skip to Main Content
Market Outlook 2019: An Insight Into This Year’s Industry Megatrends

Market Outlook 2019: An Insight Into This Year’s Industry Megatrends

In 2018, we witnessed the rise of Southeast Asia’s manufacturing industry as the Trade War pressured manufacturers into shifting production from China to Southeast Asia. A trend that is expected to continue on in 2019 as Southeast Asia continues to develop its manufacturing capabilities and uncertainties over a US-China truce continue to loom. Through this market outlook series, eight industry leaders share their thoughts on how the regional market will grow and develop in 2019 amidst the changing economic background and the increased presence of disruptive and intelligent technologies. 

  

Armin Kasper

Vice President, Asia-Pacific Area, MAPAL

2018 was a successful year for MAPAL and the company grew once again although growth in the Chinese market, which had previously been strong, flattened somewhat in the last quarter of 2018 due to factors such as punitive tariffs. For 2019, we have set a goal of generating a turnover of €650 million, and this will be achieved through free trade, the development of country specific expansions, the enhancement of digital capabilities and electric mobility machining capabilities.

Development Of Country Specific Expansions

For the companies under MAPAL Group in Southeast Asia, two new regional branches will be established in Indonesia where we are seeking to build a regional presence. While in the case of Malaysia, the country recently became our Southeast Asia production hub and has been equipped with a dedicated manufacturing facility. Additionally, we are actively investing in Malaysia and expansion is set to continue in Thailand too, where a new facility was established in 2017.

Enhancement Of Digital Capabilities

Digitalisation is a pressing issue globally, and in the face of increasing demands for efficient data management systems, we have identified this trend as a potential growth area. That was why we will be using 2019 to make further refinements to c-Com and to showcase the SaaS solution to interested parties as an open cloud platform for efficient data management.

MAPAL’s new tool management 4.0 is also based on c-Com. The interconnectivity that tool management 4.0 offers means that data can be provided consistently to all those involved – manufacturing, procurement, planning, tool managers and suppliers. That makes the overall process more efficient and digitalises tool management.

We also see great potential in our re-tooling service. Customers use this when they are setting up a new manufacturing facility for a part or re-tooling existing machinery to manufacture a new part, or when optimisations need to be made while production is running.

Electric Mobility Machining Capabilities

Alongside digitalisation, another significant trend at the moment is electric mobility and we have a diverse array of innovative machining solutions available for manufacturing the various parts within the different electric drives. The importance of the automotive industry is growing all the time, as is the number of vehicles being produced with electric drives.

 

Carsten Haecker

Head of igus Asia Pacific, igus Singapore Pte Ltd

The Asia Pacific region will remain as the growth driver for us in 2019 but we may see regional differences in development. This is due to uncertainties related to tariffs and trade, Brexit discussions and regional tensions may cause some interruption on a global scale. However, in terms of long term sustainability, the opportunities in Asia far outweigh the challenges and we will continue to invest into new markets or expand existing manufacturing facilities.

Combining Digitalisation With Industrial Development

The world is changing faster than ever before, new trends are coming up and past solutions may disappear. Artificial intelligence, complete process automation, remote monitoring of machine performance, intelligent robotics and driverless vehicles are some of the trends in which we see a potential in. The clear objective for us moving forward is to concretely implement automated processes that range from online configuration to digitally supported manufacturing for all product categories. This is a difficult path to take because ready-made solutions usually cannot be bought but have to be developed individually.

Additionally, IoT continues to drive development. And igus as an early adopter, has developed the intelligent cable, energy chain and linear guide which are able to monitor their own condition during use and open up new possibilities of predictive maintenance.

Additive Manufacturing And Low Cost Robotics

Additive manufacturing would be another key trend to mention, with 3D or SLS printing being good examples of the technology. Also, low cost robotics are another trend to watch out for in 2019 and the igus robolink modular robotic system is an example of this.

 

Israel Gonzalez

Asia Pacific Regional Director, Hypertherm

2018 marked Hypertherm’s 50th year and we have grown from a manufacturer of plasma systems to a global provider of cutting solutions. Moving forward, our continued investment in research and development is part of our efforts to bring more breakthrough technologies to the market, such as the recently released X-definition class plasma system.

In 2019, Asia Pacific will continue to be a promising region for the industry due to rapid population and economic growth, industrialization and business-friendly measures introduced by governments. Besides the major markets in Oceania and Japan, the rapidly growing industrial manufacturing sector in India and Southeast Asia are also expected to contribute significantly to the region’s economic growth.

