Indonesia Prefabricated Buildings Market Size By Material Type (Solutions, Services), By Application (Later Enterprises, SMEs), Size and Forecast
Report ID: 465470|No. of Pages: 202
Indonesia Prefabricated Buildings Market Size By Material Type (Solutions, Services), By Application (Later Enterprises, SMEs), Size and Forecast
Indonesia Prefabricated Buildings Market Size and Forecast
Indonesia Prefabricated Buildings Market size was valued at USD 8.0 Billion in 2024 and is projected to reach USD 13.23 Billion by 2031, growing at a CAGR of 6.5% from 2024 to 2031.
- Prefabricated buildings, or prefabs, are structures that are manufactured in a factory and then transported to the construction site for assembly.
- This method of construction offers numerous advantages over traditional on-site building techniques.
- Prefabricated construction offers significant environmental advantages. It typically results in reduced waste, lower energy consumption during construction, and minimal site disturbance.
- Many prefab buildings are designed with sustainable materials and energy-efficient features, supporting green building initiatives.
- Prefabricated buildings must meet strict quality standards and building codes. Factory production allows for rigorous quality control measures, testing, and inspections before components leave the facility.
- These buildings require regular maintenance like conventional structures. However, the controlled manufacturing environment often results in higher quality components with better durability.
Indonesia Prefabricated Buildings Market Dynamics
The key market dynamics that are shaping the Indonesia prefabricated buildings market include:
Key Market Drivers
- Rising Demand for Affordable Housing: The demand for affordable housing in Indonesia has significantly contributed to the growth of the prefabricated buildings market. According to Indonesia’s Ministry of Public Works and Housing, as of 2023, Indonesia faces a backlog of around 7.6 million housing units. Prefabricated buildings offer a cost-effective solution to bridge this gap, with faster construction times and lower costs. Top market players like PT Modernland Realty have started incorporating prefabricated construction to meet the demand for affordable housing, responding to government initiatives to solve the housing crisis.
- Growing Government Investment in Infrastructure: The Indonesian government has been increasing its investment in infrastructure, including prefabricated buildings, as part of its National Medium-Term Development Plan. The Ministry of Finance reports that Indonesia allocated over IDR 400 trillion (USD 27 billion) for infrastructure in 2024. This includes investments in prefabricated schools, hospitals, and other public facilities, as the government aims to reduce the time and cost associated with traditional construction. Companies such as PT Wijaya Karya have been actively involved in government projects, utilizing prefabrication to speed up the process.
- Increasing Sustainability Focus: Indonesia’s growing focus on sustainability is driving the demand for green building solutions, including prefabricated buildings. The government’s Green Building Council Indonesia (GBCI) promotes sustainable building practices, with data from GBCI indicating that sustainable building certifications in Indonesia grew by 15% in 2023. Prefabricated buildings, with their energy efficiency and lower waste generation, align with the country’s sustainability goals. Major firms like PT. Hutama Karya are investing in environmentally friendly prefab solutions to cater to this rising demand.
- Rising Urbanization and Construction Efficiency: Urbanization in Indonesia continues to rise, with cities like Jakarta and Surabaya seeing rapid population growth. The Indonesian Statistics Bureau reported that urbanization in Indonesia has reached 56.6% in 2023, driving demand for faster and efficient construction methods. Prefabricated buildings offer a solution to the challenge of meeting urban housing needs quickly. Companies like PT VGI are leading the way, leveraging prefabricated technology to meet the evolving demands of Indonesia’s urban expansion.
Key Challenges:
- Rising Cost of Raw Materials: The rising cost of raw materials is a significant restraint on the prefabricated buildings market in Indonesia. According to Indonesia’s Ministry of Trade, the price of steel and cement has increased by 10-15% in 2024 compared to the previous year, impacting the overall cost of prefabricated construction. This price hike affects both manufacturers and consumers, making prefabricated solutions less attractive compared to traditional construction. Companies like PT Surya Semesta Internusa are facing challenges with price volatility, which has delayed some of their projects involving prefab construction.
