Thailand’s Security Market: Riding the Wave of Government Investment and Smart City Projects

Thailand’s Security Market: A Hotbed of Growth Fueled by Government Projects

Thailand’s security market is buzzing with optimism, fueled by anticipated growth across key subsectors like video surveillance and access control. This surge is largely attributed to ambitious government projects that are driving up demand for advanced security solutions.

The World Bank hails Thailand as a “development success story,” noting its economy grew by an impressive 2.5 percent in 2024, exceeding expectations thanks to a boost in exports and the implementation of fiscal stimulus. While the World Bank forecasts a slightly more moderate GDP growth of 1.8 to 2.2 percent for this year, the overall sentiment remains positive, and this is certainly reflected in the country’s security sector.

“Thailand’s video surveillance market is gaining momentum, with growth expected in the range of 7 to 9 percent this year – broadly in line with Southeast Asia,” says Ekarin Watcharayingyong, MD of Keenfinity Thailand. Echoing this sentiment, a separate report indicates that the Thailand access control market reached a substantial US$155.76 million in 2024 and is projected to reach $349.34 million by 2033, exhibiting a robust growth rate of 9.39 percent.

Government Spending as a Major Driver

The Thai security market’s upward trajectory is heavily influenced by government investment in infrastructure, smart city initiatives, and intelligent transportation systems. These projects create significant opportunities for security providers.

“Transport infrastructure – airports, roads, metro – together with government buildings and city surveillance remain core areas of investment. Demand now goes beyond cameras, extending to integrated command centers, enterprise VMS, license-plate recognition, and AI analytics. Importantly, government tenders are increasingly calling for end-to-end solutions rather than standalone products,” Watcharayingyong explained.

EEC Examples

A prime example of this government-driven growth can be found in Thailand’s Eastern Economic Corridor (EEC), a special economic zone dedicated to fostering economic integration across the Eastern seaboard. Key projects within the EEC include:

* A 220-kilometer high-speed rail connecting Bangkok’s Don Mueang and Suvarnabhumi airports with the U-Tapao Airport.
* The expansion of U-Tapao airport, adding new terminals, a second runway, and cargo and aircraft maintenance (MRO) facilities.
* Phase 3 of the Laem Chabang Port expansion project, boosting capacity at Thailand’s largest container port.

“Recently, Bosch Video Surveillance systems were selected for the Thai government-led initiative, Thailand Digital Valley (IoT2, IoT3, IoT4), in the EEC. This validates the role of world-class technologies in the EEC and opens opportunities for Thai security players to collaborate and scale with global standards,” Watcharayingyong noted.

Smart City Development

Thailand is also making significant strides in smart city development. As of mid-2023, 36 towns/municipalities in 25 provinces had already been certified as “smart cities,” with plans to certify 105 smart cities by 2027. Examples include:

* Phuket, where sensors are used for real-time monitoring of air quality, water levels, and temperature, and 1,300 video cameras are deployed to enhance security.
* Ban Chang, billed as Thailand’s first 5G-based smart city, utilizing smart poles and other systems to collect real-time data on the environment, traffic, and surveillance for immediate intervention.

This focus on smart city development is proving to be a boon for the security industry. “Thailand is rolling out smart-city initiatives in provinces such as Bangkok, Phuket, and Chiang Mai, generating strong demand for cameras, video management systems, and AI analytics. These cities have already deployed some AI-driven solutions to improve safety and traffic management in urban areas,” Watcharayingyong said. “For the security industry, these projects mean long-term service contracts, recurring revenues, and opportunities to showcase AI-driven solutions that enhance both public safety and urban efficiency.”

Caution Still Needed

Despite the prevailing optimism, some concerns remain. One key issue is a contraction in lending. “Due to household debt exceeding 90 percent of GDP, banks have become increasingly reluctant to lend, which has significantly slowed down Thailand’s key industries. One of that is the automotive industry. Weak car sales and slowing production in the country’s core manufacturing sectors affect badly the whole economy. At the same time, stricter loan screening has dampened the real estate market, leading to stagnation in new developments and related businesses,” said Ken Arimura, MD of OPTEX Thailand.

Therefore, security players eyeing the Thai market should carefully consider these factors as they develop their strategies.