Press Release

Indonesia Electrical Materials Market to Register a CAGR of 13.02% during the forecast period, 2024-2031

Growing construction activities and increasing demand for electric vehicles are driving the Indonesia Electrical Materials market across the country.

According to the TechSci Research report, “Indonesia Electrical Materials Market - By Region, Competition Forecast & Opportunities, 2018-2031”. Electrical materials are the essential elements and parts used in each construction project to link residential, commercial, and industrial structures to an electrical power source. In both, tiny domestic circuit and a huge industrial complex, electrical components of various sizes may be found. The least amount of electrical conductivity is what these substances should have. The production of conductors for all varieties of windings used in electrical gear, apparatus, and gadgets as well as the distribution and transmission of electrical energy are both accomplished using them.

The market is growing as a consequence of the plugs and sockets, circuit breakers, and electrical conduit's continually rising demand. The Indonesian government is encouraging large-scale foreign direct investment (FDI), which is permitted up to 49% under the automatic system. In 2022, the country received realised FDI (foreign direct investment) totaling USD 45.6 billion. Hyundai signed an MoU with Indonesia's Investment Ministry, LG, Foxconn, and others have shown strong investor confidence in the Industry 4.0 transformation, along with accelerating growth on applications in electronics and electrical, solar power plants, quest to enter the electric vehicle (EV) supply chain, including EV batteries production, and quest to open data.

Browse over 20 market data Figures spread through 92 Pages and an in-depth TOC on the "Indonesia Electrical Materials Market."

Based on end user, the Indonesia electrical materials market is segmented into industrial, commercial, and domestic. Industrial segment dominates the Indonesia Electrical Materials market, accounting for a market share of 37.20% in 2022. The industrial sector consists of the machinery and infrastructure required by companies to offer services, including factories, power plants, transportation hubs, and other locations required for industrial production. The manufacturing sector is still expanding, contributing the greatest share of Indonesia's yearly GDP growth to the industrial sector. The Manufacturing Purchasing Manager's Index, investment realisation, export achievements, and labor absorption are just a few of the performance indicators that are increasing for the manufacturing industry. According to Indonesia's Ministry of Industry, increased investments in the industrial sector would amount to more than USD 23.4 billion from January to September 2022, a 52% increase over the approximately USD 15.2 billion invested during the same time for the previous year. Moreover, recent government restrictions, international electrical standards, advance voltage switchers, cable management, and circuit breakers have been shown to be effective means to address significant energy losses and other problems caused by high current. Throughout the course of the forecast period, it is expected that the Indonesian electrical materials market is expected to expand at a CAGR of 13.02% owing to the advantages of electrical materials during the time of electrification.

Based on region, the Indonesia electrical materials market is segmented into Java, Sumatra, Kalimantan, and Bali. Java dominates the Indonesia Electrical Materials Market accounting for a market share of 57.28% in 2022 as it is one of Indonesia’s main manufacturing hubs. In the Java region, the Margahayuland Group is working with companies such as Cityscape Construction to create new homes. Moreover, the construction of two mixed-use projects in the centre of Bandung City, one mixed-use project in Tangerang, a vital transportation hub, and contemporary housing in Cianjur, a rural hamlet in West Java, would require a significant quantity of electrical materials in the Java region. The Indonesian government has authorised a number of investment and public transportation initiatives in the region under the special economic zones (SEZ) for infrastructure, production, and usage of renewable energy projects in order to meet the country's net-zero greenhouse gas emissions objective. The country has drawn considerable local and foreign direct investment, according to data from Bank Indonesia and the International Monetary Fund (IMF) and Development Dimensions International (DDI). The majority of these imports and export activities are carried out by Chinese industrial companies with operations in Indonesia, particularly those in West Java. Java is the major contributor to the economy of Indonesia, accounting for about 60% of the country. Also, Java Island is home to more than half of Indonesia's and industrial parks and the country's most developed services sector.

Key market players in the Indonesia Electrical Materials market include:

  • PT Trias Indra Saputra
  • PT. Legrand Indonesia
  • Hubbell Indonesia
  • P.T. Siemens Indonesia
  • PT Schneider Electric Indonesia
  • PT Mitsubishi Electric Indonesia
  • PT Simon Elektrik Indonesia
  • Pt. Broco Mutiara Electrical Industry
  • PT. Powertek Indo Asia
  • Jeko Elektrik Indonesia

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Indonesia Electrical Materials Market stood at USD 1832.46 million in 2022 and is expected to register a CAGR of 13.02% during 2023E-2031F. Owing to the establishment of a new capital city, solar and wind power installations, and the production of electric vehicle batteries by companies, Indonesia has experienced an increase in the number of construction projects and industrialization over the years, and this trend is expected to continue. The need for electrical materials in the area is anticipated to increase as a direct result of the growth. Cable management is anticipated to see the fastest growth through 2031 across regions and based on type in Java. Additionally, the government's increased focus on Special Economic Zones (SEZ) initiatives and projects and influence over national strategy initiatives to significantly change the country's economy with "Movement Toward 100 Smart Cities" schemes and zero emission vehicle (ZEV) production through subsidy scheme is expected to lead to significant growth of electrical materials across the country. Therefore, the market for electrical materials across the country is expected to rise during the forecast period 2024-2031F”, said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

Indonesia Electrical Materials Market Segmented By Type (Circuit Breakers, Light Switches, Plugs & Sockets, Voltage Switcher, Cable Management, Cable Duct, Electrical Conduit, Others), By End User (Industrial, Commercial, Domestic), By Region, Competition, Forecast & Opportunities, 2031F”, has evaluated the future growth potential of Indonesia Electrical Materials market and provides statistics and information on market structure, size, share, and future growth. The report intends to provide cutting-edge market intelligence and help decision-makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities in the Indonesia Electrical Materials market.


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