Change In Business Models In The Metal Cutting Industry

The metal cutting industry will shift from a demand driven model to a more competition driven model, where the key driver is automation and customers are increasingly looking to reduce reliance on labour. In fact, automation will continue to be the biggest development in the metal cutting industry as manufacturers in the region continue to balance technology with capacity and competitive demands.

Industry 4.0 Innovations

IIoT will continue to shape the manufacturing industry in 2019. Rising technologies such as machines, robots and other equipment on a production floor will be able to communicate with each other and gather data in the cloud for analysis. And with the data, a manufacturer will have greater insights which allows for predictive analysis to occur. This aligns to the shift in the industry from preventive maintenance to predictive maintenance.

In the future, fluctuating raw material prices will also impact the industry and transformations within the manufacturing sector will also be further propelled by the rapid evolution of technology. To achieve growth targets in the coming year, manufacturers will increasingly see the need to prioritize investments in technology that will enable them to improve their business agility.

 

Terence Oh

Senior Vice President. EOS, Singapore

The additive manufacturing (AM) market is set to grow at a compound annual growth rate (CAGR) of around 27 percent between 2018 (USD 1.73 billion) and 2023 (USD 5.66 billion). In fact, AM in Asia Pacific is expected to have the highest CAGR due to the region having the fastest growth for the automotive and printed electronics sectors. This offers more opportunities for AM adoption in the manufacturing industry.

Decentralised, Distributed And Domestic Manufacturing Models

Rising protectionism and trade conflicts will increasingly push global supply chains towards decentralization and regionalization when it comes to manufacturing. And this, coupled with the digitalization of manufacturing and AM will serve as an enabler for distributed manufacturing. Businesses that adopt smart technologies like AM to 3D print parts and components will also be able to reduce production costs, processes, and time through part redesign and integration. This makes domestic manufacturing more practical than importing from abroad.

Continued Innovation And Adoption Of AM Across Industries

AM is reported to have a global economic impact of USD 250 billion by 2025 and the aerospace and defense industry is expected to continue leading AM adoption. Moreover, the global aerospace AM market is reportedly expected to register a CAGR close to 22.3 percent during the forecast period of 2018 to 2023.

In terms of the healthcare industry, AM adoption is expected to increase and with the aging population expected to rise, this trend is set to continue due to an expected increase in demand for personalized healthcare and treatments, as well as customized 3D-printed medical devices. For the automotive industry, AM’s ability to decrease production lead time, increase efficiency in logistics management, and ensure effective use of components/materials will result in its increased adoption. This trend is set to continue and the global automotive 3D printing market is predicted to be valued at over USD 8 billion by 2024. On the other hand, tooling and robotics are also expected to drive AM’s market share in APAC from 2018 to 2023.

 

Douglas Foo

President, Singapore Manufacturing Federation

The manufacturing industry in Asia is polarised into three categories – the “factories of the world”, the factories supplying to “factories of the world”, and the “middleman”, where most manufacturers in Asia are a part of. In Singapore, the industry is undergoing a two-part transformation – digitalisation and servitisation.

Due to Singapore’s relatively high labour cost compared to the region and talent shortage, the industry is also moving up the value chain and exploring the use of AI, IoT, robotics, automation and other digital tools to keep costs low and to increase productivity. Digitalisation itself is expected to quite significantly alter and remake the landscape of the industry.

Digitalisation Of Manufacturing And Supply Chains

To be digitalised is to implement these few technologies – additive manufacturing, AI, advanced manufacturing, blockchain, cloud computing, big data, e-commerce and future technologies (robotics, advanced automation, etc.).

Therefore, as manufacturing becomes increasingly digitalised, supply chain models must also become increasingly digitalised by implementing the above technologies. And this will lead to end-to-end integration. Furthermore, with this evolution of the supply chain model, shorter lead times, increased flexibility through real-time optimisation, increased efficiency and increased transparency and personalisation of services will be observed. A digitalised supply chain model is one in which processes are connected through a sensor network and managed through a central data hub and analytics engine.

Adopting The Right Technologies Amidst Economic Uncertainty

Due to the ongoing trade war, there is a fear that demand and investments will shrink. Protectionist attitude and interest rates are also on the rise. Thus, manufacturers can make use of technologies and innovate their business models to improve their productivity, efficiency and competency in order to overcome the adversities ahead. With the right technologies, the industry may even disrupt and affect other sectors, causing a ripple effect that could accelerate the advancement of businesses embracing Industry 4.0 sooner rather than later.

 

David Chia

Automation Charter Chair, The Singapore Industrial Automation Association Managing Director, Beckhoff

In 2019, at the mass market stage, enterprise digitisation will penetrate deeper into the manufacturing floor. This will cause enterprises to look towards obtaining data from as many machines and sensors as possible, which is a trend that has continued on from past years.

