Asia Pacific Smart Manufacturing Market Size, Share & COVID-19 Impact Analysis, By Component (Solution and Services), By Deployment (Cloud and On-Premises), By Enterprise Size (Large Enterprises and Small & Medium Enterprises), By Industry (Discrete Industry and Process Industry), and Regional Forecast, 2023-2030

Asia Pacific is the largest region in the global smart manufacturing market. It is projected to grow at a CAGR of 15.7% during the forecast period. The global market is projected to grow from USD 277.81 billion in 2022 to USD 754.1 billion by 2030.

Smart manufacturing, also known as the fourth industrial revolution or just Industry 4.0, has been gaining momentum in the Asia Pacific region in recent years. Several countries in the region are the frontrunners in adopting smart manufacturing. China, the largest manufacturing economy is investing heavily in this area as part of Made in China 2025 initiative. The region is well positioned to lead the way in smart manufacturing over the forecast owing to a strong manufacturing base advanced research and development capabilities and supportive government policies.

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Our report on the Asia Pacific market covers the following countries/regions – China, India, Japan, Southeast Asia, and the Rest of Asia Pacific.

LATEST TRENDS

Wider Adoption of AI is Transforming the Manufacturing Industry in Asia Pacific

Artificial Intelligence(AI) is becoming increasingly important in manufacturing in Asia Pacific as companies seek to improve efficiency and reduce costs through the adoption of smart technologies. Some of the key AI trends include predictive maintenance (where AI algorithms can analyze data from sensors and other sources to predict when machines are likely to fail), quality control (AI algorithms can analyze images and other data to detect defects in manufactured products), and autonomous systems (AI algorithms are being used to develop autonomous systems for manufacturing such as self-driving robots and autonomous robots).

These trends are likely to continue in the coming years as advances in AI as well as other technologies transform smart manufacturing in the region.

DRIVING FACTORS

Presence of Strong Manufacturing Base to Accelerate Market Growth

Asia Pacific has always had a strong manufacturing base owing to the presence of the largest manufacturing economies in the world such as China, Japan, South Korea, and India. This provides a solid foundation for the adoption of smart manufacturing technologies in the region.

In addition, strong government support, advancement of technology in the region, rising need for efficiency and productivity as well as growing demand for customization are some of the other major factors driving the market growth.

RESTRAINING FACTORS

Skill Gaps to Restrain the Smart Manufacturing Market Growth

The shortage of skilled labor is one of the key factors restraining the product adoption and the Asia Pacific market’s growth. There is growing demand for workers who can operate and maintain complex systems such as AI-enabled machinery, robots, and other smart manufacturing solutions technologies.

However, there is currently a shortage of skilled workers in many parts of Asia Pacific, which can limit the adoption of smart manufacturing processes to some extent.

KEY INDUSTRY PLAYERS

The competitive landscape of smart manufacturing in Asia Pacific is highly dynamic and constantly evolving. Many companies are operating in this space range from large multinational corporations to smaller regional players.

Many of the global players in this industry have a strong presence in Asia Pacific, including Fanuc, Mitsubishi Electric, and Siemens. While the global players have dominated the Asia Pacific smart manufacturing market share, there has been a growing competition from local players as well who focus on developing solutions that are tailored to the unique needs of the Asian market such as low-cost.

LIST OF KEY COMPANIES PROFILED:

• Mitsubishi Electric Corporation (Japan)
• Toshiba Corporation (Japan)
• Tata Consultancy Services (India)
• Larsen & Toubro (India)
• Foxconn Technology Group (Taiwan)
• Fanuc Corporation (Japanese)
• Inspur Group (China)
• Smart Factory (South Korea)
• Huawei Technologies (China)
• Keyence Corporation (Japan)

KEY INDUSTRY DEVELOPMENTS:

• February 2023: Taiwan Semiconductor Manufacturing Company (TSMC) announced its collaboration with Singapore’s Nanang Technological Group (NTU) to develop new smart manufacturing technologies. The partnership will focus on developing advanced analytics and artificial intelligence solutions.
• November 2022: Chinese tech giant Alibaba Group announced that it is partnering with Taiwanese semiconductor manufacturer MediaTek to develop a new smart manufacturing platform that will use AI, Big Data, and IoT to optimize production processes and improve quality control.
• March 2021: Siemens AG acquired C&S Electric Limited, an Indian manufacturer of electric and electronic equipment, to strengthen its smart manufacturing capabilities in India.

REPORT COVERAGE

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The market research report provides qualitative and quantitative insights on the market and a detailed analysis of the market size & growth rate for all possible segments in the market. Along with the market forecast, the research report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are overview of the number of procedures, an overview of price analysis of types of products, overview of the regulatory scenario by key countries, pipeline analysis, new product launches, key industry developments – mergers, acquisitions & partnerships and, the impact of COVID-19 on the market.

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