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Manufacturing Technology Insights | Tuesday, April 04, 2023
APAC is leading the growth of smart manufacturing, providing opportunities for manufacturers to increase productivity, improve efficiency, and gain a competitive edge.
FREMONT, CA: The smart manufacturing market is projected to reach dollar 228.3 billion by 2027. There are several factors contributing to this growth, such as the need for industrial automation, supply chain complexities, and the availability of advanced technologies that can optimise operational efficiency. The region is anticipated to have the largest market also share due in part to government initiatives promoting the digitisation of manufacturing. APAC manufacturers need to focus on implementing end-to-end supply chain planning solutions as only 20 per cent of them currently use them. There is a need for addressing employee resistance to change and acquiring the necessary skill set for managing smart manufacturing technology implementation. APAC manufacturers also need to overcome internal obstacles such as balancing quality and growth and tracking sustainable practices to progress towards industry 4.0 adoption. Moreover, the lack of a clear return on investment is a significant obstacle for smart manufacturing in the region and globally.
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APAC region is well positioned to take advantage of the diversification in the manufacturing supply chain, driven by geopolitical and economic trends. The stable and robust economy, access to a large workforce, policy reforms that have simplified the business environment, and predicted progress in trade regulations and infrastructure are reasons why the country is attracting attention for manufacturing and building a resilient supply chain.
The rise of digital powers globally can be attributed to their level of technological preparedness. This has resulted in a favourable business environment that is eliminating traditional obstacles which had previously impeded substantial investments in manufacturing. As a result, the potential for establishing a strong manufacturing sector is being enhanced by the business environment.
Emerging technologies such as blockchain, the internet of things (IoT), artificial intelligence (AI), and the rapid growth of the e-commerce market are all contributing to what it calls the manufacturing moment. Investors are increasingly looking for India as it is emerging as a viable option due to its favourable business environment and potential for growth. In the manufacturing industry across the APAC region, smart manufacturing has become a crucial factor in driving growth and competitiveness. Due to the increasing demand for personalised and high-quality products, manufacturers must adopt smart manufacturing technologies to stay competitive and satisfy evolving customer needs.
Smart manufacturing technologies have been widely adopted in the Asia Pacific region, with notable progress made due to government initiatives, increased investments by multinational companies, and a growing focus on digital transformation.
Despite the significant advances made in adopting smart manufacturing technologies in the Asia Pacific, there are still various challenges that need to be addressed to realise the full potential of this technology. These challenges include the shortage of skilled workers, insufficient infrastructure, and high costs of implementation. Therefore, it is crucial for policymakers, industry players, and other stakeholders to collaborate and address these challenges to promote the adoption of smart manufacturing throughout the region.
The adoption of smart technologies provides immense opportunities for manufacturers in the APAC region to enhance productivity, improve efficiency, and gain a competitive edge in the global market. The region is projected to continue leading the growth of smart manufacturing in the foreseeable future, and companies that embrace these technologies can expect to leverage these opportunities and achieve sustainable success in the long run.
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