REGIONAL REPORT
“ It is important to note that , in Asia , we saw much lower inflation in 2021 than elsewhere . For example , food prices in emerging and developing Asia grew by less than two per cent last year . This compares favourably with over nine per cent in peer countries in Africa , Europe and Latin America . In many of the region ’ s economies , inflation remains below central bank targets ,” he continued .
Image : Shutterstock . com .
Driving digitalisation
According to Ken Research ’ s analysis , the Asia-Pacific digital manufacturing market 2021-2031 will grow by 16.8 % annually with a total addressable market cap of US $ 1,196.3 billion over 2022-2031 .
“ This is driven by the emerging trend of digitalisation ; extensive research and development ( R & D ) in production technologies ; the development of technologically advanced and innovative digital manufacturing tools ; implementation of the Internet of Things ( IoT ) and robotics , along with the increasing adoption of product lifecycle management ( PLM ) systems ,” said the analyst . Smart manufacturing has made a home in the Asia-Pacific market . “ With a market value of US $ 304 billion by 2030 , registering a CAGR of 14 %, Asia-Pacific is expected to be the largest smart manufacturing market . SMEs are set to propel the application of smart manufacturing solutions due to the robust ecosystem in countries like Japan , India and Australia . Large businesses in discrete sectors , on the other hand , are expected to produce the most income in the market ,” outlined analyst , Straits Research .
“ Disruptive technologies ( such as Industry 4.0 ; AI ; augmented reality ; the Internet of Things ( IoT ) and others push the region ’ s cloud usage . As a result , cloud-based smart manufacturing solutions are likely to become more prevalent . As a result , cloud-based smart manufacturing solutions are becoming more common , driving regional growth ,” it added .
The Asia-Pacific region ’ s significant headway in digitalisation was also acknowledged by the IMF ’ s Antoinette M . Sayeh on 28 September 2022 .
“ I should begin my remarks by recognizing the huge strides that Asia-Pacific economies have made in digitalisation , which is pervasive and growing in the region . Indeed , it stands out by its sheer scale , with internet usage far exceeding numbers in other regions and underpinning widespread e-commerce and fintech . The region is also at the forefront of digital innovation , making financial services and payment systems more inclusive , more efficient , faster and therefore cheaper for users ,” she said .
However , she warned that gaps in financial inclusion remain large ,
both within and across countries in Asia and the Pacific . IMF research shows that close to half of the adult population in low- and middleincome economies in the region still do not have a bank account . Less than ten per cent of them are able to borrow from formal financial institutions . Small and medium enterprises , as well as farmers , face limited access to credit . They often rely on informal markets for finance , where costs are high — leaving poor households vulnerable to shocks and poverty traps .
Industrial robotics
Asia remains the world ’ s largest industrial robot market . Around 73 % of all newly deployed robots in 2021 were installed in Asia , according to figures from the International Federation of Robotics ( IFR ). A total of 354,500 units were shipped in 2021 , up 33 % compared to 2020 . “ The electronics industry adopted by far the most units ( 123,800 installations , + 22 %), followed by a strong demand from the automotive industry ( 72,600 installations , + 57 %) and the metal and machinery industry ( 36,400 installations , + 29 %),” it added .
In March 2022 , the IFR announced that Japan was the world ´ s number one industrial robot manufacturer , delivering 45 % of global supply . “ In recent years , the country ’ s robot suppliers have increased their production capacity considerably . Their export ratio rose to 78 % in 2020 , when 136,069 industrial robots were shipped . Around 36 % of Japanese exports of robotics and automation technology were destined for China . Like other international robot suppliers , Japanese manufacturers also serve the Chinese market directly from their factories in China . Japanese suppliers were able to benefit comprehensively from the Chinese post-crisis boom that started in the second quarter of 2020 and gained momentum in the second half of the year ,” explained the IFR .
Above : A robotic manufacturing cell ( image : Yaskawa ).
Supply chain rebalancing
Image : Shutterstock . com .
Supply chains have been significantly disrupted since 2020 and the beginning of the pandemic .
“ What we ’ ve seen more recently is two things . One is the war in Ukraine , which again led to shortages of commodities and inputs which are integral to supply chains . And secondly , we saw the rise of COVID outbreaks in China and more frequent associated lockdowns . So , the sooner you see the war end and the sooner you see the pandemic behind us , the sooner will supply chains normalise ,” commented Sanjaya Panth , Deputy Director of the Asia and Pacific Department , IMF , in April 2022 .
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