SCB Prospectus - Announcements - Bursa Malaysia

Company No. 462648-V
7. INDUSTRY OVERVIEW AND OUTLOOK (CONT’D)
decreases the market size of SCADA. Customers concerns on cyber threats faced by
Web-based SCADA solution also dampen sales.
Year
56
Revenue
(USD ‘million)
Revenue
Growth Rate
(%)
2005 25.5 -
2006 26.8 5.1
2007 27.9 4.2
2008 29.0 3.8
2009 29.9 3.0
2010 31.2 4.5
2011 32.7 4.8
2012 34.2 4.6
2013 35.8 4.6
2014 37.3 4.4
2015 39.1 4.8
Compound annual growth rate (2008 – 2014): 4.4%
Note: All figures are rounded and the base year used is 2008.
(Source: Frost & Sullivan - SCADA Industry Overview Assessment)
Power industry contributed 38 percent, the highest revenue among all end user
industries in 2008. Oil and gas is another important end user sector which contributed
18 percent in 2008. Chemical and petrochemical generated revenues account for 16
percent of the total SCADA market in Singapore. Water and wastewater treatment
industry in Singapore gains increasing significance in the Singapore SCADA market
and accounts for 15 percent in 2008. The others are discrete industries and
transportation sectors accounting for 13 percent of the total revenue.
(Source: Frost & Sullivan - SCADA Industry Overview Assessment)
7.5.4 Malaysia Market Outlook and Revenue Forecast
The SCADA market in Malaysia generated revenues of USD45.8 million in 2008 and
is estimated to generate USD79.1 million in 2015 at a CAGR of 8.1 percent. With the
growing trend of the oil and gas, utility and water treatment industries in Malaysia,
SCADA systems market is expected to grow at a very good rate. This factor drives
the manufacturers to concentrate more on R&D to develop technologically advanced
SCADA products such as Web-based solutions. Since newer, SCADA software can
be incorporated with existing programmable logic controls, small scale industries in
Malaysia are more eager to get their shop floor automated. Standardisation of
product quality in process industries globally forces industries to get into customized
automation products. Web-based communications and data transfer increases the
usage of SCADA solutions. Increasing industrialization drives the demand.
Nevertheless, limited growth rate of automobile, food and beverage industries
restrains the growth of SCADA solutions. Introduction of Process Automation
Controls reduces the market size of SCADA solutions by capturing the lower-end
applications, which requires only basic monitoring and controlling functions. Limited
exposure to newer SCADA solutions also deters market growth.
Power is the largest end user segment for Malaysia SCADA market. It generated
USD12.4 million of revenue in 2008, accounting for 27 percent of the total market
size. The power industry is a heavy user of SCADA system but the Malaysia power
industry is not expected to have high growth rate in taking in SCADA systems in the
forecast period. This is because the Malaysian power industry in perceived as a