Indonesia Automation and Control System Market Size

Indonesia Automation and Control System Market Overview

The Indonesia Automation and Control System Market size is estimated at USD 109.90 million in 2024, and is expected to reach USD 336.41 million by 2029, growing at a CAGR of 8.59% during the forecast period (2024-2029).

With Indonesia's steady amalgamation with the world's economy, Indonesia's Automation and Control System will be essential in bringing costs down.

• Automation and Control System refers to systems that oversee and control a wide range of processes involved in manufacturing and distributing goods and services. Many universal and essential services depend on Automation and Control Systems, from assembly lines to power stations. For example, many utility or telecommunication infrastructures that maintain a modern nation's social, industrial, and economic well-being rely on Automation and Control Systems.
• Indonesia is a prominent industrial manufacturer that highly adopts automation in its industries. Manufacturing contributes a considerable amount to a country's GDP. For instance, according to Statistics Indonesia, in 2022, Indonesia's manufacturing sector contributed over 18 percent of the country's GDP, the most significant contributor to the nation's economy. The robust manufacturing activities in Indonesia and Malaysia will likely augment the demand for the studied market.
• Growing government funding to encourage automated systems in numerous industrial verticals, booming demand for automation from different manufacturing sectors, increasing innovations in industrial robotics, swelling technological advancements in manufacturing, and the need for mass production and related supply chains to cater to the rising population are the crucial factors driving the growth of automation and process control systems market in Indonesia.
• Indonesia's mineral resources are vast and unexplored, and it is the world's largest exporter of Tin, palm oil, and thermal coal. It is also one of the major exporters of Nickel, Copper, Bauxite, Rubber, Manganese, Zinc, and Lead, among others. Mining accounts for about a tenth of Indonesia's GDP and has played a vital role in the country's economic development over the years. The rising demand for metals and minerals, with the growing demand for semiconductors and electronics, fuels the adoption of automated systems in the mining sector.
• The energy sector is experiencing an increase in demand for automation and control systems due to the emergence of smart city programs. Indonesia has taken the lead in this regard by launching the 100 Smart Cities Movement, a comprehensive digitalization program aimed at addressing urbanization challenges. This initiative is part of the government's plan to tackle the issue of urbanization, with projections indicating that 83 percent of the Indonesian population will reside in urban areas by 2045.
• Indonesia is also encouraging the use of biomass to improve the greening of existing Steam Power Plants through the innovative Biomass Co-Firing program. The program aims to co-fire biomass in 52 locations by 2025 and has already co-fired biomass in 37 areas, using 306 thousand tons to reach the 1.08 million ton target by 2023. Such programs and new projects and investments to develop the power and utility sector of the country are expected to create new market opportunities for the implementation of automation and control systems in the country.
• However, the initial costs associated with automation and control systems are high. The complexity of customization and integration adds to the overall costs. Moreover, installing automation equipment may require modifications to the existing infrastructure of the factory. This can include changes to the layout, electrical systems, and safety features to accommodate new equipment, which incur additional costs. Such factors might hinder the market growth.
• A notable impact of COVID-19 was observed on the studied market as the widespread lockdown across various parts disrupted the supply chain of multiple industries. Although the food and beverage, pharmaceutical, and semiconductor industries were considered essential, supply chain disruptions, fluctuating demand conditions, and uncertain market conditions significantly impacted the operational capabilities of various food processing, pharmaceutical, and semiconductor companies, especially during the initial phase.