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THAILAND’SAUTOMATION &ROBOTICSTHE RISE OF AUTOMATION ANDROBOTICS INDUSTRIESThailand Board of Investmentwww.boi.go.th
THE RISE OFAUTOMATION ANDROBOTICS INDUSTRIESOver the past decade, the industrial automation and robotics industries haveradically transformed global productivity. The capabilities of automation systemswill significantly reduce investment costs and change the landscape of modernproduction. The rise in the global shipment of industrial robots clearly reflects theincreasingly widespread use of the technology. The growth of the industry’s globalmarket is expected to continue its upward trend at a promising rate, potentiallyreaching 630,000 units worldwide by 2020.LARGE MARKET FORINDUSTRIAL ROBOTSAs the technology becomes more intelligent, manageable and diverse, automationand robotics will play a bigger role in generating and creating value. In addition,concerns over the reliability, profitability and safety of automation have declined,helping to boost the growth of the industries.When it comes to the trend of using automation and robotics, Thailand is noexception. The country is already a significant market for industrial robots. In2017,Thailand was the 3rd largest market in ASEAN and, by 2018, it was estimatedto have become the 2nd largest. Recognizing the importance of automation androbotics, the Thai government has implemented various measures to promotethe growth of these key industries. The use of industrial robots in the country istherefore expected to continue growing.Estimated Worldwide Annual Supply ofIndustrial Robots1Forecast of Thailand’sIndustrial Robots Shipment1Unit: Thousand 36303,0002,0001,0002017Note:* Forecast DataSource: 1 International Federation of Robotics as of 20182018* 2019* 2020*2021*02,64620163,38620174,0002018*Note:* Forecast DataSource: 1 International Federation of Robotics as of 20185,0002019*6,0002020*7,0002021*
UNTAPPED OPPORTUNITY GROWTHDespite the already significant size of Thailand’s robotics and automation systemsmarkets, there is still room for major growth in this area. Research by SCBEconomic Intelligence Center suggests that, in 2017, Thai companies still employedapproximately 2 million workers to perform repetitive or labor-intensive tasks inautomotive electronic parts production and food and beverage industries. Thisrepresents huge untapped opportunities for enterprises aiming to supply roboticsand automation systems to businesses in Thailand.Thailand’s Expectations Over The Next 5 Years1Share of ManufacturersAdopting AutomationInvestmentsNumber of SystemIntegrator BusinessesAnnual Industrial RobotImport ReductionSource:12018202230%12Billion Baht50%20020014,00013230%Billion Baht150PrototypesDevelopedBillion BahtOpenGov Royal Thai Embassy of Washington D.C.25,000People TrainedTHE NEED FOR AUTOMATION INOTHER INDUSTRIESSince 2010, the global automotive and electronics and electrical applianceindustries have been the main customers for industrial robots (IR). This is alsothe case for Thailand with the country specializing in these two industries andranked as one of the world’s leading exporters. With these industries having ledthe way over the last three decades, it is reasonable to expect that they willcontinue to be the drivers of IR growth in Thailand.Another industry which is a significant customer of IR is food and beverage.Thailand, as a net exporter of food and beverage, is home to many well-knowninternational and local companies producing a wide array of products.Top Industry AdoptingIndustrial Robots1Thailand’s AutomotiveIndustry 2017Thailand’s Electronics andElectrical Appliance 20174AutomotiveIndustry1st2nd35%Electronics and ElectricalAppliance Industry31%Source:Automotive Producer inASEAN2Largest Air ConditionerProducer in The World15%Contribution toTotal Exports3International Federation of Robotics as of 2017,Organisation Internationale des Constructeurs d’Automobiles,3Bank of Thailand,4International Trade Centre122ndLargest WashingMachine Producerin The World