Overcoming The Barriers To Digitalisation

In order to digitalise more effectively, companies have more to gain from standardisation than competition. Currently, Germany is leading the effort to create common industry wide standards and they have done quite well as the VDMA is leading the machine standardisation for Germany. Countries in the ASEAN region may need to follow on their footsteps. Next, governments across the region should also help in funding digitisation initiatives and this is especially important for SMEs.

Finally, re-training and upskilling the workforce is needed. We are facing shortages in data engineers, data scientists, data analysts in the region and re-training and upskilling is especially important as older manufacturing jobs disappear and newer ones are created in their place.

The Importance Of Data Collection, ML And AR Technologies

On top of sending data over standardised communication protocol, companies will increasingly look towards getting standardised information from each machine type. This so called “information modelling” and is relevant to a production line today as there is hardly a “homogenous” production line containing the same machine model from the same manufacturer.

Another focus for the metalworking and CNC world will be the use of AR technologies. While still a cutting edge technology today, this technology holds a lot of promise from speeding up operators to training, to advancing maintenance work. At the bleeding edge, we are seeing an increasing trend of ML implementation directly on a premise or machine. While this is on early stages, we feel that this would be the internal focus of many bleeding edge suppliers moving forward.

 

Alex Teo

Managing Director and Vice President, Southeast Asia, Siemens PLM Software

The outlook in Asia Pacific continues to be favourable in 2019. With a dynamic economy and an extremely fast-growing internet population, Southeast Asian markets are good options for companies looking to diversify and add to their operations in China. Especially as rising labour costs and increasingly volatile market conditions in China cause more firms to relocate their production in order to spread out risk and gain access to new markets.

The Growth Of Mass Customisation Focused Technologies

The shift towards a knowledge-intensive economy in Southeast Asia is a by-product of the global movement towards a more individualized and personalized consumption economy. Therefore, the region is expected to transit from the age of mass-production, to one of mass-customisation which is a trend that has been highlighted at the ASEAN Summit. Due to this, we are expecting manufacturers to adopt and implement technologies such as cloud-based product lifecycle management solutions, as well as Digital Twin technologies, in order to be able to produce meet the level of rigour and scale that is required for mass-customisation.

The Development Of Disruptive And New Technologies

Disruptive technologies such as robotics, computer numerical control (CNC) machines, additive manufacturing, artificial intelligence, scanning technology and smart devices will persist and will be ubiquitous across the product value chain. In the case of additive manufacturing, markets such as Singapore, China and South Korea have already identified it as a growth potential and are actively investing in the technology to create high-end jobs and services.

Additionally, Dyson has also announced plans for its first electric car, to be built in a new automotive manufacturing facility in Singapore that is set for completion in 2020. The selection of Singapore as a site for this facility – which has not seen automotive manufacturing since Ford closed its factory 40 years ago – is a surprise for many. This investment which is part of Dyson’s USD 3.3 billion global investment drive in new technology, is a game changer for the electronics and heavy machinery industries in the region.

 

Ian Roberts

Regional Executive Director, UBM

In 2019, the ASEAN region will remain as an attractive area for investment. The ongoing trade war between China and the USA is creating problems and opportunities within the ASEAN region as although foreign investment companies are starting to relocate their manufacturing plants away from China, countries within ASEAN particularly Vietnam and Indonesia, are benefiting from the relocation of manufacturing plants into their countries.

The Rise Of Indonesia And Vietnam 

Most of UBM’s trade shows have continued to grow, particularly in Vietnam where there are numerous opportunities in both HCM and Hanoi. Currently, the biggest problem for the organisation of events in Vietnam is the size of the venues in both HCM and Hanoi which restricts UBM’s expansion plans. However, this also reinforces Vietnam’s position as UBM’s strongest market since 2018.

In Indonesia, the economic growth in the short term will be modest due to the Rupiah depreciation as we all as the impact of the upcoming presidential elections in April.  This will affect overseas investment as investors take a “wait and see” approach. Thus, investments will be halted for at least the first half of the year. For this reason, Indonesia is expected to rely on domestic consumption and household spending to drive the economy. However in the long term, Indonesia remains a strategic and lucrative market for investors as it continues to offer strong economic fundamentals to spur the growth of the middle class and fuel consumer spending which is a key driver of growth.

