Malaysian RFID Market to Grow 20% Annually
RFID Update got an early look at a Frost & Sullivan report about the Malaysian RFID market scheduled for release later this month. This article highlights key points from the study.
Dec 12, 2005
—This article was originally published by RFID Update.
December 12, 2005—RFID Update got an early look at a Frost & Sullivan report about the Malaysian RFID market scheduled for release later this month. Following are key points from the study:
- The Malaysian RFID market generated $19.6 million in 2004.
- It will experience a compounded annual growth rate of 20.6% through 2009, when the market will be worth $50.1 million.
- The market can be divided into four main segments: security and access control; transportation; manufacturing and logistics; and other.
- Security and access control is currently the largest market contributor, followed by transportation, manufacturing and logistics, then other.
- Between now and 2009, manufacturing and logistics will grow its share of the market while security and access control will diminish; transportation and other will fluctuate some but remain largely stagnant.
- Key market drivers are: Wal-Mart's 2008 deadline targeting all not-yet-mandated suppliers; preference for RFID over existing barcode technology; expanding RFID application opportunities; and increasing security and safety awareness.
- Malaysia accounts for 10% of the 4,000 Wal-Mart suppliers spread across Asia-Pacific.
- Certain initiatives by the Malaysian government will help spur demand, including evidence management systems and authentication.
- Key market constraints are: RFID's cost, lacking standards, and lack of RFID knowledge and familiarity among potential end-users.
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