Technavio, a global market research company, projected the value of the mold & die market in Thailand to grow by USD 562.6 million at a Compound Annual Growth Rate (CAGR) of 9.45% between 2023 and 2028. This figure is driven by the rapid expansion of the manufacturing sector which makes Thailand an attractive hub for manufacturers in key industries such as automotive and electronics.
Factors Driving the Thai Mold & Die Industry
· Manufacturing Expansion
Thailand is a major manufacturing hub for global car companies such as Toyota, Honda, and Ford. Thus, it has a high demand for high-precision molds & dies for component production. This demand also applies to the fast-growing electronics industry with manufacturing plants in Thailand such as Samsung and LG.
· Government Support
The Thai government has played a major role in promoting the mold & die industry through tax incentives and funding for research and development, leading to continuous expansion of mold & die production in Thailand through the use of advanced technology and skilled labor.
Key Trends of the Mold & Die Industry
• The mold & die industry has started using high-performance materials such as advanced alloys and nickel-based superalloys with excellent heat and wear resistance for turbine blades and engine parts in the aerospace industry, which has helped drive the market growth.
• The adoption of cutting-edge and diverse technological innovations has been on the rise. This includes technologies such as 3D printing to create rapid prototypes, high-speed cutting techniques to increase production efficiency, and the use of advanced materials such as carbon, chromium, high-speed steel, and cemented carbide to increase durability.
Major Market Segment
In 2018, casting was the largest segment of molds & dies in Thailand with a value of USD 342.80 million. Complex automotive metal parts and components such as engine blocks, cylinder heads, transmission housings, and various chassis parts are produced using casting dies and molds. Since Thailand is the hub of automotive manufacturing that serves both domestic and international markets, there is a demand for highly accurate and internationally standardized casting molds and dies, so this is expected to propel the growth of Thailand’s mold & die industry during the forecast period (2023-2028).
Key Challenges of the Mold Industry
• Cost
The high cost of raw materials, especially premium steel alloys (e.g. H13 and P20), is a major challenge for manufacturers aiming to maintain quality while controlling costs. This can influence price competition that hinders business growth.
• Regional Competition
Each major production base in Asia, namely Thailand, China, and Vietnam, has its own advantages and disadvantages ranging from labor costs, infrastructure, to industry expertise, all of which can be decisive factors impacting foreign direct investment.
Future Direction of Mold & Die Industry in Thailand
The Thai mold & die industry is expected to continue to grow with support from the government, technological innovations, and increasing demand from various industries, especially the automotive and electronics industries, with the casting mold & die segment being a significant market driver. However, the ability to manage costs and maintain a balance between quality and value will always be crucial to sustaining this growth.
Sources:
Dies And Molds Market in Thailand Growth Analysis - Size and Forecast 2024 - 2028
China vs Thailand vs Vietnam: The Ultimate Manufacturing Comparison