Southeast Asia (SEA) is rapidly becoming a hub for smart city innovations, with collaborations between governments and private sectors fostering the development of intelligent ecosystems that promote sustainability and economic growth. As Artificial Intelligence of Things (AIoT) becomes increasingly integral to the future of urban living, how can these cities continue to scale their smart infrastructure, while ensuring that AIoT systems remain adaptive, secure, and sustainable in the face of rapidly evolving technological demands?
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Governments Amplify Smart Nation Efforts for a Digital Future
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NEWS
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Governments across Southeast Asia (SEA) are ramping up efforts to promote sustainable urban development and efficient city management. In Singapore, the Smart Nation Initiative was launched to tackle urban challenges and boost connectivity around the island. It emphasized the importance of Research and Development (R&D) in technological investments, economic development, and community building. According to the 2024 Smart City Index, Singapore is the 5th smartest city globally and the top in Asia. Similarly, Jakarta’s Smart City Program in Indonesia has made significant strides in advancing city infrastructure and development. In November 2023, the Jakarta Smart City Forum was held to highlight the significance of innovation and sharing of ideas, the adoption of emerging technologies like Artificial Intelligence (AI), blockchain and metaverse technologies for smart city development, and the importance of digital talents in its digital transformation journey. Likewise, Malaysia has established the Kuala Lumpur Smart City Plan 2021-2025, identifying the urban challenges in various aspects, including the economy, mobility, connectivity, environment, and government. The plan outlines strategies to address these challenges and identifies initiatives for implementation.
Growing Partnerships and Expanding Technology Presence in SEA
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IMPACT
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The growing commitment and development of smart cities in SEA encourages the influx of technology companies and the adoption of innovations in the region, including AI, the Internet of Things (IoT), smart energy, blockchain, cloud technologies, etc. Examples of increasing partnerships and focus on the SEA region include:
- Advantech’s Expansion in the SEA Region: Advantech specializes in Industrial IoT (IIoT), edge AI and computing, and Artificial Intelligence of Things (AIoT) solutions across verticals such as smart cities, manufacturing, healthcare, logistics, and transportation systems. The company has positioned itself as a pivotal player in the SEA region, establishing key regional business units in Malaysia, Thailand, Indonesia, and Vietnam. Furthermore, Advantech emphasizes the importance of partnerships to drive innovation and growth.
- Dahua Technology’s Latest Showroom in Thailand: The facility showcases advanced AIoT solutions spanning various sectors, including smart cities, energy, building, parking & traffic, mobile, retail, and banking, aimed at fostering a safer society and improving living conditions. Its smart city solution focuses on enhancing the safety and security of urban environments through AI monitoring and analytics capabilities. Dahua Technology aims to advance digital innovation and drive the transformation of cities and enterprises, focusing on improved urban management and efficient governance.
- Singapore Polytechnic’s 5G & AIoT Centre: The Centre focuses on the design and development of 5G & AIoT solutions for enterprises through Proof of Concept (POC) projects leading to adoption. Its expertise targets industries such as smart cities, smart building, and advanced manufacturing. Additionally, Singtel and Ericsson have partnered with the Centre to provide educational resources and experiences aimed at understanding how to leverage technology innovatively to enhance and develop new services. The 5G & IoT Centre has also collaborated with Bosch to provide students with practical AIoT experience, enabling them to create real-world applications.
AIoT: A Catalyst for Digital Transformation in Smart Cities
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RECOMMENDATIONS
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The incorporation of AIoT technologies has empowered cities to leverage real-time data, optimize resource efficiency, and deploy innovative solutions, leading to more sustainable and resilient urban ecosystems. Below, ABI Research examines a few ways in which AIoT can help accelerate the digital transformation of smart cities:
- Smart Traffic Management: AIoT can optimize traffic flow by using real-time data from sensors and cameras to reduce congestion, adjust traffic lights, and predict traffic patterns. For public transportation in Singapore, Automatic Track Inspection (ATI) systems monitor train track conditions in real time, while the Rail Enterprise Asset Management System (REAMS) assesses the condition of the entire network. ST Engineering offers its range of Intelligent Transportation solutions that leverage AI and data analytics to provide real-time traffic insights, such as its AGIL Enterprise Asset Management System (EAMS). SEA countries can adopt similar practices and deploy their solutions city-wide for their smart city developments.
- Energy Efficiency: AIoT can enhance energy efficiency by optimizing energy consumption in buildings and infrastructure. Smart grids powered by AIoT can balance energy demand and supply, while integrating renewable energy sources like solar and wind energy. For example, Vietnam’s Smart Grid Roadmap focuses on improving the power supply quality, increasing reliability, and promoting efficient demand management. To achieve this, the country plans to gradually apply AI and data analytics to monitor energy usage, forecast demand, and assess equipment condition.
- Public Safety and Security: AIoT can improve public safety by deploying AI-driven surveillance systems and IoT sensors for real-time monitoring in public areas to detect unusual behavior or anomalies such as fires, gas leaks, or intrusions to promptly alert emergency services. Additionally, these systems can also leverage AI for facial recognition to identify potential security threats.
- Smart Manufacturing: AIoT can enhance manufacturing efficiency by enabling capabilities such as predictive maintenance, real-time monitoring, and automation of industrial processes. For example, Advantech’s iFactory solution incorporates WISE-PaaS AIoT platforms, which offer data visualization, intelligent management, and digitization to optimize factory operations. Similar solutions can be implemented for factories and warehouses across SEA.
With numerous potential use cases and benefits, ABI Research forecasts significant potential for revenue growth driven by AIoT deployments. According to ABI Research, IoT connections for the rest of Asia-Pacific are anticipated to reach 2,047 million by 2030 (at a Compound Annual Growth Rate (CAGR) of 14%) and AI technology is expected to grow significantly along this trend as well. To seize this opportunity, AIoT solution providers must continue to showcase the added value and advantages of the technologies.
