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Fourth industrial revolution is about to begin with disruptive innovation: WFK Industry Track

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By Park Bong-gwon, Chung Wook, Lim Seong-hyun

[Fourth industrial revolution is about to begin with disruptive innovation: WFK Industry Track] 기사의 본문 이미지

Fourth industrial revolution that is expected to bring profound changes to our life is about to begin. State-of-the-art technologies, such as robots, the internet of things (IoT) and information communication technology (ICT), are already shifting the paradigm in the manufacturing industry.

The first industrial revolution brought changes with steam power, followed by the second industrial revolution, which enabled mass production with electric power and assembly lines, and the third industrial revolution led by computers. Now, a fourth industrial revolution is expected to change our life again, forced by artificial intelligence (AI), as well as ubiquitous mobile and internet technologies, and it should completely transform the industrial landscape with another digital revolution and a new zeitgeist.

The 16th World Knowledge Forum, to be held in Seoul between and October 20 to 22, will offer various sessions under the Industry Track about latest technological trends that could lead another industrial revolution and their potentials in changing the world. The track covers a wide array of advanced technologies ranging from wearable technologies, to robots, to AI, to lithium batteries, to fintech, to the internet of things, to self-driving cars, 3-D printing and to drones. Showrooms where people can test new technologies such as the drone, the 3-D printer, the display and the solar energy will also be set up at the WKF.

◆Robot revolution, artificial intelligence
Humanoid robots already came to life in South Korea (Hubo) and Japan (Asimo, Pepper). SoftBank commercialized Pepper for the general public, and people can now stay in a robotel operated by robots. As the AI industry rapidly grows, so will demands for robots replacing traditional human jobs. The session will delve into the robot industry, its growth potential that will lead innovation in the manufacturing and service sectors, as well as the development of robot technology in South Korea.

◆Internet of Things (IoT) changes everything
The Internet of Things (IoT) connects devices to the Internet (and/or to each other), and it is a big buzzword these days. The global consulting firm McKinsey & Company estimates that the IoT will offer “a potential economic impact” of up to $11 trillion a year in 2025. Many countries and cities plan to build so-called a smart city where things including people in a certain place, such as a residential building, a factory, a retail shop, an office, a car, etc., are linked to the Internet and can share information to each other. Even an entire city can be built on a giant network of connected systems, such as waste, water, transportation and security management systems. The track will discuss impact of the IoT on not only the manufacturing industry but also other sectors.

◆ Wearable 2.0
The wearable market once dominated by fitness bands has entered a new era following Apple Watch’s market debut. The old era dubbed “Wearable 1.0” introduced the notion of wearable devices. With the beginning of the “Wearable 2.0” revolution, wearable devices will be available to a broader population at more affordable prices, led by the emergence of more innovative technologies and their mass production. Smart glasses introduced by Google Glass are being developed not only as consumer electronics but also as professional gears used in the medical, military, and heavy industry fields. During the WKF, the growth potential of the wearable industry, which is advancing at the speed of light, will be discussed.

◆ Drone, the game changer
Drones were initially developed for military use, but they have become commercially available. Drones are currently being used in a wide range of commercial areas from aerial filming and photography to parcel delivery service. The global commercial drone market has grown rapidly, and the U.S. defense industry consulting agency Teal Group forecasts the global drone market will grow to $10 billion in 2020 in value. The drone has become the hot topic and the competition to create Blue Ocean with the drone is getting fierce.

◆ New future with autonomous and connected vehicles
The auto industry is about to witness another revolutionary evolution after cars were developed as the major means of transportation about 100 years ago. The era of the driverless car, which allows its passengers to get to any place they want to go without driving, is just around the corner. IT giants Apple Inc. and Google Inc. have joined the race to lead the autonomous car market against traditional car makers. The track will discuss how driverless car technologies will change the auto industry landscape.

◆ 3-D Printing
3-D printing is drawing great attention as a disruptive technology that can make big changes in our daily life and manufacturing process. 3-D printers can produce replicas of everything from cups and dishes with a simple structure to airplane components, to cars and to buildings. Wohlers Associates market research firm projects the 3-D printing market to post double-digit growth every year, reaching $5.2 billion in 2020. The track will discuss the changes that the 3-D printing will bring to our homes and industrial ground in the future.

◆R&D cooperation with IMB Watson for lithium-air battery
The success of commercialization of electric cars depends on batteries. IBM Almaden Research center has developed highly-efficient and cost-saving lithium-air batteries. This year’s WKF will introduce whether there are any chances of R&D cooperation with the IBM Research for the development of lithium-air batteries that are expected to bring revolutionary changes to the electric vehicle market.

