Decarbonization in Thailand Trends and Forecast
The future of the decarbonization market in Thailand looks promising with opportunities in the oil & gas, energy & utility, agriculture, government, automotive & transportation, aerospace & defense, and manufacturing markets. The global decarbonization market is expected to grow with a CAGR of 11.8% from 2025 to 2031. The decarbonization market in Thailand is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the increasing investment in decarbonization technologies to reduce costs associated with carbon emissions, the growing awareness of the effects of climate change, and the stricter emissions standards across the world.
• Lucintel forecasts that, within the services category, the sustainable transportation service segment will remain the largest segment over the forecast period.
• Within the end use category, oil & gas will remain the largest segment.
Emerging Trends in the Decarbonization Market in Thailand
Thailand is steadily progressing toward a low-carbon economy as part of its national strategy to reduce greenhouse gas emissions and align with global climate targets. The country has launched initiatives supporting clean energy, green mobility, and sustainable urban development. Technological innovation, supportive policy frameworks, and international cooperation are accelerating changes across sectors. As Thailand prepares for its long-term carbon neutrality roadmap, several emerging trends are defining the trajectory of its decarbonization market. These trends are not only transforming industries but also presenting significant opportunities for investment, innovation, and environmental stewardship.
• Scaling Up Renewable Energy Integration: Thailand is increasingly integrating renewable energy sources such as solar, wind, and biomass into its national grid. Government policies like the Alternative Energy Development Plan and power purchase agreements are encouraging private and public investments in clean power. Distributed solar systems and community-based renewable projects are becoming more widespread, reducing reliance on fossil fuels. This trend supports energy security, lowers electricity costs in the long run, and contributes directly to Thailand emissions reduction goals by shifting the power sector toward sustainable alternatives.
• Expansion of Electric Vehicle Infrastructure: Thailand is positioning itself as a hub for electric vehicle production and adoption in Southeast Asia. The government offers tax incentives, subsidies, and infrastructure plans to promote EV use and manufacturing. Major automotive companies are setting up EV production facilities while the public and private sectors expand the EV charging network. This transition helps lower transportation emissions and supports local industries in shifting toward future mobility. As consumer awareness grows, EV adoption is expected to accelerate, contributing to the decarbonization of urban transportation and improved air quality.
• Growth of Carbon Credit and Offset Programs: Thailand is developing its carbon credit and trading mechanisms to incentivize emissions reduction across sectors. Under initiatives by the Thailand Greenhouse Gas Management Organization, businesses can generate and trade carbon credits from verified environmental projects. This trend enables private companies to meet sustainability goals and create a financial incentive for reducing emissions. It also supports the emergence of green finance and sustainable business models. As more organizations engage in voluntary offsetting, carbon trading will become a key tool in Thailand climate policy toolkit.
• Rise of Energy Efficiency in Industry and Buildings: Industries and commercial buildings in Thailand are adopting energy-efficient practices and technologies to reduce operational costs and carbon footprints. Government support through energy audits, financing schemes, and labeling programs has driven improvements in lighting, cooling, and machinery systems. This trend contributes significantly to national energy savings and emission reduction targets. Efficient buildings also enhance occupant comfort and lower long-term energy bills. As climate regulations tighten, energy efficiency will become a standard practice, creating opportunities for technology providers and service companies.
• Investment in Green Hydrogen and Future Fuels: Thailand has begun exploring green hydrogen and other alternative fuels as part of its long-term energy diversification strategy. Pilot projects, research partnerships, and feasibility studies are underway, focusing on hydrogen production from renewable sources. These fuels are being considered for use in transportation, power generation, and heavy industry. Although in early stages, this trend reflects Thailand commitment to exploring advanced solutions for hard-to-decarbonize sectors. Over time, green hydrogen could play a pivotal role in achieving deep decarbonization and enhancing energy resilience.
These emerging trends are reshaping Thailand decarbonization market by encouraging clean energy transition, sustainable mobility, carbon finance, and energy innovation. They reflect a systemic shift across power, transport, industry, and buildings that will influence how businesses and governments address climate goals. With continued investment, supportive policies, and regional cooperation, Thailand is laying the groundwork for a resilient and low-carbon future. These trends not only drive emissions reduction but also position Thailand as a leader in sustainable development within Southeast Asia.
Recent Developments in the Decarbonization Market in Thailand
Thailand is actively advancing its decarbonization initiatives to meet its carbon neutrality goal by 2050 and net-zero emissions by 2065. The country is implementing a multifaceted approach that includes expanding renewable energy capacity, investing in carbon capture technologies, promoting green finance, and fostering international collaborations. These efforts are reshaping Thailand energy landscape, promoting economic diversification, and positioning the nation as a leader in sustainable development. The following key developments highlight Thailand progress in the decarbonization market.
