Thailand Intralogistics Market Outlook to 2032

The report titled “Thailand Intralogistics Market Outlook to 2032 – By Equipment Type, By Automation Level, By End-Use Industry, By Deployment Model, and By Region” provides a comprehensive analysis of the intralogistics industry in Thailand. The report covers an overview and genesis of the market, overall market size in terms of value, detailed market segmentation; trends and developments, regulatory and industrial policy landscape, buyer-level demand profiling, key issues and challenges, and competitive landscape including competition scenario, cross-comparison, opportunities and bottlenecks, and company profiling of major players in the Thailand intralogistics market. The report concludes with future market projections based on manufacturing relocation trends, e-commerce and omni-channel fulfillment growth, warehouse automation adoption, labor cost dynamics, regional industrial corridor development, cause-and-effect relationships, and case-based illustrations highlighting the major opportunities and cautions shaping the market through 2032.

Thailand Intralogistics Market Overview and Size

The Thailand intralogistics market is valued at approximately ~USD ~ billion, representing the supply of material handling and internal logistics systems deployed within warehouses, factories, distribution centers, and production facilities. Intralogistics solutions in Thailand typically include conveyors, sortation systems, automated storage and retrieval systems (ASRS), forklifts and warehouse trucks, pallet racking, robotics, warehouse control software, and integrated automation platforms designed to optimize internal material flow, storage efficiency, and order fulfillment performance.

The market is anchored by Thailand’s role as a regional manufacturing and logistics hub in Southeast Asia, supported by strong automotive and auto components production, electronics and electrical appliance manufacturing, food and beverage processing, consumer goods distribution, and a fast-expanding e-commerce fulfillment ecosystem. Intralogistics investments are increasingly driven by the need to improve throughput, reduce dependency on manual labor, enhance inventory accuracy, and support higher SKU complexity across both industrial and commercial facilities.

Eastern Thailand represents the largest intralogistics demand center, led by the Eastern Economic Corridor (EEC), which hosts a high concentration of automotive OEMs, Tier-1 suppliers, electronics manufacturers, and export-oriented industrial estates. The Bangkok Metropolitan Region and surrounding provinces remain critical demand hubs due to dense warehousing, retail distribution centers, and last-mile fulfillment facilities. Central Thailand supports steady demand from food processing, cold storage, and FMCG distribution networks, while Northern and Northeastern regions show emerging adoption driven by agro-processing, regional distribution centers, and gradual industrial decentralization initiatives.

What Factors are Leading to the Growth of the Thailand Intralogistics Market:

Expansion of manufacturing capacity and industrial modernization increases demand for efficient internal material flow: Thailand continues to attract manufacturing investments across automotive, EV components, electronics, food processing, and industrial machinery, supported by government incentives, industrial estate development, and export-oriented production strategies. As factories scale up and product mixes become more complex, manufacturers are investing in intralogistics systems to streamline inbound material handling, work-in-process movement, and finished goods storage. Conveyors, ASRS, automated pallet handling, and factory automation interfaces help reduce bottlenecks, improve line feeding accuracy, and support higher production consistency. This structural shift toward more organized, system-driven factories directly strengthens demand for intralogistics solutions.

Growth of e-commerce, omni-channel retail, and third-party logistics accelerates warehouse automation adoption: Thailand’s e-commerce market continues to expand rapidly, driving the development of large-scale fulfillment centers, sortation hubs, and urban distribution warehouses. These facilities require high-speed order picking, accurate sorting, and efficient returns handling to meet same-day and next-day delivery expectations. Intralogistics systems such as automated conveyors, sorters, shuttle systems, and warehouse execution software enable logistics operators to handle higher order volumes with shorter processing windows. As 3PL providers compete on service levels and cost efficiency, automation-led intralogistics investments are becoming a core differentiator in Thailand’s logistics landscape.

Rising labor costs and workforce availability challenges push companies toward automation-led solutions: Thailand’s industrial and logistics sectors are increasingly facing labor constraints, including rising wages, workforce aging, and higher turnover in warehouse and factory roles. Intralogistics automation helps mitigate these challenges by reducing reliance on manual handling, improving worker productivity, and enhancing workplace safety. Automated systems also provide more predictable operating costs and performance consistency compared to labor-intensive operations. This shift is particularly relevant for large warehouses, export-oriented manufacturers, and facilities operating multiple shifts, where labor availability directly impacts throughput and service reliability.

Which Industry Challenges Have Impacted the Growth of the Thailand Intralogistics Market:

High upfront capital requirements and ROI uncertainty slow automation decision-making: While intralogistics systems deliver long-term efficiency gains, many Thai manufacturers, distributors, and 3PL operators remain cautious due to the relatively high upfront capital expenditure associated with automation-heavy solutions such as ASRS, sorters, robotics, and warehouse control software. Small and mid-sized enterprises, which form a large share of Thailand’s industrial base, often operate with tight capital budgets and shorter investment payback expectations. Uncertainty around demand volatility, contract tenure with logistics clients, and future SKU complexity can delay investment approvals, particularly for fully automated systems where ROI is realized over longer operating horizons.