SUPPLY CHAIN OF THAI AUTOMATIONAND ROBOTICS INDUSTRIESThailand has established a strong supply chain in the automation and roboticsindustries. A majority of firms in the industries are in the business of SystemIntegration (SI) and mechanical brain & software development. This representsmassive opportunities for foreign companies to investment in parts & componentsmanufacturing.Supply Chain1Capabilities of Thai Automation andRobotics Industries2Focus on producing mechanic parts, such asgears, joints, and springs that can also be usedin other industries' processes and importinghighly complicated parts such as sensors fromabroad.Parts &ComponentsManufacturersHave a strong ability to develop programs orsoftware, but only for in-house use or specificorder requests, not for mass production.SoftwareDeveloper/SuppliersExample of Players3SUPPORTING FACTORS:CHANGE IN DEMOGRAPHYAs is the case with manycountries, Thailand is shiftingtowards an aging society.It can therefore be expectedthat there will be a decreasein the size of its workforce.This will create a need forenterprises to adopt robotand automation technologyto compensate for themissing workforce. By 2030,it is forecast that 15% ofThai manufacturing workerswill be replaced by robots.Share of Thailand’sWorking Age ve a strong potential for service robots evenat the starting point for industrial and medicalrobotics development.Original RobotDesignersWorld2Thailand38MillionJobs Replaced byRobotMost players are multinational companies.SystemIntegrators20%650,000by 2030Global WorkforceAffected byRobotSource:National Science and Technology Development Agency,Thai Automation and Robotics Association1, 23Source:United Nations,McKinsey Global Institute,3SCB Economic Intelligence Center122030Manufacturing WorkersReplaced by Robots15%Manufacturing LaborsReplaced byRobots2040
SUPPORTING FACTORS:AUTOMATION AND ROBOTICS PROGRAMSTo support automation and robotics growth in Thailand, many institutions haveprovided support for research and development and human resource training.Some universities also offer specific programs which mainly focus on roboticsand automation engineering.Example of Automation and Robotics ProgramsSUPPORTING FACTORS:AVAILABILITY OF SKILLED HUMAN RESOURCESThailand has a large supply of highly-skilled labor. On average, over 20% of allgraduates each year study in automation and robotics related fields. In 2017,there were 346,100 new graduates from 148 surveyed universities and vocationalschools. In that year, Thailand had 74,429 graduates in automation and roboticsrelated fields, including 40,477 engineering students and 33,952 students insciences, math and computing fields. The quality of Thailand’s students andgraduates is internationally competitive. This is reflected in Thailand’s achievementsin robot competitions and related events at the international and global levels.Recent Thai AchievementsYearWinner of Open Category (Elementary), World Robotic Olympiad12016Host of Thailand Robotic Week and RoboCup Asia-Pacific220171st Runner Up for World RoboCup Rescue (Robot) Competitionin Japan32017Winner of Advanced Robotic Challenge, World Robot Olympiad420172nd Runner Up for ABU Asia-Pacific Robot Contest in Japan52017Host of World Robotic Olympiad Competition62018Won 10 prizes at Robot Challenge in China72018Won 6 prizes at International Robotic Olympiad in Hong Kong82018Source:World Robot Olympiad Association,RoboCup Federation,5ABU Robocon 2017,7RobotChallenge Community,8Hong Kong Robotic Olympic Association1, 4, 62, 3King Mongkut’s Universityof Technology North Bangkok(KMUTNB) Bachelor of Engineering inRobotic Engineering andAutomation SystemChulalongkorn University Bachelor of Engineering inRobotics and ArtificialIntelligence EngineeringKing Mongkut’s Universityof Technology Thonburi(KMUTT) Bachelor of Engineering inAutomation Engineering Bachelor of Engineering inMechatronics EngineeringKasetsart University Bachelor of Engineering inElectrical-MechanicalManufacturing EngineeringKing Mongkut’s Institute ofTechnology Ladkrabang(KMITL) Bachelor of Engineering inAutomation Engineering Bachelor of Engineering inRobotics and ArtificialIntelligence EngineeringAssumption University Bachelor of Engineering inMechatronics Engineering