• Expansion of Renewable Energy Projects: Thailand is significantly increasing its renewable energy capacity, aiming to reach 30% of total energy consumption from renewables by 2037. The country has launched new renewable energy incentives and opportunities in 2024, including direct Power Purchase Agreements (PPAs), to attract investors and developers. These initiatives align with the government goal of achieving carbon neutrality and net-zero emissions, while creating a more flexible and competitive energy market.
• Development of Carbon Capture and Storage (CCS) Technologies: Thailand is investing in carbon capture initiatives to reduce industrial emissions. The government has implemented policies and initiatives to promote Carbon Capture Utilization and Storage (CCUS) as part of its low-carbon agenda. These efforts aim to enable net-zero emissions by 2065, with the establishment of the Greenhouse Gas Reduction Steering Committee to oversee the development of CCUS technologies.
• Promotion of Green Finance Mechanisms: Thailand is advancing sustainable finance mechanisms to support climate-friendly projects. The Ministry of Finance has issued sustainability bonds to enhance social equity and economic resilience. These initiatives are part of the country commitment to achieving carbon neutrality by 2050 and net-zero emissions by 2065, aligning national direction with global climate goals.
• Implementation of Carbon Credit Trading Systems: Thailand carbon credit market is experiencing significant growth, with 101,894 tonnes of carbon dioxide equivalent traded in the first quarter of fiscal year 2025. The Thailand Greenhouse Gas Management Organisation (TGO) revealed that most of the carbon credits traded under the Thailand Voluntary Emission Reduction Programme (T-VER) were generated from carbon dioxide offset in the renewable energy sector.
• Strengthening International Collaborations: Thailand is enhancing global partnerships to advance clean energy technologies. The country is participating in the Joint Crediting Mechanism (JCM) initiative, led by Japan, which offers financial support for cutting-edge technologies. By participating in JCM projects, Thai companies can obtain financial support from the Japanese government, enhancing efforts towards implementing effective greenhouse gas mitigation and removal measures.
These developments underscore Thailand commitment to transforming its energy sector and achieving its decarbonization objectives. By expanding renewable energy projects, investing in carbon capture technologies, promoting green finance, implementing carbon credit systems, and fostering international collaborations, the country is making significant strides towards a sustainable and diversified economy. These initiatives not only contribute to global climate goals but also position Thailand as a leader in the transition to a low-carbon future.
Strategic Growth Opportunities for Decarbonization Market in Thailand
Thailand is actively pursuing strategic growth opportunities in the decarbonization market to meet its climate targets and transition to a sustainable economy. The government has set ambitious goals for renewable energy adoption, emissions reduction, and sustainable industry practices. These efforts are complemented by private sector investments in clean technologies and carbon reduction solutions. Below are five key growth opportunities across critical applications in Thailand’s decarbonization market, positioning the country for a cleaner, more energy-efficient future.
• Renewable Energy Expansion: Thailand is focusing on expanding its renewable energy capacity, especially solar and wind power. The government has set a goal to increase the share of renewables in its energy mix, with significant investments in solar farms and offshore wind projects. These efforts are aimed at reducing reliance on fossil fuels and increasing the contribution of renewable sources to the country’s energy needs. Thailand’s favorable geographic conditions make it an attractive market for solar and wind power investments, offering substantial growth opportunities for clean energy companies.
• Energy Storage Solutions: As Thailand transitions to a renewable energy-based grid, energy storage solutions are becoming increasingly critical. Technologies such as battery storage systems and pumped hydro storage are essential for managing the intermittent nature of renewable energy generation. This shift presents opportunities for companies involved in energy storage infrastructure, allowing them to support grid stability and increase the reliability of renewable energy supply. The government’s focus on integrating energy storage systems into the grid will drive market growth and facilitate Thailand’s decarbonization goals.
• Electric Vehicle (EV) Adoption and Infrastructure: The shift towards electric vehicles is gaining momentum in Thailand as the country seeks to reduce emissions from the transportation sector. The government is supporting EV adoption through incentives, subsidies, and investment in EV infrastructure such as charging stations. With a growing market for electric cars, motorcycles, and buses, there are significant opportunities for companies involved in EV manufacturing, charging infrastructure, and battery technology. This sector presents a long-term growth opportunity for decarbonizing transportation in Thailand and reducing fossil fuel consumption.
