Courtesy: Rockwell Automation
Manufacturing around the world has undergone a significant transformation with the emergence of artificial intelligence (AI) and machine learning. With dynamic market conditions and pressures to optimize operations across the supply chain, more businesses today are turning to technology to meet the demands of an increasingly competitive market.
To get a better understanding of the smart manufacturing landscape and how manufacturers are leveraging these new technologies, the latest edition of the State of Smart Manufacturing report (SOSM) surveyed more than 1,500 manufacturing decision makers across industries from 17 countries, including Asia Pacific nations Australia, China, India, Japan, New Zealand, and South Korea.
Now in its 10th edition, the report offers a global perspective on today’s challenges and tomorrow’s opportunities, highlighting how smart manufacturing and emerging technologies are fostering resilience and shaping the future.
How AI is Challenging the Status Quo in the Asia Pacific
Rich in resources with the resilience to constantly adapt and innovate, Asia Pacific (APAC) is setting the pace for manufacturing and industrial growth around the world. There is strong digitization momentum across the region, as AI and smart manufacturing technologies are no longer buzzwords but have become mission-critical to drive quality, agility, and growth.
This year’s survey is proof that the focus has shifted from experimentation to execution, where more manufacturers have adopted a tech-first mindset. Nearly half of manufacturers are already scaling AI to address workforce gaps, cybersecurity risks, and evolving sustainability targets, and APAC organizations investing in generative and causal AI increased 10% year-over-year.
The growing maturity in how businesses view AI is noticeable, moving towards becoming a strategic enabler rather than a supplementary tool. Trust in AI has deepened, with 41% of those surveyed in APAC having plans to increase automation in the workplace to address workforce shortage and bridge the skills gap. Organizations are no longer primarily using AI for predictive maintenance. They are now leveraging these capabilities for other, more sophisticated, autonomous operations such as quality assurance and adaptive control, which help to reduce human error and enhance real-time decision-making.
AI in Cybersecurity
With the rapid adoption of digital technologies, cybersecurity has become a growing concern across industries, including manufacturing. Globally, it now ranks as the second most significant external obstacle for manufacturers. In the APAC region, cybersecurity is top of the list, alongside inflation and rising energy costs.
In response, businesses are accelerating their use of AI, adopting smart manufacturing technologies to digitize operations, and upskilling existing talent to stay competitive and minimize cybersecurity risks. They are also hiring with new priorities, whereby cybersecurity skills and standards have become an in-demand capability.
Understanding the need for secure-by-design architectures and real-time threat detection capabilities, Rockwell Automation has developed a series of threat intelligence and detection services, helping manufacturers to stay ahead of the evolving cybersecurity frameworks and industry standards.
Transforming the Workforce with AI
Alongside AI, the workforce, too, is evolving. Just as AI can support business needs, it requires a skilled workforce to adapt these technologies to deliver real business value. Manufacturers across APAC are looking to AI to increase automation and make workflows more efficient, while looking for employees with strong analytical thinking skills to take on more value-added tasks. While challenging, the SOSM report reveals that the need for more skilled workers is not a uniquely regional issue but a global concern, affecting industries in both developed and emerging markets.
On the upside, the skills gap in APAC has narrowed slightly from the previous year, with only 29% of respondents in 2025 citing skills gap as a challenge compared to the 31% in 2024. This suggests that investments in talent development and education are beginning to pay off.
Delivering More Sustainable Business Outcomes for the Long Run
As an industry, manufacturing consumes lots of energy. As manufacturers across the region become more invested in their ESG goals, they are driven to improve business efficiencies in pursuit of sustainability and resource conservation. Over half (55%) stated that improving efficiencies is the top reason to pursue better sustainability, up from 39% last year. By improving workflow efficiencies through automation and technologies like AI, businesses are saving on business costs while supporting better energy management.
As the 2025 State of Smart Manufacturing report shows, AI is no longer a distant promise for the Asia Pacific—it is a powerful catalyst actively reshaping how the region builds, protects, and grows. From strengthening cybersecurity and elevating workforce capabilities to enabling smarter energy use and more sustainable operations, APAC manufacturers are demonstrating what it means to move from digital ambition to digital action.
With technology adoption accelerating and confidence in AI deepening, the region is well-positioned to define the next era of global manufacturing. Those who continue to invest in talent, innovation, and secure, future-ready systems will not only overcome today’s challenges but also lead the transformation of industry for years to come.
