Thailand ERP Software Market Statistics: 2032
The Thailand ERP software market was valued at $70.32 million in 2022 and is projected to reach $161.48 million by 2032, growing at a CAGR of 8.7% from 2023 to 2032. The enterprise resource planning (ERP) software market in Thailand refers to the industry including the provision and utilization of ERP solutions within the country.
ERP software unifies different business steps and responsibilities into a single system, improving efficiency, simplifying operations, and offering thorough insights for well-informed decision-making. The ERP software market in Thailand is characterized by an extensive variety of suppliers providing customized solutions that meet the requirements of different industries, such as manufacturing, retail, healthcare, finance, and services. Both domestic and international businesses are major competitors in the market, seeking for customers by providing cutting-edge features, customizable options, and localized assistance. Numerous factors, such as the necessity for organizations to maintain competitiveness in a swiftly evolving marketplace and the growing acceptance of digital technologies, are driving the market. Another factor is the growing demand for process automation leading to significant market growth. Government programs that support Industry 4.0 and digital transformation also encourage market expansion by providing incentives for companies to purchase ERP systems.
Moreover, ERP software scalability, flexibility, mobility, and interoperability with current IT infrastructure are among the key elements that Thailand firms strive for. In addition, localization is essential, with providers providing solutions designed to accommodate local currencies, dialects, and business processes to meeting Thailand regulatory requirements. However, the Thailand ERP software market is facing a number of challenges, including data security concerns, challenging integrations, and conventional enterprises' resistance toward transformation. However, suppliers overcome these obstacles with strong security protocols, smooth integration skills, and extensive training and support offerings.
By Component
Software segment is projected as one of the most lucrative segments.
On the basis of component, the software segment dominated the Thailand ERP market in 2022, and is expected to continue this trend during the forecast period. This is attributed to increase in adoption of ERP software among enterprises to gain strategic as well as competitive advantage and strong customer retention over their competitors. In addition, it helps industry verticals to engage new customer easily and sustain them for a long time, which drives the growth of the market. However, the service segment is expected to witness highest growth, as service segment of ERP software market ensures effective coordination between software provider companies and users of ERP software by providing services such as implementation, training, consulting services, and managed services. The adoption of these software speeds up the customer satisfaction of various industrial verticals such as BFSI, IT & telecommunication, and healthcare, which maximizes the value of existing customer by optimizing their needs and minimizing the cost of operation. This further fuels the adoption of services that are needed to handle the software properly.
By Deployment Model
On-premise segment is projected as one of the most lucrative segments.
Segment Review
The Thailand ERP software market is segmented on the basis of component, deployment model, business function, industry vertical, and end user. By component, it is bifurcated into software and service. By deployment model, the market is categorized into on-premise, cloud, and hybrid. On the basis of business function, it is classified into finance, human resource (HR), supply chain, customer management, inventory management, manufacturing module, and others. By industry vertical, it is segregated into manufacturing, BFSI, healthcare, retail & e-commerce, government & public service, IT & telecom, construction, aerospace & defense, and others. Depending on end user, it is divided into large enterprises, medium enterprises, and small enterprises.
Competition Analysis
The report analyzes the profiles of key players operating in the Thailand ERP software market such as SAP SE, Oracle Corporation Co., Ltd., Microsoft Corporation, Infor, Epicor Software Corporation., Tech Curve AI & Innovations Co., Ltd., ECOSOFT, SYSPRO, IFS AB, Acumatica, Inc., and Nexus System Resources Co., Ltd. These players have adopted various strategies to increase their market penetration and strengthen their position in the Thailand ERP software market.
Recent Product Launch in the Thailand ERP software Market
In March 2023, SYSPRO, a global provider of industry-built ERP software for manufacturers and distributors, announced new capabilities to its latest ERP release with enriched functionality for improved internal and organizational controls, a connected supply chain, deeper business intelligence and digital dexterity.
In November 2022, The Mall Group partnered with Microsoft Thailand to bring cloud technology, specifically SAP on Azure, to empower its business potential, connect online and offline services seamlessly, and transform all systems into a centralized model to serve customers of all lifestyles. Through this partnership The Mall Group able to progress toward its business goal of "Modernizing Retail.". In addition, SAP on Azure solutions helps you optimize your enterprise resource planning (ERP) in the cloud using the security features, reliability, and scalable SAP-certified infrastructure of Azure. Solutions are designed to manage transactions and analyze data in one step for speeding business, creating effective business, and connecting all IT systems together.
In November 2021, Muang Thai Insurance (MTI), a leading provider of non-life insurance products and services, deployed Oracle Fusion Cloud Enterprise Resource Planning (ERP) through collaboration, enabling the insurer to support its mission to delivering better customer experiences to its policyholders.
