In the heart of the Industry 4.0 era, manufacturing is undergoing unprecedented growth. It is forecasted, according to a Mordor Intelligence study, that Asia-Pacific’s (APAC) connected manufacturing industry will be worth US$54 billion by 2025 and more than US$80 billion by 2029, underscoring the sector’s critical role in the region’s economic development.
Manufacturing remains a cornerstone of APAC’s economy, contributing 23% to the region’s GDP. Technological advancements have significantly reduced the time required for key tasks, driving productivity gains across the industry. Intelligent machines and real-time workflows are reshaping operations, creating modern plants characterised by unprecedented connectivity.
As the manufacturing sector transitions from Industry 4.0 to Industry 5.0, it is essential to recognise that the human component remains indispensable in guiding the shift from a largely artisanal approach to one driven by hyperconnectivity, advanced automation, and big data. While Industry 4.0 focuses on automation, Industry 5.0 emphasises the integration of human and machine collaboration. This shift supports staff rather than replacing them, striking an ideal balance between efficiency and productivity, and fostering a more innovative and adaptive manufacturing landscape.
From warehousing and distribution to marketing models, digital evolution has transformed the entire value chain. It has reshaped how companies engage with increasingly informed and demanding consumers, establishing a new standard for efficiency, speed, and customisation. Despite these technological advancements, however, an uncertain macroeconomic climate continues to challenge manufacturers in APAC. Reports indicate sluggish manufacturing performance across Asia, with weak demand contributing to the slowdown. Japan and South Korea, in particular, are grappling with declining manufacturing activity due to soft domestic demand and rising input costs. As global economic growth is expected to remain below trend, manufacturing activity across Asia is anticipated to face ongoing difficulties.
Therefore, it is crucial that manufacturers are equipped with the right technologies to ensure growth and stability despite macroeconomic challenges.
Driving APAC manufacturing forward
In the APAC region, the manufacturing sector is under continuous pressure to evolve. According to Zebra’s 2024 Manufacturing Vision Study, 87% of APAC manufacturers surveyed prioritise digital transformation, focusing on improving data management and leveraging new technologies to enhance visibility and quality throughout the manufacturing process. This includes investing in training teams and adopting emerging technologies to better understand the consumer and offer higher levels of personalisation. The same study indicates that 76% of APAC manufacturing leaders plan to reskill their workforce to improve data and technology usage skills, as 75% expect to augment workers with mobility-enabling technology.
To minimise both operational and consumer risks, rigorous control over the value chain is essential. This requires a significant transformation in managing operations, utilising human talent, and adapting to market fluctuations. Advanced technologies provide valuable real-time insights that can substantially improve decision-making processes.
These solutions facilitate more efficient management, freeing employees from repetitive tasks and enabling them to focus on more strategic activities that contribute to the overall quality of production processes. For instance, a kitchenware wholesale and manufacturing company in Japan reported that implementing advanced inventory and picking technologies resulted in a 30% reduction in shipping errors and a significant improvement in operational efficiency. By streamlining processes such as picking, shipping inspection, and inventory management, the company was able to save approximately 23 hours of staff time daily.
Building on the principles of Industry 5.0, technologies such as autonomous mobile robots and machine vision cameras are being used to automate heavy and repetitive material movement tasks while performing fast, accurate tracking and quality control checks. This human-centred approach to automation frees workers from low-value tasks, enabling them to focus on more strategic activities. As a result, manufacturers are not only improving job satisfaction but also enhancing visibility over assets, workflows, and teams. As APAC manufacturers continue to adopt these innovations, they are positioning themselves to lead the industry into a future where technology and human expertise combine to drive unprecedented growth.
Navigating the challenges of digital transformation
Embracing digital evolution requires navigating a complex and resource-intensive path. Manufacturers are increasingly focusing on achieving digital agility to respond to shifting market demands, cultivating a new workforce, and enhancing sustainability. However, this journey is not without its challenges.
According to Zebra’s study, 38% of APAC manufacturers report that internal disagreements between IT and operational technology teams on investment priorities pose barriers to digital transformation. This discord can slow the adoption of new technologies and hinder progress. Furthermore, 82% of APAC manufacturing leaders express concerns about keeping pace with rapid technological advancements and the difficulties of securely integrating new devices and systems into existing operations.
Despite the strategic importance of digital transformation, achieving a fully connected factory remains elusive for many. Enhancing visibility across the manufacturing process is crucial for optimising efficiency, productivity, and quality. Yet, only 25% of APAC leaders surveyed report success in implementing real-time work-in-progress monitoring, underscoring a significant visibility gap.
Future-ready manufacturing: Bridging the gap with emerging technologies
To overcome these challenges, APAC manufacturers are increasingly turning to advanced technologies like machine vision, robotics, fixed industrial scanners, and radio frequency identification to improve asset traceability and error detection. Many plan to adopt these solutions by 2028 to enhance operational efficiency and meet quality standards. However, digitalisation is not simply about implementing new technologies. It requires a deep exploration of each industry’s unique dynamics. Those who succeed in the long term are distinguished by their comprehensive understanding and commitment to a journey built on both vision and innovation.
The ongoing Industry 4.0 revolution, driven by AI and the Internet of Things, presents an opportunity to reshape processes and set new standards for efficiency. By leveraging these advancements, manufacturers can drive progress and create a future where innovation fosters shared success.
