Thailand’s key industries to invest in: Prime opportunities for 2025

Thailand’s investment landscape

Thailand has long positioned itself as a prime investment destination in Southeast Asia, leveraging its strategic location, government incentives, and innovation-driven economy. Despite Thailand’s relative stability, the nation’s GDP grew at a sluggish 1.9% in 2023, lagging behind Vietnam’s 5.0% and the Philippines’ 5.5% growth. Thailand has much to do to remain competitive amongst its peers. This is exactly why Thailand is shifting its focus toward the future, making significant strides in industries such as next-generation automotive, renewable energy, food technology, and digital transformation. These advancements present lucrative opportunities for investors looking to be part of Thailand’s rapidly evolving economic landscape.

Key industries to invest in Thailand

Next-generation automotive

Thailand, already Southeast Asia’s largest automotive hub, is pushing forward with its “30@30” strategy, which aims for 30% of car production and 50% of vehicle utilization to be zero-emission vehicles (ZEVs) by 2030. This bold initiative is backed by government incentives such as:

• Corporate income tax exemptions of up to eight years
• Import duty waivers on machinery and raw materials

By the end of 2023, investment promotions worth USD 316 million were granted to various manufacturers, including 17 producers of EV batteries and 18 manufacturers of EV components. However, the future of Thailand’s automotive industry is not limited to EVs alone. Autonomous and connected vehicle technology remains an area in need of regulatory frameworks and infrastructure upgrades, particularly in traffic systems, road markings, and signage, which could further enhance safety and efficiency. The nation has a defined value chain for Autonomous vehicles, making it a value add for many multinationals already in the region, or have manufacturing opportunities in the Kingdom.

Future food sector

With 46% of the country’s land being arable, Thailand is well-positioned for food innovation and agricultural advancements. Additionally, the country ranks within the top 10 in exports among many of the world’s most important food products.

Products	2023 Export Value (USD thousand)	Annual growth in value between 2019-2023	Share of World’s Exports
Cassava	1,133,302	26%	41.4%
Rice	5,115,919	5%	14.7%
Sugar	4,506,906	12%	6.6%
Palm Oil	845,491	75%	1.9%

The future food sector grew by 9.52% from 2020 to 2023 and continues to contribute significantly to Thailand’s economy, with investments in agri-tech surpassing USD 51 billion. Alternative proteins, valued at USD 135 million in 2020, are projected to grow at an annual rate of 8%, highlighting the sector’s potential for expansion.

Investment challenges and opportunities

Thailand faces challenges such as excessive fertilizer use and inefficient water management. Investors focusing on sustainable solutions and technological advancements in agriculture can help address these inefficiencies. To encourage investment, the government offers:

• Five-year corporate tax exemptions
• Import duty waivers for machinery and raw materials designated for export

Renewable energy and smart grids

Thailand has set an ambitious target to increase its renewable energy capacity to 29,400 MW by 2037, raising the share of renewable energy from 15% in 2018 to 30.

Renewable Energy	Target Capacity (MW) by 2037
Biogas	400
Biomass	2,780
Small Hydropower	69
Solar	8,740
MSW (Municipal Solid Waste)	400
Wind	1,485
Industrial Waste	44
Floating Solar and Hydropower	2,725
Community-based Biomass Power Plants	120
Community Power Plants for the Local Economy Project	1,933
Total	18,696

As of now, 14.9% of the nation’s energy supply comes from renewable sources, with biomass, hydropower, and solar making up the majority. The biomass power market alone was valued at USD 15.66 billion in 2022. However, Thailand’s current electrical grid infrastructure presents limitations in absorbing additional renewable energy, making smart grid development a key investment opportunity.

		Key Factors
Source	Trends	Positive	Negative
Solar	Mid-level growth, production of private rooftop solar cells	Thai government committed to buying 100 MW per year from private producers of rooftop solar cells. The cost of solar cell installation is also falling.	Even though the cost of installation is falling, the cost of equipment to connect to the grid is still high.
Biomass	Mid-level growth, SPP’s hybrid firm will increase investment to compete on price	Receive direct gov’t support through PDP initiative	Moderately high risk of raw material shortages and rising prices
Waste-to-energy	Limited growth, constant investment for waste collectors	Operators do not need to engage in competitive bidding	Limited waste resources and low quality of water separation
Biogas	Limited growth, new investment comes from producers who have access to inputs and generate power for their use	Operators do not need to engage in competitive bidding	A shortage of inputs suitable for use in the commercial generation of biogas
Wind	Limited growth, investment comes from large-scale investors with necessary funds and land with transmission line access	The transmission lines linking to potential sites are being constructed	The potential sites are in national parks with difficult access
Hydropower	Limited growth, most projects will be carried out by the public sector	Promoted through PDP under solar power and general hydroelectric	The potential sites are in national parks with difficult access

Smart grid investment potential

There is a demand for technology that can modernize existing grid systems, enhance distribution management, and integrate smart meters and battery storage solutions.

