steadily expanding across industries. However, to stay competitive in a fast-changing global landscape, depa strongly urges Thai industries to complete their transformation to Industry 4.0 within five years.
The Digital Density Survey is a joint initiative between depa and the United Nations Industrial Development Organization (UNIDO). First launched in 2019, the survey aims to provide essential baseline data to support planning and development efforts in both the public and private sectors, with the goal of strengthening Thailand's industrial capabilities. The survey focuses on nine key industrial sectors, including: food and agro-processing, textile and apparel, electrical and electronics, automotive, machinery and parts, leather and leather products, paper and printing, rubber and rubber products as well as plastic products. This framework has been applied continuously in 2020, 2021, and most recently in 2024.
Asst. Prof. Dr. Nuttapon Nimmanphatcharin, President/CEO of depa revealed that the survey found 70% of the sample group had adopted digital technology at Industry 2.0: Solution (using electronic systems such as online forms or electronic data exchange systems to improve work efficiency). This marks an advancement from Industry 1.0: Manual (traditional methods using analog tools and manual processes such as phones, faxes, and email document exchanges) in 2021. The majority of industries have begun to incorporate electronic tools, digital platforms, and solutions to enhance productivity, with a continuing trend of expansion across various sectors.
The digital technology adoption in the manufacturing industry is categorized into five categories based on work processes:
The survey shows that in supplier relations, 57% of the sample group have moved to Industry 2.0: Solution, using online order systems such as websites for receiving orders and payments. In product development (product design), however, 90.67% of the sample group are still using traditional tools, with most relying on Industry 1.0: Manual methods, such as product design software like Computer-Aided Design (CAD) for 2D/3D drawings and part creation.
Similarly, in production process management, 87.33% of the sample group continue using simple automation systems, such as Computer Numerical Control (CNC) machines, reflecting Industry 1.0: Manual adoption. The trend continues in customer relations, where 70% of the group still use email to communicate with customers, also adhering to Industry 1.0: Manual methods. Lastly, in business management, 69.33% of the group use separate information systems across different departments, still at the Industry 1.0: Manual level.
Despite recognizing the importance of digital technology and the push toward automation, many industries remain slow to change. The survey reveals a growing trend in the use of automation systems, information management tools, and data analytics to support business decisions. Digital adoption is steadily moving toward Industry 3.0: Platform, signaling positive momentum.
Yet key obstacles continue to hold back progress. These include limited awareness of digital technologies, a shortage of skilled digital workers, restricted access to funding, and the fact that many small industrial enterprises are not yet in a position to invest in advanced technologies. These issues remain major barriers to higher-level digital transformation.
"With growing pressure from the current global economic situation, Thailand's industrial sector must accelerate its transformation to maintain competitiveness. Although the Competitive Industrial Performance Index by the UNIDO shows that Thailand still ranks third in the region, following Singapore and Malaysia, the country must urgently elevate its industrial capabilities within the next five years. This includes upskilling the workforce and promoting digital transformation?especially among SMEs?to build competitiveness through digital technology. Without timely action, Thailand may risk losing over 1.8 trillion baht in economic value from lost productivity, equivalent to around 10% of the national GDP." said President/CEO of depa.
At the event, depa and its partners also announced a collaborative effort to develop and share data that will concretely support the adoption of digital technology and innovation across Thai industries. The announcement was followed by a panel discussion titled "Data-driven Industry: Uniting Forces to Drive Thai Industrial Growth.
The session featured insights from key industry leaders, including Mr. Sumet Tangprasert, Acting Governor of the Industrial Estate Authority of Thailand, Mr. Teeratat Isarangura Na Ayudhaya, Deputy Director-General of the Department of Industrial Works, Ms. Apiradee Khaothian, Deputy Director of the Office of Small and Medium Enterprises Promotion (OSMEP), Mr. Amarit Franssen, Chairman of the Digital Industry Group, Federation of Thai Industries, Dr. Uma Viratsakulchai, Regional Representative of UNIDO and Asst. Prof. Dr. Nuttapon Nimmanphatcharin, President/CEO of depa.
Together, they explored strategies to strengthen digital skills and promote the use of digital technologies to unlock sustainable business growth.
The full 2024 Digital Density Survey report, along with other related studies on Thailand's digital industry conducted by depa, is available for download at www.depa.or.th/th/depakm/digital-indicators, on LINE Official Account: depaThailand, and on Facebook Page: depa Thailand.