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.
1. 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.
2. 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.
3. 3D printing
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.
4. Robotics
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.
4. Wearables
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.
Conclusion
The Fourth Industrial Revolution offers significant potential for ASEAN’s manufacturing sector. By adopting technologies like IoT, AI, 3D printing, robotics, and wearables, companies can enhance connectivity, automate processes, and drive innovation. This promises substantial economic growth and productivity gains. However, realizing these benefits requires ongoing investment in research, development, and infrastructure. By embracing these advancements, ASEAN’s manufacturing industry can become a global leader in innovation, driving sustainable economic growth and prosperity.