SUPPORTING FACTORS:SUPPORTING FACTORS:Many Thai academic institutions have been actively devoting time and resourcesto research on automation and robotics.The Centre of Robotics Excellence (CoRE), established under the initiative of theMinistry of Industry, is a network of leading organizations related to the developmentof robotics in Thailand. Through collaboration among networking agencies, CoREaims to enhance the use and the supply of robotics and automation systems bypromoting technology transfer from academia to the industrial sector, developinghuman resources, and developing prototypes of industrial robots, among otherinitiatives.RESEARCH CENTERS FOR AUTOMATIONRCRTWorking under the Department of Mechanical Engineering in the Faculty ofEngineering at Chulalongkorn University, the Regional Center of Robotics Technology(RCRT) is one of the leading robotics technology and manufacturing researchcenters in Thailand. The center’s topics of research mainly cover the control ofmechanical systems. In most cases, the results have been transferred and utilizedby real-world industries as well as experts in other related fields.DOMESTIC AND INTERNATIONAL NETWORKTo enhance its capacity, CoRE also plans to sign Memorandum of Understanding(MoU) with research centers in foreign countries such as Germany, Japan, Taiwan,and the USA for the purpose of advanced technology transfers.Domestic NetworkIndustrialPrototypeInternational NetworkGermany: KIT (wbk)Technische IBOThe Institute of Field Robotics (FIBO) was established in 1995 as a center ofexcellence in robotics and technology management. FIBO offers undergraduateand graduate programs in robotic and automation engineering. It also features anumber of research laboratories – the Bio-Inspired and Educational and RoboticsLab (BEaR Lab), the Micro Robotics Lab, and the Unmanned-Vehicles andAutonomous Robots for Exploration Laboratory (UVAX), to name a few.Japan: e: Ministry of IndustryKnowledgeTransferTaiwan: IndustrialTechnology ResearchInstitute of TaiwanUSA: MassachusettsInstitute of Technology
SUPPORTING FACTORS:SUPPORTING FACTORS:There are many institutions and organizations which support technologicaldevelopment and facilitate entrepreneurs in the fields related to automation androbotics.Comprised of members of the Thai business community whose specialization isin automation and robotics systems working together to help transform thecountry, the Thai Automation and Robotics Association (TARA) has been establishedsince 2018. Its establishment is in line with the government’s Thailand 4.0 plan- an economic model based on science, technology, and innovation.ASSOCIATIONS AND INSTITUTIONSPublic AgenciesNational Science and Technology Development AgencySupports R&D on five target areas, including, agriculture & food,health & medicine, energy & environment, bioresources & communityand manufacturing & service IndustriesNational Metal and Materials Technology CenterCreates and enhances capabilities in materials technology throughR&D, technology transfer, HRD and infrastructure developmentElectrical and Electronic Products Testing CenterSupports R&D and product testing of electrical and electronicproductsTHAI AUTOMATION AND ROBOTICS ASSOCIATION (TARA)TARA works extensively with Thailand Board of Investment (BOI) and the Centerof Robotics Excellence (CoRE) to help enterprises invest in automation androbotics systems. In addition, TARA performs other duties such as: Providing a list of registered Thai System Integrators (SI); Offering training and providing technical knowledge to Thai SI; and Fostering design and integration for factory automationTo date, TARA has approximately 100 members covering six areas of technicalcapability. Logistics and healthcare are two sectors in which demand for automationand robotics are set to increase, partly due to labor shortage and Thailand’sdirection towards an aging society.National Innovation AgencySupports R&D of innovative products and embed innovativestrategic direction of firmsTARA’s Technical Capability1Research InstituteThai-German InstituteAssists transformation of Thai manufacturing technology andautomation system to meet with International standardsSoftwareSCADA VisionAGV, RGV,UV and DroneAssociationsThai Robotics SocietySupports research and networking within robotics community andprovide public information related to robotsThai Embedded Systems AssociationDeveloper’s network for electronic design industry for developers,by developersAutomation &Robotic SystemsMachineryComponentsSensorsWarehouse AutomatedStorage and RetrievalSystem (ASRS)Thai Machinery AssociationFacilitates Thai machinery market, and support research anddevelopment of Thai manufacturing systemRobotsSource:1SystemIntegrationThai Automation and Robotics Association
