South Korea Advanced Manufacturing - Industry - Market, Share and Trends 2023-2028

Summary of Advanced Manufacturing

Known for advanced manufacturing in areas like electronics, automotives, industrial machinery and shipbuilding, South Korea has cultivated key strengths in high-tech production. The country possesses the highest industrial robot density globally after Singapore given an embrace of precision automation.

This stems from strategic government roadmaps focused on Industry 4.0 adoption to drive quality and efficiency. South Korea has also proven adept at rapidly emulating manufacturing innovations from leaders like Germany and Japan.

The country is also exploring AI applications in predictive quality control, inventory optimization and autonomous material handling. Startups are collaborating with industrial giants on Industry 4.0 projects. According to our estimates – we can say that the advanced manufacturing industry in South Korea is forecasted to be a $ 10.08 Billion industry in 2029 from $ 6.72 Billion in 2023 with a CAGR of 7 %.

However— the country faces challenges around a structural reliance on large conglomerates like Samsung and Hyundai – which dominate production. The startup and SME ecosystem required to nurture emerging technologies is still developing. South Korea also spends relatively less on R&D compared to manufacturing peers. Exposure to trade tensions between partners like – China and the US poses risks as well.

Recent Trends and Insights

South Korea is channeling Germany’s Industrie 4.0 plan with extensive smart factory investment across electronics, automotive and machinery production. 5G connectivity, virtual/augmented reality simulations and digital twin models are being aggressively piloted to enable data-driven manufacturing.

The key to sustaining economic growth and surviving global competition is to develop advanced manufacturing systems technology. These systems would make a significant contribution to reducing lead-time, increasing flexibility, and enhancing products and services.

South Korea has long been strong in heavy sectors such as: shipbuilding, offshore vessels, heavy equipment and machinery. Hyundai Heavy Industries, Samsung Heavy Industries and DSME are among the industry’s global leaders.

More recently the industry is moving towards manufacturing low emission vessels, floating wind farms and specialised offshore vessels. The industry is also shifting towards a net-zero carbon waste journey.

However— risk-averse corporate cultures focused on hardware and infrastructure over software and analytics pose adoption barriers. Workforce aging and shortages of high-tech skills like AI and robotics also constrain technology absorption. But rising wages make human-robot collaboration and automation imperative.

Product Insights

South Korea possesses advanced production capabilities in high-value areas like semiconductors, consumer electronics, electric vehicle batteries, industrial robots and marine engines. The focus centers on precision component manufacturing and tight hardware-software integration. Samsung, LG, Hyundai and SK dominate the landscape with some emerging startups like Doosan Robotics rising.

South Korea relies substantially on imported core technologies like hi-tech semiconductor equipment, AI platforms and specialized robotics. Localization lags global leaders. But the country’s hardware excellence, equipment infrastructure and automation experience support cutting-edge manufacturing.

ICT and electronics are one of the biggest manufacturing products in Korea – with huge companies like: Samsung and LG dominating the market. These companies have been able to branch out their manufacturing base outside of Korea, for example Samsung has established two major plants in Vietnam that now produce a third of the company’s global production.

Following years of robust economic expansion, South Korea’s construction sector has evolved into a world-class business. Korean EPC firms are involved in important local and international residential, infrastructural, plant and commercial projects. The sector is now in a recession phase, but it is expected to rebound between 2023 and 2025.

Key companies

Some major players within this vast domain of industry are:

• Samsung Electronics
• LG Electronics
• Hyundai Motor
• Kia Motors
• Hyundai Heavy Industries
• Samsung Heavy Industries
• DSME
• ASTRON
• AUROS Technology
• ABOV Semiconductor Co., Ltd.

Country Analysis

South Korea’s strategic approach to roadmap-based … industrial development, extensive engineers talent pool, and rapid emulation of overseas innovation trends have positioned it as a manufacturing leader across critical sectors. Government and corporate investments in demonstrating Industry 4.0 capabilities also showcase promise.

In 2017 – the private and public sectors of Korea decided to increase the number and volume of domestic smart factories – with a goal of having more than 30,000 such factories operating with the latest digital and analytical technologies by 2025.

Korea’s Ministry of Trade, Industry and Energy (MOTIE) has led to the government to reaffirm its plans to assist small and medium-sized businesses in adopting and expanding smart industrial technologies.

More than 99 percent of companies in Korea are small and medium-sized businesses and government data shows that exports from SMEs continue to increase. The government will support the idea of helping to train 40,000 skilled workers to operate fully-automated manufacturing sites through various educational programs, while diversifying support.

Market segmentation

By Type:

• Additive manufacturing/3D printing
• Automation/robotics
• Industrial internet of things (IIoT) and industrial analytics
• Plant asset management (PAM)
• Manufacturing execution systems (MES)
• Industrial controls

By End user:

• Manufacturer and Retailer
• Distinct industries like automotive, aerospace, electronics
• Process industries like oil & gas, chemicals, pharmaceuticals
• Energy and utilities
• Food and beverage

By Enterprise Size:

• Large Industries
• Small & Medium Industries

Our Methodology

We have offered a well-founded review of South Korea’s advanced manufacturing market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.