Frost & Sullivan: PLCs, SCADA and DCS Propel the Automation and Control Market in Malaysia

Aug. 1, 2011 - PRLog -- Kuala Lumpur, Malaysia – The dynamic automation and control market in Malaysia is poised for fast track growth as newer applications and integrated solutions are being rolled out to expedite efficiency, particularly in the electronics and semiconductor segments. Programmable logic controllers (PLCs), supervisory control and data acquisition (SCADA) and distributed control systems (DCS) will be the technologies that will define the automation market in the near future.

The country looks forward to the complete implementation of Asean Free Trade Agreement (AFTA), which will give preferential access into the larger market of ASEAN with a population of 530 million. Moreover, it will provide a wider base for competitive sourcing of raw materials from countries in the region and a broad spectrum of companies to engage with in business.

New analysis from Frost & Sullivan, Automation and Control Market in Malaysia, finds that the market earned revenues of US$130.0 million in 2009 and estimates this to reach US$380.1 million in 2016.

“The proliferation of opportunities to cooperate and collaborate with ASEAN partners would enable participants in this space to tap both the regional and global markets,” says Frost & Sullivan Research Analyst Krishnan Ramanathan. “Since most major organizations have offices in Malaysia, no significant cost would be incurred while gaining access to the Malaysian markets.”

Although smaller participants are likely to be negatively impacted, the market, as a whole, will register growth.

Malaysia’s stable economy and its government’s measures to create a favourable investment climate have played a vital role in Malaysian automation. The country’s Third Industrial Master Plan (IMP3) aims to sustain the growth momentum of the manufacturing sector at 5.6 per cent per annum and contribute about 28.5 per cent to the country's GDP by 2020.

Despite this, manufacturing companies in Malaysia are facing growing competition from countries such as China and this has affected automation suppliers. Lured by the low-cost advantage, many companies are setting up units there. This trend is likely to continue over the next four years, as Malaysia will not be able to match the manufacturing costs these countries offer. However, leading automation participants have comparable offerings in terms of technology.

Further, green production and waste management have gained traction and are likely to open up new avenues for the automation industry. With the alarm bells ringing louder over climate change and global warming, countries around the world are looking to cut greenhouse emissions and have started investing in technologies that utilize cleaner forms of energy.

Overall, the Malaysian automation industry is highly competitive; most major multinationals see ample scope for growth in the country over the next few years. The Government is committed to ensuring that both foreign and domestic investors move up the value chain into technology-intensive industries.

“To succeed in this competitive market, organizations need to be alert to the subtle nuances of the market and solutions must be tailor-made to suit end user requirements,” concludes Ramanathan. “Further, to improve the efficiency of operations, the manufacturing and processing industries must deploy state-of-the-art automation systems and software.”

If you are interested in more information on this study, please send an e-mail to Donna Jeremiah, Corporate Communications, at djeremiah@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

Automation and Control Market in Malaysia is part of the Industrial Automation & Process Control Growth Partnership Services programme, which also includes research in the following markets Automation and Control Market in the Philippines, Automation and Control Market in Indonesia, and Automation and Control Market in Vietnam. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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Automation and Control Market in Malaysia
P45D

Contact:
Donna Jeremiah
Corporate Communications – Asia Pacific
P: +603 6204 5832
F: +603 6201 7402
E: djeremiah@frost.com

Carrie Low
Corporate Communications – Asia Pacific
P: +603 6204 5910
F: +603 6201 7402
E: carrie.low@frost.com

http://www.frost.com

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Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's research and consulting services empower clients to generate, evaluate, and implement effective growth strategies.