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Siemens’ 2022 Electronics And Semiconductor Outlook

Siemens’ 2022 Electronics And Semiconductor Outlook

Contributed by 

Alex Teo, Managing Director and Vice President for South East Asia

The global pandemic accelerated growth in the electronics and semiconductor industries, with East Asia rising as a key manufacturing hub. Furthermore, the Asia-Pacific (APAC) region now accounts for 60 percent of global semiconductor sales with China, Japan, Taiwan and South Korea emerging as the “Big 4” semiconductor players, and being the world’s biggest market for semiconductors. Despite accelerated growth and demand, the industry was greatly challenged by chip shortages. Globally, the shortage of chips has been worsening since 2020.

It all started with lockdown measures and work-from-home arrangements. There was an overnight increase in demand for devices such as laptops, monitors, cameras, and phones. These factors exacerbated the already increasing chip consumption trend. As a result, semiconductor fabrication plants, commonly known as fabs, focused on fulfilling those orders, in addition to the adoption of 5G and Internet of Things (IoT) technologies. Undoubtedly, the demand for microchips will remain high through 2022 as the market demand will be vital for products that are smarter, more functional, constantly connected, higher quality and less expensive.

So, the big question for the electronics and semiconductor industries is, What can be done to ease the critical chip shortage? >>

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Cox Automotive Forecast: New-Vehicle Sales Stall In September

Cox Automotive Forecast: New-Vehicle Sales Stall in September

Automobile sales in September are forecast to slow for the fifth straight month, as tight inventory, high prices take a toll on the industry.

September U.S. auto sales are forecast to be significantly hampered by an ongoing lack of new-vehicle inventory. According to a forecast released by Cox Automotive, the pace of auto sales, or seasonally adjusted annual rate (SAAR), is expected to finish near 12.1 million, the slowest pace since May 2020, when much of the country was closed during the first wave of the COVID-19 pandemic. The September 2021 sales pace will be down from August’s 13.1 million pace and down from the September 2020 pace of 16.3 million.

Cox Automotive Inc. makes buying, selling, owning and using vehicles easier for everyone. The global company’s more than 27,000 team members and are passionate about helping millions of car shoppers, 40,000 auto dealer clients across five continents and many others throughout the automotive industry thrive for generations to come. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with annual revenues of nearly $20 billion.

Sales volume is forecast by Cox Automotive to come in near a notably low 1.0 million units. The low volume expectations for September 2021 put the month on course to be among the worst in the past decade. Sales volume is expected to be down nearly 26% from last September and down 8.5% from last month. The sales pace in the U.S. market has fallen every month since reaching a peak of 18.3 million in April.

According to Cox Automotive Senior Economist Charlie Chesbrough: “After a strong spring selling season, the supply situation has worsened precipitously and is dragging sales down with it. The monthly declines have been large – the sales pace has declined by more than a million units in each of the past five months. Available supply on dealer lots is now 58% lower than last September, down nearly 1.4 million units.”

The new-vehicle supply shortage is impacting the market in many ways. Manufacturers have cut back significantly on incentives, and transaction prices have risen as a result. In addition, the lack of new-vehicle inventory is steering many dealers and consumers into the used-vehicle market, resulting in higher prices for both wholesale and retail used vehicles.

Q3 2021: The Auto Industry Finds the Bottom

Cox Automotive will officially revise its full-year forecast, with new projections scheduled to be released on September 30.

The underlying economic conditions in the U.S. are currently healthy enough to support higher new-vehicle sales levels. The demand is there. Inventory levels, however, are the unique problem facing the automotive market right now, with disruptions to the global supply chain challenging all automakers, severely impacting available inventory, and pushing many would-be buyers out of the market. In recent research by Cox Automotive’s Kelley Blue Book team, nearly half of would-be buyers indicated in August that they will likely step back from the market, many for three months or more.

Inventory conditions, however, are anticipated to improve in the coming months. “The expectation is that OEM supply issues will improve such that Q4 should have better selling SAARs than the September rate, but that doesn’t mean good selling rates,” said Chesbrough. “Vehicles are getting produced, and some OEMs have improved their supply situation. In recent months, OEMs seem to be managing the situation better now that they’ve had time to adjust. For example, automakers are improving their ability to redirect existing chips to the most important vehicles in their portfolios. This strategy should support better sales in the fourth quarter compared to the third quarter.”

