Indonesia Prefabricated Buildings Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Indonesia Prefabricated Buildings Market is segmented by Material Type (Concrete, Glass, Metal, Timber, and Other Material Types) and Application (Residential, Commercial, and Other Applications [Infrastructure and Industrial]). The report offers the market size and forecasts in value (USD billion) for all the above segments.

Market Snapshot

indonesia prefabricated buildings market share
Study Period: 2018-2027
Base Year: 2021
CAGR: 6 %

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Market Overview

The prefabricated buildings market in Indonesia is expected to register a CAGR of approximately 6% during the forecast period, mainly driven by the demand for low-to-mid-rise residential buildings, project homes, and public housing.

The construction sector is one of the industries that the COVID-19 pandemic has had a significant impact on. Many projects were halted in 2020 due to a lack of funding, labor shortages, and lockdown laws. An exodus of migrant laborers, often known as informal sector employees, wreaked havoc on the supply chain as a result of travel prohibitions.

The pandemic's impact on the prefabricated building systems industry is hampered by these limitations. During the peak of the pandemic in 2020, the demand for prefabricated hospitals and patient bed facilities soared, which boosted the demand for modular building systems, as these types of construction take much less time to complete.

Prefabricated construction systems are becoming more popular than calcium oxide due to their many advantages, including excellent quality, high strength, low weight, volume, and cost. Furthermore, prefabricated building systems are frequently praised for their energy efficiency and environment-friendly construction.

The growing commercial and residential sectors around the world are driving the demand for ventilated thermal panels, which is the primary growth driver of the prefabricated buildings market.

Scope of the Report

Prefabricated buildings, or prefabs, are buildings with components (walls, roof, and floor) that are manufactured in a factory or manufacturing plant. These components can be fully or partially assembled in a factory, which are then transferred to the construction site. The Indonesian prefabricated buildings market is segmented by material type (concrete, glass, metal, timber, and other material types) and application (residential, commercial, and other applications [infrastructure and industrial]). The report offers the market size and forecasts in value (USD billion) for all the above segments.

Material Type
Other Material Types
Other Applications (Industrial, Institutional, and Infrastructure)

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Key Market Trends

Upcoming Projects in the Prefab Construction Sector/ Affordable Housing to Boost the Activity and Growth

Modular and prefabricated technology is utilized to pursue practicality in work, as well as the speed of project development. However, this method is also recognized as improving the quality of buildings with qualified standardization and a higher level of precision compared to conventional projects. Not surprisingly, some developers use this project to present residential projects that can return the value of their investment quickly, even though it is for the middle class. Side affordable becomes one of the points that can be packaged in the use of these technologies. With many projects shaping up soon and with many already being announced in 2019/20 in various sectors like residential, retail, civil, community, education, industrial, etc., the prefab sector in Indonesia is set to see rapid growth during the forecast period.

indonesia prefabricated buildings market analysis

Precast Concrete Holds Largest Share in the Market

Precast concrete holds the largest share in the market, driven by the increase in off-site construction activity. The rapid infrastructure advancement held by the government in the nation has driven the demand for supporting materials such as concrete, which is likewise very huge. It is likewise expected to exhibit growth, with an increase in non-residential and private development because of rising urbanization. This development can be ascribed to the increasing awareness among manufacturers, designers, constructors, and end clients with respect to the benefits of utilizing precast concrete.

The precast concrete construction technology is one of the most promising solutions to deal with the rising demand for housing and infrastructure construction. As per data from the Indonesian Prefabricated and Prefab Company Association (AP3I), the production capacity of precast concrete is always increasing. In 2019, the national precast concrete production capacity was 41 million ton; in 2020, it rose to 43 million ton. In 2021, the production declined to 32 million ton due to the second wave of COVID-19 and further lockdowns.

indonesia prefabricated buildings market trends

Competitive Landscape

The report covers the major players operating in the Indonesian prefabricated buildings industry. The market is highly competitive, with a few players occupying the major share. The market is fragmented, and it is expected to grow during the forecast period due to the increase in prefab construction building investments and upcoming major projects in the country. Prefabricated building systems and construction hold high potential to improve the efficiency and performance of the Indonesian construction industry in a more sustainable sense. In the next two years, modular concept buildings are expected to be increasingly popular.

