The smart manufacturing industry value chain comprises of numerous stakeholders who form a complex structure of hardware solutions and service providers. The stakeholders include Original Equipment Manufacturers (OEMs), solutions providers, software providers, distributors, systems integrators and end users. The OEMs form the first part of the value chain and are producers and suppliers of equipment, parts and components to the industry players. The smart manufacturing industry makes use of numerous hardware components including communication systems, industrial robots, sensors, and cyber physical systems among others. The OEMs have been gaining an increasing amount of importance in the value chain owing to the smart manufacturing industry’s shift towards customization and customer-centric approach towards business conduction. In addition, the need to provide compatible and user-specific components to the solution providers is also a major enabler of suppliers becoming an active participant of the production environment.

One of the largest markets in the Middle East & Africa (MEA) region, similar in size to Iran. Market size is supported by a large population and Africa's most industrialised economy. Owing to the size of the population, per capita spending is low. Spending on medical devices as a proportion of wealth is below average for the MEA region. Other medical devices accounts for nearly 40% of the total market. Underdeveloped market offers considerable potential for growth but currently constrained by funding issues, poor infrastructure and staff shortages. National Health Insurance programme in the early stages of implementation, but question marks remain on funding and delivery of key targets. Limited medical device production, therefore market largely dependent on imports.

Under the Energy Administration Act, the state takes a leading role in research and development for the energy sector, which the Ministry of Economic Affairs may set-up a special fund to finance. Funding will come from royalties and taxes collected from the country's oil and gas businesses. Firms operating in Taiwan are to submit operation data to the Ministry. The Energy Administration Act incentivises firms to invest in energy storage facilities; these firms are entitled to a two-year accelerated depreciation of their assets, thereby lowering their taxable profits.

Thailand is also one of the largest producers of processed foods in the world. Thailand's food processing sector is made up of mostly small firms and cottage industries, with medium-to-large enterprises accounting for 15% of the sector. Thailand's largest drinks company ThaiBev purchased 252 KFC outlets in the country for approximately USD470mn. Thailand-based conglomerate Charoen Pokphand Foods (CP Foods) plans to increase the proportion of sales it makes from its overseas business in the next five years in a bid to 'tackle global economic uncertainties'. The government has announced a food and agro-industry project to support farmers and businesses, creating a Northern Thailand food valley to help make crop prices more stable and boost rural incomes.

Colombia boasts one of the larger pharmaceutical markets in Latin America, though it continues to be overshadowed by still larger markets, including Mexico, Brazil and Argentina. While the government's continued commitment to health and pharmaceutical reform make the country appealing for investment, Colombia's continued battle against counterfeit medicines and troublesome intellectual property regime continue to keep it from becoming a regional outperformer.

The global geriatric population is increasing. Estimates published by WHO suggest that the global geriatric population aged 65 years and above is expected to rise from 7% in 2000 to 16% in 2050. Aging is considered as the greatest risk factor for diseases such as cardiovascular and neurological diseases. In addition, immune system of geriatric patients is weaker and hence they are more susceptible to infectious diseases. Therefore, increase in geriatric population can be considered as a high impact rendering driver. In addition, rise in geriatric population in Asian countries, such as Japan and China, with large untapped opportunities is expected to contribute to the market growth during the forecast period.

Retail sales increased by 8.6% y-o-y in October 2018, down from 9.2% the previous month and down from 10.4% in July 2017. Several consumer goods categories have seen a retail slowdown, with furniture the most impacted and cosmetics the only category still showing positive growth in retail sales.  Following the criticism of a perceived racist marketing campaign, luxury retailer Dolce & Gabanna cancelled its high profile catwalk show in Shanghai, while e-commerce majors Alibaba, JD.com and Yoox Net-a-Porter have dropped the brand from their websites.  US retailer Urban Outfitters has announced global expansion plans which involve a broadened commitment to China through the Tmall platform, holding inventory in the country and fulfilling orders through a third-party service provider in China.  Ralph Lauren is set for rapid expansion in China, with plans to open one store a week. This follows Ralph Lauren's plan to hit USD500mn in revenue from Greater China in the next five years. Chinese consumption of luxury goods will face downside risk following the escalation in border crackdown in October 2018 on Daigou shoppers who bring luxury purchases from overseas to Chinese consumers to evade taxes. Inditex-owned Uterqüe announced the launch of its flagship store on Alibaba's business-to-consumer platform Tmall, joining Zara on the platform in August 2018.

Cambodia's pharmaceutical market is underdeveloped. This, coupled with competition from neighbouring countries such as Vietnam and Thailand, means that the country is not a main focus for many multinational pharmaceutical companies looking to develop their presence in the region. In 2017, total pharmaceutical sales reached KHR1,192.4bn (USD294mn), with per capita spending reaching USD18.4. Pharmaceutical sales represent 23.7% of expenditure on healthcare and 1.3% of GDP. Total healthcare expenditure reached KHR5,034.1bn (USD1.2bn) in 2017, of which only 30% was government health expenditure and the remaining KHR3,548.3bn (USD875mn) private health spending. Per capita health expenditure reached USD77 and health expenditure represented 5.6% of GDP in 2017.

The Brazilian fixed-line market in recent years has been adversely affected by consumers substituting services for mobile and VoIP solutions. The number of fixed lines continues to fall slowly, despite gains in the VoIP sector. Internet connectivity in Brazil is provided by a number of submarine cables to the USA, Central and South America, Africa and the Caribbean. New cable systems are due to come into service which will increase bandwidth and push down broadband prices for end-users. Investments are ongoing into extensive terrestrial cables between Brazil, Argentina and Chile which will connect to the EllaLink cable and provide a link between Sao Paulo and both Lisbon and Madrid. The bulk of the telecom market is divided between a few key operators, including Telefónica Brasil, América Móvil’s local unit Claro, and Oi. Operators have had to contend with a harsh economic environment which has reduced consumer discretionary spend.

We forecast Bosnia-Herzegovina's GDP to grow 3% in 2018, 3.3% in 2019 and 3.5% in 2020, supported by investment in infrastructure, as well as private consumption and falling unemployment. After several years of fluctuating growth, Bosnia's construction sector will hold a moderate trajectory over the coming five years, supported by bilateral investment and structural reforms, as the country seeks to meet IMF loan obligations and to secure EU accession. Growth for construction will be 2.3% annually over 2018-2022, driven by transport and energy infrastructure investment. GFCF has potential to drive further economic expansion and contribute to construction growth, though given political uncertainty after and a relatively unwelcoming business environment, this will remain heavily dependent on external financing from institutions such as the IMF, EU or EBRD. Unfortunately, heightened political uncertainty following the October election poses a downside risk to the investment outlook. It is already unclear when the IMF will release the next tranche of its financing programme, with approval unlikely until a new government is in place.