The Industrial Economics Office revealed the industrial sector outlook for 2026, noting that leading industries remain those supported by the new global economic structure. Industries requiring urgent adjustment include the internal combustion engine (ICE) automotive sector.
Mr. Supakit Boonsiri, Director of the Industrial Economics Office (IEA). He stated that the IEA assesses the 2026 industrial outlook with leading industries continuing to benefit from the new global economic structure. These include: 1. Electronic components industry growing alongside the artificial intelligence (AI) market; 2. Electric vehicle (xEV) industry and parts expanding due to market demand, EV3.0 and EV3.5 measures, and domestic parts requirements (Local Content); 3. Computer and peripheral device industry (HDD), with Thailand as a production base for high-capacity HDDs supporting data centers; 4. Food industry; and 5. Ready-made animal feed industry, which is well-prepared with raw materials and production standards to meet growing consumer and pet market demand.
Industries needing urgent adjustment include internal combustion engine (ICE) vehicles, petroleum refineries, basic steel and iron, textiles, and furniture and components. These face pressures from the transition to electric vehicles, household debt burdens, surging imports, high production costs, and international tax and environmental measures. Structural adaptation is necessary to maintain long-term competitiveness.
“The IEA expects the industrial production index (MPI) and industrial sector GDP growth in 2026 to return to expansion between 1.0-2.0%,” he said.
The MPI for November stood at 90.54, contracting 4.24% year-on-year. Industrial capacity utilization was 55.49%, due to reduced petroleum production from a major refinery maintenance shutdown. A strong baht raised Thai export prices, affecting price competitiveness. Additionally, flooding in the south caused temporary production halts, and border tensions with Cambodia disrupted cross-border trade. Affected industries include gems and jewelry, petroleum, and consumer goods.
Meanwhile, continued declines in foreign tourism have impacted related industries such as frozen chicken, ready-made food, footwear, beer, and non-alcoholic beverages.
Supporting factors for industry in November included continued growth in automobile production for the third month, driven by manufacturers producing electric vehicles to offset prior import dependence. Industrial exports grew for the 17th consecutive month. Key government measures such as the “Half-Half Plus” co-payment scheme and the “Good Travel, Get Refund” campaign also supported growth. However, Thailand’s overall industrial economy in December 2025 remains vulnerable, with domestic factors in a downward cycle requiring close monitoring. Private investment continues to contract sharply, while domestic consumption benefits from government economic stimulus policies.
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