PT Pembangunan Perumahan (Persero) Tbk or PTPP is one company that is eyeing a new business opportunity. The company has collaborated to develop technology that will be used in the modular business. In fact, the research team has run the development stage with a machine that will be used to have 3D printing technology from Dubai. With the market just opening up in the building industry, with investments in the technology -R&D, the market is open to ample opportunities, and it may witness strong growth in the coming years.

Some of the companies in the Indonesian prefab construction industry are PT PREFABINDO ADYATAMA, PT Pembangunan Perumahan, PT.Sanwa Prefab Technology, PT Touchwood, and PT Techno Prefab.

Recent Developments

December 2021: Modernland, one of Indonesia’s leading developers, through its subsidiary PT Modern Panel Indonesia, is creating a new housing project with tested, earthquake-safe precast elements. The prefabricated elements are produced at its own automated precast plant equipped by 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.

November 2021: Fluor Corporation announced that its joint venture with Petrosea Fluor Petrosea Joint Organization (FPJO) was selected by PT Freeport Indonesia to install a new grinding mill at its Grasberg copper and gold mining district in Papua, Indonesia. FPJO will construct a third semi-autogenous grinding (SAG) mill adjacent to the existing milling facilities as the mining district continues to ramp up underground production, primarily from the Deep Mill Level Zone and Grasberg Block Cave mines.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study


    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases



    1. 4.1 Current Market Scenario

    2. 4.2 Technological Trends

    3. 4.3 Insights into Supply Chain/Value Chain Analysis of the Prefabricated Buildings Industry

    4. 4.4 Brief on Different Structures Used in the Prefabricated Buildings Industry

    5. 4.5 Cost Structure Analysis of the Prefabricated Buildings Industry

    6. 4.6 Impact of COVID-19 on the Market


    1. 5.1 Drivers

    2. 5.2 Restraints

    3. 5.3 Opportunitites

    4. 5.4 Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers / Buyers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION (Market Size be Value)

    1. 6.1 Material Type

      1. 6.1.1 Concrete

      2. 6.1.2 Glass

      3. 6.1.3 Metal

      4. 6.1.4 Timber

      5. 6.1.5 Other Material Types

    2. 6.2 Application

      1. 6.2.1 Residential

      2. 6.2.2 Commercial

      3. 6.2.3 Other Applications (Industrial, Institutional, and Infrastructure)


    1. 7.1 Overview (Market Concentration and Major Players)

    2. 7.2 Company Profiles


      2. 7.2.2 PT Pembangunan Perumahan

      3. 7.2.3 PT.Sanwa Prefab Technology

      4. 7.2.4 PT Touchwood

      5. 7.2.5 PT Techno Prefab

      6. 7.2.6 PT. INDOLIGN SELARAS

      7. 7.2.7 PT. LIPPO KARAWACI TBK

      8. 7.2.8 Karmod Prefabricated Technologies

      9. 7.2.9 Laras Bali

      10. 7.2.10 PT. NINDYA KARYA (PERSERO) *

    3. *List Not Exhaustive
    4. 7.3 *List Not Exhaustive


  9. 9. APPENDIX

    1. 9.1 Macroeconomic Indicators (GDP Breakdown by Sector, Contribution of Construction to Economy, etc.)

    2. 9.2 Key Production, Consumption, Exports and Imports Statistics of Construction Materials

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Frequently Asked Questions

The Indonesia Prefabricated Buildings Market market is studied from 2018 - 2027.

The Indonesia Prefabricated Buildings Market is growing at a CAGR of 6% over the next 5 years.

PT. PREFABINDO ADYATAMA, PT Pembangunan Perumahan, PT. Sanwa Prefab Technology, PT Touchwood, PT Techno Prefab are the major companies operating in Indonesia Prefabricated Buildings Market.

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