Indonesia Architectural Coatings Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2028

Indonesia Architectural Coatings Market Trends

Residential is the largest segment by Sub End User.

• The architectural coating consumption in Indonesia dipped in 2016 and 2017 due to the affected sales and new launches. Furthermore, The Indonesian property sector experienced a slowdown in 2016 as prospective buyers, especially in the premium segment, delayed their purchase to wait for the tax amnesty realisation, therefore leading to the less circulation of money in the sector.
• The consumption recovered quickly and peaked in 2018 due to the higher addition of floor area in the residential sector as the country met its target for the construction of 1 million homes, with 1.13m built in 2018 as part of efforts to reduce the country’s housing backlog. The slow growth in the architectural coating consumption was observed in 2019 followed by a decline in 2020 due to lower new constructions in both residential cand commercial sector owing to the spread of covid-19 in the country and partial lockdown of 50 days across the country.
• The increase in consumption and sales is expected to grow at a significant rate in 2022 and the forecasted period due to the rising population in the country and positive investment in the rapid growing construction sector. According to the world population review, Indonesia currently grows by about 2.73 million people per year.

Segment Analysis: SUB END USER

Residential Segment in Indonesia Architectural Coatings Market

The residential segment dominates the Indonesian architectural coatings market, accounting for approximately 68% of the market share in 2024. This substantial share is primarily driven by Indonesia's robust housing sector, rapid urbanization, and growing middle-class population. The segment's strength is further reinforced by government initiatives supporting affordable housing development and renovation projects across major Indonesian cities. Additionally, the increasing awareness among homeowners about the importance of protective and decorative coatings, such as house paint and acrylic paint, coupled with rising disposable incomes, has contributed to the segment's dominant position in the market.

Commercial Segment in Indonesia Architectural Coatings Market

The commercial segment in the Indonesian architectural coatings market demonstrates significant growth potential, driven by extensive infrastructure development and commercial construction activities across the country. The segment's expansion is supported by increasing investments in office buildings, shopping centers, hotels, and other commercial establishments, particularly in major urban centers like Jakarta, Surabaya, and Bandung. The demand for high-performance building coatings with enhanced durability and aesthetic appeal continues to rise in this segment, as commercial property developers focus on maintaining building aesthetics while ensuring long-term protection against Indonesia's tropical climate conditions.

Segment Analysis: TECHNOLOGY

Waterborne Segment in Indonesia Architectural Coatings Market

The waterborne coatings segment has established itself as the dominant technology in Indonesia's architectural coatings market, holding approximately 70% of the market share in 2024. This commanding position is primarily driven by increasingly stringent environmental regulations in Indonesia regarding volatile organic compound (VOC) emissions. The segment's growth is further supported by rising awareness among consumers about environmental and health impacts, leading to greater demand for eco-friendly coating solutions like latex paint and emulsion paint. Additionally, waterborne coatings have gained significant traction in both residential and commercial applications due to their low odor, quick drying times, and excellent durability in Indonesia's tropical climate conditions.

Waterborne Segment in Indonesia Architectural Coatings Market

As both the largest and fastest-growing segment, waterborne coatings are projected to maintain strong growth momentum during the forecast period 2024-2029. The segment's expansion is being driven by multiple factors, including the Indonesian government's push towards sustainable construction practices, increasing adoption of green building standards, and growing environmental consciousness among consumers. The development of advanced waterborne coating technologies with improved performance characteristics, such as better chemical resistance and enhanced durability, is also contributing to the segment's growth trajectory. Major manufacturers are increasingly focusing their R&D efforts on developing innovative waterborne formulations that can match or exceed the performance of traditional solventborne alternatives.

Remaining Segments in Technology

The solventborne coatings segment continues to maintain its presence in the Indonesian architectural coatings market, particularly in applications where specific performance characteristics are required. These coatings are still preferred in certain industrial and specialized architectural applications where superior chemical resistance and durability are paramount. However, their market position is increasingly challenged by environmental regulations and shifting consumer preferences toward more sustainable alternatives. Manufacturers are working on developing hybrid technologies that combine the benefits of both solventborne and waterborne systems to address specific market needs while minimizing environmental impact.

Segment Analysis: RESIN

Acrylic Segment in Indonesia Architectural Coatings Market

Acrylic resins dominate the Indonesian architectural coatings market, holding approximately 40% market share in 2024. This dominance can be attributed to acrylic's exceptional versatility, superior weathering properties, and excellent adhesion characteristics. The segment's strong performance is driven by increasing demand in both residential and commercial construction sectors, particularly in urban areas like Jakarta and Surabaya. Acrylic resins are preferred for their quick-drying properties, UV resistance, and ability to maintain color stability in Indonesia's tropical climate. The segment has also benefited from the growing trend toward eco-friendly coating solutions, as manufacturers develop low-VOC acrylic paint formulations. Additionally, the widespread availability of acrylic-based products through various distribution channels and their cost-effectiveness compared to other resin types has contributed to their market leadership.

Polyurethane Segment in Indonesia Architectural Coatings Market

The polyurethane resin segment is experiencing the fastest growth in the Indonesian architectural coatings market, projected to grow at approximately 7% during 2024-2029. This growth is primarily driven by increasing demand for high-performance coatings in premium construction projects and luxury residential developments. Polyurethane resins are gaining popularity due to their superior durability, chemical resistance, and excellent finish quality. The segment's growth is further supported by technological advancements in polyurethane formulations, leading to improved application properties and enhanced performance characteristics. The rising adoption of polyurethane-based coatings in high-traffic commercial spaces, such as shopping malls, hotels, and office buildings, where durability and aesthetic appeal are crucial, is also contributing to the segment's rapid expansion.

Remaining Segments in Resin

The other resin segments, including alkyd, epoxy, polyester, and various specialty resins, continue to play important roles in the Indonesian architectural coatings market. Alkyd resins maintain their significance in traditional applications due to their excellent gloss retention and durability. Epoxy resins are crucial in specialized applications where chemical resistance and superior adhesion are required, particularly in industrial and commercial settings. Polyester resins have found their niche in specific architectural applications where high gloss and excellent weather resistance are essential. These segments collectively cater to diverse market needs, from specialized industrial applications to decorative architectural finishes, contributing to the overall market dynamics and providing customers with a wide range of coating solutions for various requirements.