September 2021 Sales Forecast Highlights

  • New light-vehicle sales are forecast to fall to 1.0 million units, or down 357,000 units, nearly 26% from last year. Compared to last month, sales are expected to fall 92,000 or nearly 8%.
  • The SAAR in September 2021 is estimated to be 12.1 million, down from last September’s early COVID recovery pace of 16.3 million and down from August’s 13.1 million supply-constrained level.
  • No segment saw a sales increase in September with the Mid-Size Cars and Compact SUV/Crossover segments seeing the largest year-over-year decreases at -41.0% and -33.7%, respectively.

Cox Automotive Q3 U.S. Auto Sales Forecast Call

Chief Economist Jonathan Smoke and the Industry Insights team will share their take on the overall industry performance on Thursday, September 30, at 10 a.m. EDT. In addition to the economic factors influencing the market, the Industry Insights team will cover the industry’s hottest topics, including inventory, vehicle prices, and valuations. The revised Cox Automotive full-year forecast will be explained, including insights into the outlook for the remainder of the year. 

Register to attend.

* All percentages are based on raw volume, not daily selling rate.

SOURCE Cox Automotive Press Release. 

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Huawei Connect 2021: Diving Into Digital

Huawei Connect 2021: Diving Into Digital

Huawei unveiled breakthrough innovations in several different domains, providing a first look at its comprehensive digital infrastructure range. Several of these innovations are completely new and have never been seen before outside of Huawei’s labs. The release highlighted how these products and solutions are set to shape digital infrastructure for the next decade.

Huawei’s annual flagship event for the global ICT industry – HUAWEI CONNECT 2021 – officially kicked off on September 23, 2021 at Shenzhen, China. This year’s event, themed “Dive into Digital”, explores how digital technology can better integrate with business scenarios and industry know-how to address critical business challenges, and how stakeholders can work together more effectively to foster an open industry ecosystem and drive shared success.

The event schedules four keynotes, five summits, and 66 sessions, featuring more than 200 speakers, including industry visionaries, business leaders, top tech experts, and ecosystem partners. It is live-streamed in 11 languages on Huawei’s corporate website and by its media partners. The event also featured online exhibitions, remote visits to exhibition halls, and open panel discussions, enabling online interaction and one-stop experiences.

Huawei Rotating Chairman Eric Xu graced the event with a keynote speech titled “Innovating Nonstop for Faster Digitalization”.In his keynote, Xu spoke about how helping industries go digital is a critical aspect of Huawei’s mission to bring digital to every person, home, and organization for a fully connected, intelligent world.

Xu said, “Digital development relies on digital technology. For digital technology to stay relevant, we must continue to innovate and create value. Cloud, AI, and networks are three critical digital technologies.” Xu then shared some of the progress Huawei has made in these three areas, what Huawei is doing to enable low-carbon development, and where the industry as a whole is heading.

At the event, Xu launched the industry’s first distributed, cloud-native service called UCS – a ubiquitous cloud-native service available on HUAWEI CLOUD. With UCS, Huawei plans to provide enterprises with a consistent experience while using cloud-native applications that are not constrained by geographical, cross-cloud, or traffic limitations, thereby accelerating digital transformation in all industries.

Xu also introduced Huawei’s innovations in the network domain. As organizations go digital, they tend to see exponential growth in network complexity. To tackle this, Huawei has been innovating solutions for global networks based on the concept of autonomous driving network (ADN). The company has been working with customers in the finance, education, and healthcare sectors to innovate and deploy new applications, and build networks that are self-fulfilling, self-healing, self-optimizing, and autonomous.

Xu went on to explain how Huawei is using digital technology to support low-carbon development, as part of global efforts to achieve peak CO2 emissions and carbon neutrality.

Specifically, Huawei focuses on three key initiatives:

  1. Investing and innovating in energy-saving technologies to deliver more energy-efficient ICT products for a low-carbon ICT industry;
  2. Investing in innovations where power electronics and digital technologies converge to promote clean energy and the digitalization of traditional energy; and
  3. Providing digital technology to help all sectors go digital and low-carbon.