In May 2020, Microsoft Thailand partnered with SAP Thailand, to extend the scope of the two companies’ global partnered for the benefit of SAP customers in Thailand. Under this collaboration, Microsoft and SAP’s world-class ecosystems will come together as one on the Microsoft Azure cloud platform, facilitating a smoother transition to SAP S/4HANA® SAP’s intelligent and integrated ERP system and the SAP® Cloud Platform for customers and supporting them to innovate faster with agile infrastructure to support dynamic business in the New Normal.
Top Impacting Factors
Rise in need for operational efficiency & transparency in business processes
Most businesses in Thailand invest most of the time and effort in communicating business information and making decisions. Organizations aiming at becoming successful are continuously seeking systems that help them serve their clients and increase their profit margin. Presently, ERP systems have become strategic platforms, providing a solid foundation and information backbone for businesses among emerging in Thailand. A fully integrated ERP system helps to capture and create accurate, consistent, and timely relevant data and assist to take better business decisions.
Offering personalized services and ensuring that customers are satisfied do not affect the profitability of an organization unless the operating efficiency of a company is exceptional. Thailand companies are adopting ERP systems to improve efficiency and ensure a better information integration. Organizations need to access all relevant information quickly to take a necessary business action, owing to increased competition and rapid changes in business environment. It can be achieved only if the organization becomes more transparent. Thus, an ERP system that scale and deal with the global competition while introducing efficiency and transparency in operations. All these factors are expected to propel the growth of the Thailand ERP market during the forecast period.
Rise in government initiatives
Rise in government initiatives is a major factor driving the growth of the enterprise resource planning (ERP) software market in Thailand. By implementing policies and programs that support digital transformation and technological advancement, the Thailand government creates an environment conducive to the adoption of ERP solutions by businesses. Initiatives such as promoting digital infrastructure development, offering incentives for technology adoption, and fostering a supportive regulatory framework contribute towards the expansion of the ERP software market. These efforts enhance the efficiency and competitiveness of Thailand businesses as well as attract foreign investors and innovators, which is further driving the market growth. Furthermore, rise in regulatory requirements related to data security, taxation, and compliance pushed businesses to adopt ERP software, which is expected to drive the market growth.
Overall, rise in government initiatives played a significant role in creating awareness, providing financial incentives, and setting regulatory frameworks that drive the growth of the Thailand ERP software market. For instance, "Thailand 4.0" policy, initiated by the Royal Thailand government aims to transform Thailand into a value-based and innovation-driven economy. Under this policy, the government encourages the adoption of advanced technologies, including ERP software, across various industries to enhance productivity, efficiency, and competitiveness, which is driving the market growth.
Key Benefits for Stakeholders
- The study provides an in-depth Thailand ERP software market analysis along with the current trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restrains, and opportunities and their impact analysis on the Thailand ERP software market size is provided in the report.
- The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the Thailand ERP software industry.
- The quantitative analysis of the global Thailand ERP software market for the period 2022–2032 is provided to determine the Thailand ERP software market potential.
Thailand ERP Software Market Report Highlights
| Aspects | Details |
 By Component |
|
 By Deployment model |
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 By Business Function |
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 By Industry Vertical |
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 By End User |
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 Key Market Players | Microsoft Corporation, SAP SE, Infor, Ecosoft, Tech Curve AI & Innovations Co., Ltd., Nexus System Resources Co., Ltd., Oracle Corporation Co., Ltd., Syspro, Epicor Software Corporation, Acumatica, Inc., IFS AB |
Analyst Review
According to the CXO's of leading market players, the enterprise resource planning (ERP) software market in Thailand is a dynamic landscape driven by the country's increasing digitalization and the imperative for businesses to enhance operational efficiency. This market includes a wide range of domestic and foreign vendors serving a variety of industries, including retail, manufacturing, healthcare, finance, and services. The ERP software industry in Thailand is driven by a number of crucial factors such as the government's programs to support Industry 4.0 and digital transformation, as well as rise in need in enterprises for process automation and data-driven decision-making.
The industry also gains from the introduction of cloud-based solutions, which provide cost-effectiveness, scalability, and flexibility to businesses of every variety. Thailand businesses demand for ERP solutions that are not only feature-rich but also customized to meet their personalized needs and legal restrictions. Localization is critical; vendors provide solutions that take into account Thailand language, money, and business procedures, all the while guaranteeing local laws and regulations are followed. However, the market is confronted with obstacles such as concerns about data security, difficult integration, and conventional enterprises' reluctance to modernize. Vendors employ strong security protocols, offer seamless integration capabilities, and provide extensive training and support services to ease adoption to overcome these problems. The future of Thailand's ERP software business seems favorable despite these obstacles. Companies are increasingly realizing how strategically important it is to use ERP solutions to promote growth, sustain competitiveness, and increase operational efficiency in a changing business environment.
For instance, in March 2023, SYSPRO, a global provider of industry-built ERP software for manufacturers and distributors, announced new capabilities to its latest ERP release with enriched functionality for improved internal and organizational controls, a connected supply chain, deeper business intelligence and digital dexterity.
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