SUCCESS STORY:CT ASIA ROBOTICS AND DINSOWEstablished in 2009, CT Asia Robotics Co., Ltd. is a Thai company with a visionto help in areas where there is a shortage of human resources, such as healthcareservices. Since it was founded, the company has been highly successful indeveloping and commercializing a series of robots, with “Dinsow” being consideredthe most well-known of these at the international level.Timeline of CT Asia Robotics’ RobotsEXAMPLE OF THAI ROBOTSA great number of companies and institutions in Thailand have already produceda wide variety of robots, some of which have won international awards whileothers are now in service performing various tasks.2009MK RobotThe RestaurantService Robot2012Dinsow IIThe Elderly CareRobot2010Dinsow IThe First Robot ofASEANZEABUS AUV:An autonomousunderwater vehicle (AUV)developed by KasetsartUniveristy, ZEABUS AUV hasparticipated in the RoboSubCompetition since 2014.Ohm:A receptionistrobot, Ohm wasdeveloped from anearlier-generation robotcalled “Namo” and iscapable of recordingand projecting memoriesthrough a built-in videocamera and projector.BART LABSurgical Robot:Developed by BART LAB,Faculty of Engineering,Mahidol University, thissurgical robot systemsis used to assistsurgeons and enhanceperformance.20142013YimchangBrand Ambassador ofMuang Thai InsuranceDinsow MiniThe Elderly CareRobotPresentDinsow IIIThe Elderly CareRobotThe first robot in the Dinsow series,Dinsow I, was originally built to be usedfor advertising purposes at events. TheDinsow robots have since gone throughfurther development, with more recentmodels being used for elderly care services.Having first exported Dinsow to Japan in 2014, CT AsiaRobotics’ flagship product has achieved considerable success in theJapanese market, which is itself renowned for its own robotics technology.Apart from Japan, CT Asia Robotics also exports its robots to Sweden and hasbeen engaged in negotiations over exports to Germany and Singapore. Currently,the company records sales of over 70 million baht annually.Fhasai:Providing robotassisted therapy forchildren with autismspectrum disorders, Fhasaiwas the winner of themedical robotics ideacontest, Med Bot 2014,developed by MahidolUniversity.
BOI INCENTIVES:BOI INCENTIVES:BASIC INCENTIVESThe BOI recognizes the importance of automation and robotics and offers a widerange of tax and non-tax incentives for eligible activities that meet nationaldevelopment objectives.Tax IncentivesCorporateIncome TaxExemptionGroupEligible ActivitiesA1 Automation machinery and/or automationequipment with engineering design,including automation system integrationand control system configuration Embedded software High value-added software-- Develop and provide analysis anddata management software services,including big data, data analyticsand predictive analytics software-- Develop system software foradvanced-technology devices,including business processmanagement Research and development Engineering design Scientific laboratories Calibration services8 years(no cap)A2 Automation machinery and/or automationequipment with engineering design,including control system configuration8 yearsA3 Assembling of Robots or AutomationEquipment and/or Automation Parts Machinery, equipment and parts and/or repair of mould and die5 yearsExemptionof ImportDuty*INCENTIVE UNDER THE MEASURES FOR IMPROVEMENTOF PRODUCTION EFFICIENCYTo stimulate the use of automation and robotics systems, the BOI has also offeredincentives under the Measures for Improvement of Production Efficiency forenterprises which upgrade their technology and machinery for manufacturing.In order to be considered for incentives, applicants must submit an investmentplan for the development of the automation system being either partially or fullyintegrated into the production process. Eligible projects may be either BOI ornon-BOI promoted projects.Incentives*1Exemption ofImport Duty onMachinery2Corporate Income TaxExemption 3-year CIT exemption on the revenue of anexisting project, with a CIT exemption cap notexceeding 50 percent of the investment capital**. In case of investments in automation systems, theCIT exemption cap will be raised to 100 percentof the investment capital**, on the meetingof certain conditions regarding thelinkage to the automation industry.Non-tax Incentives 100% foreign ownership Permit to own land Permit to bring in skilled workers and experts to work into the KingdomNote: * Exemption of import duty on machinery and raw materials used in production ofexport products.Note: * CIT exemption period shall start from the date of revenue derivation after promotioncertificate issuance.** Excluding cost of land and working capital.
