| REPORT ATTRIBUTE |
DETAILS |
| Historical Period |
2020-2023 |
| Base Year |
2024 |
| Forecast Period |
2025-2032 |
| Thailand Building Construction Market Size 2023 |
USD 48.77 Million |
| Thailand Building Construction Market, CAGR |
7.58% |
| Thailand Building Construction Market Size 2032 |
USD 94.21 Million |
Market Overview
The Thailand Building Construction Market is projected to grow from USD 48.77 million in 2023 to an estimated USD 94.21 million by 2032, with a compound annual growth rate (CAGR) of 7.58% from 2024 to 2032. The market is driven by both residential and commercial sectors, which are expected to experience robust demand due to the growing population and urbanization.
Key drivers of growth in the Thailand Building Construction Market include government-led infrastructure projects, such as transportation and urban development, along with the rising demand for residential spaces. Additionally, there is a shift towards sustainable and eco-friendly building practices, with energy-efficient and green buildings becoming increasingly popular. Technological advancements in construction techniques and materials are also shaping market dynamics, enabling faster and more efficient project completion.
Geographically, the market is expected to be dominated by major urban centers, such as Bangkok, where large-scale residential, commercial, and industrial construction projects are underway. The growing real estate sector in secondary cities is also contributing to market growth. Key players in the Thailand Building Construction Market include CPB Contractors, Italian-Thai Development Public Company Limited, and Sino-Thai Engineering & Construction Public Company Limited, which are major contributors to the market’s development and competitive landscape.
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Market Insights
- The Thailand Building Construction Market is projected to grow from USD 48.77 million in 2023 to USD 94.21 million by 2032, driven by urbanization and increasing demand for both residential and commercial spaces.
- Key drivers include government-led infrastructure projects, rising real estate investments, and the shift toward sustainable and eco-friendly building practices.
- The growing demand for urban residential housing, office spaces, and retail developments in major cities like Bangkok and secondary cities fuels market growth.
- Labor shortages and skill gaps in the construction sector present challenges in meeting project timelines and maintaining quality.
- Rising material costs and global supply chain disruptions are increasing construction costs and impacting project timelines.
- Central Thailand, particularly Bangkok, dominates the market, while the Eastern Economic Corridor (EEC) is seeing increased growth due to industrial and infrastructure developments.
- The Southern and Northern regions show growth, driven by tourism-related developments and government infrastructure initiatives, though at a slower pace than urban centers.
Market Drivers
Government Infrastructure Development Initiatives
The Thai government plays a pivotal role in driving the building construction market through substantial investments in infrastructure development. The government’s focus on modernizing transportation systems, including roads, railways, and airports, has significantly increased demand for construction services. Large-scale projects, such as the development of the Eastern Economic Corridor (EEC) and the expansion of mass transit networks in major cities like Bangkok, are contributing to the market’s growth. For instance, the government has announced an extensive transport infrastructure plan for 2025-2026, with a total budget of THB253.45 billion, covering 223 projects for 2025 and 64 for 2026. This initiative aims to improve connectivity, safety, and sustainability across various transport modes, including key projects like the Chalong Rat Expressway extension, 1,520 new electric buses, and the development of three new Red Line suburban train routes. Additionally, the “Thailand 4.0” initiative, aimed at enhancing the country’s digital infrastructure and supporting advanced manufacturing, has further accelerated the need for construction services in both public and private sectors.
Urbanization and Population Growth
Thailand is experiencing rapid urbanization, with an increasing shift from rural to urban areas. The urban population in Thailand is projected to continue growing as more people migrate to cities in search of better employment opportunities, improved living conditions, and access to modern amenities. As of 2023, Thailand’s urban population was reported at 38,438,241, according to World Bank data, demonstrating the significant shift towards urban areas. This demographic trend has led to a sharp rise in demand for residential, commercial, and mixed-use developments in urban areas. Bangkok remains the primary hub for such developments, but secondary cities like Chiang Mai and Phuket are also witnessing significant growth in construction activities. Residential housing, in particular, is benefiting from this urbanization trend, as developers cater to the growing demand for affordable housing and high-end residential projects. This demographic shift will continue to drive the construction of new buildings, including housing units, office spaces, shopping malls, and hotels, contributing to the overall market growth.