Zhang Ping’an, CEO of Cloud BU and President of Huawei Consumer Cloud Service, elaborated on HUAWEI CLOUD’s strategic initiatives and launched new services and products at the event. “HUAWEI CLOUD joins our customers and partners to dive into digital and explore the potential of Everything as a Service – Infrastructure as a Service for global accessibility, Technology as a Service for flexible innovation, and Expertise as a Service for shared excellence,” says Zhang.

Zhang also announced two new Regions in Mexico and China’s Ulanqab, and launched 10 new HUAWEI CLOUD services. The announcement included MacroVerse – HUAWEI CLOUD aPaaS, OptVerse AI Solver, HUAWEI CLOUD Stack 8.1, SparkRTC – a real-time audio and video service, and Pangu, a large model for drug molecules.

Customers and partners in attendance included Christophe Ozer, Head of Orange Cloud (Orange Flexible Engine) APAC; Wu Qiang, Vice President of Tianjin Port Holdings; Chen Haining, General Manager of IT Dept from Shanghai Pudong Development Bank; and Jiang Chuanrong, Chairman of Shanghai Mirror Pictures.

Xu concluded his speech with, “Nonstop innovation has been the driving force behind digitalization thus far. Moving forward, if we hope to reach more ambitious goals for digitalization, nonstop innovation will continue to be key. So let’s innovate nonstop for a better future.”

Huawei hosts HUAWEI CONNECT 2021 online from September 23 to October 31. 


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Hyundai X NTU: Four Pilot Projects Focusing On Mobility Of The Future.

Hyundai x NTU: Four Pilot Projects Focusing On Mobility Of The Future.

Singapore’s Nanyang Technological University (NTU) and South Korean car manufacturer Hyundai Motor Group have inked an agreement to run four research projects focusing on the production of electric vehicles and future mobility technologies. 

By Ashwini Balan, Eastern Trade Media

Specifically, the projects will look at the use of artificial intelligence (AI) and additive manufacturing(AM) technologies. The research initiatives were part of NTU’s vision to develop applications that would be revolutionary, paving the way for next-generation automobile manufacturing. One of the projects, for instance, is to build machine learning algorithms for vehicle image processing, that could be tapped to check the quality of battery electric vehicles. An AI-powered image processing sensor deployed in the manufacturing plant could detect defects and anomalies across the production process, ensuring the safety and reliability of the final product, NTU said. 

Another project would explore the integration of additive manufacturing, or 3D printing, to customise automotive components for electric vehicles and how these parts could be implemented in small factor operation. This could facilitate smart manufacturing sites capable of building car models that are customised.

The partnership between Hyundai and NTU started last October, when NTU was unveiled as Hyundai’s first academic research partner for their innovation centre in Singapore. The project will steadily begin research work this month and is expected to be completed by the end of 2022. The Hyundai research facility focuses on future mobility technologies and together with NTU, Hyundai also planned to run 3D printing competitions in automotive engineering, which they hoped would spur interest in electric vehicle manufacturing and nurture new talent in the sector. NTU students and researchers also would be able to tap Hyundai’s industry experts to exchange ideas. 

There are similar projects that Hyundai has partaken in 2021, in view of their carbon neutrality goals. In June, Hyundai teamed up with mobile app platform Grab to drive the adoption of electric vehicles in Southeast Asia. Both companies would explore pilots to ease the use of such vehicles for Grab drivers and delivery partners, such as offering leasing programmes on a “battery-as-a-service” model. The South Korean carmaker in March also announced a partnership with Singapore telco Singtel to develop a system for Hyundai to monitor electric cars driven on the island. The Internet of Things (IoT) platform would provide Hyundai with telemetry, or “automatic data transmission”, on the status and performance of the batteries powering the electric vehicles used the company’s subscription service.

Indeed, multinational automotive manufacturers are gearing ahead into the all-electric future and it seems that this vision of the future, would soon become the present reality. 

References of the content:
1. Original Article Source: Eileen Yu, ZDNet, 2021
2. Image Source: Lorenzo Hamers on Unsplash

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Welding Materials Market To Reach USD$17.3 Billion By 2025

Welding Materials Market To Reach USD$17.3 Billion by 2025

As reported by MarketsandMarkets, the Welding Materials Market will grow from USD$13.6 billion in 2020 to USD$17.3 billion by 2025, at a CAGR of 4.8 percent during the forecast period.