Digital transformation and technology

Thailand’s drive toward digital transformation under the Thailand 4.0 model has opened up numerous investment opportunities. The country ranks second globally in hard drive manufacturing and is home to over 30 data centers, making it a key player in the global technology supply chain.

Key technology sectors for investment

• Data centers: Investment expected to reach USD 7.8 billion from 2024 to 2027
• Semiconductor industry: Aims to develop a skilled workforce of 80,000 by 2028
• Robotics and automation: Projected to be worth between USD 12.6 billion and USD 15.7 billion by 2024, placing Thailand in the Top-15 for international installations of industrial robots
• Electronics and electrical industry: Comprising 2,920 enterprises with a market value of USD 97.94 billion in 2023

As digital services, e-commerce, and AI applications continue to grow, Thailand’s tech sector presents a wealth of opportunities for investors.

Health & wellness sector

Thailand ranks first in Southeast Asia on the Global Health System Index, and its medical tourism industry alone generated USD 9.7 billion in 2023, with projections to reach USD 20.34 billion by 2027.

Health tech and medical devices

Digital health solutions, including telemedicine and AI-powered diagnostics, are gaining traction, with the digital health market expected to be valued at USD 1.24 billion by 2025. Meanwhile, the government has allocated USD 1.84 billion toward establishing advanced healthcare centers specializing in cardiology and oncology.

Competitive Advantage	Thailand	Singapore	India	Malaysia	South Korea
Service/hospitality	+++++	++	+	+	+
Hi-tech hardware	++++	++++	++	+	+++
HR Quality	++++	++++	++	++	+++
JCI	61	22	35	16	27
Pre-emptive move	++	+++	+	++	++
Synergy/strategy partner	+++	++	+	+	+
Accessibility/market channel	+++	+++	+	++	++
Reasonable cost	++++	++	++++	+++	++

++++ is the highest score, and + is the lowest score.

The medical device industry is also expanding rapidly, offering promising investment opportunities in AI-driven healthcare solutions and senior care services.

Competitive advantage in health & wellness

Thailand maintains strong competitive advantages over regional competitors in several areas:

• Service/hospitality excellence
• High-tech hardware capabilities
• Human resource quality
• Number of JCI-accredited medical facilities (61)
• Reasonable cost structure compared to competitors

Logistics and infrastructure

Thailand’s logistics and infrastructure sector remains a powerhouse within the region. Thailand’s well-developed road networks and strategic free trade agreements with 18 countries have made it a crucial logistics hub in ASEAN.

Investment performance and potential

• In 2023, foreign investment in Thailand’s logistics sector totaled USD 1.2 billion, with port-related projects accounting for 72.11% of FDI
• Road transport dominates, making up 69.82% of the logistics sector, supported by Thailand’s extensive highway network connecting to neighboring countries
• The freight and logistics market is expected to grow from USD 53.38 billion in 2025 to USD 72.19 billion by 2030
• Thailand ranks third in ASEAN for logistics performance, behind Singapore and Malaysia

Thailand’s investment outlook for 2025

Thailand’s investment landscape is diverse and rapidly evolving. With strong government support in the form of tax incentives, the country is looking to expand its long-term economic growth. Whether in next-generation automotive, food innovation, clean energy, digital transformation, health & wellness, or logistics, Thailand offers attractive opportunities for investors seeking high returns in a dynamic and future-ready market.

Now is the time to capitalize on Thailand’s investment boom—will your business be next?

If so, Tractus is here to support your investment. Tractus offers expert guidance with 30 years of experience in site selection, investment incentives, and project management services across Thailand and Asia. Connect with us to navigate your next successful venture in this dynamic market.

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Authored by

Written by Hugh Goldstein, Research Analyst based in the Bangkok office.