The metallurgy industry continues to strengthen globally, with worldwide forecasts for metallurgical equipment market value pegged at US$131.3 billion by 2030, a 3.2% compound annual growth rate (CAGR) from 2024 to 2030.1

The Asia-Pacific (APAC) region is likely to contribute significantly to this growth. The region, already one of the largest producers and consumers of metallurgy products and services in the world,2 is expected to see the most growth globally from 2024 to 2030 due to the number of high-tech manufacturing hubs it hosts, particularly for defense, aerospace, automotive, and electronics.3

A drive to industrialize and urbanize in APAC is creating significant demand for metallurgy design institutes and metallurgical equipment manufacturers, leading to recent developments such as:

• SteelAsia Manufacturing Corp. partnering with the world’s largest steel producer, China’s Baosteel Group, to build a P108-billion integrated steel facility in the Philippines.4

• Tata Steel commissioning India’s largest blast furnace at Kalinganagar, Odisha. The Phase II expansion will take the total capacity at the site from 3 million tonnes per annum (MTPA) to 8 MTPA.5

• An agreement between Fives Group and China Baowu Steel Group to continue cooperating on smart manufacturing, low-carbon metallurgy and digital development.6

While manufacturing activity in the region has been increasing, the sector is often disrupted by

market fluctuations, supply chain issues, and skills shortages. Overcapacity and price volatility have also been a concern for APAC metallurgy companies, shrinking profit margins.7 As global demand fluctuates and cheaper alternatives flood markets, metallurgy companies in this region have had to think hard about how they will compete globally and thrive in the long term. They are likely to stand out from the competition by adopting advanced technology when 7 in 10 companies still rely on spreadsheets to develop and run their factories.8

Three business priorities for change and growth Today, metallurgy companies in APAC are addressing these challenges through:

Fuel product innovation: How to capitalize on the latest technologies to power innovation. 1

2 Transform operations:

How to adopt better processes and build factories that improve

collaboration and efficiency.

Enhance sustainability: How to use data-driven insights to reduce consumption and waste to achieve better environmental impact.

3

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Unlocking Industry 4.0 in metallurgy Harnessing connected data and AI for smart manufacturing in Asia-Pacific

1 Metallurgy companies have a constant need to respond to their customers’ demands for increasingly advanced equipment, which typically leads to an ever more complicated product design and manufacturing process. The ability to have precise design and simulation is critical in order to reduce errors and design cycle time. Effective use of data and artificial intelligence (AI) can help cut through the complexity and automate the design process.

Infusing agility into product development

Creating a competitive edge with enhanced product designs while shortening time-to-market would allow metallurgy companies not only to meet evolving customer needs, but also to introduce new products before the competition does.

When it comes to agile product development, generative design can help metallurgy companies test ideas and push the envelope. It uses machine learning and automation to arrive quickly at the most competitive product design options. In tests, generative algorithms have come up with designs that reduced the costs of parts by 6-20%, part weight by 10-50%, and development time by 30-50%.9

Cutting down on non-value-added processes

According to Seagate Technology’s Rethink Data survey of global enterprise leaders, 68% of data available for automation and insights goes unused because it’s disconnected.10 With more effective product data management (PDM) through a centralized, cloud-based platform, product designers can access accurate design data and track design changes, ensuring that the entire project team works on the same version of the model while automatically maintaining an audit trail. This enables metallurgy companies to reduce human error and reuse data effectively.

Design automation, on the other hand, can be used to capture and reuse engineering knowledge and intent without knowing how to code, circumventing skills shortages. This approach automates error-prone, repetitive tasks to complete projects quickly. It helps designers free up time to focus on more high-value, rewarding work, designing better products.

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Fueling product innovation with AI

CASE STUDY: Baosteel Engineering & Technology Group Co.

When Baosteel Engineering & Technology Group Co.11 decided to bring design to the next level, it turned to a 3D CAD solution to improve the product development process. The technology has automated simple, tedious tasks so that Baosteel’s designers can concentrate on strategic thinking and creative ideas. Product development has been accelerated with better-quality products being introduced, strengthening Baosteel’s competitive advantage.12

2 The data that is captured in day-to-day operations by metallurgy companies can be harnessed to inform transformation strategies for both product and factory design, helping to increase efficiency, raise profits and productivity, as well as fulfil sustainability goals.

