GITEX ASIA Underscores the Seismic Shifts in Industrial Development in Southeast Asia

From April 23–25 , GITEX GLOBAL hosted its first ever “GITEX ASIA x AI Everything” in Singapore. Historically, GITEX has been hosted in Dubai and focused on Information Technology (IT), but has now diversified into multiple sectors such as Artificial Intelligence (AI), 5G, cloud computing, cybersecurity, and blockchain, among others. The arrival of GITEX reflects the shifting technology and market drivers in the tech sector. The organizers reported that 700 global tech enterprises and startups from over 70 countries participated in the event. Singapore was selected not just because it is a major travel hub for the Asia-Pacific region, but as it is also the third largest by total Gross Domestic Product (GDP) in Southeast Asia. Southeast Asia has witnessed sustained and accelerated economic growth and industrial and societal development. According to the International Monetary Fund (IMF), the region has seen significant growth in GDP from US$3.1 trillion in 2020 to almost US$4 trillion in 2024.

A number of smart enterprise themes were explored at the event, but three prominent topics were: 1) smart manufacturing; 2) ultra-fast and robust connectivity; and how that then enables 3) AI integration. During a panel, “How Manufacturing is Embracing AI, Innovation and Adaptability,” which ABI Research’s Jake Saunders, VP – Asia, had the privilege to moderate, Singtel and Ericsson discussed how their collaboration was helping manufacturers streamline processes, increase efficiencies, and incorporate AI to support more agile workforce and production processes. During the panel, Singtel discussed its Paragon solution, which is an all-in-one orchestration platform for 5G, edge computing, and cloud services. Using private cellular deployment solutions like Paragon, enterprise customers can set up their own private cellular networks that allow for real-time network slicing and select from a range of add-on 5G Application Programming Interfaces (APIs) and services, such as video analytics, streaming, personnel safety systems, and robotics.

Additionally, Ericsson stressed that Communication Service Providers (CSPs) need to go beyond 5G Non-Standalone (NSA). They need to go beyond the mindset that “we have 5G coverage in place” and look toward implementing 5G Standalone (SA) that enables greater core network functionality. For many of these 5G value-added services, the core network needs to support additional functionalities such as User Equipment Route Selection Policy (URSP), which allows devices to switch between network slices based on the application they are using, Access and Mobility Management Function (AMF), User Plane Function (UPF), and Policy Control Function (PCF), that help orchestrate and manage the end-user experience.

Integrating and merging AI functionality into the “operational fabric” of the smart factory is widely anticipated. For more than a couple of decades, industrial robots have been rolled out into factory spaces to take on simple and repetitive tasks. However, there is opportunity for these industrial robots, especially collaborative robots (cobots), and even humanoid robots, to perform complex and adaptive operations to enable smarter, faster, and more resilient production lines.

However, for these cobots to be fully functional, they will need to leverage “advanced sensor fusion” capabilities. The manufacturer’s edge server will often need to process data from Light Detection and Ranging (LiDAR), ultrasonic, and pressure sensors that allow cobots to map their surroundings so they can avoid collisions with factory personnel or obstacles. “Virtual safety zones” and the presence of AI-powered computer vision enable cobots to recognize objects in their immediate environment. Onboard Machine Learning (ML) algorithms allow cobots to iteratively learn and improve reliability over time.

Cobot sensor fusion functionality, alongside other mobile Industry 4.0 applications, such as asset tracking, predictive maintenance, and digital twin development, requires factories to have a robust 5G architecture in place. At the very least, 5G SA will need to be deployed, but enterprises, and indeed telcos, should evaluate the potential of 5G-Advanced to support their current and future needs. From ABI Research’s own studies into smart manufacturing, 5G’s capabilities to support the tracking and analyzing of the flow of product components, raw materials, end product output, personnel, and valuable equipment mean that other enterprise verticals, such as utilities, natural resource extraction, healthcare, and transportation, can also stand to benefit from similar cellular upgrade requirements from their existing telco.

Southeast Asia has been rapidly developing as a new manufacturing hub for many global organizations as major manufacturers aim to rebalance their manufacturing capacity inside China with complementary manufacturing capacity in other regions of the world. This is often referred to as the “China Plus One” strategy. The Southeast Asia region boasts a burgeoning manufacturing market, with several countries witnessing robust growth in Manufacturing Value Add n(MVA). For instance, in Malaysia alone, MVA has surged from over US$78 billion in 2020 to exceed US$93 billion by 2023. Based on our own research, spending on manufacturing software solutions and services is projected to soar from US$9.3 billion in 2024 to US$29.5 billion by 2031, representing a Compound Annual Growth Rate (CAGR) of 18%. The interest and committed investments in AI in the region are also telling. Several countries across the region have been formulating AI code of conduct regulations and spurring government and private initiatives to promote AI adoption and integration. ABI Research forecasts that Southeast Asia enterprise spending on Business-to-Business (B2B) AI solutions will grow to US$3.2 billion by 2028 with a CAGR of 13.7%.

This accelerated development of AI applications and innovative manufacturing processes are promising, but network connectivity, both private cellular and wide area coverage, needs to deliver robust connectivity and API support. Many Southeast Asian countries still need to increase their investment in more advanced 5G coverage, capacity, and capabilities.