The region of Southeast Asia (Mar) has a flourishing manufacturing market, with countries that witness a robust growth in the manufacturing value (MVA). For example, the MVA of Indonesia increased from more than US $ 206 billion in 2020 to exceed US $ 230 billion by 2023. according to Abi researchIt is projected that a global technological intelligence company, spending on solutions and manufacturing software services will rise from US $ 9.3 billion in 2024 to US $ 29.5 billion by 2031, marking an impressive annual compound rate of 18%. This growth trajectory presents substantial opportunities for manufacturing software solutions that seek to capitalize on the expanding maritime market.
“The Southeast Asia continues to represent a prosperous center for manufacturing, offering lucrative opportunities for companies that seek to move to the region,” he says Matthias Foo, ABI Research Senior Analyst. “It is likely that this trend persists in the coming years, especially because countries, such as Thailand, record record investment numbers in 2024, which cover industrial verticals, including electronic and appliances, automotive, food production and petrochemical and chemical industries.”
Strong growth is also driven by positive government initiatives, such as the Eastern Eastern Corridor of Thailand and the various economic zones of Vietnam. Both offer corporate tax incentives to investors, a key factor. In addition, competitive labor costs, political stability and rapidly growing economies are also notable strengths of the Southeast Asian region.
Despite the general growth, manufacturers in the region face new challenges, such as the increase in the costs of entry of raw materials, the increase in labor costs and the strong competence of other large manufacturing nations such as China. As a result, manufacturers within the sea, particularly small and medium -sized companies (SME), are experiencing a sxing on profit margins and face maintenance problems of their existing commercial models. Digitization is increasingly seen as an important factor to improve productivity, reduce costs and increase competitiveness.
Among the various factors, cloud technology stood out as one of the critical capacities that could transform the regional manufacturing market. In particular, the subscription models (SAAS) are expected to be cloud based on the adoption of digital solutions, especially among SMEs. “Although growth, the adoption of the cloud throughout the region remains low, since local deployments continue to invent most software income. However, here there is great growth potential since the nations of the sea extract of aggressive fiber deployment plans, such as the initiative of Jendela de Malaysia and the solutions of the Thailand cloud Nationals.
These findings are the income of the ABI Research manufacturing software in the Southeast Asian market data report. This report is part of the research services of the digital transformation of Southeast Asia and the manufacture of the company, which include research, data and ABI Insights.
