Entrepreneurs strongly advise the government to expedite the enhancement of skills among workers specializing in the development of Thai digital content. If this initiative is expansively promoted, it has the potential to elevate Thailand's soft power and catalyze economic growth.
The Digital Economy Promotion Agency (depa), has collaborated with the Digital Content Association of Thailand (DCAT), the Thai Animation and Computer Graphics Association (TACGA), the Thai Game Software Industry Association (TGA), Bangkok ACM SIGGRAPH, and Atwise Consulting Company Limited, to announce the findings of a comprehensive data survey and assessment detailing the state of the Thai digital content industry, encompassing games, animation, and characters, for the year 2022, as well as a forward-looking three-year trend forecast. Simultaneously, a survey of the electronic book industry, which is part of the digital content sector, has been initiated.
Dr. Kasititorn Pooparadai, Senior Executive Vice President of the Strategy and Security Group at depa, said, "The overall digital content industry in 2022 demonstrated an average growth rate of 4%, influenced by the contraction of the gaming sector. The gaming industry holds a pivotal role within the digital content sector, forming 85% of the industry's total value, which stood at 40,518 million baht. There was rapid growth, especially during the period of 2020-2021, when people had to keep the social distancing and replace social activities with entertainment activities at home. However, the digital content industry is poised for continued growth, with the total value expected to reach 44,983 million baht by the year 2025."
The gaming industry and a reduction in the number of active players
Dr. Kasititorn reported that in 2022, the gaming industry had a total value of 34,556 million baht, experiencing a 7% decrease in growth rate due to a decline in the number of players. This decrease is also reflected in the reduced time spent playing games, as people's lifestyles have returned to normalcy. However, the gaming industry still holds significant growth potential. This potential lies not only in the ongoing development of high-quality and innovative gaming experiences for players but also in the form of GameFi (Game Finance) and Game NFT (Non-Fungible Token) investment opportunities. These emerging trends are poised to attract players and entrepreneurs from other industries into the gaming sector.
Moreover, the gaming industry has gained significant support. This includes the integration of new technologies to enhance the gaming experience, a shift in the perception of gaming from mere entertainment to a career path, and increasingly tangible support from both governmental and private sectors. Conversely, a shortage of skilled workforce due to the advancement of new technologies, as well as limitations in terms of investment capital and access to funding for entrepreneurs, continue to impede the progress of this industrial sector.
The animation industry and its growth in export markets
The animation industry experienced an average growth rate of 15% in the past year, culminating in a total industry value of 3,936 million baht. Thailand holds a significant position as a key source for contracts in animation, CG (Computer Graphics), and VFX (Visual Effects) projects. The primary groups of countries that seek services in these areas include China, Japan, South Korea, various European nations, the United States, Hong Kong, Singapore, Cambodia, Vietnam, and Canada.
In 2022, the animation industry achieved an export value of 2,610 million baht, showcasing a consistent growth rate of 21% from the years 2020 to 2022, respectively. Thailand's animation and CG/VFX industry is highly respected due to its key strengths, including a talented workforce with exceptional technical expertise and creative skills. Furthermore, the industry is known for offering competitive pricing that aligns with the quality of the work produced.
The character industry that grows in alignment with the tourism growth rate
In 2022, the character industry experienced a growth rate of 26%, reaching a total value of 2,025 million baht. This growth can be attributed to the economic challenges experienced in the previous year, which resulted in a reduction in the disposable income of many Thai individuals. Nevertheless, in 2022, consumer spending was rebounding thanks to a surge in tourist numbers, contributing to economic recovery. Additionally, the demand for character-based communication with consumers surged, leading to a continuous increase in hiring and work opportunities in the industry.
The majority of those hiring in the character industry are local entrepreneurs in Thailand who acquire licenses to create additional products. Simultaneously, the trend of producing items in the toy and hobby categories is steadily growing in popularity. However, a major challenge facing the character industry revolves around insufficient awareness regarding intellectual property and copyright.
The electronic book industry is growing in response to evolving lifestyles.
In order to provide a complete overview of the Thai digital content industry, depa and partners have agreed to collaborate in gathering data on the e-book industry for the first time. In the past year, the e-book industry reached a total value of 3,712 million baht, propelled by the preferences of modern consumers who prioritize convenience. This convenience allows them to access their desired content anywhere and anytime without the need to carry physical books. Furthermore, the trend among the new generation, which involves content creation and publishing on online platforms, is growing. This varies from web novels and e-books to e-comics and webtoon content. The value of contract production services has started to increase, with participation from both copyright owners and distributors seeking these services. The primary service provided focuses on the conversion of content files into e-book format.
Additionally, during the presentation of the year 2022 data and situational evaluation of the Thai digital content industry, a discussion session took place. Representatives from various entrepreneurial associations within the digital content industry shared their insights and perspectives on the aspiration to position Thailand as a leading force in soft power through the digital content sector. During the discussion, participants highlighted the significance of current lifestyles and digital technology as catalysts for promoting the growth of digital content. Thailand possesses a wealth of skilled professionals in digital content development, yet there remains a desire for opportunities to elevate these skills to an international standard. With comprehensive promotion, Thailand's soft power could be harnessed to drive sustained economic growth. In this context, depa and its partners are fully prepared to champion the establishment of strategic directions and policies that align with the government's objectives for digital industry development as outlined in the National Economic and Social Development Plan.
"depa and all collaborating units are genuinely hopeful that the outcomes of the data survey and evaluation concerning the state of the digital content industry in 2022, along with the three-year trend forecast, will serve as valuable information. This information can aid in making business planning decisions and responding to changes in both the country's internal and external situations. It also aids in adapting to identify economic opportunities stemming from emerging technologies through integrating the soft power concept with the context of the Thai digital content industry. Additionally, this information will serve as a crucial resource to guide policy formulation, set the direction for the government's digital industry development within the framework of the National Economic and Social Development Plan. There will be collaboration with partners in advancing digital content which is an industry with high potential. Therefore, we strive to develop projects and measures to create opportunities from upstream to downstream. This includes preparing the younger generation to enter the industry, upgrading entrepreneurs, and expanding investments to reach the global market." said the depa's vice president.
Source: JC&CO Communications
