Dublin, June 19, 2023 (GLOBE NEWSWIRE) -- The "Indonesia Electrical Materials Market Segmented By Type (Circuit Breakers, Light Switches, Plugs & Sockets, Voltage Switcher, Cable Management, Cable Duct, Electrical Conduit, Others), By End User, By Region, Competition, Forecast & Opportunities, 2031" report has been added to ResearchAndMarkets.com's offering.
Indonesia Electrical Materials Market was valued at USD 1832.46 million in 2022 and is anticipated to project robust growth through the forecast period, registering a CAGR of 13.02% through 2031.
Growth of Construction Infrastructure
The need for electrical materials is growing as Indonesia's infrastructure development is growing. The development of infrastructure for several building projects, including the new capital city in Borneo and the F1H2O facilities at Lake Toba, necessitates the usage of different electrical materials, such as switches, plugs & sockets, circuit breakers, etc.
In addition, the Indonesian government has been promoting fresh reforms and laws in an effort to stimulate the economy through the development of various infrastructures. According to Indonesia's 2022 budget, the Indonesian government has allocated more than USD 26 billion for the expansion of infrastructure, including building six new airports, more than 6,000 kilometers of rail lines, and an irrigation system covering more than 100,000 hectares.
Moreover, the expansion of setup facilities and installations has allowed the service provider to expand production and launch new electrical materials goods in the market. As a result, the market for electrical materials in Indonesia is seeing strong growth due to the expansion of the building infrastructure.
Bolstering Growth of Electric Vehicles
Indonesia is essential to the country's efforts to electrify its transportation. Indonesia, the largest economy in Southeast Asia, is gradually becoming known as a leading manufacturer of electric vehicles (EVs).
13 million electric motorcycles and 2.2 million electric cars are expected to be produced by 2030. This acceleration of growth will make it easier for suppliers of electrical materials to satisfy the demand for items such as switches, power plugs, cable ducts, and so on. Furthermore, the nation is dedicated to playing a key role and developing into a crucial component of the supply chain for the world's battery production since it is home to 22% of the world's plentiful nickel deposits.
Moreover, the development of EV charging infrastructure and numerous government subsidies, tax breaks, and incentives, as well as national agendas such as the National Medium-Term Plan (RPJMN) 2020-2024 and the National Masterplan for Industry (RIPIN) 2015-2035, are supporting both the suppliers and consumers of EV goods as well as the production of electric raw materials.
Therefore, the growth of electric vehicles is driving the Indonesia Electrical Materials market.
Growth in Renewable Energy & Infrastructure
Although Indonesia is the world's fourth-largest producer of coal and the world's top exporter of fuel, the government has been supporting renewable energy to lessen its reliance on fossil fuels.
In Indonesia, there is a growing need for and potential for renewable energy. Moreover, as Indonesia accounts for 40% of the region's energy consumption, the country's demand for energy is predicted to increase by 80% by 2030, which is the highest pace of growth in the world. Moreover, Indonesia has a lot of potential for renewable energy sources, including geothermal, solar, wind, hydropower facilities, biomass, and more.
By 2025, the Indonesian government intends to use renewable energy sources to meet 23% of its domestic energy needs. This goal was set in order to minimize greenhouse gas (GHG) emissions and reach carbon neutrality by the year 2060. The National Grand Energy Strategy (GSEB), the PLN Electricity Development Plan, and other government initiatives have helped to build new on-grid NRE capacity.
These initiatives, combined with an increase in the setup facilities and installations of renewable energy infrastructure, have also allowed the service provider to increase the production of electrical materials.
Hence, the growth in renewable energy & infrastructure is offering robust opportunities in the Indonesia electrical materials market.
Challenges: Lack of Skilled Workforce
The high attrition rate of skilled professionals in most manufacturing industries is one of the biggest issues that businesses in Indonesia's electrical materials market must deal with. An essential role in Indonesia's economic system is played by the electrical and electronics (E&E) sector. In addition, with 136 million employees, Indonesia has the biggest workforce in ASEAN, and only 55 million of them are skilled.
The Master Plan for the Acceleration and Expansion of Economic Development in Indonesia (MP3EI) estimates that by 2030, Indonesia will need 113 million competent workers to keep the economy in balance. In Indonesia, approximately 41% of the workforce has finished basic education, showing a severe shortage of skills that is impeding economic progress.
In addition, the informal sector employs the majority of the workforce in the nation. As a result, a lot of programs for vocational training do not fill market gaps in industry demands. In spite of this, there are still extremely few skilled workers in the sector. Hence, the lack of a skilled workforce is anticipated to obstruct the growth of the electrical materials market in Indonesia.
Competitive landscape
Company Profiles: Detailed analysis of the major companies present in the Indonesia Electrical Materials market.
- PT Trias Indra Saputra
- PT. Legrand Indonesia
- Hubbell Indonesia
- P.T. Siemens Indonesia
- PT Schneider Electric Indonesia
- PT Mitsubishi Electric Indonesia
- PT Simon Elektrik Indonesia
- Pt. Broco Mutiara Electrical Industry
- PT. Powertek Indo Asia
- Jeko Elektrik Indonesia
Report Scope:
Indonesia Electricals Materials Market, By Type:
- Circuit Breakers
- Light Switches
- Plugs & Sockets
- Voltage Switcher
- Cable Management
- Cable Duct
- Electrical Conduit
- Others
Indonesia Electricals Materials Market, By End User:
- Industrial
- Commercial
- Domestic
Indonesia Electrical Materials Market, By Region:
- Java
- Sumatra
- Kalimantan
- Bali
- Rest of Indonesia
For more information about this report visit https://www.researchandmarkets.com/r/7uh5l0
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