Charted: The Industries Where Asian Companies are the Strongest

The Industries Where Asian Companies are the Strongest

The last 30 years of globalization have benefited Asia greatly.

As a result of deepening trade relations and access to other markets, Asian companies have grown in output and prominence. But which sectors do they excel in?

Using data from McKinsey Global Institute we visualize Asian companies’ share of the top 3,000 global companies, broken down by industry, revenue, and patent share.

A top 3,000 company was defined as having a market capitalization of over $5 billion in 2020.

Ranking Asia’s Strongest Industries

Unsurprisingly, among the top 3,000 companies globally, Asian companies are most prevalent in the manufacturing sector. Specifically, the region’s strength is in industries like consumer electronics, industrial electronics, electric vehicles, and semiconductors.

For many Asian countries, manufacturing is the bulwark of the economy. In Asia’s largest economy, China, the manufacturing sector accounts for nearly one-third of economic output. In Asia’s 13th largest economy, Vietnam, it accounts for almost one-fourth of gross domestic product.

However, manufacturing isn’t all what Asia is known for anymore. Here’s a full list of the top Asian companies’ share in various industries.

Another fast-growing industry where Asian companies are thriving is in the consumer internet services space. Asia is home to half of the world’s internet users, which is driving innovation within the region’s online services industry.

And even though Asia is home to “only” 22% of e-commerce companies within the top 3,000, these firms accounted for 50% of patents granted.

Five Distinct “Asias”

Asia is of course a vast place, and for this reason McKinsey divides the Asia-Pacific region into five distinct “Asias” to get a more granular view. For the most part, they use UN country groupings here, though McKinsey notes it excludes parts of Western Asia (i.e. the Middle East) due to dissimilarities with other Asia-Pacific economies:

• Advanced Asia: High per-capita GDP, urbanization, and connectivity. Includes Australia, New Zealand, Japan, South Korea, and Singapore.
• China: 18% of global GDP and population.
• Emerging Asia: Southeast Asia, strong regional connections and trade. Includes Indonesia, Vietnam, Thailand, and others.
• India: 18% of global population but only 3% of global GDP.
• Frontier Asia: Limited integration, large populations and potential. Includes Pakistan, Bangladesh, Sri Lanka, and others.

McKinsey noted that the region is economically integrated—without formal political governance and despite sometimes being at odds with each territorially—with 59% of Asian trade done with other Asian countries.