Growth Of Smart Factories And Smart Manufacturing In Southeast Asia

Southeast Asia’s main selling point can no longer be its low wages if it is to remain competitive. Implementation of new technologies are needed to help close the productivity gap. This means factories will need to integrate technologies such as robotics to maximise productivity, minimise human failure and prevent work-related accidents. Aside from that, companies could integrate AI and data analytics to make automation processes more intelligent and to improve efficiency.

A report by McKinsey & Company has highlighted that Southeast Asia needs to embrace Industry 4.0 to unlock its potential in manufacturing. Through this report, it is stated that disruptive technologies associated with Industry 4.0 would have an impact on productivity on a scale that is similar to the introduction of the steam engine had during the first Industrial Revolution. Globally, if the digital technologies of Industry 4.0 were to be embraced and integrated efficiently, it is forecasted that it could contribute between USD 1.2 trillion and USD 3.7 trillion in business profits. Meanwhile in ASEAN, the impact of Industry 4.0 could see productivity gains of between USD 216 billion to USD 627 billion.

 

rhdr

Norbert Seo

Senior Vice President, Market Division Asia & Australia, Bystronic Pte Ltd

2018 was one of the most successful years for Bystronic due to numerous product launches in the gold, silver and bronze segments of the market as well as international business expansions.

In 2019, the economy is uncertain because of market turmoil and currency slumps but sheet metal continues to have a wide application in industries that are set for growth such as the automotive, semiconductor and electronic industries. Additionally, governments across Asia are continuously building and developing infrastructure and new industrial areas which create indirect opportunities for the sheet metal fabrication market.

The Growth Of Automation

The industry is currently in the age of automation. This is because automation allows for shorter lead times, greater accuracy, higher quality and competitive pricing. In the field of laser cutting, automation makes it possible to process not only large series but also small batch sizes, while maintaining the flexibility that users require to always respond to changing order situations.

Implementation Of Networked Production

With automation drastically changing the outlook of the sheet metal industry, Bystronic is systematically driving forward the vision of “World Class Manufacturing”. This is based on a comprehensive range of new products and services with which Bystronic is gearing its users’ process landscape towards networked production. It features innovative solutions that go far beyond the conventional idea of a machine tool. It’s about fusing the individual processes relating to laser cutting and bending into a network of intelligent components.

 

WANT MORE INSIDER NEWS? SUBSCRIBE TO OUR DIGITAL MAGAZINE NOW!

FOLLOW US ON: LinkedIn, Facebook, Twitter

 

Top 8 Technology Trends For 2018 By IHS Markit

Top 8 Technology Trends for 2018 by IHS Markit

From the Internet of Things to the cloud to artificial intelligence, industries are seeing a new wave of technologies that have the potential to transform and significantly impact the world around us. Contributed by IHS Markit

A survey by business information provider IHS Markit by their leading technology experts aim to find out how new technologies are coming together in original and powerful ways to fundamentally change businesses, fuel innovation, disrupt industries and create both threats and opportunities.

The top eight transformative technologies for the global technology market in 2018, as identified in the report, are as follows:

Trend #1: Artificial Intelligence (AI)

AI has matured to the point where it is being used as a competitive differentiator in several industries, particularly in the smartphone, automotive and medical markets.

Also, optimisation for on-device versus cloud-based solutions is becoming an area of focus. Cloud AI has more computing power to analyse data as it utilises deep learning algorithms, but there are potential issues around privacy, latency and stability. On-device AI, meanwhile, can help offset those dangers to some degree.

For instance, smartphone users who deploy the built-in AI of their phones are able to store data locally and thus safeguard their privacy.

Trend #2: Internet of Things (IoT)

The global installed base of IoT devices will rise to 73 billion in 2025, IHS Markit forecasts show. Accelerating IoT growth in 2018 and movement through a four-stage IoT evolution — “Connect, Collect, Compute and Create” — will be the confluence of enhanced connectivity options with edge computing and cloud analytics.

Enhancements in IoT connectivity, such as low-power wireless access will drive growth. Moreover, technologies adjacent to the IoT will become increasingly sophisticated. Machine video and ubiquitous video will empower new types of visual analytics. And AI, the cloud and virtualisation will help develop critical insights sourced from data at the so-called “edge” of computing networks. Applying AI techniques to data will drive monetisation in the form of cost savings, greater efficiencies and a transition from product- to service-centric business models.

Trend #3: Cloud & Virtualisation

Cloud services will pave the way for technologically immature companies to utilise machine learning and AI, radically transforming their usage and understanding of data.

Trend #4: Connectivity

As the first 5G commercial deployments emerge, the story will focus on connectivity. However, the path to full 5G adoption and deployment is complicated, with new opportunities and challenges alike in store for mobile network operators, infrastructure providers, device manufacturers and end users. 5G represents a dramatic expansion of traditional cellular technology use cases beyond mobile voice and broadband, to include a multitude of IoT and mission-critical applications.