Increased Foreign Investment and Real Estate Development
Thailand has long been a popular destination for foreign investment, particularly in the real estate and construction sectors. The country’s favorable investment climate, including foreign ownership regulations that allow for property ownership by non-Thais under certain conditions, has attracted both regional and international investors. For example, Russians have shown substantial interest in Thai real estate, investing $51.8 million in apartment purchases, particularly in tourist regions such as Pattaya, Phuket, and Bangkok. This influx of foreign capital has provided a boost to the building construction market, as developers and contractors partner with global entities to deliver modern, state-of-the-art projects. Foreign investment in residential, commercial, and mixed-use developments is increasing, with numerous high-profile international real estate projects underway. Additionally, Thailand’s strategic location within Southeast Asia and its developing infrastructure make it an attractive investment destination for multinational companies, further boosting the demand for commercial real estate and office buildings.
Rising Demand for Sustainable and Eco-Friendly Buildings
In recent years, there has been a growing demand for sustainable and environmentally friendly construction practices within Thailand. This shift is driven by both consumer preferences and government policies aimed at reducing the environmental impact of construction. Thailand’s building construction market is witnessing an increase in the adoption of green building standards, such as the Leadership in Energy and Environmental Design (LEED) certification and Thai Green Building Institute (TGBI) standards. The number of green-certified buildings in Bangkok has increased from 17 before 2019 to 48 today, with projections indicating a rise to 85 buildings by 2029. This trend reflects the growing demand for environmentally friendly and energy-efficient buildings in Thailand’s construction sector. Developers are increasingly focusing on energy-efficient designs, eco-friendly materials, and sustainable construction methods. The government has also introduced incentives for green buildings, further encouraging developers to pursue sustainable construction projects. This trend is not only driven by environmental concerns but also by economic factors, as energy-efficient buildings can lead to significant cost savings in the long term.
Market Trends
Integration of Smart and Sustainable Building Technologies
One of the most prominent trends in the Thailand Building Construction Market is the increasing adoption of smart and sustainable building technologies. Developers and contractors are increasingly incorporating Internet of Things (IoT) systems, energy-efficient designs, and advanced materials into new construction projects. Smart buildings, equipped with sensors to monitor energy usage, air quality, and lighting, are becoming more common in both residential and commercial sectors. These buildings offer enhanced energy efficiency, operational cost savings, and improved comfort for occupants. Additionally, sustainable practices such as the use of renewable energy sources (solar panels, wind turbines), green roofs, and energy-efficient heating, ventilation, and air conditioning (HVAC) systems are gaining traction. The Thai government is also pushing for sustainability through various policies and incentives that support green construction, such as tax rebates for green buildings and investments in energy-efficient technologies.For instance, the Intel PTK1 building in Israel, which incorporates 14,000 sensors generating up to 100 terabytes of data per day, is 40% more energy-efficient than traditional offices and consumes up to 75% less water using effective technological methods. This exemplifies the potential of smart building technologies that are being adopted in Thailand. These technological advancements not only respond to the growing demand for environmental responsibility but also cater to a rising consumer preference for eco-friendly buildings that align with modern lifestyles.
Rise in Prefabrication and Modular Construction
Another significant trend in the Thailand Building Construction Market is the increasing use of prefabricated and modular construction methods. Prefabrication involves the off-site construction of building components, which are then assembled on-site, reducing construction time and costs. This trend is particularly appealing in urban areas like Bangkok, where construction timelines are often tight due to space constraints and the need to minimize disruption. Modular construction, which involves assembling pre-built modules or units, is gaining popularity due to its speed and flexibility. These approaches also offer higher quality control and reduce waste, making them more sustainable alternatives to traditional construction methods. This trend is also driven by labor shortages in the construction sector, as prefabrication and modular techniques allow for more automation and less reliance on manual labor.For instance, a recent project in Thailand demonstrated that the 3D-printed PPVC (Prefabricated Prefinished Volumetric Construction) approach significantly reduced building time, cutting the schedule by 48% compared to brick-and-mortar construction and 54% compared to precast concrete, saving between 25 and 38 days. The cost efficiency, sustainability, and reduced construction time make prefabricated and modular construction particularly attractive in Thailand’s competitive building construction market.