- Growing Skill Gap in the Workforce: The growing skill gap in the workforce poses a barrier to the expansion of the prefabricated buildings market. Indonesia’s Ministry of Labor reports that approximately 25% of the construction workforce lacks the necessary technical skills for prefabricated building assembly. This shortage of skilled labor affects the quality and speed of construction, limiting the growth potential of the industry. Leading firms, such as PT Wijaya Karya, have started training programs to address this gap but are still encountering difficulties in scaling up their workforce to meet the demand for prefab buildings.
- Increasing Regulatory Challenges: Increasing regulatory challenges are restricting the growth of the prefabricated buildings market in Indonesia. According to the Indonesian Investment Coordinating Board (BKPM), new regulations in 2024 have made it more complex for developers to secure permits for prefabricated structures. These regulations often delay projects and add compliance costs. As a result, companies like PT Pembangunan Perumahan have expressed concerns over the bureaucratic hurdles, which slow down the adoption of prefabricated buildings in both residential and commercial sectors.
Key Trends
- Increasing Adoption of Modular Construction: A key trend in Indonesia’s prefabricated buildings market is the increasing adoption of modular construction techniques. According to the Indonesian Ministry of Public Works and Housing, the number of modular construction projects grew by 12% in 2023, as developers seek faster and more cost-effective solutions. This trend is being driven by urbanization and the need for quick, high-quality construction. Leading companies like PT Wijaya Karya are increasingly integrating modular technology into their projects to meet rising demand for efficient housing and infrastructure, especially in rapidly growing cities.
- Rising Focus on Eco-Friendly Prefabricated Solutions: Sustainability is becoming a significant trend in Indonesia’s prefabricated buildings market, with a rising focus on eco-friendly and energy-efficient solutions. The Indonesian Green Building Council (GBCI) reported in 2023 that 20% of new buildings in major cities were certified green buildings, a 10% increase from previous years. Companies like PT. Hutama Karya are embracing green construction materials and energy-efficient prefab technologies to align with environmental standards, responding to both government incentives and consumer demand for sustainable building solutions.
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Indonesia Prefabricated Buildings Market Regional Analysis
Here is a more detailed regional analysis of the Indonesia prefabricated buildings market:
- Jakarta, Indonesia’s capital, is dominating the prefabricated buildings market due to its rapid urbanization and infrastructure development. According to the Indonesian Statistics Bureau, Jakarta’s urban population reached 11 million in 2023, contributing significantly to the demand for prefabricated solutions. The city’s government is increasingly adopting prefab technologies for public infrastructure projects, such as affordable housing and schools. Companies like PT VGI and PT Wijaya Karya are leading in the region, leveraging prefabricated construction to meet the growing housing and commercial needs in this urban hub.
- East Java is rapidly growing in the prefabricated buildings market, driven by industrial growth and infrastructure expansion. The East Java Provincial Government reported a 14% increase in the construction sector in 2023, spurred by both residential and commercial projects requiring quicker, cost-effective construction methods. Cities like Surabaya are seeing a rise in the adoption of prefabricated buildings, with top players such as PT Surya Semesta Internusa focusing on expanding their presence in this region to capitalize on the increasing demand for efficient construction.
Indonesia Prefabricated Buildings Market: Segmentation Analysis
The Indonesia Prefabricated Buildings Market is segmented based on By Material Type, By Application.
Prefabricated Buildings Market, By Material Type
- Concrete
- Glass
- Metal
- Timber
- Other Material Types
Based on Material Type, the Indonesia Prefabricated Buildings Market is bifurcated into Concrete, Glass, Metal, and Timber. In the prefabricated buildings market, metal is currently the dominant material segment due to its strength, durability, and ease of construction. It is widely used for both residential and commercial structures. However, the timber segment is rapidly growing, driven by increasing demand for sustainable and eco-friendly construction materials. Timber’s lightweight nature, aesthetic appeal, and lower carbon footprint are key factors contributing to its fast expansion in the market.
Prefabricated Buildings Market, By Application
- Residential
- Commercial
Based on Application, the Indonesia Prefabricated Buildings Market is bifurcated Residential, Commercial. In the prefabricated buildings market, the residential segment is currently the dominant application, driven by the growing need for affordable housing and faster construction times. However, the commercial segment is rapidly growing, fueled by the increasing demand for prefabricated office spaces, retail units, and hospitality buildings, which offer cost efficiency and flexibility for businesses. The commercial sector’s rapid expansion is being driven by urbanization and the need for quick deployment of commercial infrastructure.