The increased spending on the building & construction market, development of manufacturing sectors, and growing repair & maintenance activities are likely to drive the welding materials market.

APAC is the fastest-growing market for welding materials due to growing demand in JapanChina, and India. Increasing residential building constructions, as well as remodelling/reconstruction of existing infrastructures, are also expected to drive the market in the region.

APAC has also experienced significant growth in the last decade and accounted for approximately 34% of the global GDP in 2019. According to the Population Reference Bureau, ChinaIndia, and other emerging APAC countries had a combined population exceeding 4 billion in 2019. This is projected to become an increasingly important driver for global consumption over the next two decades.

The major advantage of arc welding is the concentration of heat applied to a large surface that enables better welding by providing a depth of penetration, which ultimately saves time. Arc welding is the most preferred technology due to its low cost and can be applied to a wide range of metal surfaces, making it highly sought after.

Key players operating in the welding materials market are Colfax Corporation (US), Air Liquide S.A. (France), Air Products & Chemicals (US), Illinois Tool Works (US), Linde PLC (UK), Lincoln Electric Holdings (US), Tianjin Bridge Welding Materials Group (China), and Kobe Steel (Japan).

These are the players that have adopted various growth strategies to expand their global presence and increase their market share.

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Future-Driven Technologies Will Drive The Global Light Commercial Vehicle Market Towards Recovery

Future-Driven technologies Will Drive The Global Light Commercial Vehicle Market Towards Recovery

Frost & Sullivan’s recent analysis, Global Light Commercial Vehicle (LCV) Market Outlook, 2020, finds that global sales of LCVs are projected to reach 9.49 million units in 2020, with pickups contributing to 4.62 million units. The global economic impact of COVID-19 caused the market to decline by 19 percent in global LCV sales from 11.72 million units in 2019. The European market is experiencing the worst hit as countries such as Italy and Spain are facing an average decline in LCV sales of 35 percent to 50 percent in 2020.

“Strong stimulus packages from the governments will be necessary to support the economy and cope with low business confidence and high unemployment rate, which stemmed from nationwide lockdowns during the pandemic,” said Marshall Martin, Industry Analyst, Automotive & Transportation, at Frost & Sullivan. “The 2020 slowdown will be particularly pronounced across advanced economies such as the United States, Germany, Italy, and Japan.”

E-commerce and connectivity will continue to drive the global LCV market as last-mile delivery and electrification are expected to grow in influence in the coming years. With restrictions on geographical movement during the COVID-19-induced lockdown, e-commerce and last-mile delivery applications will see a spike in demand to deliver essentials at doorsteps.

He added: “Electric light commercial vehicles (eLCVs) will continue to gain prominence going forward with a slew of launches expected until 2023. Emerging trends in the market, such as connectivity, advanced safety, and autonomous features, offer great opportunities for the growth of the global LCV market in the next three to five years.”

The market outlook in key regional markets will vary considerably. The main trends and growth opportunities in each key region are presented below:

  • APAC: 2020 is expected to be a turning point for the penetration of eLCVs in the larger ASEAN region with substantial investment coming from OEMs and fleets.
  • North America: LCVs are expected to be on the decline for the rest of the year, with full-size pickups expected to be the most affected because of the slowdown in the construction sector.
  • Europe: The region is expected to have a fairly good penetration of eLCVs compared to other regions going forward, with several new launches such as e-Dispatch and e-Transporter expected in 2020.
  • China: The market in China is expected to pick up gradually from Q2 2020 as the recent growing domestic demand for pickups has pushed local OEMs to create more pickup products.

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Additive Manufacturing: Outlook For 2019

Additive Manufacturing: Outlook For 2019

Asia Pacific Metalworking Equipment News is pleased to feature an article provided by Terrence Oh, Senior Vice President (Asia Pacific) of EOS Singapore on the future of additive manufacturing (AM) in APAC.


“When the going gets tough, the tough gets going,” aptly describes the manufacturing sector within APAC this year and even the next.