Increased Focus on Urban Regeneration and Mixed-Use Developments
Urban regeneration and the rise of mixed-use developments are becoming central to the Thailand Building Construction Market. As urbanization accelerates, there is growing pressure to optimize land use in Thailand’s major cities, especially in Bangkok, where space is limited. The trend toward regenerating older neighborhoods and transforming underutilized areas into vibrant, mixed-use developments is gaining momentum. These projects typically combine residential, commercial, and recreational spaces in one location, promoting the concept of “live, work, and play” in a single environment. Mixed-use developments are not only meeting the demand for urban housing and office space but also contributing to the creation of self-sustaining communities with integrated public transport, leisure facilities, and green spaces.For instance, Central Pattana plc is developing a new mixed-use project in Krabi with a total value of 4.5 billion baht, scheduled to open in Q3/2025. This project, located on 114 rai of land, will consist of a Central shopping center (GFA: 47,500 m2) followed by the development of a housing estate, condominium, and hotel. The Thai government has been supportive of such projects, providing incentives for developers to build multi-functional spaces that encourage urban renewal and cater to the evolving demands of city residents. This trend is reshaping the landscape of Thailand’s cities and is expected to dominate the market in the coming years as it aligns with global trends in sustainable urban development.
Emphasis on Affordable Housing and Government Initiatives
The demand for affordable housing in Thailand continues to rise, driven by rapid urbanization and a growing middle class. The government has recognized this need and is implementing various programs to support the development of affordable housing, particularly in urban centers like Bangkok and Chiang Mai. The Thai government has introduced several policies aimed at boosting affordable housing construction, such as low-interest loans, tax incentives, and subsidies for developers who focus on building affordable units. Additionally, there is a rising trend of public-private partnerships (PPPs) to fund and deliver affordable housing projects. Developers are increasingly focusing on delivering high-quality but affordable residential units to meet the demands of low- and middle-income households.For instance, the Thai government has launched the “Homes for Thais” project, which aims to build up to one million housing units for low-income people. The project has already identified 25 provinces with suitable development potential, with four pilot areas selected for initial development: Km. 11 (Vibhavadi), Thonburi, Chiang Mai, and Chiang Rak. This shift is partly due to the government’s commitment to addressing housing shortages and improving living conditions for the urban population. The rise in affordable housing construction is expected to continue as urbanization persists, and middle-income families seek homes that are both cost-effective and well-connected to transportation hubs, employment centers, and amenities.
Market Challenges
Labor Shortages and Skill Gaps
One of the primary challenges facing the Thailand Building Construction Market is the persistent labor shortage and skill gaps in the sector. The construction industry in Thailand relies heavily on manual labor, and there has been a growing difficulty in recruiting skilled workers. This shortage is exacerbated by an aging workforce, as many younger workers are choosing to pursue jobs in other industries that offer better wages and working conditions. The lack of skilled labor has led to delays in project timelines, increased costs, and reduced quality in some cases. Furthermore, there is an ongoing need for workers who are proficient in advanced construction technologies such as automation, prefabrication, and sustainable building practices. As the demand for more sophisticated and eco-friendly buildings rises, the skill gap becomes even more pronounced. To address these challenges, the Thai government and construction companies will need to invest in workforce development programs, offer better training opportunities, and incentivize young workers to enter the sector.
Rising Material Costs and Supply Chain Disruptions
The Thailand Building Construction Market is also facing significant challenges related to rising material costs and supply chain disruptions. The global supply chain has been severely impacted by geopolitical tensions, inflation, and the lingering effects of the COVID-19 pandemic. These factors have led to shortages and price hikes in key construction materials such as steel, cement, and timber. As construction costs increase, developers are faced with higher project budgets, which can result in delayed projects or reduced profit margins. Additionally, the volatility in material prices makes it difficult for construction companies to maintain budget certainty, leading to financial strain. To mitigate this challenge, companies are exploring alternative materials, more efficient sourcing strategies, and increased reliance on local suppliers to reduce dependence on global supply chains. However, these solutions require time and investment to implement effectively.
Market Opportunities
Growth in Infrastructure and Urban Development Projects
Thailand presents significant opportunities for growth in the building construction market through ongoing and upcoming infrastructure and urban development projects. The Thai government has been heavily investing in the development of transportation infrastructure, including new road networks, rail systems, and airport expansions. Notable projects like the Eastern Economic Corridor (EEC) and the expansion of Bangkok’s mass transit network are expected to create substantial demand for commercial, residential, and mixed-use developments. As urbanization continues and more people migrate to urban centers, there is increasing demand for housing, office spaces, and retail infrastructure. Developers and contractors have the opportunity to tap into this expanding market, particularly in secondary cities like Chiang Mai and Pattaya, where urban development is accelerating. The ongoing push for smart cities and modernized infrastructure will drive sustained opportunities for companies in the building construction sector.
