Indonesia HVAC Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 5.5 Billion |
| Market Size (2030) | USD 7.63 Billion |
| CAGR (2025 - 2030) | 6.80% |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Indonesia HVAC Market Analysis
The Indonesia HVAC Market size is estimated at USD 5.5 billion in 2025, and is expected to reach USD 7.63 billion by 2030, at a CAGR of 6.80% during the forecast period (2025-2030).
- Indonesia's HVAC market is on an upward trajectory, spurred by swift urbanization, a construction boom, and heightened awareness of energy efficiency. The nation's tropical climate drives the demand for HVAC systems across residential, commercial, and industrial sectors.
- As urban areas in Indonesia expand rapidly, investments in both residential and commercial infrastructure surge. The rise of modern housing complexes, office buildings, shopping centers, and industrial sites has amplified the demand for HVAC systems. With urban growth comes an essential need for effective climate control, propelling the adoption of HVAC technologies.
- In a bid to champion eco-friendly HVAC solutions, the Indonesian government has rolled out stringent energy-saving regulations. Initiatives like the National Cooling Action Plan (I-NCAP) are designed to curb greenhouse gas emissions by promoting energy-efficient cooling systems. Such regulations have spurred manufacturers to innovate, crafting HVAC systems that align with sustainability benchmarks, thus fueling market expansion.
- As Indonesia's middle class expands and disposable incomes rise, spending on home comfort solutions has surged. Consumers are increasingly recognizing the advantages of energy-efficient HVAC systems, from cost savings to enhanced indoor air quality. This evolving consumer mindset has catalyzed a heightened demand for smart, sustainable HVAC technologies.
- Yet, despite this burgeoning demand, challenges loom over HVAC adoption in Indonesia. The steep initial costs for installation and maintenance pose significant hurdles. Energy-efficient HVAC models, while advanced, come with a premium price, often sidelining lower-income households and smaller enterprises. Furthermore, the ongoing costs of maintenance and servicing can deter many from embracing these systems.
Indonesia HVAC Market Trends
Urbanization and Rising Commercialization Expected to Drive the Market
- As millions flock to Indonesian cities in pursuit of better opportunities, the nation grapples with swift urbanization. This influx has spurred a boom in residential construction, from high-rise apartments to modern housing complexes and gated communities. Concurrently, to cater to this burgeoning urban populace, commercial infrastructures like shopping malls, office buildings, hotels, and entertainment centers have proliferated. Such expansive developments necessitate sophisticated HVAC systems for optimal indoor comfort, thereby amplifying the demand for air conditioning, ventilation, and heating solutions.
- In 2024, Indonesia's residential real estate market is witnessing a notable surge. In recent years, foreign investors have increasingly been eyeing Indonesia's real estate sector, with China leading the charge. This uptick in interest can be largely attributed to the Indonesian government's proactive stance in promoting Foreign Direct Investment (FDI). Highlighting this momentum, JLL, a prominent real estate agency, reported that property sector investments in H1 2024 hit IDR 29.4 trillion (USD 1.79 billion), marking a 6% uptick from the previous year. Such figures underscore the robust confidence investors have in Indonesia's property landscape.
- In 2024, foreign direct investment in Indonesia's real estate market surpassed USD 3 billion, marking an uptick from the prior year, as reported by the Ministry of Investment / Indonesia Investment Coordinating Board (BKPM).
- In tandem with this burgeoning demand, the Indonesian government has rolled out the “One Million Houses” initiative, aiming to construct a minimum of 1 million housing units each year to combat the nation's housing deficit. As of February 2024, the Public Works and Public Housing Ministry (PUPR) announced the completion of 79,568 houses under this program. Cumulatively, from 2015 to 2023, the initiative has successfully delivered 9,206,379 housing units across Indonesia.
- Indonesia's commercial sector, encompassing retail, hospitality, healthcare, and corporate offices, is witnessing rapid expansion. The emergence of business districts and industrial parks has spurred a robust demand for HVAC systems, essential for ensuring optimal indoor air quality and temperature control. Industrial entities, from manufacturing plants to warehouses, are turning to specialized HVAC solutions to oversee their temperature-sensitive operations. With the ongoing growth of businesses, the demand for dependable and efficient HVAC systems intensifies.
Commercial Sector is Expected to Drive the Market
- Commercial real estate development is booming in Indonesia's urban hubs, especially in Jakarta, Surabaya, and Bandung. The rise of modern office buildings, coworking spaces, and bustling business districts has spurred a heightened demand for HVAC systems, essential for ensuring top-notch indoor air quality and temperature control. Businesses are turning to cutting-edge HVAC solutions, not just to boost employee productivity and trim energy expenses, but also to meet stringent environmental standards.