• Industrial Energy Efficiency: Thailand’s industrial sector is a major contributor to its carbon emissions, and improving energy efficiency in this sector presents a significant decarbonization opportunity. The government is encouraging industries to adopt energy-efficient technologies, including smart manufacturing solutions, advanced HVAC systems, and energy management systems. By improving energy efficiency in industrial processes, businesses can reduce energy consumption, lower operating costs, and meet emissions reduction targets. This market presents growth opportunities for companies offering energy-efficient technologies and services to Thailand’s industrial sector.
• Carbon Capture, Utilization, and Storage (CCUS): Thailand is exploring carbon capture, utilization, and storage (CCUS) technologies to reduce emissions from heavy industries such as cement, steel, and chemical production. These technologies capture CO2 emissions before they enter the atmosphere, storing or utilizing them for commercial purposes. The government’s interest in CCUS solutions presents opportunities for the development of large-scale carbon capture projects and the integration of these technologies in industrial operations. As CCUS technologies mature, they will become an essential part of Thailand’s decarbonization strategy.
The decarbonization market in Thailand is being shaped by strategic growth opportunities in renewable energy, energy storage, electric vehicles, industrial energy efficiency, and carbon capture technologies. These initiatives, backed by government support and private sector investments, are essential for the country’s transition to a low-carbon economy. As these applications continue to grow, Thailand’s decarbonization market will witness significant transformation, driving job creation, innovation, and long-term sustainability. These efforts are not only crucial for achieving national climate targets but also for fostering a green economy that benefits future generations.
Decarbonization Market in Thailand Driver and Challenges
The decarbonization market in Thailand is influenced by a range of technological, economic, and regulatory factors that shape its progress toward reducing carbon emissions. Technological advancements, economic incentives, and evolving regulatory frameworks are key drivers, while challenges such as limited infrastructure, financial constraints, and policy inconsistencies continue to pose barriers. The convergence of these drivers and challenges creates a dynamic environment where Thailand is actively pursuing sustainable solutions but must overcome obstacles to fully realize its decarbonization potential.
The factors responsible for driving the decarbonization market in Thailand include:
• Government Policy and Commitment to Green Growth: The Thai government has expressed a strong commitment to decarbonization through its Thailand 4.0 initiative and the National Energy Plan. These policies emphasize the transition to cleaner energy sources and offer incentives for the adoption of renewable energy technologies. The country is also setting ambitious carbon reduction targets as part of its Paris Agreement commitments. The government’s support creates a favorable environment for investments in renewable energy, energy efficiency, and sustainable infrastructure, driving the growth of the decarbonization market in Thailand.
• Renewable Energy Development: Thailand has abundant renewable energy resources, especially solar, wind, and biomass, which present significant opportunities for decarbonization. The government’s efforts to expand renewable energy capacity through feed-in tariffs, renewable energy auctions, and investment in grid infrastructure are accelerating the transition away from fossil fuels. As solar energy becomes more cost-competitive and the potential for wind and biomass energy grows, Thailand is on track to diversify its energy mix and reduce its reliance on coal and natural gas, thus driving further decarbonization.
• Technological Advancements and Innovation: The advancement of renewable energy technologies, energy storage solutions, and carbon capture, utilization, and storage (CCUS) has played a pivotal role in enabling decarbonization in Thailand. Solar and wind energy technologies are becoming more efficient and cost-effective, while innovations in energy storage are addressing the intermittency of renewable sources. Additionally, Thailand’s growing focus on electric vehicles (EVs) and the development of EV charging infrastructure support its decarbonization goals by reducing emissions from the transport sector. Technological innovation is enhancing Thailand’s ability to transition to a low-carbon economy.
• Private Sector Investment: Private sector investments in green technologies, renewable energy, and energy efficiency are playing a crucial role in driving Thailand’s decarbonization efforts. International corporations and local businesses are increasingly committing to sustainability goals, creating partnerships with the government to develop low-carbon technologies. The involvement of private investors not only provides financial resources but also fosters innovation and expertise, accelerating the adoption of clean energy solutions. As more companies align with global environmental standards, the private sector is driving Thailand’s move toward a decarbonized economy.
• Regional Cooperation and International Support: Thailand benefits from regional cooperation and international support in its decarbonization journey. The country is part of initiatives like the ASEAN Economic Community, which promotes the development of regional renewable energy markets and facilitates the exchange of knowledge and technologies. Furthermore, Thailand is receiving financial and technical support from international organizations and climate finance institutions, enabling the country to implement green technologies and capacity-building initiatives. Such collaborations enhance Thailand’s ability to meet its decarbonization objectives and participate in global efforts to combat climate change.
