Indonesia Prefabricated Buildings Market By Material Type (Concrete, Glass, Metal, Timber, and Other), By Structure (Skeleton System, Panel System, Cellular System, Combined System), By Application (Residential, Commercial, Industrial), By Region, Competition Forecast & Opportunities 2028F
Published Date: November - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Infrastructure | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationIndonesia Prefabricated Buildings Market By Material Type (Concrete, Glass, Metal, Timber, and Other), By Structure (Skeleton System, Panel System, Cellular System, Combined System), By Application (Residential, Commercial, Industrial), By Region, Competition Forecast & Opportunities 2028F
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 2024-2032-20, 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
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 2022PT. Modern Panel Indonesia, asubsidiary of Modernland, one of Indonesia’s leading developers, announced anew housing project using tested, earthquake-safe precast elements. Theprefabricated components are manufactured by the company in its own automatedprecast production facility which is fitted with PROGRESS GROUP. Thereinforcement for the precast elements is processed more effectively andautomated with the new mesh welding plant M-System BlueMesh from the leadingautomation machinery provider.
- In April 2022A new data center has been set up byNTT outside Jakarta, Indonesia. The new Jakarta 3 Data Center, a purpose-built four-storybuilding of 18,000 square meters of IT space and 15 MW2 capacity has been setup in Bekasi. The capacity of the facility is likely to be 45 MW once it isfully operational. First announced in 2024-2032 and originally due for completion atthe end of 2020, the facility has a Tier IV-ready compact and modular design.
- Indonesia'sgovernment increased its infrastructure investments by USD429.7 billion in2020-2024, up by 20% from USD359.2 billion in 2015-2024-2032. After a declinebrought on by the COVID-19 crisis, aggregate production in Indonesiasignificantly increased in 2021. The Indonesian government has initiated aprogram to upgrade basic infrastructure, including roads, airports, andseaports, which is likely to stimulate demand for building materials.Infrastructure development was given USD 28.5 billion in the country's 2021state 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
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. |
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Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request) |
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