IDC Asia Pacific Reports Asia Pacific Manufacturing Spend Excluding Japan to Grow at 4.8% CAGR
According to the new “IDC Manufacturing Insights Spending Guide“, manufacturing spending in the Asia/Pacific region excluding Japan (APeJ) will grow at 4.8% compound annual growth rate (CAGR) for the 2015-2019 period.
The perspective titled “Asia/Pacific (Excluding Japan) Manufacturing IT Spending 2015–2019 Forecast Perspective” published along with the pivot table analyses the market dynamics in specific countries. China is expected to undergo waves of automation and digitization due to inflation of wages and given its focus on making manufacturing world-class according to its visionary ‘Made in China 2025″ initiative. The shutdown of the automotive industry in Australia will have a negative impact on the IT spending in this sector. ‘Make in India’ and its associated policies is creating interest in supply chain management making it the top area of growth replacing ‘security’ due to the expected passing of Goods and Services Tax (GST) bill in 2016. Singapore is becoming a ‘connected society’ improving the day-to-day lives of citizens.
The report provides other country highlights in the Manufacturing Spending Guide, namely:
• China will see an 8.5% year-on-year growth in software spending due to government initiatives such as Industry 4.0 and Internet Plus integrating IT with manufacturing. 46 pilot projects proposed by the ministry will focus on innovation to implement smart manufacturing.
• Australia will see a 5 year growth of 2.7% in manufacturing IT spending, slowed down primarily because of the auto industry shut down.
• Supply chain management will be the most growing area in Indian manufacturing with close to 14% CAGR between 2015 and 2019, in areas such as modern warehouses, improved logistic services and new software applications to operate them and integrate with the rest of the ecosystem.