Metallurgy companies can boost their agility with a digital factory, which combines innovations like Building Information Modeling (BIM), digital twins, predictive maintenance, and generative design to achieve business goals.

BIM enables factory design and construction teams to reduce errors, minimize rework, and improve overall design quality through 3D visualization. Factory layouts can be simulated and optimized through highly-detailed, always-updated 3D models, for example.

Digital twins—virtual 3D representations of the factory—can further help metallurgy companies understand, predict, and optimize factory layouts for safety and efficiency before the ground has even been broken, and continue to predict equipment and facility performance after the factory is live. At Tata Steel, plant managers built a digital twin that helped the company increase throughput by up to 12%, for example.13

When unexpected downtime can cost manufacturers as much as US$50 billion a year,14 preventing breakdowns before they can happen can save metallurgy companies a significant amount. Deloitte found companies that predict asset replacement accurately can save up to 15% of operational expenditure and up to 8% of capital expenditure.15

In a digital factory, data is on tap for decision-making, whether it is historical data generated from planning and building or real-time data from the factory floor. This allows metallurgy companies to:

• Speed up equipment handovers by minimizing product defects and non-conformities.

• Reduce mistakes and rework, and lower unplanned downtime. Such benefits cut the cost of operations, which account for 80% of the lifetime cost of a factory.16

• Digital factories further enable flexible manufacturing. If supply-chain problems disrupt part supply, metallurgy companies can now pivot to making the part in-house or connecting with another manufacturer.

Increasing manufacturing flexibility

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Transforming operations with a digital factory

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Improving collaboration through Digital Project Delivery

Metallurgy companies can further connect live data from multiple disciplines such as BIM and geographic information systems (GIS) across people, programs and processes to enhance collaboration through Digital Project Delivery (DPD). The concept reduces rework, 52% of which is caused by poor data and communication.19 In fact, 55% of firms adopting DPD said their teams were able to take on additional capacity.20

Connected data ensures that collaboration is underpinned by the latest available data and all equipment is installed correctly, while production-line changes can be automatically propagated across the entire factory project instead of via manual replication.

CASE STUDY: ZETTERER

Mold maker ZETTERER21 made its project data available across international borders so that team members and clients around the world had data access throughout the design and manufacturing process. As a result, ZETTERER has reduced lead times and gained cost advantages.22

PwC found that companies investing more than 3% of their net annual revenue in factory transformation were 2.5 times more likely to achieve high returns than those who invested less than 2%.18

30% of surveyed manufacturers in one study said product quality improved after undertaking digital factory initiatives.17

3 Realizing sustainable manufacturing with data-informed insights

While metallurgy is known to be resource-intensive, with the steel industry responsible for 8% of global carbon dioxide emissions,23 APAC metallurgy companies are increasingly focused on sustainable development. Environmentally-friendly metallurgical processes and equipment are in demand, and represent growth opportunities for companies who can innovate and provide sustainable solutions.

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PwC found that 88% of companies in the industrial manufacturing and equipment sector are already measuring energy efficiency, and 76% are tracking greenhouse gas emissions.24 Developments in APAC include the Tohoku Region West Coast CCS decarbonization initiative in Japan, which counts Nippon Steel as one of its members.25

With connected data providing a single source of truth, metallurgy companies can measure resource consumption and waste in real time, make decisions about resource utilization, and demonstrate reduced environmental impact over time.

CASE STUDY: Joy Mining Machinery

Joy Mining Machinery, a leading manufacturer of mining equipment, wanted to accelerate time to market. The company implemented digital prototyping, which lets a team across five continents validate design concepts for ergonomics and safety before expensive steel is used in production. The company saw full ROI in under a year.26 A configurator tool cuts customization time significantly.27

Top Industry 4.0 trends impacting metallurgy To keep up with change, metallurgy companies must keep tabs on the latest trends to become more efficient and adaptable despite unpredictable market disruptions and demands.

