The
Indonesia Prefabricated Buildings Market is predicted to proliferate during the
forecast period, 2024-2028F due to various driving factors, such as rising
needs for low to mid-level buildings, increasing initiatives in the
infrastructure sector, growing population and urbanization, and government
policies to enhance the market of prefabricated buildings across the nation.
Additionally, rising demand for prefabricated housing, including modular
housing, precut housing, panelized housing, among others, drive the market for
Indonesia prefabricated buildings across the nation.
Prefab
houses, sometimes referred to as prefabricated homes, are those that have been
built using prefabricated construction materials. These construction materials
are prefabricated in a facility off-site, transported there, and then put
together. Prefabricated houses combine conventional home ownership with modern
technologies. Utilizing various techniques, such as 3-D printing, these
dwellings are constructed in advance and erected off-site. Modular dwellings are
defined as having at least 70% of their components prefabricated. This
facilitates disassembling, moving, and assembling these dwellings. Prefab homes
are less expensive, more environmentally friendly, and more aesthetically
pleasing than traditional residences. Prefab houses are built with
concrete-based and metal-fabricated construction elements. The lack of raw
resources has presented a number of problems for manufacturing enterprises.
Additionally, the suspension of construction contracts has slowed the market
expansion for prefabricated buildings. The decline in building and construction
activities has had a substantial influence on market growth since it has
reduced demand for prefabricated building systems.
Currently,
there is a great opportunity in the construction sector, including residential,
commercial, and industrial, across the country. Additionally, rising
middle-class populations and urbanization are directly increasing the demand
for cost-effective houses or affordable houses. This has led to a positive
impact on the market for prefabricated buildings across the country.
Additionally, both prefabricated and modular technology are used to pursue
practicality in work as well as increase the speed of project completion time.
Also, both offer an advanced level of quality of work compared to the materials
of the conventional project and improve the quality of buildings with the
highest standards. Not surprisingly, some developers use this project to
present residential projects that can quickly return the value of their
investment, even though it is for the middle class. In 2019-20, many projects
in residential, industrial, commercial, among others, were launched and are
likely to be completed soon, and some new projects are expected to be announced
across the country. Therefore, this has led to enhancing the market of
prefabricated buildings during the forecast period.
Furthermore,
with the increasing demand in the prefabricated housing market in Indonesia,
the production of various construction projects slowed down across the country due
to a labor shortage, raw material supply chain issues, lack of skilled
workforce, among others. Therefore, many companies are anticipated to utilize
prefabricated building construction materials to complete projects faster
compared to traditional infrastructure. Additionally, the use of additive
manufacturing made using energy-absorbing materials, such as micro homes, is
likely to bolster prefabricated buildings market growth in the country.
Market
Drivers
Rising
Investments in Infrastructure Sector
The rising infrastructure investments are anticipated to
boost the growth of the prefabricated buildings market in the upcoming years in
the nation. Indonesia's population is equivalent to 3.45% of the total world
population. Currently, as of July 2023, the population of Indonesia was around
277,688,558. Additionally, the Indonesian government has decided to shift its
country's capital to Kalimantan in August 2024. The government is focusing on
developing residential and commercial buildings by investing billions of
dollars across the new region. Therefore, the demand for prefabricated
buildings is expected to rise in the upcoming years. There are various
infrastructure investments across the country. For instance, in January 2023,
Indonesia announced the start of construction of around 184 residential towers
in this year's second quarter to house 14,500 civil servants at the new
capital, called Nusantara, which is built in the forests of Borneo. Therefore,
the above-mentioned factors are likely to propel the market of prefabricated
buildings in the forecast period and are expected to register a significant
CAGR during 2024-2028F
Rising
Property Prices to Increase the Adoption of Prefab Construction
In terms
of sales, the latest survey indicated stronger residential property sales in
the primary market of Indonesia, accelerating to 15.23% (YoY) in the second
quarter of 2022 after contracting 10.11% (YoY) in the first quarter of 2022.
This trend indicates a growing demand for housing. However, the latest
Residential Property Price Survey conducted by Bank Indonesia indicated that
residential property prices posted modest annual gains in the second quarter of
2022, with the Residential Property Price Index (RPPI) growing by 1.72% (YoY),
relatively limited compared to 1.77% (YoY) in the previous period. These price
increases are discouraging property buyers.
Prefab
homes are less expensive to build. This type of construction can speed up
construction by up to 50%, and with the right trade-offs, it can cut costs by
20%. Many developers are using prefabricated construction to build residential
projects to ultimately reduce the final pricing. This adoption of prefabricated
construction may lead to increased sales of residential properties in the
Indonesian market.
