Thailand Construction Market 2026-2031 - Growth Driven By Public Infrastructure Investment
Dublin, Sept. 14, 2026 (GLOBE NEWSWIRE) -- "Thailand Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
Thailand Construction Market to Reach USD 41.19 Billion by 2031 as Infrastructure Investment Accelerates
The Thailand construction market is estimated to reach USD 31.55 billion in 2026, up from USD 29.91 billion in 2025. The market is projected to expand to USD 41.19 billion by 2031, registering a compound annual growth rate of 5.48% between 2026 and 2031. Large-scale transport projects, public-private partnerships, urban development and renewable energy investment are expected to support sustained construction activity nationwide.
Major Infrastructure Projects Drive Construction Growth
Public infrastructure investment remains a primary catalyst for the Thailand construction market. A USD 3.9 billion budget covering 223 projects in 2025 strengthened the project pipeline, with railway, road and aviation developments accounting for a substantial share of planned expenditure.
Major initiatives include the USD 9.6 billion Thai-China high-speed railway and the approximately USD 430 million runway project at U-Tapao International Airport. These long-term developments provide revenue visibility for major contractors while strengthening Thailand's position as a regional transportation and logistics hub. With delivery schedules extending beyond 2030, civil engineering and infrastructure contractors are expected to benefit from consistent demand.
Public-private partnerships are also accelerating project delivery. Thailand's evolving PPP framework has supported approximately USD 30.8 billion in planned investment, including USD 13.3 billion in approved priority projects. Laem Chabang Port Phase 3, financed through a combination of public and private capital, is designed to increase annual container-handling capacity to 18 million twenty-foot equivalent units. Such funding structures support technology transfer, distribute project risk and reduce pressure on public finances.
Infrastructure Leads Sector Expansion
Residential construction accounted for 35.25% of Thailand construction market share in 2025, supported by urbanisation and changing lifestyle preferences. However, infrastructure is forecast to be the fastest-growing major sector, advancing at a CAGR of 5.86% through 2031.
Rail corridors, airport expansions and expressway projects continue to dominate public-sector award pipelines. The second phase of the Thai-China high-speed railway and the planned high-speed connection between Don Mueang, Suvarnabhumi and U-Tapao airports are expected to improve domestic mobility, tourism access and regional connectivity. These transport corridors could also create new opportunities for residential, commercial and industrial development in surrounding areas.
Commercial construction is recovering alongside tourism and mixed-use development. Central Pattana's USD 424 million multi-city investment programme highlights renewed activity in the retail and hospitality segments. Demand is also diversifying through co-working facilities, laboratories and specialised commercial properties.
Industrial construction in the Eastern Economic Corridor continues to benefit from investment in electronics, automotive manufacturing, logistics and advanced biotechnology. Renewable energy facilities and electricity-grid upgrades are further broadening project opportunities and helping contractors diversify beyond traditional building and transport work.
New Construction Dominates as Renovation Gains Momentum
New construction represented 73.50% of Thailand construction market size in 2025, reflecting continued investment in greenfield property developments and transportation infrastructure. Notable projects include the USD 14.1 billion first phase of the Land Bridge initiative and the approximately USD 429 million second runway at U-Tapao International Airport. These projects are generating substantial demand for cement, structural steel, machinery and other construction materials.
Renovation remains a smaller segment but is projected to record a CAGR of 6.01% through 2031. Ageing office buildings, condominiums and hotels are entering major refurbishment cycles, particularly in Bangkok and established tourism destinations. Corporate sustainability targets and rising utility costs are also encouraging investment in energy-efficient facades, LED systems, smart-building controls and lower-carbon construction materials.
Renovation offers property owners shorter delivery schedules and fewer land constraints, especially in densely developed urban locations. As activity increases, specialist contractors, engineering consultants and sustainable material suppliers are expected to gain access to a more consistent pipeline of refurbishment projects.
Labour Constraints Present Near-Term Challenges
Despite the positive outlook, skilled labour shortages remain a significant challenge for the Thailand construction market. Rising wages and limited domestic talent pools have increased reliance on foreign workers, while permit-processing delays can extend project schedules and place pressure on contractor margins.
Large construction companies are responding through workforce training, mechanisation and modern construction methods. Smaller contractors may face greater difficulty meeting completion guarantees and controlling costs. Additional market constraints include an oversupply of apartments in parts of Bangkok, although mixed-use development and renewable energy construction continue to create opportunities across other segments.
