Digital innovation in APAC is likely to expedite despite the COVID-19 crisis

The technology revolution has brought significant digital transformation not only in the corporate world, but also across regions and countries. As the proliferation of advanced technology leads to digital innovation, the Asia Pacific region is the house of some of the world's greatest and innovative companies. According to reports, 60 percent of the world's population lives in the region. In 2019, the region was home to 48 percent of the mobile internet user that is forecast to reach 61 percent by 2025.

When it comes to digital transformation, Asian consumers are increasingly using digital technology against their peers. In a blog, Bosch noted that Asia is home to a growing number of technology giants. It found that Asia's top ten smartphone brands accounted for 69 percent of global handset sales in 2014. Though there are multiple factors driving digital impact in APAC, what will the future of IT and digital innovation in the region look like in 2021 and beyond?

Here is the list of top IT predictions in the Asia Pacific everyone should look in the new year.

Asia will be 5G Epicenter

Today, the world is racing to lead 5G supremacy to become a global digital leader. In APAC, reports show that there are the world's most mobile users and mobile operators in the region are predicted to spend over US$400 billion on their networks through 2020 to 2025, with US$331 billion on 5G deployments. A report from Frost & Sullivan estimated that 50 percent of the total global 5G connections will be in the APAC and the U.S by 2025. There is no wonder that 5G will provide low latency, high throughput and faster connectivity compared to previous network bandwidth.

AI Developments in APAC

The relentless progression of artificial intelligence will define businesses in the Asia Pacific. The region is expected to emerge as the global leader in AI development. This is largely credited to the significant and robust AI policies many countries in the region have in place. For instance, Japan's Artificial Intelligence Technology Strategy seeks to harness the power of AI in industrialisation and manufacturing, while China is currently developing the first new generation of AI development plan. India also has its own National Strategy for Artificial Intelligence, which is focused on five key areas including agriculture, mobility, healthcare, transportation and urban/smart-city infrastructure.

Industry 4.0 and Smart Factory

Manufacturing is one of the sectors that leads to a nation's economic growth. As the COVID-19 pandemic hit the world, its large impact has had on the manufacturing sector. Automotive and industrial equipment companies in the Asia Pacific faced significant disruption in their industries. The support from governments in Asian countries has lifted the industry again, helping new industries to develop proactively in order to support this development. Many manufacturing companies are now investing in technologies to drive digital transformation. Besides, governments are also promoting and supporting the Industry 4.0 revolution, while encouraging entrepreneurs and SMEs to create innovative products by using robotics, AI and big data analytics. This trend is expected to continue in the coming years.

Adoption of the Cloud-First Approach

Cloud computing has become an essential infrastructure for today's enterprises. Driven by multiple digital transformation initiatives in the world, its adoption has witnessed a massive uptake in recent five years. According to Forrester, CIOs in APAC will increasingly embrace cloud-first and platform strategies for speed and adaptiveness. In 2021, 30 percent of firms will continue to stimulate their cloud spending, with investment in security and risk, networks, and mobility.

Surge of Digital Platforms

The Asia Pacific is the home to some of the largest digital platforms. Countries in the region, especially India, are expected to intensify this platform battle. For instance, Reliance's Jio Platforms has already blazed the trail with an over US$20 billion investment in their digital business, as noted by Ashutosh Sharma, vice-president and research director at Forrester. Tata company has also jumped into this battle with an announcement of its super app. Similarly, in China, Alibaba, JD.com and Pinduoduo, and in Southeast Asia, Gojek, Grab, and Shopee will be vying in their respective regions to win digital customers.