depa Reports Digital Industry Confidence Remains Below Threshold in Q1/2026
Amidst Domestic and Global Pressures; Businesses Urge Government Support
Despite Expected Recovery Within 3 Months
March 26, 2026, Bangkok – depa reported that the Digital Industry Sentiment Index for Q1/2026 declined from the previous quarter and remains below the confidence threshold. The decline was primarily driven by the United States’ increase in import tariffs on technology products, the constrained recovery in domestic purchasing power following the expiration of last year’s stimulus measures, and delays in the disbursement of the government’s investment budget. Digital entrepreneurs in Thailand would prefer the government support them by expanding access to finance, improving transparency in public procurement, accelerating digital workforce development, promoting Thai technology products, and strengthening related infrastructure.
The Digital Economy Promotion Agency (depa) revealed the results of the Digital Industry Sentiment Index Survey for Q1/2026, covering five key sub-industries: Hardware and Smart Devices, Software, Digital Services, Digital Content, and Telecommunications. The overall index stood at 44.5, declining from 48.6 in the previous quarter. The decrease was attributed to a slowdown across several sub-indices, including business performance, production, trade and service volumes, orders and project partnerships, as well as employment, alongside rising operating costs. Meanwhile, investment in business operations showed a slight improvement, reflecting entrepreneurs’ expectations of near-term growth in the digital industry.
Dr. Supakorn Siddhichai, Acting President/CEO of depa stated that the overall Digital Industry Sentiment Index for Q1/2026 remained in the ‘non-confidence’ zone. This was driven by delays in the disbursement of the government’s investment budget into the economy and repressed domestic purchasing power recovery from stimulus expiration, volatility in global oil prices contributing to cost-push inflation, U.S. tariff hikes on technology products to 19 - 21%, and intensified competition both from low-cost imported goods amid shifting global trade flows and from the expansion of online platforms. Despite these challenges, several positive developments were observed in the digital economy. These included continued expansion in data center investments, a policy interest rate easing that supported business investment across the ecosystem, and the recent election, which signals clearer direction and potential progress in digital promotion policies in the near term.
Looking at the specific sectors in Q1/2026, all 5 sub-industries recorded a sentiment index below the 50-threshold. The Hardware and Smart Devices sector was at 41.7, Software at 49.7, Digital Services at 43.7, Digital Content at 41.9, and Telecommunications at 48.0.
“Digital entrepreneurs expect the government to expand access to low-cost finance, conduct public procurement more transparently as well as promote digital transformation within the public sector, and accelerate the development of digital talent to address workforce shortages. They also call for stronger support for public–private digital innovation, increased funding for research and development (R&D), and the advancement of the National Digital Trade Platform (NDTP) to enhance the ease of doing business and facilitate more efficient exports of Thai products and services to new international markets.” said the Acting President/CEO of depa.
Although the Digital Industry Sentiment Index for Q1/2026 reflected weak confidence amid pressures from demand conditions, rising costs, and global economic and trade uncertainties, the survey indicates that entrepreneurs remain cautiously optimistic in the short term. Looking ahead over the next three months, the index is projected to rise to 56.3. The volume of work and incoming orders is expected to gradually increase in the next quarter, supported by marketing activities undertaken in the current period, the disbursement of previously delayed government funds, and the rollout of new digital products and services leveraging increased investment in artificial intelligence (AI). Despite ongoing economic challenges, expectations of government support measures following the election are anticipated to help sustain the industry’s momentum and usher it back toward a positive trajectory in the near term.
All details and results of the Q1/2026 Digital Industry Sentiment Index are available on www.depa.or.th/th/depakm/digital-indicators, LINE OA: depaThailand and depa Thailand Facebook page.
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