Southeast Asia
manufacturing event survey
Participant summary

askananalyst@omdia.com© 2021 Omdia

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Southeast Asia Manufacturing Event Survey – Participant summary

Post-pandemic outlook
Industrial automation and machinery production market - World

25.0%

2012

20.0%

Eurozone debt crisis

15.0%

2019

Growth rates (y-o-y)

10.0%

COVID-19 outbreak

5.0%
0.0%
2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

-5.0%
-10.0%

2015-15.0%

Crude oil prices crashed-20.0%

2009-25.0%

Global recessionIndustrial automation equipment market

Source: Omdia

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Information Classification: GeneralMachinery production market© 2021 Omdia© 2021 Omdia

Southeast Asia Manufacturing Event Survey – Participant summary

Key factors affecting the global industrial market in the near term

Supply chain shortage

Input cost increasing

Supply chain delays remain unresolved,putting a cap on the growth of themarket

Raw material procurement costs andtransportation costs increase the cost offinished goods and depress profit margins

Energy crunch

Orders come back online

Supply imbalances have made gas, coal, and oil
prices soar; energy crunch and soaring prices
create a headwind for the global market
Source: Omdia

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Information Classification: General

Recovery of downstream industries prompt
continued growth in orders to support the marketgrowth© 2021 Omdia© 2021 Omdia

Southeast Asia Manufacturing Event Survey – Participant summary

Global industrial automaton equipment market overview

Transformation technology

Sustainability and energy efficient

Commodity price

Government regulation.

• The impact of the pandemic on the world continues. It has not only heavily
damaged the world economy but also changed the concepts and actions
that governments, enterprisers, and citizens adopt.
• The impact of the pandemic has caused more manufacturers to increase orcontinue to focus on digitization, artificial intelligence (AI), and various
other forms of automation funds. Factory automation will become a brightspot in various industries because improved infrastructure is essential toprepare for future similar incidents, such as another pandemic.
• Omdia believes that the factors listed in the figure on the left are key
factors that will continue to affect automation product market dynamics in
2021 and the forecast years.

Supply chain

General trends affecting

management

the industrial automation

Product innovationequipment market
Source: Omdia

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Information Classification: General© 2021 Omdia© 2021 Omdia

Southeast Asia Manufacturing Event Survey – Participant summary

AI roadmap in global manufacturing• The use of “big data” and ML has begun to allow businesses and enterprises to develop solutions for increasingly complex applications. Historically, AI’s use cases have been focusedon applications that have core value for specific industries. However, creating a strategy for introducing AI requires investments in underlying capabilities and a roadmap for
deployment.

AI’s challenges

Omdia outlines the key challenges and roadmap for AI implementation in manufacturing

Identify need

Scalability: Is the solution
scalable?
Go to market: Is there a clear
vision to the market?
Measure: What are themetrics for defined success?

Build: Proof of concept on alimited dataset
Evaluate: Prove validity toensure ROI

DataselectionRun
simulation

Curate: Centralize datagathering
Transform: Data is cleaned
and refined for furtheranalysis

Visualization

Report: Bring solutions to life
using end user accessible
tools
Visualize: Dashboarding

Information Classification: GeneralAIuse case
Data

Deployment

Iterate: Maintain andimprove models throughout
timeline(Leveraging qualitydata)

Infrastructure(Cloud interface and IIOT)

Capability(Engineering, expertise, and strategy)

Internal functions(HR, internal business operations, and regulations)© 2021 Omdia

Source: Omdia

Page 5

Diligence

Value ROI

Cost of implementation

Identify: Customers andcrucial business processes
Impact: Ensure that problems
are challenging and havebusiness and commercialimpact© 2021 Omdia

Southeast Asia Manufacturing Event Survey – Participant summary

Global machinery production market overview
Top Machineries by Production Revenue• China, the US, France, and Germany were some of the best-performing countries during
April and May 2021 as many manufacturers reported a rebound in orders.
• Although the reported market growth sentiment is currently very high, Omdia
maintains a conservative forecast for market growth in 2021 because of concerns overa misalignment between actual demand and orders.

Machine Tools

Robotics• Key factors toward marginally revising upward in the forecast:– An improving global economic landscape, compared to the start of 1Q21.
– Increased confidence from OEMs.
– Orders look to be inflated in 2021. Omdia sees panic buying, “getting in line,” andfilling backorders from 2020 as the main reasons for this.
– However, as lead times are increasing because of component and logistics
constraints, Omdia expects a larger jump in revenue in 2022 when orders arefulfilled.

Materials
Handling

Semiconductor

Food &Beverage

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Information Classification: General© 2021 Omdia

Southeast Asia Manufacturing Event Survey – Participant summary

Asia & Oceania: analysis
Global consumer demand reboundA strong rebound in global consumer markets, particularly the US andWestern Europe, continues to drive manufacturing export growth in theregion, supporting continued growth in orders and high levels of investment
enthusiasm.