Challenges in the decarbonization market in Thailand are:
• Infrastructure Limitations: Despite progress in renewable energy development, Thailand faces significant challenges related to its infrastructure. The energy grid infrastructure is not fully optimized to accommodate the increasing share of renewable energy sources, especially solar and wind, which are intermittent. This limitation affects the efficiency of energy distribution and increases reliance on fossil fuel-powered backup plants. Additionally, there is insufficient EV charging infrastructure to support the growing adoption of electric vehicles, which hinders progress in decarbonizing the transport sector. To overcome this challenge, Thailand needs substantial investments in modernizing its energy grid and building supportive infrastructure.
• Financial Constraints: Although Thailand is making strides in its decarbonization efforts, the country faces financial constraints that limit the scale of its green projects. The capital required for large-scale renewable energy projects, infrastructure upgrades, and technology adoption can be a barrier for both the government and private sector. While international climate finance can provide some assistance, the demand for funding often exceeds available resources. To address this challenge, Thailand must create attractive financing mechanisms and public-private partnerships that can unlock the capital needed for a comprehensive transition to a low-carbon economy.
• Regulatory and Policy Uncertainty: Regulatory and policy uncertainty remains a key challenge for Thailand’s decarbonization market. Although the government has committed to green growth, policy shifts, inconsistent regulations, and delays in the implementation of environmental standards create an unpredictable environment for investors and businesses. The lack of clear long-term policies on renewable energy, carbon pricing, and sustainability standards makes it difficult to plan and invest in decarbonization initiatives. To foster investor confidence, Thailand needs to establish stable, transparent policies and a long-term decarbonization roadmap that aligns with its climate goals.
The decarbonization market in Thailand is driven by government policies, renewable energy potential, technological advancements, private sector investment, and regional cooperation. However, challenges such as infrastructure limitations, financial constraints, and regulatory uncertainty hinder the country’s progress. By addressing these barriers and capitalizing on its strengths, Thailand can accelerate its transition to a low-carbon economy and play a significant role in global decarbonization efforts. The impact of these drivers and challenges will determine the pace and success of Thailand’s decarbonization journey.
List of Decarbonization Market in Thailand Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, decarbonization companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the decarbonization companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Decarbonization Market in Thailand by Segment
The study includes a forecast for the decarbonization market in Thailand by services, technology, deployment, and end use.
Decarbonization Market in Thailand by Services [Analysis by Value from 2019 to 2031]:
• Carbon Accounting & Reporting Services
• Sustainable Transportation Services
• Waste Reduction & Circular Economy Services
Decarbonization Market in Thailand by Technology [Analysis by Value from 2019 to 2031]:
• Renewable Energy Technologies
• Energy Efficiency Solutions
• Electric Vehicles
• Carbon Removal Technologies
• Carbon Capture and Storage
Decarbonization Market in Thailand by Deployment [Analysis by Value from 2019 to 2031]:
• On-premises
• Cloud
Decarbonization Market in Thailand by End Use [Analysis by Value from 2019 to 2031]:
• Oil & Gas
• Energy & Utility
• Agriculture
• Government
• Automotive & Transportation
• Aerospace & Defense
• Manufacturing
• Others
Features of the Decarbonization Market in Thailand
Market Size Estimates: Decarbonization in Thailand market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Decarbonization in Thailand market size by services, technology, deployment, and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different services, technology, deployment, and end use for the decarbonization in Thailand.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the decarbonization in Thailand.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the decarbonization marketin Thailand?
Answer: The major drivers for this market are increasing investment in decarbonization technologies to reduce costs associated with carbon emissions, growing awareness of the effects of climate change, and stricter emissions standards across the world.
Q2. What are the major segments for decarbonization market in Thailand?
Answer: The future of the decarbonization market in Thailand looks promising with opportunities in the oil & gas, energy & utility, agriculture, government, automotive & transportation, aerospace & defense, and manufacturing markets.
Q3. Which decarbonization market segment in Thailand will be the largest in future?
Answer: Lucintel forecasts that sustainable transportation service segment will remain the largest segment over the forecast period.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the decarbonization market in Thailand by services (carbon accounting & reporting services, sustainable transportation services, and waste reduction & circular economy services), technology (renewable energy technologies, energy efficiency solutions, electric vehicles, carbon removal technologies, and carbon capture and storage), deployment (on-premises and cloud), and end use (oil & gas, energy & utility, agriculture, government, automotive & transportation, aerospace & defense, manufacturing, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?