Thailand’s Security Market Thrives Amidst Economic Headwinds and Smart City Revolution

Security industry players in Thailand are maintaining a remarkably optimistic outlook, even as the nation’s economic growth experiences a near-term deceleration. While the Thai economy faced a brief setback with a 0.6 percent contraction in Q3, largely due to devastating southern floods, the fundamental drivers fueling the security market’s robust expansion remain firmly in place. Crucially, critical infrastructure upgrades are progressing as planned, and cutting-edge smart city technologies are confidently moving beyond their conceptual stages into tangible implementation.

Many of these innovations were prominently featured at the Thailand Smart City Expo 2025 in Bangkok from November 5-7. Highlights included advanced AI digital twin traffic management systems, such as those from South Korean smart mobility specialist WAYS1, and AI-driven solutions for rapid flood-damage assessment and urban safety management developed by NEC. With a burgeoning data center industry forming the essential backbone for AI, IoT, and smart city initiatives, Thailand is strategically positioned to remain a central hub for regional economic development, creating significant opportunities for security firms to capitalize on major upcoming projects.

Public Sector Spending Fuels Growth

In 2024, the World Bank lauded Thailand as a “development success story,” noting its GDP growth of 2.4 percent had “surpassed expectations.” While growth is projected to moderate to 1.8 percent this year, this trend largely aligns with the broader regional and global economic climate.

Despite this moderated outlook, sentiment remains cautiously optimistic as the Thai government actively works to mitigate economic headwinds. Challenges include household debt exceeding 90 percent of GDP, leading to cautious bank lending, a subdued automotive sector, and a slowdown in the real estate market. However, with solid economic fundamentals and large-scale infrastructure enhancement programs largely on track, the security industry remains buoyant.

“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,” stated Ekarin Watcharayingyong, MD of Keenfinity Thailand. “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.”

A flagship initiative driving this growth is the Eastern Economic Corridor (EEC), a special economic zone designed to unlock the economic potential of provinces east of Bangkok. Key projects within the EEC include a 22km high-speed rail link connecting the capital to U-Tapao Airport, new terminal facilities, a runway, and expanded cargo and aircraft maintenance capabilities at U-Tapao, alongside significant capacity enhancements at Thailand’s largest container port, Laem Chabang.

The Thai government is placing a strong emphasis on IoT integration across all EEC upgrades. Concurrently, it continues to certify smart cities under a separate scheme launched in late 2023, aiming to include 105 locations by 2027, with 37 cities already certified. These initiatives are undeniably a boon for security systems providers, while traditional security subsectors also anticipate robust growth.

Market intelligence firm Imarc recently reported that Thailand’s access control market reached US$155.76 million in 2024 and is projected to surge to $349.34 million by 2033, reflecting an impressive annual growth rate of 9.39 percent.

Private Sector Investment Remains Robust

Private sector investment continues to flourish, particularly in verticals with high demand for security systems, such as data centers and large-scale mixed-use properties.

In the first half of 2025, investment promotion applications saw a remarkable 139 percent year-on-year increase, with approximately 70 percent originating from foreign direct investments (FDI). Within the EEC alone, FDI totaled THB 62.9 billion (US$1.94 billion) during the same period.

The security market is a direct beneficiary of this substantial capital inflow. “Thailand is well-positioned, supported by public-sector spending in city surveillance, transport, and government buildings; rising FDI in the Eastern Economic Corridor (EEC); new data centers; and a market shift from ‘more cameras’ toward AI-enabled, platform-based solutions,” Watcharayingyong reiterated.

Thailand’s data center industry is experiencing a boom, driven by escalating demand for digital services, including AI platforms, and the country’s strategic regional location. In November, Thailand approved four major new data center projects with a colossal total investment of approximately THB 100 billion (US$3.1 billion). These include a 200MW hyperscale data center by local investor Zenith Data Center and Cloud Services, poised to join global giants like Microsoft and Amazon Web Services in establishing hubs in Thailand. Security industry players foresee substantial demand for their sophisticated systems from these projects.

“Private sector demand is strong in data centers. This vertical requires advanced solutions, and many projects are led by foreign investment,” observed Ken Arimura, MD of OPTEX Thailand.

Concurrently, mixed-use properties, integrating residential, retail, and office spaces, are experiencing a surge across Thailand, creating significant opportunities for security providers offering integrated solutions.

“In Bangkok, large-scale mixed-use projects such as One Bangkok, Dusit Central Park, Cloud 11, and Bangkok Mall showcase the scale of private investment,” Watcharayingyong noted. “Notably, One Bangkok—Thailand’s largest mixed-use development—opened in October 2024 with over 5,000 cameras installed, including Bosch solutions, underscoring the massive demand for security in landmark projects.”

A Glimpse Beyond Thailand

Neighboring Singapore is elevating the “smart city” concept to a “smart nation” framework, particularly concerning infrastructure. Its focus is unequivocally on cyber-physical convergence and projects within critical infrastructure and other high-margin verticals.

Through its Open Digital Platform, the Singapore government has created a robust ecosystem to facilitate granular smart city development, encompassing traditional security subsectors like video surveillance and access control.

Vietnam, boasting one of the region’s most robust growth rates, remains committed to updating its video security infrastructure, with a particular emphasis on cybersecurity, compliance, and advanced traffic management systems utilizing VMS and LPR for electronic enforcement. Security sector growth here is propelled by high-volume projects designed to establish a solid foundation for future expansion.

In the broader regional economy, Indonesia presents potentially the largest long-term prospects. Massive infrastructure projects, such as the Nusantara Capital City (IKN), continue to drive demand for IoT, surveillance, and access control technology. Private sector demand is expected to remain strong, bolstered by robust GDP growth forecasts ranging from 4.7 percent (World Bank) to an impressive 5.8 percent (Indonesian government).