- As Indonesia witnesses a rapid expansion in its retail and hospitality sectors, new shopping malls, hotels, and entertainment venues are springing up nationwide. These entities rely on advanced HVAC systems to ensure a pleasant atmosphere for patrons. Hotels are especially keen on energy-efficient air conditioning and ventilation, striking a balance between enhancing guest satisfaction and curbing operational expenses. The burgeoning number of luxury hotels and resorts has only intensified the demand for top-tier HVAC solutions.
- For instance, as per Statistics Indonesia, the construction sector's GDP growth rate in 2024 was projected at a robust seven percent, marking a notable uptick from the prior year. While many infrastructure projects faced delays in 2020 due to the COVID-19 pandemic, the sector rebounded with significant growth in 2021, only to see a modest dip of 0.8 percent in 2022.
- Indonesia's industrial sector, encompassing manufacturing plants, warehouses, and logistics centers, is on a steady growth trajectory. These facilities depend on HVAC systems to manage temperature-sensitive operations, ensure worker comfort, and uphold air quality standards. Sectors like pharmaceuticals, food processing, and electronics manufacturing depend on precise climate control to safeguard their products and equipment. As industrial activities broaden, the demand for tailored HVAC solutions, attuned to specific operational needs, surges.
- Amid rising energy costs and mounting environmental concerns, commercial establishments are turning to smart HVAC technologies. IoT-enabled systems empower businesses to monitor and fine-tune energy consumption, leading to reduced operational costs. Furthermore, automated climate control solutions, when integrated with building management systems, bolster both efficiency and sustainability. This shift is further propelled by government incentives and regulations championing energy-efficient buildings, hastening the embrace of advanced HVAC technologies in the commercial realm.
Indonesia HVAC Industry Overview
In Indonesia, the HVAC market showcases a blend of specialized players and regional conglomerates, each carving a niche across diverse segments. While a handful of multinational giants command dominance in select high-value segments, a multitude of regional and niche players intensifies the competitive landscape, underscoring the market's diversity. This vibrant competition stems from the myriad applications of HVAC equipment, creating an ecosystem where both small and large enterprises not only coexist but flourish.
Several leading companies in the Indonesian HVAC market include Daikin Industries Ltd., Samsung Electronics Co. Ltd., Panasonic Holdings Corporation, LG Electronics, Mitsubishi Electric Corporation, and many others. These companies, bolstered by strong brand recognition and expansive regional operations, hold a commanding share of the market. Their prowess lies in innovation, a diverse solutions portfolio, and a strong distribution network. To further cement their competitive edge and expand their market presence, these industry leaders routinely engage in strategic acquisitions and partnerships.
In Indonesia's competitive HVAC market, companies are placing a premium on innovation, particularly in heating, ventilation, and air conditioning equipment. As industries pursue cutting-edge solutions, HVAC equipment emerges as a crucial differentiator. Moreover, broadening service offerings and bolstering customer support are vital for nurturing enduring relationships and ensuring repeat business. Firms that channel investments into emerging markets and customize their products to meet regional demands stand to gain a significant edge in this fragmented arena.
Indonesia HVAC Market Leaders
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LG Electronics
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Daikin Industries Ltd.
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Panasonic Holdings Corporation
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Mitsubishi Electric Corporation
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Samsung Electronics Co. Ltd.
- *Disclaimer: Major Players sorted in no particular order
Indonesia HVAC Market News
- March 2025: As Indonesia's hospitality sector rebounds amidst an energy transition, Johnson Controls-Hitachi Air Conditioning Indonesia is leading an HVAC revolution in hotels. The firm emphasizes flexibility, sustainability, and guest well-being, offering state-of-the-art, energy-efficient, IoT-enabled solutions. These advancements not only elevate operational efficiency but also prioritize guest comfort and environmental standards. The company's HVAC systems seamlessly integrate into both new constructions and established hotels. Urban hotels facing space constraints find the air365 SideSmart VRF system to be an ideal solution. Additionally, the award-winning 4-Way Ceiling Cassette, honored with the iF Design Award 2020, guarantees silent and efficient cooling in guest rooms and meeting spaces alike.
- August 2024: In Bali, the Indonesian government unveiled its inaugural National Cooling Action Plan (I-NCAP). This pioneering inter-ministerial initiative tackles a major contributor to global warming, steering Indonesia towards a sustainable, cooler, and net-zero future. The I-NCAP zeroes in on five pivotal areas: cooling in buildings, food and healthcare cold chains, mobile air conditioning, and process cooling, all in harmony with Indonesia's bolstered Nationally Determined Contribution (NDC).
Indonesia HVAC Industry Segmentation
HVAC is a comprehensive system designed to create and maintain comfortable indoor environmental conditions in residential, commercial, and industrial spaces. Heating is the first component, which involves warming interior spaces during cold weather through various methods such as furnaces, heat pumps, and radiant heating systems. These technologies convert energy into heat, distributing warmth evenly throughout a building to ensure occupant comfort and prevent temperature-related issues.
