Manufacturing is a crucial engine of ASEAN’s economic development, accounting for $670 billion, or 21%, of the region’s GDP in 2018 and is predicted to grow to $1.4 trillion by 2028. Furthermore, by 2028, ASEAN stands to gain between $250 billion and $275 billion in incremental value from gains in productivity and unlocking new revenue streams such as new products and quality improvements by embracing Fourth Industrial Revolution (4IR) technologies, resulting in a 35 to 40% increase in manufacturing value added (MVA).
The Fourth Industrial Revolution is defined by an intelligent and connected ecosystem of people and machines, powered by five new technologies deployed throughout the entire value chain to assist companies in generating strategic value.
Manufacturers in ASEAN have a huge chance to take action. Suppose the area aspires to become a worldwide hub for industrial innovation and higher-value operations. In that case, businesses must equip themselves with these technologies in order to increase their agility, speed, and scale.
The Internet of Things (IoT)
The Internet of Things (IoT) is highly valued by companies with a wide range of distributed and portable assets who want to improve asset connectivity, conduct remote analytics, and improve business intelligence. It is one of the fastest-growing technologies and is expected to reach maturity across the manufacturing value chain by 2030.
Artificial Intelligence (AI)
AI has many applications across industries and will enable new levels of automation, resulting in both economic and social implications. AI is likely to be one of the most impactful technologies, with a diverse range of solutions at various maturity levels, including machine learning, decision-making, and computer vision. AI has many applications across industries and will enable new levels of automation, resulting in both economic and social implications.
3D printing is challenging conventional manufacturing methods and democratizing product personalization. It is a fast-evolving technology with many government programs done internationally via research institutions and public-private partnerships. However, until its accessibility and affordability improve, 3D printing’s influence will be restricted to prototype and high-mix, low-volume items.
Advanced robotics, like AI, offers a wide variety of solutions at varying stages of development, such as soft co-bots, autonomous vehicles, and remote robots. Manufacturing and transportation are the two primary sectors that will be transformed, lowering their long-term need for labor and reversing the offshore trend.
Wearables are a constantly expanding and evolving technology that offers the maximum possible integration of man and machine. The variety of applications has continued to grow and diversify, resulting in considerable advances in production performance. These include raising safety awareness and preventing injuries, using augmented reality for hands-free training, and remotely monitoring at anytime.
ASEAN is already a major manufacturing base, and leveraging these technical improvements can help the industry grow significantly. Businesses must be aware of the shifting landscape and how it may affect their manufacturing facility operations.
Big data and the Internet of Things could help companies estimate demand and plan production better, resulting in improved customer service and bigger profit margins. On the cost side, manufacturing organizations may tighten inventory control and maximize production capacity by analysing precise, real-time data on everything from suppliers’ inventories and shipments in transit to downstream customer demand.
To compete in the digital world, manufacturers must take an experimental and iterative multifocal strategy that balances the need to tackle urgent issues with a long-term vision and transformation road plan. A new method of self-discovery that begins with a diagnostic of pain points, the creation of 4IR use cases, and collaborative sprint-based pilots will allow for the rapid and flexible development of confidence and momentum.
Learn more at the Manufacturing IT Summit
Event organized by Exito Media Concepts