IoT enables US$3.7tn savings in ASEAN manufacturing sector

McKinsey reports that IoT can generate up to generate savings of up to $3.7 trillion per year by 2025 in the ASEAN manufacturing sector
McKinsey reports that IoT can generate up to generate savings of up to $3.7 trillion per year by 2025 in the ASEAN manufacturing sector

The Association of Southeast Asian Nations (ASEAN) has created an ICT Masterplan 2015, which it expects will generate savings in manufacturing of up to US$3.7 trillion per year by 2025.

The ASEAN ICT Masterplan 2015 is supported by the ASEAN Smart Network Initiative, which were both established to promote the creation of a ‘smart region’ through the deployment of IoT technologies – advanced meter infrastructure and smart grid tech included.

The development of an ASEAN ‘smart region’ can be attributed to Southeast Asia’s “economic renaissance, growing middle class and significant digital development.”

The region’s manufacturing sector is one that is poised for great gain with the growth of IoT technology.

Multinational management consulting firm McKinsey estimates that IoT in manufacturing has the potential to generate savings of up to US$3.7 trillion per year by 2025.

Investment in smart grid

Southeast Asian countries will reportedly invest a total of US$13.6 billion in smart grid infrastructure between 2014 and 2024.

Utilities in the region, such as Malaysia’s Tenaga Nasional Berhad (TNB) and the Energy Market Authority (EMA) in Singapore have large-scale plans underway to transform its grid infrastructure.

Tenaga Nasional Berhad has conducted the nation’s first Advanced Metering Infrastructure (AMI) smart grid in Malacca.

The Energy Market Authority is also working toward developing its own smart grid infrastructure. The EMA is seeking to transform the city-state into a smart city and living lab – testing electric vehicle and microgrid technology.

IoT in manufacturing

Of the projected savings in the manufacturing sector, as a result of the integration of IoT technology, half of the savings will generated from operational optimisation, where manufacturers are now able to monitor and make real-time enhancements to their production process.

A number of international partnerships have already shown results.

In Thailand, global IoT platform provider Jasper and 4G LTE mobile connectivity provider TrueMoveH, established a control centre in Thailand, providing businesses with automation and intelligence to accelerate development in automotive, fleet management, smart cities sectors.

Other developments include the opening of a manufacturing and integration centre in Singapore, set up by Emerson Process Management providing analytical technologies used in the oil and gas production and petrochemical industries.

Industry Week adds that: “The Centre of Excellence will enable companies to remotely perform data collection, analysis and consulting, thus helping process manufacturing industries save on costly training and maintenance procedures, while also improving productivity.”