BOI INCENTIVES:INCENTIVES FOR INVESTMENT IN THE EASTERNECONOMIC CORRIDOR (EEC)BangkokDonmuangAirportNew CityThe BOI also recognizes the importance of investment in relevant activities intargeted locations. It has therefore been providing additional incentives forinvestment in the EEC. Promoted zones for specific industries related to automationand robotics include the Eastern Economic Corridor of Innovation (EECi) andDigital Park Thailand (EECd). Eligible activities located in these zones may receiveadditional incentives, on top of the basic incentives provided by the BOI.Samutprakarn4High Speed TrainDouble Track RailwayMotorwayTax IncentivesEECiEligible Activities Automationmachinery and/orautomationequipment withengineering design Embeddedsoftware High value-addedsoftware Assembling ofrobots orautomationequipment and/orautomation parts Machinery,equipment andparts and/or repairof mould and dieEECdAdditionalIncentives4 years ofCITexemptionEligible Activities Embeddedsoftware High value-addedsoftware Research anddevelopment Engineering design Scientificlaboratories Calibration ities including automation machinery and/or automation equipment withengineering design; machinery, equipment and parts and/or repair of mould anddie; and assembling of robots or automation equipment and/or automation partslocated in promoted zones for targeted industries are eligible for a 5-year 50%CIT reduction, in addition to the BOI standard incentives.New CityEECiPromoted Zones forTargeted Industries4 years ofCITexemption2 years ofCITexemptionand a5-year50% CITreductionChachoengsaoSuvarnabhumiAirport721Laem ChabangPort6935Rayong10New CityU-tapaoAIrportMab Ta PhutPortSattahipPortPromoted Zones for Targeted Industries1.Pinthong Industrial Estate (PIP4)(Chonburi)6.WHA Eastern Seaboard IndustrialEstate 1 (Rayong)2.Pinthong Industrial Estate (PIP5)(Chonburi)7.WHA Eastern Seaboard IndustrialEstate 2 (Chonburi)3.Amata City Chonburi IndustrialEstate (Chonburi)8.WHA Eastern Seaboard IndustrialEstate 3 (Chonburi)4.Amata City Chonburi IndustrialEstate (Project 2) (Chonburi)9.WHA Eastern Seaboard IndustrialEstate 4 (Rayong)5.WHA 36 Industrial Estate (Rayong)10. Smart Park Industrial Estate (Rayong)The abovementioned activities, if located in promoted industrial estates or zonesin the EEC provinces, may also be granted a 3-year CIT reduction in addition tothe basic package.Applications for incentives under the EEC scheme must be submitted by 30December 2019. In addition, investment projects under the scheme must establisha collaboration with education or research institutions in forms such as Co-operativeEducation (CoE), Dual Vocational Training (DVT), Work Integrated Learning (WiL),or a similar cooperation, under the minimum condition that the number of studentsparticipating in the collaborative program is at least 5% of the project employeesor 25 people, whichever is lower.
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in automation and robotics systems working together to help transform the country, the Thai Automation and Robotics Association (TARA) has been established since 2018. Its establishment is in line with the government’s Thailand 4.0 plan - an eco
