Market Trends of APAC Semiconductor Device Industry For Industrial Applications
Industry 4.0 Investments Driving The Demand For Automation
- The countries in Asia-Pacific are occupying leading positions in the transition to Industry 4.0. Significant initiatives have resulted in increased attention being given to the digital economy and Industry 4.0 in the Asia Pacific region to boost manufacturing activities, such as Singapore's Smart Nation and Committee for the Future Economy initiatives, Indonesia's '2020 Go Digital Vision', the 'Thailand 4.0' initiative, the Vietnamese government's Industry 4.0 initiatives, amongst others, which is bringing increased scope for semiconductor device market for industrial applications.
- The technologies of Industry 4.0 that will be deployed are machine-to-machine communication (M2M), supervisory control and data acquisition (SCADA), overall equipment effectiveness, customized automation system design, high-mix-low-volume manufacturing design, process traceability, and tracking system, remote monitoring, and auto reporting, production floor safety and security, and machine vision inspection system.
- Korea's commercial and public sectors have agreed to boost the number of local smart factories to have more than 30,000 working with the newest digital and analytical technology by 2022. The Ministry of Trade, Industry, and Energy (MOTIE) of Korea has reaffirmed the government's ambitions to assist small and medium-sized businesses adopt and expand smart manufacturing technology, thus driving the Asia-Pacific Semiconductor Device Market For Industrial Applications.
- Furthermore, the Japanese government announced Connected Industries in response to the German government's "Industry 4.0" program, and the momentum for a new manufacturing revolution is rising. The push toward smart factories is accelerating with technological advancements such as digitalization, production technology sophistication, and robotics to achieve higher efficiency in the manufacturing industries.
China to Hold Significant Share
According to the Mobile Economy 2021 report by GSMA, more than 990 million people in the China region presently utilize mobile internet services, with an additional 200 million predicted by 2025. Grocery purchasing is a new, emerging trend in online shopping. In China, automation is occurring rapidly, despite the wage rate being lower (compared to European nations and North America since there was an increase in wage rate over the past decade), and this is expected to continue for the next decade and to accelerate the automation, thus driving the Asia-Pacific Semiconductor Device Market For Industrial Applications.
Furthermore, the government's ambitious 'Made in China 2025' initiative, partially inspired by Germany, for Industry 4.0 aims to boost the country's competitiveness in the manufacturing sector. The ten-year plan, introduced in May 2015, is the government's bid to shift the industries to the medium-high end of the global value chain and foster several advanced manufacturing clusters. The increase in industrialization will grow the market for automated solutions such as AGVs and AMRs, which are embedded with semiconductors. Thus, cost reduction, space optimization, complex manufacturing operations, and speed of delivery will be major driving factors for the demand for the Semiconductor Device Market For Industrial Applications.
Startups, such as Syrius Robotics, based out of Shenzhen, are building autonomous mobile robots to integrate them into two model warehouses of JD Logistics for further testing and optimization for last-mile deliveries. AMH systems are expected to experience demand from the manufacturing industries, with increased throughput, warehouses, and distribution centers. Any segment directly or indirectly affected by the spike in demand in the e-commerce and retail markets is expected to escalate the need for semiconductor devices in the country.
According to survey data from the National Bureau of Statistics, China has become the world's largest industrial robot market and has had tremendous growth for the past eight years, with the trend continuing. China's industrial robot industry currently accounts for 44% of the global market, and it is expected to continue to grow.
