In­ter­net of Things Thai­land Mar­ket to Reach USD 973.7 M in 2020

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Thai-American Business (T-AB) Magazine - - Contents - Writ­ten by: Zaf Coelho and Ja­zon Klose

he In­ter­net of Things ( IOT), a con­cept that de­scribes a state where ev­ery day phys­i­cal ob­jects will be con­nected to the in­ter­net and be able to iden­tify them­selves to other devices, has be­come in­creas­ingly prom­i­nent in ev­ery in­dus­try. Ac­cord­ing to Gart­ner 6.4 bil­lion con­nected “Things” will be in use in 2016, which is an in­crease of 30% to 2015.

One mar­ket that of­fers great pos­si­bil­i­ties but has not been ex­ploited to its po­ten­tial is the ASEAN mar­ket. Of­ten com­pa­nies are dis­cour­aged by per­ceived in­suf­fi­cient in­fra­struc­ture within those coun­tries, but in the rel­a­tively un­con­tested mar­ket of Thai­land this is chang­ing. The ar­rival of 4G wire­less broad­band net­works as well as the pro­lif­er­a­tion and af­ford­abil­ity of devices that are con­nected to in­ter­net will fuel the IOT tech­nol­ogy adap­tion in Thai­land. In an in­ter­view at the 2015 edi­tion of Asia IOT Busi­ness Plat­form Sig­vart Von Erik­sen, CMO of DTAC stated that he is con­vinced that the IOT mar­ket in Thai­land will ex­plode in near fu­ture, fea­tur­ing more than 400 mil­lion con­nected devices in Thai­land alone in about 4 years’ time.

NUM­BERS AND SEC­TORS OF IOT IN­TER­EST

Ac­cord­ing to a Frost & Sul­li­van re­port, Thai­land’s IOT spend­ing in 2014 amounted to USD 57.7 mil­lion. This is fore­casted to in­crease by over 1600% to USD 973.3 mil­lion in 2020. The ma­jor­ity of this spend­ing takes place in man­u­fac­tur­ing and lo­gis­tics. Thai­land cur­rently is the 17th largest global man­u­fac­turer and num­ber 14 in auto pro­duc­tion, ac­cord­ing to In­dus­try­week. A 2014 Mckin­sey re­port states that “Thai­land has built a thriv­ing ecosys­tem of man­u­fac­tur­ers and as­sem­blers, in­clud­ing BMW, Ford, Honda, Mazda, Mit­subishi, Nis­san, and Toy­ota. Its long his­tory of au­to­mo­tive man­u­fac­tur­ing cou­pled with strong govern­ment sup­port has cre­ated a rel­a­tively low- cost but skilled work­force in the sec­tor.” As the govern­ment plans to po­si­tion it­self as the cen­ter of the ASEAN Eco­nomic Com­mu­nity, the promi­nence of man­u­fac­tur­ing is fore­casted to in­crease, which will also in­crease its po­ten­tial for IOT. The value of IOT in lo­gis­tics is also ex­pected to rise, as a new law by the Depart­ment of Land Trans­port ( DLT) has taken ef­fect this Jan­uary, which will re­quire pub­lic buses, trail­ers and trucks with over 10 wheels to in­stall GPS nav­i­ga­tion sys­tems, that pro­vide real- time in­for­ma­tion to DLT ser­vice cen­ters on the ve­hi­cles co­or­di­nates, travel speed and driv­ing time. Due to th­ese de­vel­op­ments both man­u­fac­tur­ing and lo­gis­tics are ex­pected to in­crease to a to­tal value of around USD 445 mil­lion by 2020, ac­cord­ing to Frost & Sul­li­van.

Fu­ture po­ten­tial ac­cord­ing to the same re­port can be ob­served also in the smart city and health­care sec­tor.

SMART CITY AND GOVERN­MENT IOT INI­TIA­TIVES

Thai­land is on the move to be­come ASEAN’S dig­i­tal in­fra­struc­ture hub by 2020, states Ms. Jeer­awan, chair­woman of the Soft­ware In­dus­try Pro­mo­tion Agency. The govern­ment’s de­ter­mi­na­tion to drive dig­i­tal growth finds its ex­pres­sion in mul­ti­ple ICT and IOT ini­tia­tives. Th­ese ini­tia­tives in­clude smart city plans in cities like Phuket, Chi­ang Mai and Bangkok as well as greater cam­paigns e. g. smart Thai­land. The ICT Min­istry’s vi­sion for Phuket and Chi­ang Mai is that of a tech start- up com­mu­nity, that fur­ther sup­ports the in­ten­tion to turn Thai­land into the dig­i­tal hub of ASEAN, ex­plains The Na­tion.

To fur­ther boost the coun­try’s com­pet­i­tive­ness rank­ing in the world Thai­land is push­ing its Smart Thai­land pro­ject, which ac­cord­ing to Anu­dith Nako­rn­thap, the ICT Min­is­ter, will fur­ther em­power lo­cal stake­hold­ers such as the education and busi­ness sec­tor and will cut the costs of us­ing ICT, thus im­prov­ing the qual­ity of life within the coun­try. If this plan is re­al­ized broad­band will in­crease its reach from 33% to 80% of the pop­u­la­tion in the next three years, reach­ing 95% in 2020, ac­cord­ing to Na­tion Mul­ti­me­dia.