Key Players
The “Indonesia Prefabricated Buildings Market” study report will provide valuable insight with an emphasis on the Indonesia market. The major players in the market are Dell, Inc., Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd.; Vertiv Group Corp., Eaton, Schneider Electric, Baselayer Technology, LLC., Rittal GmbH & Co. KG, Cannon Technologies Ltd., PCX Holding LLC.
Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with its product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players.
Indonesia Prefabricated Buildings Market Key Developments
- In June 2023, in order to enhance the HPE GreenLake private cloud portfolio at Equinix International Business Exchange (IBX) data centers, HPE and Equinix announced an expanded cooperation.
- In April 2021, Vertiv Group Corp. established a plant to construct integrated prefabricated buildings in Rugvica, Croatia. The most recent production techniques are installed in the factory. The Rugvica plant is intended to produce cable stations that power the Internet in addition to a wide variety of prefabricated modular solutions.
Report Scope
| REPORT ATTRIBUTES | DETAILS |
|---|---|
| STUDY PERIOD | 2021-2031 |
| BASE YEAR | 2024 |
| FORECAST PERIOD | 2024-2031 |
| HISTORICAL PERIOD | 2021-2023 |
| UNIT | Value (USD Billion) |
| KEY COMPANIES PROFILED | Dell Inc, Hewlett Packard Enterprise Development LP, Huawei Technologies Co., Ltd, Vertiv Group Corp.; Eaton, Schneider Electric, Baselayer Technology, LLC, Rittal GmbH & Co. KG, Cannon Technologies Ltd. PCX Holding LLC. |
| SEGMENTS COVERED |
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| CUSTOMIZATION SCOPE | Free report customization (equivalent up to 4 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope |
Research Methodology of Verified Market Research
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• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions and acquisitions in the past five years of companies profiled
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Frequently Asked Questions
1 INTRODUCTION OF INDONESIA PREFABRICATED BUILDINGS MARKET
1.1 Overview of the Market
1.2 Scope of Report
1.3 Assumptions
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY OF VERIFIED MARKET RESEARCH
3.1 Data Mining
3.2 Validation
3.3 Primary Interviews
3.4 List of Data Sources
4 INDONESIA PREFABRICATED BUILDINGS MARKET OUTLOOK
4.1 Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Porters Five Force Model
4.4 Value Chain Analysis
5 INDONESIA PREFABRICATED BUILDINGS MARKET, BY MATERIAL TYPE
5.1 Overview
5.2 Concrete
5.2 Glass
5.3 Metal
5.4 Timber
5.4 Other Material Types
6 INDONESIA PREFABRICATED BUILDINGS MARKET, BY APPLICATION
6.1 Overview
6.2 Large Enterprises
6.3 SMEs
7 INDONESIA PREFABRICATED BUILDINGS MARKET, BY GEOGRAPHY
7.1 Asia Pacific
8 INDONESIA PREFABRICATED BUILDINGS MARKET COMPETITIVE LANDSCAPE
8.1 Overview
8.2 Company Market Ranking
8.3 Key Development Strategies
9 COMPANY PROFILES
9.1 Dell Inc
9.1.1 Overview
9.1.2 Financial Performance
9.1.3 Product Outlook
9.1.4 Key Developments
9.2 Hewlett Packard Enterprise Development LP
9.2.1 Overview
9.2.2 Financial Performance
9.2.3 Product Outlook
9.2.4 Key Developments
9.3 Huawei Technologies Co., Ltd
9.3.1 Overview
9.3.2 Financial Performance
9.3.3 Product Outlook
9.3.4 Key Developments
9.4 Vertiv Group Corp
9.4.1 Overview
9.4.2 Financial Performance
9.4.3 Product Outlook
9.4.4 Key Developments
9.5 Eaton
9.5.1 Overview
9.5.2 Financial Performance
9.5.3 Product Outlook
9.5.4 Key Developments
9.6 Schneider Electric
9.6.1 Overview
9.6.2 Financial Performance
9.6.3 Product Outlook
9.6.4 Key Developments
9.7 Baselayer Technology LLC
9.7.1 Overview
9.7.2 Financial Performance
9.7.3 Product Outlook
9.7.4 Key Developments
9.8 Rittal GmbH & Co. KG
9.8.1 Overview
9.8.2 Financial Performance
9.8.3 Product Outlook
9.8.4 Key Developments
9.9 Cannon Technologies Ltd
9.9.1 Overview
9.9.2 Financial Performance
9.9.3 Product Outlook
9.9.4 Key Developments
9.9 PCX Holding LLC
9.9.1 Overview
9.9.2 Financial Performance
9.9.3 Product Outlook
9.9.4 Key Developments
10 Appendix
10.1 Related Research
Report Research Methodology
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Exploratory data mining
Market is filled with data. All the data is collected in raw format that undergoes a strict filtering system to ensure that only the required data is left behind. The leftover data is properly validated and its authenticity (of source) is checked before using it further. We also collect and mix the data from our previous market research reports.
