Malaysia | Philippines

Great potential in the APAC IoT Manufacturing market

With Industry 4.0. becoming a widely known term, conversions about IoT in manufacturing are taking place in more and more companies.

Developments in IoT manufacturing

The manufacturing segment of the IoT market is forecasted to increase to USD 13.49 Billion globally by 2020 with a compound annual growth rate of 26.9%. The expectations for IoT in manufacturing are mainly centered around the IoT’s impact on lowering operational costs of companies. Other reasons for IoT investments include advantages in retaining customers, attracting new customers, improving service and support.

Current IoT investments that are unique to the manufacturing environment are taking place in three major initiatives:

  • Smart manufacturing to increase production output, product quality, or operations and workforce safety as well as lower resource consumption
  • Connected products to impact product performance, including collecting detailed information on products in the field, remote diagnostics and remote maintenance
  • Connected supply chains to increase visibility and coordination in the supply chain, tracking assets or inventory for more efficient supply chain execution

IoT in Southeast Asia

In the APAC countries the IoT adoption is in the early stages of growth, but this adoption is forecasted to mature rapidly between 2014 and 2020. The total spending on IoT in APAC countries is forecasted to grow from more than USD 10 Billion in 2014 up to USD 79 Billion in 2020. Not only will the amount of money spend on IoT solutions change, but also its distribution. Within the next years Singapore’s market share of IoT expenditure is supposed to shrink by half until 2020, while Thailand, Philippines, Malaysia and especially Indonesia’s market share will increase.

IoT manufacturing in Southeast Asia

When looking at IoT spending in APAC countries, manufacturing is and will be the dominant Industrial sector with 30% of total spending. According to the Frost & Sullivan IoT report, the investment in IoT solutions for manufacturing in the Philippines, Thailand, Indonesia and Malaysia is and will be as follows:

As we worked with local telcos & government agencies to invite enterprises to attend our current Asia IoT Business Platform edition, we found the interest from the local manufacturing firms to be overwhelming. Manufacturing & Industrial Automation will be a big theme in 2016, especially in Thailand and Indonesia. Macroeconomic conditions (weaker local currencies, young workforces etc.) have also made these locales more attractive to international companies looking to set up manufacturing facilities – and technology, when used properly, can overcome (some) productivity inefficiencies usually associated with emerging countries.

For more information on how you can participate in the IoT development in Southeast Asia please contact us directly here

Sue Yuin Ho

Dec 16, 2015

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