IHS Markit

Image Source: IHS Markit

Trend #5: Ubiquitous Video

The growing use of screens and cameras across multiple consumer- and enterprise-device categories, along with increasingly advanced broadcast, fixed and mobile data networks, is powering an explosion in video consumption, creation, distribution and data traffic. More importantly, video content is increasingly expanding beyond entertainment into industrial applications for medical, education, security and remote controls, as well as digital signage.

Trend #6: Computer Vision

The increasing importance of computer vision is directly tied to the mega-trend of digitisation that has been playing out in the industrial, enterprise and consumer segments.

The proliferation of image sensors, as well as improvements in image processing and analysis, are enabling a broad range of applications and use cases including industrial robots, drone applications, intelligent transportation systems, high-quality surveillance, and medical and automotive.

Trend #7: Robots & Drones

The global market for robots and drones will grow to US$3.9 billion in 2018. The deeper underpinnings of the story, however, lie in the disruptive potential of robots and drones to transform long-standing business models in manufacturing and industry, impacting critical areas such as logistics, material picking and handling, navigational autonomy and delivery.

Trend #8: Blockchain

Blockchain enables decentralised transactions and is the underlying technology for digital currency such as bitcoin and ether. Blockchain-based services beyond financial services are already being developed and deployed and will continue to ramp in 2018.

These include: the use of blockchain to improve advertising measurement and combat ad fraud and solutions to better track and manage electronics supply chains.

Paradigm Shifts In Auto Sector: China Key Growth Sector

Paradigm Shifts In Auto Sector: China Key Growth Sector

China: The auto industry is seeing paradigm shifts; from hardware and a combustion engine to the increased use of software and electrification, according to Commerzbank.

By 2030, more than 40 percent of European vehicles sold each year are expected to be electrified; the industry is already experiencing the entry of new technology players. In addition to the changes relating to diesel engines in Europe, manufacturers and suppliers need to contend globally with the four megatrends:

  • Mobility Services
  • E-Mobility
  • Connectivity
  • Autonomous Driving

The automotive industry remains an attractive growth sector; China vehicle sales will continue to rise and Europe continues to recover strongly with a growth of three percent for 2018 and a compound annual growth rate of above two percent till 2024.

Cedric Perlewitz, head of automotive and transport finance, Commerzbank, said, “We have seen that automotive suppliers are the main target group for cross-border investment activities within the sector. We are seeing a strong demand for industrial names, particularly German corporates, and as auto megatrends develop further investments will be needed.”

Could The Autonomous Plane Tech Race Change The Aviation Industry?

Could The Autonomous Plane Tech Race Change The Aviation Industry?

Worldwide: Plane manufacturers including Airbus and Boeing are aiming to develop artificial intelligence that could one day mean teaching computers to fly planes autonomously.

Currently, commercial flights commonly have at least two pilots in the cockpit—a common practice for several decades. As such, completely autonomous planes might be some time away.

Chief technology officer of Airbus Paul Eremenko has said that the company is developing autonomous aircraft and technologies that will allow a single pilot to operate commercial jetliners.

“The more disruptive approach is to say maybe we can reduce the crew needs for our future aircraft. We are pursuing single-pilot operation as a potential option and a lot of the technologies needed to make that happen have also put us on the path towards unpiloted operation,” said Mr Eremenko in a recent interview with Bloomberg Television.

In addition to autonomous aviation technology being in its preliminary stages, there is also currently no aircraft certified for a single pilot or pilotless flight. Passengers (or their insurers or carriers) might also prove hesitant to accept such technology.

The company is also exploring technologies that will bring more automation to the cockpit of planes that could help resolve the shortage of pilots. This is especially important in emerging markets such as China, which is on track to become the world’s biggest aviation market in less than a decade. Mr Eremenko added that discussions are being held with Chinese companies such as Baidu to find ways to apply self-driving vehicles to the aviation industry.

With an estimated 637,000 pilots needed to fly commercial aircraft globally in the next two decades according to Boeing, Mr Eremenko said that the industry needs to find ways to produce more cockpit crew as only 200,000 pilots have been trained since the start of the aviation industry.

The aerospace industry is seeing a similar trend as the car market, where automakers are investing in or acquiring autonomous driving companies. The venture arm of aircraft manufacturer Boeing, HorizonX, recently acquired Near Earth Autonomy and Aurora Flight Sciences, which specialise in self-driving vehicle technology and autonomous aircraft systems respectively.

Back To Top