All the previous reports are stored in our large in-house data repository. Also, the experts gather reliable information from the paid databases.
For understanding the entire market landscape, we need to get details about the past and ongoing trends also. To achieve this, we collect data from different members of the market (distributors and suppliers) along with government websites.
Last piece of the ‘market research’ puzzle is done by going through the data collected from questionnaires, journals and surveys. VMR analysts also give emphasis to different industry dynamics such as market drivers, restraints and monetary trends. As a result, the final set of collected data is a combination of different forms of raw statistics. All of this data is carved into usable information by putting it through authentication procedures and by using best in-class cross-validation techniques.
Data Collection Matrix
| Perspective | Primary Research | Secondary Research |
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Econometrics and data visualization model
Our analysts offer market evaluations and forecasts using the industry-first simulation models. They utilize the BI-enabled dashboard to deliver real-time market statistics. With the help of embedded analytics, the clients can get details associated with brand analysis. They can also use the online reporting software to understand the different key performance indicators.
All the research models are customized to the prerequisites shared by the global clients.
The collected data includes market dynamics, technology landscape, application development and pricing trends. All of this is fed to the research model which then churns out the relevant data for market study.
Our market research experts offer both short-term (econometric models) and long-term analysis (technology market model) of the market in the same report. This way, the clients can achieve all their goals along with jumping on the emerging opportunities. Technological advancements, new product launches and money flow of the market is compared in different cases to showcase their impacts over the forecasted period.
Analysts use correlation, regression and time series analysis to deliver reliable business insights. Our experienced team of professionals diffuse the technology landscape, regulatory frameworks, economic outlook and business principles to share the details of external factors on the market under investigation.
Different demographics are analyzed individually to give appropriate details about the market. After this, all the region-wise data is joined together to serve the clients with glo-cal perspective. We ensure that all the data is accurate and all the actionable recommendations can be achieved in record time. We work with our clients in every step of the work, from exploring the market to implementing business plans. We largely focus on the following parameters for forecasting about the market under lens:
- Market drivers and restraints, along with their current and expected impact
- Raw material scenario and supply v/s price trends
- Regulatory scenario and expected developments
- Current capacity and expected capacity additions up to 2027
We assign different weights to the above parameters. This way, we are empowered to quantify their impact on the market’s momentum. Further, it helps us in delivering the evidence related to market growth rates.
Primary validation
The last step of the report making revolves around forecasting of the market. Exhaustive interviews of the industry experts and decision makers of the esteemed organizations are taken to validate the findings of our experts.
The assumptions that are made to obtain the statistics and data elements are cross-checked by interviewing managers over F2F discussions as well as over phone calls.
Different members of the market’s value chain such as suppliers, distributors, vendors and end consumers are also approached to deliver an unbiased market picture. All the interviews are conducted across the globe. There is no language barrier due to our experienced and multi-lingual team of professionals. Interviews have the capability to offer critical insights about the market. Current business scenarios and future market expectations escalate the quality of our five-star rated market research reports. Our highly trained team use the primary research with Key Industry Participants (KIPs) for validating the market forecasts:
- Established market players
- Raw data suppliers
- Network participants such as distributors
- End consumers
The aims of doing primary research are:
- Verifying the collected data in terms of accuracy and reliability.
- To understand the ongoing market trends and to foresee the future market growth patterns.
Industry Analysis Matrix
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