Rest of Asia & Oceania’s market scenario impact matrix

Level of impact

Economic reforms andgovernment initiatives

Increased
digitalization andinvestment intransformativetechnologies

Industrialization andurbanization inemerging economies

Supply chain shortageand rising raw
material prices,energy crunch

Shift in manufacturingbase and supply chain
as a result of existing
trade conflict

Confidence in
consumer andbusiness sentiment

The progress ofvaccination programsand the increasing riskof the Delta variant

Chip shortage leads to uncertain market outlook
Chip shortage is one of the big factors influencing the regional automation
market, especially for countries where automotive industry is the mainstay.
On the other hand, the chip shortage will also lead to an influx of moreinvestment in the regional semiconductor industry.

Volatility of global
crude oil prices

Supply chain shift temporary
increasing threats of the spread of Delta variant in South-Eastern Asia willcause a shift in the supply chain within the region, in which manufacturing
activities (especially for semiconductor and electronic products) will beramped up rapidly in less affected countries like China or South Korea.

Consumer priceinflation

Manufacturing hub
In the mid-to-long term, due to companies intending to avoid the impact oftrade friction between China and the US, South-Eastern Asia is still thepreferred manufacturing hub for manufacturers, which increases
investment and creates opportunities for the market.

Level of uncertainty
Source: Omdia

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Information Classification: General© 2021 Omdia© 2021 Omdia

Southeast Asia Manufacturing Event Survey – Participant summary

Malaysian and Indonesian machinery production markets
Malaysia : Top 4 Machinery Produced in 2021

Indonesia : Top 4 Machinery Produced in 2021

17%
45%

24%
7%
5%

51%

13%

26%

9%
3%

Semiconductor

Materials Handling

Packaging

Source: Omdia

PV

Other Machineries© 2021 Omdia• Malaysian machinery production market was worth $3.7bn in 2021 (excluding PV andwind).
• Malaysia is the end user of machinery whereby most of the machinery used in themanufacturing sector is imported.
• On the merit of having a large pool of skilled labor, robust logistical infrastructure, andgood trade ties, Malaysia’s machinery production prospects are growing with a 2020–
25 CAGR of 3.2%, despite the prolonged lockdowns. As global trade recovers alongside
the boom of the semiconductor manufacturing sector, Malaysia is well-positioned to bea prosperous manufacturing hub for years to come by gradually shifting from a user ofmachinery to a builder.
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Information Classification: General© 2021 Omdia

Materials HandlingPackaging

F&B

Agriculture

Other Machineries

Source: Omdia© 2021 Omdia• Omdia’s preliminary data shows Indonesia’s machinery production market wasestimated to account for less than 10% of Southeast Asia’s machinery production
market in 2020.
• Indonesia is a green field market with huge potential for industrial automation vendors
and machine builders. The country is still considered to be in the end user market whenit comes to machine building. It is estimated that over 80% machinery used in
manufacturing are imported.
• Indonesia mainly produces lower end machineries to be supplied to Tier 2
manufacturing activities in the Food and Beverage and Automotive sector.

Southeast Asia Manufacturing Event Survey – Participant summary

Read more…
Click on a technology to read more about the scope and coverage of our research in other related markets

Page 9
Information Classification: General

Medium Voltage Drives

Low Voltage Drives

Generators

Industrial Automation Market Viewpoint

Low Voltage Motors

Medium Voltage Motors

Motors & Drives Vertical Applications

Motion ControlsIE4 Motors

Industrial IoT, Software and Communications© 2020 Omdia

Omdia intro

Page 10© 2021 Omdia

ConsultingOmdia is a leading provider of intelligence, industry
forums and marketing services to the technology

industry.

Industrials

IIOT & 5G

Machine Vision

Page 11© 2021 Informa

Softwareand services

Southeast Asia Manufacturing Event Survey – Participant summary

Bringing together a global technology and communications market capability
August 2016

June 2018

July 2018

January 2019

August 2019

February 2020

Media platform LightReading and specialist
research firm Heavy
Reading acquired

Global exhibitionsbusiness with marquis
tech assets acquired

Specialist researchfirm focusing on AIand emerging techacquiredInforma Techestablished

Majority of IHS
Markit’s technology
data and researchbusiness unit
acquired

New Research & Databusiness launched

Informa’s TMT data,
research and advisorybusiness unit

Informa’s TMT event,media and training group

Page 12
Information Classification: General© 2021 Omdia

Southeast Asia Manufacturing Event Survey – Participant summary

13

Capabilities- From Market to Marketing
Market sizing
Identify new markets, strategize for growthand prioritize investments

Customer, competitor & regulatory analysis

Identify

Identify market share and customer needs

Assess strengths & weaknesses
Identify sources of differentiation

Growth strategy
Overcome current and future challenges
to realize goals for expansion

Thought leadership & positioning
Counter competitive threats and demonstrate
your position as a leader

Position

Go-to-market & market entrant
Launch a new product or service and expand
reach in the telco market or a particularregion

Demand generation
Drive awareness and interest in your products and/or services

Lead generation & lead nurturingGenerate MQL leads from your target audienceand guide leads through the buying process

Sales enablement
Provide your sales teams with the information,content, and tools to help them sell more effectively

Account penetration
Drive additional revenues from existingclients using an Account Based Marketing strategy
Information Classification: GeneralAmplify

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