The manufacturing industry has experienced a steady growth within the ASEAN region especially during the first-half of 2018. The AM market is set to grow at a compound annual growth rate (CAGR) of around 27 percent between 2018 (US$1.73 billion) and 2023 (US$ 5.66 billion). In fact, AM in APAC is expected to have the highest CAGR due to the region having the fastest growth for automotive and printed electronics sectors. This offers more opportunities for AM adoption.

As the manufacturing industry continues to ride the economic wave, the following are some predictions and trends we can expect in AM, also known as industrial 3D printing for 2019 and beyond:

AM Presents Another Opportunity For Economic And Productivity Growth

  • Rising protectionism and trade conflicts will have an impact on global supply chain to move toward decentralisation and regionalisation of manufacturing.
  • The manufacturing sector in Asia is at risk of incurring high operating costs if trade tensions continue due to higher trade tariffs.
  • As such, the digitalisation of manufacturing and AM will serve as an enabler for distributed manufacturing. This is a good opportunity for companies to tap on AM to grow and transform their businesses.
  • Businesses that adopt smart technologies like AM to 3D-print parts and components are able to reduce production costs, processes, and time through part redesign and integration. This also makes manufacturing domestically more practical than importing from abroad.

Continued Innovation And Adoption Of AM Across Industries

  • Aerospace: AM is reported to have a global economic impact of US$ 250 billion by 2025 if industries continue to increase its adoption, with the aerospace and defence industry taking the lead. Moreover, the global aerospace AM market is reportedly expected to register a CAGR close to 22.3 percent during the forecast period of 2018-2023. This also presents an opportunity for talent growth and development.
  • Healthcare: AM has already made its name in the healthcare industry due to its ability to custom-make 3D-printed prosthetics based on the individual’s needs. With the aging population, this trend is set to continue due to an expected increase in demand for personalised healthcare and treatments, as well as customized 3D-printed medical devices.
  • Automotive: The industry has embraced AM to decrease production lead time, increase efficiency in logistics management, and ensure effective use of components/materials. This trend is set to continue with. Currently, the global automotive 3D printing market is predicted to be valued at over US$ 8 billion by 2024.
  • Tooling: Together with robotics, tooling is will be one of the main industry drivers within the AM market in APAC from 2018 to 2023.

More Talent Development In AM

  • AM usage in various industries are increasing but there continues to be a gap in skills due to the niche expertise required.
  • If this is not addressed sooner, this could jeopardise the growth within the AM industry and eventually, other sectors that deploy AM.
  • To keep up with digital disruption and the need for business transformation to keep pace, more will be invested into educating future and current workforce on AM.
  • Launched in September 2018, EOS partnered with the National Additive Manufacturing Innovation Cluster’s (NAMIC) to develop the Joint Industry Innovation Programme. Targeted at advancing 3D printing capabilities in the aerospace sector, the training programme aims to produce specialists skilled in AM technology and design of parts. The programme addresses the need to reskill and upskill the current workforce as AM adoption increases.



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ZEISS Continues To Grow In Fiscal Year 2017/18

ZEISS Continues To Grow In Fiscal Year 2017/18

ZEISS has increased its revenue further in all strategic business units and regions after twelve months of fiscal year 2017/18. Revenue increased by 7.6 percent (adjusted for currency effects: 11.1 percent), to €1,280.9m (prior year: €1,189.9m). Earnings before interest and taxes (EBIT) rose to €197.1m (prior year: €180.8m). The EBIT margin remained stable at 15.4 percent (prior year: 15.2 percent). Earnings per share reached €1.41 (prior year: €1.57).

Regarding ZEISS’ performance for fiscal year 2017/18, Dr. Ludwin Monz, President and CEO of Carl Zeiss Meditec AG has said, “We achieved our sales forecast, which we had already raised in July 2018 – in spite of negative currency effects. In fiscal year 2017/18 we gained further market shares in both ophthalmology and microsurgery. What is particularly encouraging is that all regions and business segments contributed – the performance of the Americas and Asia/Pacific regions was particularly strong.”

Solid Growth And Market Share Gains In Both Strategic Business Units

The strategic business unit (SBU) Ophthalmic Devices increased its revenue by six percent after twelve months of fiscal year 2017/18 (adjusted for currency effects: 9.3 percent), to €933.3m, compared with €880.5m in the same period of the prior year. The laser systems business for vision correction and the diagnostics business developed particularly well. There was also continued solid demand for premium and standard intraocular lenses for the treatment of cataracts.

