Thailand's industrial transformation to fuel next wave of M&A activity

PwC's Global M&A Trends in Industrials and Services: 2026 Mid-Year Outlook finds that global industrials and services M&A deal value is expected to continue growing, supported by fewer but larger transactions, even as overall deal volumes decline. Globally, deal value is projected to reach approximately USD496bn (around THB16.28tn)[1] in 2026, while deal volumes are expected to fall by around 7%.

Steve Yang, PwC Thailand's Automotive Leader, said Thailand is also experiencing lower deal volumes, but unlike larger markets, it does not have a pipeline of megadeals to offset the slowdown.

"Investors are becoming more selective and focusing on opportunities that can strengthen supply chains, improve competitiveness and create long-term strategic value," he said.

Despite a more cautious deal environment, strategic investors continue to pursue opportunities linked to AI, supply chain reconfiguration and the EV transition—three themes creating new avenues for investment across Thailand's industrial landscape.

AI and robotics create the next wave of industrial opportunity

While AI has yet to become a primary driver of M&A transactions in Thailand, it is already shaping investment decisions and industrial development, particularly through foreign direct investment (FDI) into advanced manufacturing and digital infrastructure.

Looking ahead, Steve believes Thailand can participate in the fast-growing ecosystem around physical AI, robotics and automation by supplying components and manufacturing capabilities to global technology leaders as part of the supply chain supporting the development of end-user humanoid robots.

"Physical AI and robotics present a long-term industrial opportunity. Thailand's advantage may not be in building humanoid robots themselves, but in becoming part of the supply chain that supports them. Automotive and advanced manufacturing companies already have many of the capabilities that could be adapted to serve this emerging market," he said.

However, talent remains a critical challenge. The availability of AI, data science and industrial automation skills will play a key role in determining how quickly Thailand can capitalise on this opportunity.

China+1 continues to drive investment interest

One of the strongest drivers of investment activity remains the China Plus One (China+1) strategy, as manufacturers diversify production and reduce exposure to geopolitical risk and supply chain disruption.

Thailand is increasingly viewed as an attractive destination for manufacturers seeking an established industrial base, strong regional connectivity and access to ASEAN markets. For investors that need speed, acquiring existing facilities or industrial assets can offer a faster route to market than building new operations from the ground up, Steve said.

"The China Plus One trend has evolved from a discussion point into a real investment strategy. Many companies are actively looking for production bases outside China to serve global markets. For investors that need speed, acquiring or repurposing existing facilities in Thailand can often be more attractive than developing greenfield projects from scratch," he said.

The trend is creating opportunities across industrial manufacturing, engineering and construction, automotive and business services. Industrial manufacturing—particularly EV components, electronics and speciality chemicals—continues to attract strong investor interest, supported by Thailand's Board of Investment (BOI) incentives and growing FDI. EV transition drives investment and consolidation opportunities

The global EV transition is also reshaping Thailand's investment landscape and creating opportunities across the automotive value chain.

Upstream opportunities are emerging in batteries, traction motors, electronics, and other components where Thailand is still building domestic capabilities. Chinese EV manufacturers and suppliers entering Thailand are increasingly seeking local partners to accelerate expansion and strengthen supply chains.

In manufacturing, acquisitions can help automotive companies establish production capacity quickly by reducing the time required to enter the market and start operations. Partnership could also help local manufacturers consolidate production capacity and improve overall efficiency.

"The EV transition is creating both disruption and opportunity. We are seeing growing demand for partnerships, manufacturing assets and local supply chain capabilities. Companies that can adapt quickly, position themselves within the evolving EV ecosystem and remain open to strategic partnerships will be better placed to capture future growth," Steve said.

"The opportunity is there, but the window may not remain open forever. Thai companies need to be open to new technologies, new partnerships and new ways of doing business. Those that move quickly and develop a more international outlook will be best positioned to benefit from the next wave of industrial investment and M&A activity," he concluded.

[1] The figure is based on an exchange rate of USD1 = THB32.82 as of 21 August 2026.

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