For its am­bi­tious pro­ject, the ICT Min­istry has de­vel­oped a dig­i­tal econ­omy mas­ter plan, which ac­cord­ing to The Na­tion en­tails two phases:

1. Main do­main mis­sions: hard in­fra­struc­ture, soft in­fra­struc­ture, ser­vice in­fra­struc­ture, dig­i­tal econ­omy pro­mo­tion and a dig­i­tal so­ci­ety. Pi­lot projects cen­tered on e- com­merce, ee­d­u­ca­tion, e- in­dus­try and e- govern­ment.

To man­i­fest th­ese projects the coun­try is ac­tively search­ing for part­ners to col­lab­o­rate with, which rep­re­sents a great po­ten­tial for IOT and ICT so­lu­tion providers. Ac­cord­ing to the Bang- kok Post the ICT min­istries of three ASEAN mem­ber coun­tries plus South Korea have ex­pressed in­ter­est in par­tic­i­pat­ing in the de­vel­op­ment of Thai­land’s dig­i­tal in­fra­struc­ture as well.

HEALTH­CARE

Al­though the health­care in­fra­struc­ture might have some short­com­ings on a na­tion­wide scale, es­pe­cially in ru­ral ar­eas, Thai­land can still boast of highly tech­ni­cal and ad­vanced hospi­tals as well as ed­u­cated doc­tors in ur­ban ar­eas. Com­pared to other coun­tries like the U. S. or Aus­tralia, treat­ment in Thai­land comes at a more rea­son­able price. This is the rea­son for Thai­land’s promi­nence as one of the main med­i­cal tourism des­ti­na­tions in Asia. Ac­cord­ing to a CNN doc­u­men­tary, 1.1 mil­lion for­eign med­i­cal tourists vis­ited the coun­try in 2013. As hospi­tals have to com­pete for part of their clien­tele glob­ally, they tend to be very ac­tive in look­ing for new ser­vices and devices to in­crease com­pet­i­tive­ness as well as be­com­ing more ef­fi­cient in­ter­nally. Re­cently the in­ter­est there­fore has shifted to IOT ap­pli­ca­tions.

An­other chal­lenge the Thai health­care sys­tem has to tackle in the near fu­ture is an ag­ing pop­u­la­tion. The me­dian age has risen from 19 to 38 within the last 50 years and will con­tinue to rise to 51 by 2050, ac­cord­ing to Worl­dome­ter. In or­der to deal with the sub­se­quent con­se­quences, the Thai govern­ment, hospi­tals and con­sumers are look­ing for so­lu­tions within the health­care sec­tor, which presents an un­prece­dented chance for IOT com­pa­nies.

An­other in­di­ca­tor for the ris­ing de­mand and promi­nence of IOT in Thai­land is that its largest pri­vate com­pany Charoen Pokp­hand Group ( CP) re­cently cre­ated an IOT sub­sidiary to help with ap­pli­ca­tions in the field of farm­ing, agri­cul­ture and lo­gis­tics.

If you would like to be part of the Thai ICT and IOT de­vel­op­ment or want to meet key stake­hold­ers and learn from rel­e­vant case stud­ies, at­tend the 8th edi­tion of Asia IOT Busi­nessPlat­form ( http:// iot­busi­ness- plat­form. com/ iot- thai­land/) on May 26- 27 in Bangkok.

The per­son must be a U. S ci­ti­zen. Af­ter lo­gin to the Global On­line En­roll­ment Sys­tem ( GOES), the per­son must self- cer­tify that he/ she is: - An ex­ist­ing mem­ber in good stand­ing of a U. S. Cus­tom and Bor­der Pro­tec­tion ( CBP) trusted trav­eler pro­gram ( such as Global En­try) or that the per­son has sub­mit­ted an ap­pli­ca­tion to a CBP trusted travel pro­gram ( which may be done con­cur­rently); - A “ver­i­fied” U. S. busi­ness per­son, or a U. S. govern­ment of­fi­cial, en­gaged in busi­ness in the APEC re­gion. Ac- cord­ing to the ABTC reg­u­la­tions, a “ver­i­fied busi­ness per­son” en­gaged in APEC busi­ness is de­fined as a per­son en­gaged in the trade of goods, the pro­vi­sion of ser­vices, or the con­duct of in­vest­ment ac­tiv­i­ties; - Not a pro­fes­sional ath­lete, news correspondent, en­ter­tainer, mu­si­cian, artist or per­son en­gaged in a sim­i­lar oc­cu­pa­tion, as th­ese pro­fes­sions would not fall un­der the pro­gram’s def­i­ni­tion of a “ver­i­fied busi­ness per­son.”

If the ap­pli­cant is able to com­ply with th­ese cri­te­ria, then upon com­ple­tion of the GOES on­line ap­pli­ca­tion, which in­cludes a USD 70 ap­pli­ca­tion fee, and sub­mis­sion of an elec­tronic sig­na­ture at a CBP Global En­try En­roll­ment Cen­ter, the CBP will mail the ap­pli­cant’s com­pleted card to the ad­dress pro­vided in the GOES ac­count.

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