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.
