Asian start-ups evolve to reshape industries with AI

{"text":[[{"start":8.23,"text":"Asia’s technology sector is undergoing a shift. The era dominated by consumer apps, from ecommerce marketplaces to ride-hailing platforms, has been giving way to a wave of start-ups focused on applying AI to established industries. Many of the fastest growing companies in the Asia-Pacific region are emerging from this shift."}],[{"start":33.57,"text":"The latest FT/Statista ranking of Asia-Pacific’s high-growth companies offers a snapshot of how quickly this transformation is unfolding. "}],[{"start":43.71,"text":"At the top of the ranking, South Korea stands out. Four of the 10 fastest-growing companies are based in Seoul, highlighting the strength of the country’s start-up sector. Long known for manufacturers such as Samsung, Hyundai and LG, the country is producing a fresh crop of high-growth companies."}],[{"start":66.41,"text":"Many operate in sectors closely tied to South Korea’s industrial strengths, including AI, logistics technology and electric vehicle supply chains. "}],[{"start":77.19999999999999,"text":"Some of the companies featured in the ranking are applying AI to healthcare, including Deepnoid, which develops software for analysing medical images, while others such as Nota AI are focused on the infrastructure behind AI, developing software that compresses AI models so they can run efficiently on devices."}],[{"start":null,"text":""}],[{"start":99.68999999999998,"text":"The concentration of high-growth companies in Seoul reflects various factors including strong local engineering talent and rising investment in AI research and development. Investment here has grown steadily in recent years, with domestic R&D spending surpassing Won130tn ($86bn) in 2024, according to official data, equivalent to 5.1 per cent of the country’s GDP and among the highest in the world. "}],[{"start":130.17,"text":"Equally important is proximity to some of the world’s largest chipmakers, electronics and battery manufacturing supply chains, creating opportunities to develop industrial technologies."}],[{"start":143.64999999999998,"text":"A similar shift is taking place in Japan, where automation and robotics are helping to spur entrepreneurship. The country has been a global leader in industrial robotics, but younger companies are applying those technologies to logistics and services industries. "}],[{"start":161.43999999999997,"text":"Among the companies appearing in this year’s ranking is LexxPluss, which develops autonomous warehouse robots that move goods around distribution centres, helping logistics operators to address labour shortages resulting from Japan’s ageing population."}],[{"start":null,"text":""}],[{"start":178.02999999999997,"text":"Across the full list, Singapore shares the top spot with India for the number of companies represented in the ranking, reflecting the city-state’s role as a regional financial and commercial hub and a base for start-ups serving south-east Asian markets. "}],[{"start":195.42999999999998,"text":"Start-ups here are also applying AI to construction and city infrastructure. Ailytics develops computer vision systems used to monitor construction sites and identify safety risks in real time, reflecting Singapore’s broader push to integrate advanced technologies into urban development. "}],[{"start":218.07999999999998,"text":"The growth of these companies is also taking place as businesses across Asia increase investment in AI and related technologies. "}],[{"start":227.82,"text":"Louis Kuijs, chief economist for Asia-Pacific at S&P Global Ratings, says: “Across high-income Asian economies such as Japan, South Korea and Singapore, the acceleration of tech exports, much of it because of booming AI-related investment, is boosting corporate [capital expenditure] plans.” "}],[{"start":249.10999999999999,"text":"On South Korea, he adds: “The outlook has brightened following the boom in memory chip exports, as it starts to prompt capex plans and boosts sentiment and wealth effects stemming from sharp increases in equity prices.”"}],[{"start":null,"text":""}],[{"start":265.84999999999997,"text":"Taken together, these examples show how the start-up sector is evolving across the region. Seoul is producing companies focused on industrial AI and mobility technologies, Tokyo remains a centre of robotics and automation and Singapore has emerged as a hub for digital platforms. "}],[{"start":286.42999999999995,"text":"A common thread running through these companies is their focus on improving existing industries rather than creating new consumer markets. "}],[{"start":296.56999999999994,"text":"Risks remain. Asia-Pacific economies are still heavily exposed to global trade flows and vulnerable to tariffs, geopolitical tensions and potential disruptions to shipping routes. "}],[{"start":309.9699999999999,"text":"While tech exports are booming, Kuijs says: “Asian non-tech exports are more subdued, weighed down by US tariff imposition and uncertainty, and amid more subdued demand for other mainstays of north-east Asian export powerhouses such as cars.”"}],[{"start":330.2099999999999,"text":"Demographic change also poses long-term challenges. Ageing populations in countries such as Japan, South Korea and China could affect economic growth and strain public finances in the years ahead."}],[{"start":345.25999999999993,"text":"Yet the companies featured in this year’s ranking suggest the entrepreneurial sector is adapting to the pressures. Many are developing technologies that improve efficiency across sectors central to global growth. "}],[{"start":null,"text":""}],[{"start":360.69999999999993,"text":"In manufacturing, AI tools are increasingly used to optimise production lines, predict equipment failures and improve supply chain co-ordination. In logistics, automation and data analytics are helping companies manage increasingly complex global trade networks. "}],[{"start":378.5399999999999,"text":"Meanwhile, healthcare systems are turning to AI-driven diagnostics and data analysis as ageing populations place growing pressure on medical services."}],[{"start":389.6699999999999,"text":"These trends underscore a longer-term shift in the region’s economic role. For decades, Asia’s position in the world economy was defined by manufacturing and export-led growth, supplying electronics, machinery and consumer goods to international markets. But the companies emerging today are building technologies that shape how these industries operate."}],[{"start":415.8699999999999,"text":"As that trend continues, the region’s role in the global economy may be defined less by what it produces, and more by the technologies it creates."}],[{"start":433.5999999999999,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1775979580_1227.mp3"}