An internet of Things (IoT) system consists of sensors and devices which “talk” to and connect with cloud solutions. Once the data finds its way to the cloud, IoT software benefits not only to businesses and countless industries, from agriculture to retail and medicine, but also to end consumers.
Globally, it’s estimated that there will be more than 75 billion IoT devices installed by 2025, five times as many as in 2015. A study by McKinsey notes that the percentage of business using IoT grew from 13% to 25% between 2014 and 2019.
In addition, Thailand is putting a great onus on the development of its IoT infrastructure, and several of the government’s Thailand 4.0 initiatives, such as Smart City and Industry 4.0, are focused on boosting the adoption of IoT.
Thailand will be the first Southeast Asian country to adopt 5G services, as it continues on its path to becoming a “digital hub.” Thailand’s major operators have invested a combined $3.2 billion in the country’s 5G spectrum auctions, and the arrival of such technology will further accelerate both the necessity and the adoption of IoT solutions.
According to Gartner, there are 20.4 billion connected devices in the world as of 2020. This number will doubtlessly continue to rise. Current wireless infrastructure does not have the capacity to accommodate so many devices and ensure the exchange of information without minor lags. IoT does. Thailand persistent in their path towards 5G wireless technologies, with it comes to the promise of a more IoT friendly ecosystem.
Currently, IoT adoption in Thailand is dominated by manufacturing, logistics, and transportation. However, there is an increasing number of use cases: in energy (oil and gas company PTT use IoT in their pipeline safety) and in real estate (smart buildings), among others.
The IoT market in Thailand is forecast to grow, driven mostly by consumer-related IoT, rising to $2.19 billion by 2030. Thailand’s Board of Investment is so intent on an IoT revolution that it offers a range of investment incentives to support, promote and tax-exempt businesses that develop/adopt IoT and related digital technologies, including eligibility to receive up to eight years of corporate tax exemption and non-tax privileges. However, there are a number of bureaucratic obstacles that have been acknowledged as potentially stymying Thailand’s progress.
Article by: Asst. Prof. Suwan Juntiwasarakij, Ph.D., Senior Editor