The International Data Corporations (IDC) has unveiled a striking 14.1% year-on-year surge in software vendor revenue in Thailand, amassing a total of 36.5 billion THB during the first half of 2023 (1H2023).
IDC’s Worldwide Semiannual Software Tracker 1H2023 identifies key growth sectors, including artificial intelligence (AI) platforms, application platforms, and integration and orchestration middleware.
The tech industry in Thailand has exhibited a keen interest in GenAI, prompting numerous enterprises to integrate AI technologies. This trend has led to substantial investments in AI development by tech vendors, resulting in significant progress. The report highlights a remarkable 58.8% year-on-year growth in software vendor revenue within the AI platform market during 1H2023.
A noteworthy example is the collaboration between AstraZeneca Thailand and Phyathai 2 Hospital, which adopted AI-based technology for chest X-rays to enhance lung cancer screening capabilities. However, the growing adoption of AI has raised ethical concerns, prompting the Thai government to establish the AI Governance Clinic (AIGC) and formulate the AI Ethics Guideline in collaboration with Mahidol University and Microsoft Thailand. This initiative aims to provide a framework for responsible AI adoption.
Kavisara Korkong, Market Analyst at IDC Thailand, emphasized the surge in Natural Language Processing (NLP) applications such as chatbots, text generation, and summarization throughout 1H23. While Thai-language Large Language Models (LLMs) still lag behind their English-language counterparts in accuracy, this presents an opportunity for Thai AI vendors to develop culturally attuned Thai-language LLMs to meet the specific needs of local organizations.
IDC anticipates ongoing NLP development for local languages and increased AI adoption in Thailand, guided by responsible AI principles. Against a backdrop of challenges, including high inflation, geopolitical tensions, and economic slowdowns, Thai businesses have embraced digital transformation for resilience and competitiveness.
The IDC report further reveals a notable 29.9% year-on-year growth in software vendor revenue in the application platforms market during 1H2023.
According to IDC’s Worldwide Semiannual Software Tracker 1H2023, the proportion of revenue from the public cloud has surpassed that of on-premises and private cloud. Large enterprises, traditionally reliant on on-premises solutions, are increasingly adopting a hybrid strategy for scalability and flexibility while ensuring enhanced security. The integration and orchestration software segment also witnessed significant growth, with a 25.3% year-on-year increase in software vendor revenue. These software solutions play a crucial role in managing complex IT environments and ensuring synchronization across data, processes, and applications in organizations undergoing digital transformation.
