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PR Newswire
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ABI Research: 'China Plus One' Strategy Drives a US$300 Billion Smart Manufacturing Digital Spend in Southeast Asia by 2028

NEW YORK, July 23, 2024 /PRNewswire/ -- The Southeast Asian (SEA) region is becoming a prime hub for manufacturing, driven by the "China Plus One" strategy, where companies diversify production beyond China. Global technology firm ABI Research forecasts digital spending in SEA, covering Industry 4.0 technologies like robotics, automation, digitalization, data analytics, connectivity, and worker enablement, to surge from US$75 billion in 2023 to over US$300 billion by 2028, growing at a 32% CAGR. This presents substantial growth prospects for smart manufacturing solutions in SEA.

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Stronger investments in the region by large Western players, such as Apple, Microsoft, and Intel, demonstrate the region's attractiveness in supporting their manufacturing activities. "Recent visits by Apple Chief Executive Officer (CEO) Tim Cook and Nvidia CEO Jensen Huang to SEA are some examples that highlight the increasing importance that this region plays towards supporting the manufacturing activities of these global players," says Matthias Foo, Senior Analyst at ABI Research. "Beyond that, Chinese automotive manufacturers, such as Hozon New Energy Automobile, GAC Aion, and BYD, are also considering expanding their manufacturing capabilities in the SEA region."

In addition to the influx of sizeable global manufacturing entities into the region, the region is also witnessing the increasing adoption of digital technologies by large domestic players across various industry verticals, including but not limited to Siam Cement Group, Republic Cement, KCE Electronics, Vinamilk, Hoa Phat Group, SteelAsia, PTT Global Chemical, and Smart Asia Chemical Bhd. Some of the commonly implemented solutions include the use of manufacturing process software, such as Product Lifecycle Management (PLM) and Manufacturing Execution Systems (MES), and hardware solutions, such as robots, Automated Guided Vehicles (AGVs), and Internet-of-Things (IoT) sensors.

However, supporting the digital transformation of manufacturing activities within the region is challenging. Some SEA countries may lack the necessary talent or energy infrastructure to support the rapidly increasing number of manufacturers and the implementation of advanced digital solutions. Additionally, with wages being traditionally lower in this region than in more developed regions, manufacturers will likely feel more disincentivized to implement digital solutions, which may require high upfront capital expenditure (CAPEX). "Manufacturers in SEA, especially domestic firms, are not expected to transform their operations overnight completely digitally. For firms that are just beginning on their digital journey, ensuring that the right data collection and storage strategies are put in place will be a critical starting point for many enterprises," concludes Jake Saunders, Vice President of Asia Pacific and Research Director for ABI Research's Southeast Asia Digital Transformation research service.

These findings are from ABI Research's Key Verticals and Opportunities for Smart Manufacturing in Southeast Asia application analysis report. This report is part of the company's Southeast Asia Digital Transformation and Industrial & Manufacturing Markets research service, which includes research, data, and ABI Insights. Based on extensive primary interviews, Application Analysis reports present an in-depth analysis of key market trends and factors for a specific technology.

About ABI Research

ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.

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For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific, or visit www.abiresearch.com.

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Deborah Petrara
Tel: +1.516.624.2558
pr@abiresearch.com

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Cision View original content:https://www.prnewswire.co.uk/news-releases/china-plus-one-strategy-drives-a-us300-billion-smart-manufacturing-digital-spend-in-southeast-asia-by-2028-302203245.html

© 2024 PR Newswire
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