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.