Emergence of Green Building and Sustainable Construction
Another major opportunity lies in the growing demand for sustainable and energy-efficient construction projects. As environmental awareness increases, both consumers and businesses are placing greater emphasis on sustainable building practices. The Thai government’s policies encouraging green building certifications and energy-efficient infrastructure, coupled with rising demand for eco-friendly homes and offices, provides a strong market opportunity. Developers can capitalize on this trend by adopting green building technologies, such as solar power, energy-efficient HVAC systems, and sustainable materials, which can provide long-term cost savings and appeal to environmentally-conscious buyers. This shift towards sustainability presents a significant opportunity for innovation and growth in Thailand’s building construction sector.
Market Segmentation Analysis
By Type
The market is primarily segmented into Residential and Non-residential buildings. The Residential segment holds a significant share, accounting for approximately 39% of the market, driven by Thailand’s ongoing urbanization and growing population. Residential construction is largely focused on both low- and high-income housing, with increasing demand for affordable housing in urban areas like Bangkok and Chiang Mai. On the other hand, the Non-residential segment includes commercial properties such as offices, retail spaces, and industrial facilities. This segment has seen significant growth due to increasing foreign investments and the rise of mixed-use developments that combine residential, retail, and commercial spaces. Both sectors are poised to expand as the demand for modern living and working spaces increases.
By Construction Type
The market can be divided into New Construction and Renovation segments. New Construction dominates the market, driven by ongoing infrastructure projects and a growing demand for new residential and commercial buildings. Government-led initiatives, such as the development of the Eastern Economic Corridor (EEC), have spurred a rise in new construction projects, particularly in urban areas. Renovation activities, although smaller in comparison, are experiencing growth due to the need to refurbish and modernize older buildings, particularly in city centers. The trend of sustainable development has also influenced renovation projects, with developers opting to retrofit existing buildings with energy-efficient technologies and green building practices.
Segments
Based on Type
- Residential
- Non-residential
Based on Construction Type
- New Construction
- Renovation
Based on End User
Based on Region
- Central Thailand
- Eastern Thailand
- Southern Thailand
- Northern Thailand
- Northeastern Thailand
Regional Analysis
Central Thailand (55%)
Central Thailand, particularly Bangkok, holds the largest share of the market, accounting for approximately 55% of the total building construction activity. Bangkok remains the hub for both residential and non-residential construction, driven by high population density, rapid urbanization, and significant foreign investment. The city continues to see a rise in luxury and high-rise residential developments, office spaces, retail centers, and mixed-use projects. Key infrastructure projects, including the expansion of the mass transit network and urban renewal initiatives, have further fueled the demand for construction in the region. Additionally, the government’s focus on centralizing economic development in Bangkok has solidified its dominance in the construction market.
Eastern Thailand (18%)
Eastern Thailand is witnessing significant growth, with the region accounting for around 18% of the market share. The area, particularly the Eastern Economic Corridor (EEC), is a focal point for industrial and infrastructure development. The EEC initiative, which encompasses the provinces of Chonburi, Rayong, and Chachoengsao, is attracting both domestic and foreign investments in manufacturing, logistics, and residential construction. The development of transportation infrastructure, such as highways and high-speed rail projects, is further boosting demand for construction services in the region. Additionally, the growing real estate market in cities like Pattaya is driving both residential and commercial construction activity.
Key players
- Sansiri Public Company Limited
- Central Pattana (CPN)
- TCC Land Group
- Thai Obayashi Corporation
- Frasers Property (Thailand)
- Bangkok Land Public Company Limited
- Krungthai XSpring (KTX)
- ASEAN Property Group
Competitive Analysis
The Thailand Building Construction Market is highly competitive, with several key players dominating various segments. Companies such as Sansiri Public Company Limited and Central Pattana (CPN) lead in residential and commercial real estate development, leveraging strong brand recognition and extensive portfolios. Thai Obayashi Corporation and Frasers Property (Thailand) are recognized for their expertise in large-scale infrastructure and mixed-use projects, capitalizing on their deep experience in construction management. Bangkok Land Public Company Limited remains a dominant player in luxury residential and commercial properties, while Krungthai XSpring (KTX) focuses on sustainable and affordable housing projects. TCC Land Group has a broad presence across commercial real estate and urban development, while ASEAN Property Group concentrates on both residential and commercial developments. The competition in this market is characterized by strong diversification, with players continually innovating to capture market share through strategic expansions and sustainable construction practices.
