Thailand's digital industry reached 270.9 billion baht in 2568 (2025), growing 16% year-on-year. Cloud-based software surged 26% to capture 43% of the software product market, displacing on-premise solutions. Managed services now outpaced custom development for the first time, reflecting client demand for continuous operations. Hardware exports boomed 38% (135% in USD terms) driven by global AI and data center investments, but domestic IT sales contracted—widening the gap between export-oriented and local-market businesses. AI tools reshape developer roles toward architecture and business understanding rather than coding. Talent and skills gaps remain a critical challenge as the industry transforms structurally.