BANGKOK, Thailand – Thailand’s industrial sector has made notable progress in embracing digital technologies, with the majority of industries now operating at “Industry 2.0” levels, according to the latest Digital Density Survey for 2024 released by the Digital Economy Promotion Agency (depa). The findings indicate a significant shift from previous years, revealing that a growing number of Thai manufacturers are actively integrating electronic devices, digital platforms, and customized solutions into their operational frameworks to enhance efficiency and streamline production processes.
While this signifies a positive trend of steadily expanding digital adoption across various sectors, depa issued a strong call for Thai industries to accelerate their transformation journey, setting a critical target of achieving comprehensive “Industry 4.0” capabilities within the next five years to maintain competitiveness in a rapidly evolving global economic landscape.
The Digital Density Survey represents an ongoing collaborative effort between depa and the United Nations Industrial Development Organization (UNIDO), initiated in 2019. Its primary objective is to establish essential baseline data that can guide and support strategic planning and development initiatives for both public and private sector stakeholders, ultimately aiming to bolster Thailand’s overall industrial strength and capabilities.
The survey methodology consistently focuses on nine pivotal industrial sectors deemed crucial to the nation’s economy: 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, and plastic products. This comprehensive assessment framework has been systematically applied in the years 2020, 2021, and most recently for the 2024 report.
Presenting the key findings, Asst. Prof. Dr. Nuttapon Nimmanphatcharin, President/CEO of depa, highlighted that a substantial 70% of the surveyed sample group have successfully adopted digital technology corresponding to Industry 2.0: Solution. This level is characterized by the utilization of electronic systems, such as online forms or electronic data interchange (EDI) systems, primarily aimed at improving the efficiency and convenience of various work processes.
This marks a tangible advancement from the 2021 survey results, where the majority of industries were still categorized at Industry 1.0: Manual. Industry 1.0 represents traditional operational methods heavily reliant on analog tools and manual processes, including communication via telephones, faxes, and basic email document exchanges. The 2024 data clearly shows that most industries have now begun to consciously incorporate electronic tools, digital platforms, and specific software solutions to enhance overall productivity, reflecting a continuing and positive expansionary trend across diverse industrial sectors.
However, a more granular analysis of digital technology adoption across five distinct operational categories within the manufacturing industry reveals a varied landscape. In the domain of supplier relations, the survey indicates a move towards Industry 2.0, with 57% of the sample group now employing online order systems, often involving company websites equipped for receiving orders and processing payments. This suggests a modernization of procurement and supply chain interactions.
Conversely, the area of product development and design lags significantly behind, with a striking 90.67% of the sample group still operating primarily at the Industry 1.0 level. The reliance remains heavily on traditional tools, particularly product design software like Computer-Aided Design (CAD) for creating 2D and 3D drawings and component parts. This indicates a slower uptake of more advanced digital design and simulation technologies in the core product creation phase.
A similar pattern emerges in production process management. The survey found that 87.33% of the sample group continue to utilize relatively simple automation systems, such as Computer Numerical Control (CNC) machines, which reflects an Industry 1.0: Manual level of adoption in terms of sophisticated process control and integration. While basic automation is present, the transition to fully integrated and intelligent manufacturing systems appears limited.
The trend of adherence to Industry 1.0 methods persists in customer relations. Approximately 70% of the surveyed group still primarily use email for customer communication, indicating a reliance on basic, manual interaction methods rather than more integrated CRM systems or advanced digital customer engagement platforms.
Finally, in the realm of business management, the survey shows that 69.33% of the group predominantly use separate, often siloed, information systems across different departments. This points towards an Industry 1.0 level, lacking the integrated enterprise-wide resource planning and data visibility characteristic of higher levels of digital maturity.
Despite this uneven progress across different operational areas, the survey does acknowledge a growing recognition within the industrial sector of the importance of digital technology and a discernible push towards higher levels of automation and integration. There is evidence of an increasing trend in the use of more sophisticated automation systems, advanced information management tools, and the application of data analytics to support more informed business decision-making. The overall digital adoption trajectory is steadily moving towards Industry 3.0: Platform, which signifies positive momentum towards greater connectivity and system integration.
However, significant obstacles continue to impede faster and more widespread progress towards higher levels of digital transformation. Key challenges identified by the survey include a persistent lack of awareness and understanding regarding the potential and application of various digital technologies, a critical shortage of workers possessing the necessary digital skills to implement and manage these technologies, restricted access to adequate funding for technology investments, and the inherent difficulties faced by many small and medium-sized industrial enterprises (SMEs) who may not yet be adequately positioned or resourced to invest significantly in advanced, often costly, technologies. These factors collectively represent major barriers that need to be addressed to facilitate a broader and deeper digital transformation across the sector.
Elaborating on the critical need for accelerated change, Asst. Prof. Dr. Nuttapon Nimmanphatcharin provided a stark warning: “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.” This underscores the immense economic stakes involved and the urgency of the call to action for comprehensive digital upgrading.
Coinciding with the release of the survey results, depa and its strategic partners announced a significant collaborative initiative aimed at developing and sharing crucial data resources. This effort is designed to provide concrete support for the adoption and implementation of digital technology and innovation across various Thai industries, fostering a more data-informed approach to transformation.
The announcement was complemented by a high-level panel discussion titled “Data-driven Industry: Uniting Forces to Drive Thai Industrial Growth”. This session brought together prominent leaders and representatives from key governmental agencies and industry bodies, 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. The panelists collectively explored effective strategies and collaborative approaches to strengthen digital skills development and promote the practical application of digital technologies, aiming to unlock pathways for sustainable and robust business growth within the Thai industrial sector.
For businesses, policymakers, researchers, and other interested parties seeking more detailed insights, the full 2024 Digital Density Survey report, along with other pertinent studies related to Thailand’s digital industry conducted by depa, is publicly available for download. Resources can be accessed through the official depa website at www.depa.or.th/th/depakm/digital-indicators, via the LINE Official Account: depaThailand, and on the depa Thailand Facebook Page.
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