Recent Developments
- In February 2025, Sansiri Public Company Limited unveiled an ambitious “Dynamic Growth” strategy for 2025, focusing on new project launches, strategic partnerships, and land bank expansion. The company aims to launch 29 new projects worth 52 billion baht, comprising 14 low-rise and 15 condominium projects.
- In January 2025, Central Pattana prepared land plots for 50 residential developments to be launched from 2024 to 2026, aiming to generate a combined revenue of 24 billion baht2.
- In February 2025, Obayashi Corporation announced plans to establish a hotel management company jointly with Saha Pathana Inter-Holding Public Company Limited. The new company will develop a multipurpose complex mainly for office use with a hotel on the upper floors on Ratchadamri Road, Bangkok.
- In February 2025, Frasers Property reported Q1 FY2025 revenue of over 3,200 million baht, with plans to launch six new projects worth over 9,800 million baht in Bangkok, Nakhon Ratchasima, and Khon Kaen.
Market Concentration and Characteristics
The Thailand Building Construction Market is moderately concentrated, with several major players holding significant market share, particularly in the residential and commercial sectors. Large firms such as Sansiri Public Company Limited, Central Pattana (CPN), and Thai Obayashi Corporation dominate the landscape, leveraging their established reputations, extensive portfolios, and resources to lead large-scale infrastructure and real estate projects. However, the market also has a considerable number of small to medium-sized players, particularly in niche segments like affordable housing and local commercial developments. The competitive dynamics are shaped by a mix of local developers and international companies, driving innovation and quality. The market is characterized by high competition in urban areas, where demand for residential, commercial, and mixed-use developments is strong, while regional players focus on meeting the growing demand in secondary cities and rural areas through cost-effective construction solutions.
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Report Coverage
The research report offers an in-depth analysis based on Type, Construction type, End Use and Region. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.
Future Outlook
- As Thailand’s population grows and urbanizes, demand for residential, commercial, and infrastructure development will continue to rise, especially in major cities like Bangkok. This trend will drive the construction of housing units, office spaces, and public facilities.
- The Thai government is expected to maintain substantial investments in large-scale infrastructure projects, including transportation networks and smart city developments, boosting the construction market. Projects like the Eastern Economic Corridor (EEC) will drive growth in the industrial and residential segments.
- With increasing environmental awareness, there will be a stronger focus on sustainable construction techniques and green building certifications. Developers will increasingly incorporate energy-efficient technologies and eco-friendly materials into their projects.
- The integration of innovative technologies such as Building Information Modeling (BIM), automation, and prefabrication will transform the building construction process, improving efficiency and reducing costs. The adoption of smart technologies in buildings will also rise.
- Mixed-use developments, combining residential, commercial, and recreational spaces, will continue to gain popularity in urban areas. These developments will meet the needs of the growing population and urban dwellers who seek convenient, integrated living spaces.
- As urbanization increases, there will be a greater need for affordable housing solutions, particularly in major cities. The government’s policies and incentives will encourage the construction of low-cost homes to address the housing deficit in urban centers.
- Foreign investment in Thailand’s real estate and construction sectors is expected to grow, driven by the country’s strategic location in Southeast Asia and the attractive investment climate. This will support the expansion of both residential and commercial properties.
- With the recovery of Thailand’s tourism sector, there will be a rise in demand for tourism-related infrastructure such as hotels, resorts, and leisure facilities. Coastal cities and tourist hotspots will see significant construction activity
- The demand for affordable office spaces will rise as small and medium-sized enterprises (SMEs) seek cost-effective solutions. Flexible, co-working spaces will become a major focus in commercial real estate development.
- As regional cities like Chiang Mai, Phuket, and Pattaya continue to grow, there will be increased construction activity outside Bangkok, especially in residential, retail, and industrial projects. These regions will benefit from improved infrastructure and government support.
