The rise of Industry 4.0 lays out opportunities for South-east Asian manufacturers

CONSTANT technological innovation is a hallmark of the industrial era. The first industrial revolution brought mechanisation, steam and water power to the Western world in the late-18th to early-19th centuries. Since then, global manufacturing experienced two more seismic advancements during the second (assembly lines and mass production) and third (automation and information technology) revolutions.

Today, manufacturing has begun its move into the fourth revolution, Industry 4.0. It is, in short, the modern era of automation. Achieved through enhanced connectivity and communication between cyber-physical systems, the Internet of Things (IoT) and the Internet of Systems (IoS), Industry 4.0 will have a wide-ranging impact on businesses that properly harness its potential.

McKinsey says Industry 4.0 could generate productivity gains of between S$294 billion and S$853 billion (US$216 billion and US$627 billion) in Asean.