Government Incentives and Adoption of New Technologies Drive Growth of Malaysian Automation and Control Systems Market
Increased collaboration will add value and growth opportunities, finds Frost & Sullivan's Industrial Automation & Process Control team
KUALA LUMPUR, Malaysia, July 18, 2017 /PRNewswire/ -- The Malaysian automation and control systems market, one of the biggest for suppliers, is stable and growing. Government incentives to aid manufacturing and infrastructure spend, as well as an established end-user base of sophisticated automation systems, are driving growth in the region. Nonetheless, barriers to market entry are high. To succeed in a fiercely competitive ecosystem, automation vendors must embrace new technologies, such as Internet of Things (IoT), collaborate with developers of machine-to-machine (M2M) technologies, and improve production capabilities.
"Traditional end users, such as the oil and gas, power, and chemicals and petrochemicals industries, will continue to be important revenue contributors for automation systems suppliers," said Frost & Sullivan Industrial Automation & Process Control Industry Analyst Krishnan Ramanathan. "However, as Industrial Internet of things (IIoT) gains significance, such companies will have to collaborate with multiple suppliers and service providers in the value chain to reap the full benefits of the latest technology."
Opportunities in Malaysia for Automation and Control System Manufacturers, Forecast to 2021, part of Frost & Sullivan's Industrial Automation & Process Control Growth Partnership Service program, finds that the total automation and control market in Malaysia will be worth US$409.0 million by 2021. The study provides an analysis of current and expected market developments, drivers, restraints, and revenue forecasts across segments.
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Strategic imperatives for success and growth in Malaysia's automation and control systems market include:
- Embracing change in both the short and long terms through new business models that offer scope for implementation of IIoT technologies;
- Vendors cutting costs at all levels to optimize client benefits due to popularity of main automation contractor (MAC) and main instrumentation vendor (MIV) concepts;
- Expanding cloud-enabled services through partnerships and relationships with service providers to leverage technological benefits;
- Investing in requisite upgrades now to be able to adopt and integrate new technologies when they are available;
- Offering development and training services; and
- Focusing on niche solutions.
"With the proliferation of IIoT and other digital technologies, the chances of a cyberattack on an industrial network increases. In most instances, the levels of readiness and skills to thwart cyberattacks are low," noted Krishnan. "Collaborating or partnering with cybersecurity firms will be vital to future success."
Frost & Sullivan's study covers automation market segments such as programmable logic controller (PLC), distributed control system (DCS), supervisory control and data acquisition (SCADA), human machine interface (HMI), and safety systems. The market share and competitive analysis of major suppliers, such as Siemens A.G., Rockwell Automation, Schneider Electric, Yokogawa, Emerson, Honeywell and Omron, are also discussed.
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Opportunities in Malaysia for Automation and Control System Manufacturers, Forecast to 2021
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SOURCE Frost & Sullivan
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