Why SaaS Vendors Should Focus on APAC Discrete Manufacturing IIoT Market

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A recent report from the International Data Corporation (IDC) sees tremendous growth in the Industrial Internet of Things (IIoT) discrete manufacturing applications. Titled “Upcoming Trends in Internet of Things Retrofitting for Smart Manufacturing in Asia/Pacific,” the report projects that by 2026, global suppliers will be shipping more than half of all IoT devices to the Asia Pacific. This will radically change the region’s industrial landscape according to the report.

IIot in discrete manufacturing refers to putting new installations or retrofitting IIot on outdated machinery. Manufacturers see many benefits from upgrading old machinery to meet Industry 4.0 standards. For one, this reduces the need to acquire new facilities. It also extends the life of company equipment and assets.

Moreover, modernizing manual manufacturing processes to smart processes using IIoT helps boost efficiency and production. This can translate to better factory safety and increased ROI. Smart processes also enable the use of data analytics for transparent and data-driven decision-making. According to IDC, nearly one-third of all IoT spending in 2020 in the Asia Pacific was directed to the manufacturing industry. These consisted of hardware, software, services, and connectivity.

Drivers of Market Growth

One of the key drivers of IIoT implementation is cybersecurity. According to the report, “manufacturing is the most common target of infrastructure cybercrime today, accounting for one-third of all assaults.” With IoT SaaS platforms and connected devices, manufacturers can automate security and monitoring.

“Most traditional manufacturing plants were not built with cybersecurity in mind. With the advancement of hacking technology, every point of connection increases the danger of cyberattacks and cybercrime, which can result in interference, remote access, intellectual property theft, and data loss or change,” said IDC Senior Market Analyst for IoT Insights, Piyush Singh.

Another factor that will boost market growth is rising competitiveness and consumer expectations. Manufacturers must leverage technology to deliver improved products. Smart manufacturing capabilities also help them remain agile and keep up with changing customer demands.

SaaS Applications in Discrete Manufacturing

Powerful software products help efficiently manage IIoT communication. SaaS plays an important role in this technology.  Companies often use multiple software solutions for manufacturing and integrate them to serve their specific workflow requirements.

For example, businesses can use enterprise resource planning (ERP) software to handle supply chain management. They can also implement ERP for material requirements planning, bill of materials, and product lifecycle management. ERP software can also include modules. A module for business process management (BPM), for instance, helps businesses automate repetitive tasks.

Another popular SaaS application for manufacturing is warehouse management software. This app supports manufacturing companies in day-to-day processes in the warehouse. A typical warehouse management software will have tools for inventory management, from shipping to receiving, packaging, and pick up. Thanks to technological advancements, these tools often provide real-time updates and can be integrated with a company’s ecommerce platform.

Aside from software dedicated to production processes, manufacturing companies also rely on business-specific apps. Customer relationship management software (CRM), for example, handles sales, service, and marketing activities. Meanwhile, collaboration software is a necessity for most companies, especially for remote and hybrid work.

Based on the IDC report, manufacturing firms would increase their adoption of IIoT; thus we can also expect an increased demand for SaaS apps in this sector. Manufacturers will be high-demand users of SaaS not just for their IoT installations but also for critical business operations.