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Additive manufacturing (3D printing) Create complex parts and prototypes quickly and cost-effectively. This trend facilitates rapid prototyping, customization, and on-demand production, reducing lead times and material waste. The APAC 3D printing market has an estimated value of US$29 billion in 2032, with India named as a hotspot for 3D printing worldwide.28

Industrial internet of things (IIoT) Use interconnected sensors, devices, and systems to collect and analyze data in real-time, enabling predictive maintenance, real-time monitoring, and the automation of processes, leading to increased efficiency and reduced downtime. IIoT is growing more popular in APAC, with market values forecast to be worth more than US$198 billion by 2029.29

AI and machine learning Optimize manufacturing processes, predict equipment failures, and enhance quality control. These technologies enable intelligent decision-making, automate complex tasks, and improve overall production efficiency. More than 50% of respondents in APAC have already moved past early-stage AI implementations, according to Autodesk’s 2024 State of Design & Make report.30

Advanced robotics and automation Automated systems are changing manufacturing. These robots work alongside human operators to perform repetitive or dangerous tasks with high precision, increasing productivity and safety. The industrial automation market is growing quickly in APAC, with the market estimated to be worth over US$136 billion by 2030.31

5 steps to set your metallurgy business up for success 1. Optimize equipment design using generative

design to increase product development agility.

2. Implement robust product data management and automation to reduce non-value-add processes.

3. Design your factory layout through 3D simulation to increase manufacturing flexibility.

4. Adopt Digital Project Delivery enabled by BIM to improve multidisciplinary collaboration.

5. Leverage data-driven insights to reduce resource consumption and waste.

Autodesk and the Autodesk logo are registered trademarks or trademarks of Autodesk, Inc., and/or its subsidiaries and/or affiliates in the USA and/or other countries. All other brand names, product names, or trademarks belong to their respective holders. Autodesk reserves the right to alter product and services offerings, and specifications and pricing at any time without notice, and is not responsible for typographical or graphical errors that may appear in this document.

1. Metallurgical Equipment Market Report 2. Asia Pacific Metal Processing Machines Market Set for Significant Growth by 2030 3. Metallurgical Equipment Market Report 4. SteelAsia, BaoSteel forge deal to build P108-B facility 5. https://shorturl.at/PCSMe 6. https://www.fivesgroup.com/newspress/detail-view/baowu-and-fives-group-long-term-cooperation 7. https://finance.yahoo.com/news/asia-pacific-steel-processing-market-083300813.html 8. https://manufacturingleadershipcouncil.com/seventy-percent-of-manufacturers-still-enter-data-manually-2-37141/ 9. How generative design could reshape the future of product development 10. Rethink Data 11. Autodesk customer story, Autodesk Inventor 助力宝钢 工程智能化设计进阶之路 12. Autodesk customer story, Autodesk Inventor 助力宝钢 工程智能化设计进阶之路 13. How a steel plant in India tapped the value of data—and won global acclaim 14. Why digital factories are the future of manufacturing 15. Connected Asset Lifecycle Management 16. The digital factory: a data story 17. https://www2.deloitte.com/us/en/insights/industry/manufacturing/manufacturing-industry-outlook.html 18. PwC, PwC Digital Factory Transformation Survey 2022 19. https://www.autodesk.com/design-make/articles/digital-project-delivery 20. https://www.autodesk.com/design-make/articles/digital-project-delivery 21. https://www.autodesk.com/products/fusion-360/blog/zetterer/ 22. https://www.autodesk.com/products/fusion-360/blog/zetterer/ 23. https://www.mpie.de/en 24. Manufacturing COO Pulse Survey 25. https://www.nipponsteel.com/en/news/20240904_100.html 26. https://images.autodesk.com/adsk/files/joy_mining_machineryfinal.pdf 27. Turning Process into Value: A New Global Engineering Solution for Joy 28. Asia-Pacific 3D Printing Market Forecast 2023-2032, retrieved Oct 2024 29. Asia-Pacific Industrial IoT Market - Industry Trends and Forecast to 2029 30. Autodesk 2024 State of Design & Make report 31. https://www.meticulousresearch.com/product/asia-pacific-industrial-automation-market-5647

Find out more about how you can transform your metallurgy business through technological innovation here.

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