Also, the era of next-generation cognitive computing is expected to begin soon. This cutting-edge technology enables fast and accurate analysis of big data. At the WKF, participants will have a chance to explore IBM Watson, a cognitive computing system, which has self -learning and inferential abilities to interact with people and is evolving into industrial experts.

◆Next-generation display
Samsung Display Co. and LG Display Co. are the two dominant players in the global display panel market. The two are also representing the lion’s share of the organic light emitting diodes (OLED) market. Samsung Display is leading the small- and medium-sized OLED market, while LG Display is the sole supplier of large-size OLED TV displays. The WKF will look into how next-generation display panels have been evolving.

◆Aerospace industry, mix of sophisticated technologies
The aerospace industry is one of the yardsticks that divide the entire world into technologically-advanced and technologically-underdeveloped nations. A plane comprises of over 200,000 parts, compared to a car with around 20,000.

The aerospace industry can best contribute to job creation and output increase as it involves cutting-edge industrial technologies on top of advanced manufacturing technologies concerning electronics, machinery, IT, software and 3D printing. The WKF seeks ways to foster the aerospace industry as Korea’s next growth engine.

◆Memory chip, basis of the industry
The semiconductor sector, which has been the propeller of the Korean industrial development along with the auto industry, continues to evolve. Korea’s flagship chipmakers Samsung Electronics Co. and SK Hynix Co. have a combined market share of 70 percent in the global market for dynamic random access memory (DRAM) chips.

But Korea lags behind others in the non-memory sector. Even in the memory chip market, Chinese rivals are nipping at the Korean players’ heels, posing a grave threat. The WKF will look into the current status of memory chip technology and the future semiconductor market.

◆Amid falling oil prices, is new renewable energy resurging or fading?
With the shale oil revolution and growth in oil production, oil prices stay low, making new renewable energy development less appealing. Even so, the new renewable energy market still holds a vast potential thanks to the international community’s efforts to curb greenhouse gas emissions.

Of the total power generation, consumption of new renewable energy is expected to jump from 21.5 percent in 2013 to 37.3 percent in 2030, according to International Energy Agency. The WKF will offer insights into changes in industrial trend to be brought by new renewable energy development.

◆ Korean shipbuilders in crisis?
Korean shipbuilders once dominated the global shipbuilding industry, but they are now facing challenges with enormous losses from delayed offshore plant projects, which were considered the golden opportunity. Worse yet, Chinese counterparts are catching up with Korean shipbuilders fast while Japanese shipbuilders with the weaker yen have braced up for battle. The WKF will offer a chance to discuss whether Korea’s beleaguered shipbuilding industry would overcome the crisis to see its heyday again.

◆ Fintech, upending the conventional financial system
Fintech, a combined word of finance and technology, has completely changed the landscape of the conventional financial industry. As the fintech industry is rapidly growing, global companies from various industry sectors have competitively introduced their own mobile payment systems, such as Google’s Android Pay, Apple Pay, Samsung Pay and Alipay. At the WKF, participants will be able obtain more information about the ever-evolving fintech industry, and discuss how fintech will change the way customers use financial services and the future of the rapidly changing financial market.

◆ Upgrade to MSCI developed markets index, path to Korea’s great leap forward
Korea has pushed ahead with the inclusion of the country’s stock market in MSCI’s developed market index, a measure for advanced capital market used by global investors, but it has failed to be upgraded for a decade. The index of developed countries includes 23 major developed countries such as the U.S. and European countries. The upgrade could draw more investment funds from foreign investors to the Korean market. The forum will discuss the possibility of the inclusion of Korea’s stock market in the MSCI developed market index, as well as pros and cons of the Korean capital market.

◆ Managed futures funds emerging amid a crisis
It is difficult to expect high returns during financial turmoil. With the growing market volatility led by China, risk management products are drawing more attention. In the U.S., for example, managed futures funds have made high returns amid market instability, rapidly emerging as an alternative investment product. A wide range of experts on asset management who will attend the forum will explain the reason why managed futures funds could make crisis alpha during turmoil.

◆ MICE driving up urban competitive edge
The industry of MICE, which refers to meeting, incentive trip, convention and exhibition & event, is promoted by many countries as measures to reinvigorate urban competitiveness. The global MICE market was estimated at about 1 trillion won ($842 million) as of 2012. The market is expected to grow annually at 7.1 percent on average to be valued at 1.5 trillion won in 2017. The participants of the forum will discuss whether the MICE industry would become a new growth engine for the Korean economy that is currently suffering from a slowdown.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]

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