Overall, Thailand's expanding infrastructure pipeline, maturing PPP environment and investment in transportation, energy and urban redevelopment are expected to underpin market growth through 2031. Infrastructure construction will remain the leading growth engine, while renovation, industrial development and sustainable building upgrades provide additional momentum across the country.
Key Topics Covered:
1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Insights and Dynamics
4.1 Market Overview (incl. Current Economic & Construction Scenario)
4.2 Market Drivers
4.2.1 Major infrastructure rollouts - including high-speed rail, airport upgrades, and mass transit expansions - are fueling nationwide construction demands.
4.2.2 Public-private partnership push in highways, bridges, and port facilities is accelerating project delivery.
4.2.3 Surge in mixed-use and transit-oriented developments, such as integrated urban townships, is boosting construction volumes.
4.2.4 Renewables and energy grid expansion, especially solar and hydro, are adding to utility-sector construction.
4.2.5 Residential growth in Bangkok and secondary cities is driven by improving household incomes and migration.
4.2.6 Adoption of digital construction tools (e.g., BIM, prefabrication) is streamlining project efficiency.
4.3 Market Restraints
4.3.1 Skilled labor shortages and rising wages are driving up costs and extending schedules.
4.3.2 Weak apartment sales in Bangkok are causing cancellations and slower launches.
4.3.3 Land acquisition and environmental reviews are delaying permission processes.
4.3.4 Rising global material prices and logistics challenges are squeezing contractor margins
4.4 Value / Supply-Chain Analysis
4.4.1 Overview
4.4.2 Real Estate Developers and Contractors - Key Quantitative and Qualitative Insights
4.4.3 Architectural and Engineering Companies - Key Quantitative and Qualitative Insights
4.4.4 Building Material and Equipment Companies - Key Quantitative and Qualitative Insights
4.5 Government Initiatives & Vision
4.6 Regulatory Outlook
4.7 Technological Outlook
4.8 Porter's Five Forces
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Buyers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitutes
4.8.5 Intensity of Competitive Rivalry
4.9 Pricing (Construction Materials) and Construction Cost (Materials, Labour, Equipment) Analysis
4.10 Comparison of Key Industry Metrics of Thailand with Other Countries
4.11 Key Upcoming/Ongoing Projects (with a focus on Mega Projects)
5 Market Size & Growth Forecasts (Value, USD Billion)
5.1 By Sector
5.1.1 Residential
5.1.1.1 Apartments/Condominiums
5.1.1.2 Villas/Landed Houses
5.1.2 Commercial
5.1.2.1 Office
5.1.2.2 Retail
5.1.2.3 Industrial and Logistics
5.1.2.4 Others
5.1.3 Infrastructure
5.1.3.1 Transportation Infrastructure (Roadways, Railways, Airways, others)
5.1.3.2 Energy & Utilities
5.1.3.3 Others
5.2 By Construction Type
5.2.1 New Construction
5.2.2 Renovation
5.3 By Construction Method
5.3.1 Conventional On-Site
5.3.2 Modern Methods of Construction (Prefabricated, Modular, etc)
5.4 By Investment Source
5.4.1 Public
5.4.2 Private
5.5 By Major Cities
5.5.1 Bangkok
5.5.2 Phuket
5.5.3 Pattaya
5.5.4 Chiang Mai
5.5.5 Rest of Thailand
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves (M&A, PPPs, Digitalisation)
6.3 Market Share Analysis
6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)}
6.4.1 Italian-Thai Development PCL
6.4.2 Sino-Thai Engineering & Construction PCL
6.4.3 Ch. Karnchang PCL
6.4.4 Unique Engineering & Construction PCL
6.4.5 TTCL Public Company Limited
6.4.6 SCG International Corporation Co. Ltd
6.4.7 Siam Global House PCL
6.4.8 Land & Houses PCL
6.4.9 Dohome PCL
6.4.10 CRC Thai Watsadu Ltd
6.4.11 Drainage & Sewerage Department (Bangkok)
6.4.12 Bangkok Komatsu Ltd
6.4.13 SPCC Joint Venture
6.4.14 Caterpillar (Thailand) Ltd
6.4.15 Bouygues-Thai Co. Ltd
6.4.16 Thai Obayashi Corp. Ltd
6.4.17 Ritta Co. Ltd
6.4.18 Power Line Engineering PCL
6.4.19 Sinohydro-Thailand JV
6.4.20 CK Power PCL
7 Market Opportunities & Future Outlook
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