Integration complexity between legacy systems and modern automation creates execution risks: A significant portion of Thailand’s warehouses and factories operate with legacy layouts, manual processes, and fragmented IT systems. Integrating new intralogistics equipment with existing warehouse management systems (WMS), enterprise resource planning (ERP), and production planning tools can be complex and time-consuming. Poor system integration can lead to suboptimal performance, downtime during commissioning, and lower-than-expected productivity gains. These risks make some operators hesitant to adopt advanced intralogistics solutions, preferring incremental mechanization over full automation.

Limited availability of local automation engineering and maintenance expertise impacts reliability: Although Thailand has a strong industrial workforce, there remains a relative shortage of specialized intralogistics automation engineers, system integrators, and technicians with experience in advanced material handling systems. Dependence on foreign system integrators or overseas technical support can increase project costs and extend response times for troubleshooting and maintenance. For mission-critical distribution centers and high-throughput factories, concerns around system uptime and long-term serviceability can slow adoption of complex automation solutions.

What are the Regulations and Initiatives which have Governed the Market:

Industrial development policies and investment promotion frameworks supporting automation adoption: Thailand’s industrial and investment promotion policies, including incentives under the Board of Investment (BOI) and development programs within designated industrial corridors, encourage modernization, productivity improvement, and technology adoption. Intralogistics automation investments that support advanced manufacturing, smart factories, and export-oriented production can benefit indirectly through tax incentives, import duty exemptions on machinery, and facilitation support. These policies help improve the business case for automation, particularly for large manufacturers and multinational operators establishing regional hubs.

Workplace safety, ergonomics, and operational compliance requirements influencing system design: Regulations related to occupational safety, material handling practices, and workplace ergonomics increasingly influence intralogistics system design in Thailand. Employers are expected to reduce manual lifting risks, improve traffic management between forklifts and workers, and enhance overall warehouse safety. Automated conveyors, pallet handling systems, and guided vehicles support compliance by minimizing manual intervention and improving process consistency. While safety regulations are not always prescriptive about automation, compliance expectations indirectly push companies toward structured intralogistics solutions.

Digital transformation and Industry 4.0 initiatives shaping long-term market direction: National initiatives promoting digital transformation, smart manufacturing, and Industry 4.0 adoption create a supportive environment for intralogistics software, data-driven material flow optimization, and system-level automation. Programs encouraging data integration, traceability, and real-time visibility across production and logistics operations increase demand for warehouse control systems, execution software, and sensor-enabled equipment. Although adoption maturity varies across industries, these initiatives set a long-term regulatory and strategic direction that favors structured, technology-enabled intralogistics development in Thailand.

Thailand Intralogistics Market Segmentation

By Equipment Type: Warehouse automation and material handling systems hold dominance. This is because warehouses, distribution centers, and manufacturing facilities in Thailand increasingly prioritize throughput efficiency, space optimization, and accuracy in internal material movement. Conveyors, sortation systems, ASRS, and automated pallet handling solutions are widely deployed in large distribution centers, export-oriented factories, and e-commerce fulfillment hubs. While manual handling equipment and conventional storage systems continue to see demand among small and mid-sized operators, automation-led equipment benefits from higher investment intensity, repeat deployment across sites, and integration with digital warehouse systems.

By End-Use Industry: Manufacturing and logistics dominate intralogistics demand in Thailand. Manufacturing and logistics operators account for the majority of intralogistics investments as they focus on production continuity, export competitiveness, and service-level reliability. Automotive, electronics, food processing, and industrial goods manufacturers rely on intralogistics systems to support line feeding, work-in-process handling, and finished goods storage. Logistics and 3PL players invest heavily in warehouse automation to manage high order volumes and SKU diversity. Retail and FMCG distribution continues to grow steadily, while cold chain and pharmaceutical applications show rising adoption of structured intralogistics systems due to quality and traceability requirements.

Competitive Landscape in Thailand Intralogistics Market

The Thailand intralogistics market exhibits moderate fragmentation, characterized by a mix of global automation players, regional material handling equipment suppliers, local system integrators, and forklift manufacturers with established distribution networks. Market competitiveness is driven by system reliability, integration capability, local service and maintenance support, project execution experience, and the ability to tailor solutions for both automated and semi-automated facilities. Global players dominate large-scale automation projects and high-throughput warehouses, while regional and local companies remain competitive in conventional material handling, racking, forklifts, and mid-sized automation deployments.

Some of the Recent Competitor Trends and Key Information About Competitors Include:

Daifuku Co., Ltd.: Daifuku continues to hold a strong position in Thailand’s large-scale automation market, particularly in automotive manufacturing, electronics, and high-throughput distribution centers. The company’s strength lies in complex system integration, ASRS deployment, and long-term support capabilities for mission-critical operations.

Dematic (KION Group): Dematic competes strongly in logistics and e-commerce-driven intralogistics projects, offering advanced sortation, conveyor systems, and warehouse execution software. Its ability to deliver end-to-end automated solutions positions it well with multinational 3PLs and retail distribution operators in Thailand.