Ventilation represents the critical process of exchanging indoor and outdoor air, ensuring proper air circulation, removing pollutants, controlling humidity, and maintaining air quality. This aspect of HVAC involves mechanical and natural ventilation techniques that introduce fresh air, filter contaminants, and regulate oxygen levels. Proper ventilation is essential for preventing the buildup of harmful gases, reducing moisture-related problems, and creating a healthy indoor environment.
Air Conditioning focuses on cooling and dehumidifying interior spaces during warm weather. Modern air conditioning systems use refrigeration cycles to remove heat and moisture from the air, creating a comfortable and controlled climate. These systems range from central air conditioning units to ductless mini-splits, providing precise temperature management and improving overall indoor comfort. The integration of these three components- heating, ventilation, and air conditioning- creates a sophisticated environmental control system that adapts to changing weather conditions and occupant needs.
The study tracks the revenue accrued through the sale of HVAC product types by various players in Indonesia. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of macroeconomic factors on the market. The report's scope encompasses market sizing and forecasts for the various market segments.
The Indonesia HVAC Market is Segmented by product type (heating equipment [heat pumps (air source, ground source), furnaces (gas, electric, oil), boilers (condensing, non-condensing), unit heaters, and others (radiators & baseboard heaters, solar water heating systems)], ventilation equipment [air handling units (AHUs), energy recovery ventilators (ERVs)/heat recovery, ventilators (HRVs), exhaust and supply fans, dehumidifiers/humidifiers], air conditioning equipment [unitary air conditioners, variable refrigerant flow (VRF) systems, chillers (air-cooled, water-cooled), fan coil units (FCUs), and others (window and portable air conditioners)]) and end-user industry (residential, commercial, and industrial). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Product Type | Heating Equipment | Heat Pumps (Air Source, Ground Source) | ||
| Furnaces (Gas, Electric, Oil) | ||||
| Boilers (Condensing, Non-condensing) | ||||
| Unit Heaters | ||||
| Others (Radiators & Baseboard Heaters, Solar Water Heating Systems) | ||||
| Ventilation Equipment | Air Handling Units (AHUs) | |||
| Energy Recovery Ventilators (ERVs)/Heat Recovery Ventilators (HRVs) | ||||
| Exhaust and Supply Fans | ||||
| Dehumidifiers/Humidifiers | ||||
| Air Conditioning Equipment | Unitary Air Conditioners | Split Air Conditioners | ||
| Packaged Terminal ACs (PTACs) | ||||
| Rooftop Packaged Units (RTUs) | ||||
| Variable Refrigerant Flow (VRF) Systems | ||||
| Chillers (Air-Cooled, Water-Cooled) | ||||
| Fan Coil Units (FCUs) | ||||
| Others (Window and Portable Air Conditioners) | ||||
| By End-user Industry | Residential | |||
| Commercial | ||||
| Industrial | ||||
| Heating Equipment | Heat Pumps (Air Source, Ground Source) | ||
| Furnaces (Gas, Electric, Oil) | |||
| Boilers (Condensing, Non-condensing) | |||
| Unit Heaters | |||
| Others (Radiators & Baseboard Heaters, Solar Water Heating Systems) | |||
| Ventilation Equipment | Air Handling Units (AHUs) | ||
| Energy Recovery Ventilators (ERVs)/Heat Recovery Ventilators (HRVs) | |||
| Exhaust and Supply Fans | |||
| Dehumidifiers/Humidifiers | |||
| Air Conditioning Equipment | Unitary Air Conditioners | Split Air Conditioners | |
| Packaged Terminal ACs (PTACs) | |||
| Rooftop Packaged Units (RTUs) | |||
| Variable Refrigerant Flow (VRF) Systems | |||
| Chillers (Air-Cooled, Water-Cooled) | |||
| Fan Coil Units (FCUs) | |||
| Others (Window and Portable Air Conditioners) | |||
| Residential |
| Commercial |
| Industrial |
Indonesia HVAC Market Research FAQs
How big is the Indonesia HVAC Market?
The Indonesia HVAC Market size is expected to reach USD 5.5 billion in 2025 and grow at a CAGR of 6.80% to reach USD 7.63 billion by 2030.
What is the current Indonesia HVAC Market size?
In 2025, the Indonesia HVAC Market size is expected to reach USD 5.5 billion.
Who are the key players in Indonesia HVAC Market?
LG Electronics, Daikin Industries Ltd., Panasonic Holdings Corporation, Mitsubishi Electric Corporation and Samsung Electronics Co. Ltd. are the major companies operating in the Indonesia HVAC Market.
What years does this Indonesia HVAC Market cover, and what was the market size in 2024?
In 2024, the Indonesia HVAC Market size was estimated at USD 5.13 billion. The report covers the Indonesia HVAC Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Indonesia HVAC Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
Indonesia HVAC Industry Report
Statistics for the 2025 Indonesia HVAC market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Indonesia HVAC analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