Revenue in the Microsurgery SBU grew by 12.3 percent (adjusted for currency effects: 16.5 percent), to €347.6m, compared with €309.4 in the prior year. This growth is particularly attributable to the new products for the neurosurgery and dental segments.

Significant Growth, Particularly In Americas And APAC Regions

Revenue in the EMEA region increased by four percent (adjusted for currency effects: 5.4 percent), to €378.1m (prior year: €363.4m). Development in the core markets Germany and France was stable. Increases were achieved in the UK, Southern Europe and some Eastern European markets.

A positive trend was also recorded in the Americas region. Revenue increased to €406.5m (prior year: €378.2m). This growth amounted to 7.5 percent (adjusted for currency effects: 14.4 percent) and thus, it can be seen to have accelerated significantly compared with the prior year. This is primarily due to a continued positive trend in the U.S. market.

The Asia/Pacific (APAC) region grew by 10.7 percent, to €496.3m (prior year: €448.2m). After adjustment for currency effects, this corresponds to an increase of 13.2 percent. Once again, the largest contributions to growth came from China and South Korea.

The EBIT margin was 15.4 percent (prior year: 15.2 percent). Adjusted for special effects, an increase to 15.7 percent was recorded (prior year: 14.8 percent). This was due in particular to a positive development of the product mix. Revenue from recurring business, such as from consumables, implants and services, increased further, and climbed to around 34 percent of revenue (prior year: 33 percent).

Earnings per share declined slightly, to €1.41 (prior year: €1.57). This decrease was attributable to negative currency effects and to the increased number of shares.

Overall, the company anticipates further growth for fiscal year 2018/19, at least to the level of the underlying markets. The EBIT margin is expected to range between 14 percent and 16 percent in fiscal year 2018/19 and in the medium term.

Revenue By Strategic Business Unit

All figures in €m 12 months
12 months
Change from prior year Change from prior year*
Ophthalmic Devices 933.3 880.5 +6.0% +9.3%
Microsurgery 347.6 309.4 +12.3% +16.5%
Total 1,280.9 1,189.9 +7.6% +11.1%

*adjusted for currency effects

Revenue By Region

All figures in €m 12 months
12 months
Change from prior year Change from prior year*
EMEA 378.1 363.4 +4.0% +5.4%
Americas 406.5 378.2 +7.5% +14.4%
APAC 496.3 448.2 +10.7% +13.2%
Total 1,280.9 1,189.9 +7.6% +11.1%

*adjusted for currency effects



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Bombardier To Focus Investments On Asian Infrastructure

Bombardier To Focus Investments On Asian Infrastructure

BANGKOK: Bombardier, Thailand’s second largest train provider, will be expanding its infrastructure investments in Asia, building upon its existing 28 offices and production sites established across the region. Laurent Troger, president of Bombardier Transportation, has said: “We will maintain our market share among the top three in the ASEAN market by providing more technology, innovativeness, service, and also customise our products to serve demand in this region”.

In particular, APAC’s urban mass transit and advanced railway networks have been identified as key areas of interest and this is evidenced by the company’s increasing supply of metro cars, trains and mainline systems across Asian cities such as Shanghai, Manila, Thailand and Singapore. Furthermore through the establishment of state partnerships with the State Railway of Thailand (SRT), Bombardier has been able to rapidly develop infrastructural projects such as the re-signaling of the full BTS Skytrain route and the implementation of its CITYFLO 450 communications-based train control (CBTC) solution. Currently, the company has also signed a prolific agreement with BTS Group to build two monorail systems worth more than Bt20 billion in Thailand and was awarded multiple contracts by the Singapore government to upgrade existing rail networks, provide auxiliary support and metro cars.

As of the end of 2017, Bombardier Transport has reported a total revenue of US$8.5 billion. This accounts for more than half of the total reported earnings of US$16.2 billion by Bombardier Group and is expected to increase exponentially due to the company’s rapid expansion plans in Bangkok, Singapore, Vietnam, Malaysia, Philippines and Indonesia. All of which comprise significant and fast growth markets within APAC which holistically represents a dynamic growth of 2.5 percent, as reported by the the UNIFE 2010 market study.


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