Key industries driving Asia-Pacific’s manufacturing boom
Asia Pacific's manufacturing sector is experiencing structural transformation driven by post-pandemic geopolitical realignments and supply chain diversification. Companies are reorganising their supply chains and adopting "China+N" strategies, adding manufacturing locations and hedging against supply chain disruptions by reducing reliance on a single country. In addition, geopolitical shifts such as the U.S. tariffs and regional trade agreements including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Regional Comprehensive Economic Partnership (RCEP) continue to influence the regional manufacturing landscape.
The region serves as the world’s largest manufacturing hub, and continues to expand its manufacturing capabilities. APAC's manufacturing specialisation varies significantly by market, with China and India leading in pharmaceuticals while Taiwan and South Korea dominate semiconductors.
Key Insights
- Semiconductors:
APAC accounts for over 60% of global semiconductor revenue, with Taiwan's TSMC controlling 67% of foundry market share and South Korea’s Samsung and SK Hynix leading in memory chip production.
- Automotive:
Battery EV car sales achieved 63% CAGR from 2020-2024 in APAC, with China's BYD being the top EV manufacturer globally with 24.7% market share as of 2024.
- Pharmaceuticals and Biotechnology:
China supplies 40% of global active pharmaceutical ingredients while India accounts for 32% of APAC's pharmaceutical export value, with regional revenue projected to grow at 6.7% CAGR from 2024-2028.
- Renewable Energy Equipment:
APAC holds 53% of global installed renewable capacity, with 74% of new global renewable capacity additions in 2024 coming from the region.
Download our full report today to discover how these four key industries are reshaping APAC's manufacturing sector and driving demand for next-generation industrial facilities.