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Asia Pacific OEM Strategy: Staying Competitive in Times of Uncertainty

From digital twins to lifecycle services, Original Equipment Manufacturers (OEMs) in the region are building resilience through sustainable and innovative solutions.

A large, well-lit automotive assembly line features dozens of worker stations where components are attached to motor assemblies

The manufacturing landscape around the world has undergone dramatic upheaval in recent years. Global pandemics, shipping disruptions and geopolitical shifts have resulted in ripples in the global supply chain, causing various challenges for Original Equipment Manufacturers (OEMs) around the world. These challenges have impacted the confidence and trust that have taken a long time to establish with their customers.

Yet, despite these unexpected events, OEMs that have been quick to innovate have prospered by taking advantage of emerging technologies and thanks to significant tailwinds in the market.

Making their mark in a global marketplace

Asia Pacific OEMs often face pressure to deliver more value than their counterparts in North America and Europe. Many western OEMs have established themselves over decades, giving them the advantage of brand recognition and existing relationships. To compete with these incumbents, Asian OEMs need to go beyond to deliver something more. This challenge is driving unprecedented adoption of digital technologies across the region. Manufacturers, particularly those exporting to Europe, the Middle East, and North America, are embracing digital transformation at speed.

To remain competitive, OEMs need to improve and market the sustainability of their machines.

Customers, particularly in Europe, are increasingly focussed on sustainability to meet consumer expectations and regulatory requirements. They expect their supply chain partners to help deliver on these outcomes. This means that OEMs must find solutions to limit their carbon footprint, through innovating and thinking of more sustainable solutions even before compliance becomes a regulatory requirement.

ROKStudios

What Successful OEMs Do Differently

Despite geopolitical and supply chain challenges, OEMs continue to thrive by innovating. Find out what sets them apart in a conversation with regional director Harmeet Singh Sodhi.

Software that supports innovation across industries

As OEMs work to deliver more sustainable and innovative solutions, digital twin technology has emerged as a critical enabler. Rockwell Automation’s Emulate3D® digital twin software demonstrates how virtual design and simulation can help manufacturers reduce risk, optimize performance, and minimize environmental impact, all before physical implementation begins. This helps customers save valuable time and cost so they can work more efficiently.

For example, an automotive paint shop in Japan was able to leverage Emulate3D to simulate the entire paint shop, resulting in a delivery of a complete paint shop system three weeks ahead of schedule. This delivered a total efficiency improvement of 4%, which is significant in the paint shop process.

Similarly, through virtual design and testing, a body shop built for a leading Electric Vehicle manufacturer was able to deliver a system with lower carbon footprint, while maintaining speed and flexibility for evolving manufacturing requirements. Projects like these demonstrate the value of digital tools in addressing operational efficiency and addressing the environmental concerns that impact every manufacturer.

In the life sciences sector, digital transformation is supporting OEMs which develop bioreactors – equipment used to develop product recipes – through precise industrial data analytics. By tracking the best efficiency for output right from the start in the “golden batch,” a standard solution that will set the precedent for following recipes, life sciences customers can deliver higher yields and reduce wastage..

Taking a macro viewpoint for long-term success

Digital transformation is more than just implementing new technologies. It's about reimagining the entire value chain from design through end-of-life service.

To be truly competitive and resilient, OEMs should focus on their overall lifecycle cost.

Every machine goes through four stages – design, build, operation, and maintenance. Typically, machine design is the most investment heavy stage of the process. Optimizing the design process to reduce cost helps businesses see profit earlier in the process. In machine building, OEMs should seek alternatives to reduce cost, and in operations, they should look for alternative revenue streams.

One option is running service contracts that go for five to 10 years, establishing goodwill with their customers long after a sale has been made. This not only builds trust and rapport but provides OEMs with the opportunity to gain insights into what their competitors are doing. Not to mention, service contracts continue to generate profit that is consistent over time.

As regional manufacturers continue their journey toward global competitiveness, they will need to leverage the technologies that will set them on the track to success. Those that embrace the right digital tools, prioritize sustainability, and create comprehensive service offerings will be best positioned to thrive in an increasingly demanding marketplace.

Learn more about how Rockwell Automation can help you unlock new value in your machines here.

Published January 20, 2026

Harmeet Singh Sodhi

Director - Industry and OEM, Asia Pacific, Rockwell Automation