SSI Schaefer Group: SSI Schaefer remains a key player across racking, storage systems, and integrated automation projects. The company benefits from flexibility in serving both automated and conventional warehouses, making it competitive among manufacturers and logistics operators transitioning gradually toward automation.

Toyota Material Handling: Toyota Material Handling maintains a dominant presence in forklifts and industrial trucks across Thailand, supported by strong local distribution, service networks, and brand trust. The company benefits from recurring demand in manufacturing plants, warehouses, and mixed manual-automated environments.

Jungheinrich AG: Jungheinrich continues to expand its footprint in electric forklifts, warehouse trucks, and integrated warehouse solutions. Its positioning is strong among operators seeking energy-efficient equipment, structured fleet management, and gradual automation without full system overhauls.

What Lies Ahead for Thailand Intralogistics Market?

The Thailand intralogistics market is expected to expand steadily through 2032, supported by sustained manufacturing activity, continued growth in e-commerce and third-party logistics, and rising pressure on companies to improve internal efficiency, accuracy, and throughput. Market momentum is further reinforced by industrial corridor development, warehouse capacity expansion, and gradual adoption of automation to address labor constraints and operational complexity. As manufacturers, logistics providers, and distributors increasingly seek scalable, technology-enabled internal logistics systems, intralogistics will remain a core investment area across Thailand’s industrial and commercial facilities.

Transition Toward Higher Levels of Automation and Integrated System Design: The future of the Thailand intralogistics market will see a shift from standalone material handling equipment toward integrated automation systems that combine conveyors, ASRS, robotics, and software into unified operating environments. Facilities are increasingly being designed around end-to-end material flow rather than isolated process improvements. Demand is rising for systems that support higher SKU counts, faster order cycles, and real-time visibility across storage, picking, and dispatch. Suppliers capable of delivering modular, scalable automation that can be expanded in phases will be better positioned to capture long-term demand.

Growing Emphasis on Warehouse Productivity and Space Optimization: Rising land costs in and around major logistics clusters such as the Bangkok Metropolitan Region and the Eastern Economic Corridor are pushing operators to maximize vertical storage and throughput per square meter. This trend supports increased adoption of ASRS, shuttle systems, narrow-aisle storage, and automated pallet handling solutions. Through 2032, intralogistics investments will increasingly focus on improving storage density, reducing travel time, and enabling higher output from existing facility footprints rather than relying solely on greenfield expansion.

Increased Adoption by E-Commerce, 3PLs, and Omni-Channel Distribution Networks: E-commerce and omni-channel retail models will continue to shape intralogistics demand as fulfillment centers require faster picking, accurate sortation, and efficient returns processing. Third-party logistics providers are expected to accelerate automation investments to remain competitive on service levels, cost per order, and scalability. This will drive demand for high-speed conveyors, sorters, warehouse execution software, and flexible automation platforms that can adapt to changing client requirements and seasonal volume fluctuations.

Integration of Digital Systems, Data Visibility, and Smart Operations: Digitalization will play a growing role in intralogistics decision-making, with increased use of warehouse control systems, execution software, sensors, and data analytics to optimize material flow and equipment utilization. Buyers will increasingly expect intralogistics solutions to integrate seamlessly with WMS, ERP, and production systems, enabling real-time performance monitoring and predictive maintenance. Suppliers that combine hardware expertise with software and system integration capabilities will strengthen their competitive positioning.

Thailand Intralogistics Market Segmentation

By Equipment Type

• Conveyors & Sortation Systems
• Automated Storage & Retrieval Systems (ASRS)
• Industrial Trucks & Forklifts
• Racking, Shelving & Static Storage Systems
• Robotics, AGVs & Warehouse Software

By Automation Level

• Manual & Mechanized Systems
• Semi-Automated Systems
• Fully Automated Systems

By End-Use Industry

• Manufacturing
• Logistics & Third-Party Logistics (3PL)
• Retail & FMCG Distribution
• Cold Chain, Pharmaceutical & Others

By Deployment Model

• Greenfield Facility Automation
• Brownfield / Retrofit Automation
• Phased Automation Deployment

By Region

• Eastern Thailand (EEC)
• Bangkok Metropolitan Region
• Central Thailand
• Northern Thailand
• Northeastern Thailand

Players Mentioned in the Report:

• Daifuku Co., Ltd.
• Dematic (KION Group)
• SSI Schaefer Group
• Toyota Material Handling
• Jungheinrich AG
• Murata Machinery (Muratec)
• TGW Logistics Group
• Kardex Group
• Regional system integrators, forklift distributors, and intralogistics solution providers in Thailand

Key Target Audience

• Intralogistics and material handling system manufacturers
• Automation solution providers and system integrators
• Warehouse developers and logistics park operators
• Third-party logistics (3PL) companies
• Manufacturing companies and export-oriented enterprises
• E-commerce and omni-channel retailers
• Industrial estate developers and infrastructure planners
• Private equity and strategic investors in logistics and automation

Time Period:

Historical Period: 2019–2024
Base Year: 2025
Forecast Period: 2025–2032