Market Challenges
Transportation
Issues Associated with Prefabricated Building Systems
Prefabricated
construction is now regarded as a rapid, environment-friendly, and economical
method of construction. While prefabricated towers and skyscrapers have
recently become popular for bigger projects, this technique has historically
been more frequently employed for modest residential buildings. Prefabricated
pieces need to be put together at the facility before being brought to the site
to be put together. This procedure comes with a number of dangers, including
delayed or damaged deliveries, high transportation costs, and more.
Prefabricated building solutions that are designed for performance may appear
ideal in theory, but they lack customization and attention to detail. By
producing items off-site rather than on-site, a separation develops between the
architect and the manufacturer. Furthermore, any inexpensive substitute would
put the need for prefabricated building technology in jeopardy. Therefore, the
prefabricated building systems' transportation-related problems might limit
market expansion throughout the forecast period.
Recent
Development:
- In April 2022: PT. Modern Panel Indonesia, a
subsidiary of Modernland, one of Indonesia’s leading developers, announced a
new housing project using tested, earthquake-safe precast elements. The
prefabricated components are manufactured by the company in its own automated
precast production facility which is fitted with PROGRESS GROUP. The
reinforcement for the precast elements is processed more effectively and
automated with the new mesh welding plant M-System BlueMesh from the leading
automation machinery provider.
- In April 2022: A new data center has been set up by
NTT outside Jakarta, Indonesia. The new Jakarta 3 Data Center, a purpose-built four-story
building of 18,000 square meters of IT space and 15 MW2 capacity has been set
up in Bekasi. The capacity of the facility is likely to be 45 MW once it is
fully operational. First announced in 2019 and originally due for completion at
the end of 2020, the facility has a Tier IV-ready compact and modular design.
- Indonesia's
government increased its infrastructure investments by USD429.7 billion in
2020-2024, up by 20% from USD359.2 billion in 2015-2019. After a decline
brought on by the COVID-19 crisis, aggregate production in Indonesia
significantly increased in 2021. The Indonesian government has initiated a
program to upgrade basic infrastructure, including roads, airports, and
seaports, which is likely to stimulate demand for building materials.
Infrastructure development was given USD 28.5 billion in the country's 2021
state budget, a 47% increase from the 2020 budget.
Market
Segmentation
The Indonesia Prefabricated Buildings market is
segmented into materials type, structure, application, region, and competitive
landscape. Based on material type, the market is segmented into concrete,
glass, metal, timber, and others. Based on structure, the market is segmented
into skeleton system, panel system, cellular system, and combined system. Based
on application, the market is segmented into residential, commercial, and
industrial. Based on regional analysis, the market is divided into Java, Sumatra, Kalimantan, Bali, and others.
Company
Profiles
Bali
Prefab, DTH Prefab, Karmod Prefabricated House Indonesian, Kirby Building Systems,
Laras Bali Prefab, Prefab World Bali International, PT Pandu Teduh Wana, PT.
Sanwa Prefab Technology, PT Teak Bali, among others, are the major players
driving the growth of the Indonesia prefabricated buildings market.
Attribute | Details |
Base Year | 2022 |
Historical Years | 2018 –
2021 |
Estimated Year | 2023 |
Forecast Period | 2024
– 2028 |
Quantitative Units | Revenue in USD Billion and CAGR for 2018-2022 and 2024-2028 |
Report Coverage | Revenue
forecast, company share, competitive landscape, growth factors, and trends |
Segments Covered | Materials Type Structure Application Region |
Country Scope | Java,
Sumatra, Kalimantan, Bali, and Others |
Key Companies Profiled | Bali Prefab, DTH Prefab, Karmod Prefabricated House
Indonesian, Kirby Building Systems, Laras Bali Prefab, Prefab World Bali
International, PT Pandu Teduh Wana, PT. Sanwa Prefab Technology, PT Teak Bali |
Customization Scope | 10%
free report customization with purchase. Addition or alteration to country, Country
& segment scope. |
Pricing and Purchase Options | Avail of customized purchase options to meet your exact
research needs. Explore purchase options |
Delivery Format | PDF and Excel through
Email (We can also provide the editable version of the report in PPT/pdf format
on special request) |
Report
Scope:
In this report, the Indonesia prefabricated
buildings market has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
·
Indonesia Prefabricated Buildings Market,
By Material Type:
o
Concrete
o
Glass
o
Metal
o
Timber
o
Other
·
Indonesia Prefabricated Buildings Market,
By Structure:
o Skeleton System
o Panel System
o Cellular System
o Combined System
·
Indonesia Prefabricated Buildings Market,
By Application:
o Residential
o Commercial
o Industrial
·
Indonesia Prefabricated Buildings Market, By Country:
o Java
o Sumatra
o Kalimantan
o Bali
o Others
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the Indonesia Prefabricated
Buildings market.
Available Customizations:
With the given market data, TechSci
Research offers customizations according to a company’s specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
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