Indonesia Automation and Control System Market Size

Indonesia's Automation and Control System Market Analysis

The Indonesia Automation and Control System Market is expected to register a CAGR of 8.5% over the forecast period. With Indonesia's steady amalgamation with the world's economy, Indonesia's Automation and Control System will play an important role in bringing costs down.

• Growing government funding to encourage automated systems in numerous industrial verticals, booming demand for automation from different manufacturing sectors, growing innovations in industrial robotics, swelling technological advancements in manufacturing, and demand for mass production and related supply chain to cater to the rising population are the important factors driving the growth of automation and process control systems market in Indonesia.
• The manufacturing industry in Indonesia contributed the most to the country's 7.07% economic growth in the second quarter of 2021, with a 6.91% growth despite pressure from the pandemic, according to the Ministry of Investment. To further accelerate the growth of the manufacturing sector, the Indonesian government plans to implement industry 4.0 through the Ministry of Industry's Making Indonesia 4.0 roadmap. Such initiatives are further expected to promote the usage of automation technologies in the sector.
• The demand for automation and control systems is also witnessing a rise in the energy sector with the development of smart city programs. Indonesia is pushing forward smart city solutions and has kicked off an ambitious digitalization program in recent years called the 100 Smart Cities Movement. The initiative is also a part of the government's plan to address urbanization issues, where about 83% of the Indonesian population will live in urban areas by 2045.
• In the initial months of the COVID-19 outbreak, the supply chain disruptions caused by the pandemic severely hindered the operations of the companies across different end-user industries in Indonesia. However, COVID-19 has acted as a technology accelerator for many sectors. Automation has allowed many projects to continue or resume faster and has demonstrated that remote work is an efficient way to maintain operations while lowering costs.
• However, the initial costs associated with automation and control systems are high. According to Steven Douglas Corporation, the average cost for new equipment can range from USD 28,000 for a standalone robotic arm to hundreds of thousands of dollars and up for a complete industrial automation system. Such factors might hinder the market growth.