Indonesia Automation Systems Market Size 2025-2029
The indonesia automation systems market size is valued to increase by USD 1.48 billion, at a CAGR of 10.7% from 2024 to 2029. Simplification of manufacturing through automation system will drive the indonesia automation systems market.
Major Market Trends & Insights
- By Component - Solutions segment was valued at USD 1.39 billion in 2023
- By End-user - Industrial segment accounted for the largest market revenue share in 2023
Market Size & Forecast
- Market Opportunities: USD 1.96 billion
- Market Future Opportunities: USD 1.48 billion
- CAGR from 2024 to 2029 : 10.7%
Market Summary
- The automation systems market in Indonesia is undergoing significant transformation, driven by a national push to enhance industrial competitiveness and efficiency. This evolution is underpinned by the adoption of advanced technologies such as the industrial internet of things (iiot), artificial intelligence, and robotics.
- Key drivers include the need to streamline complex manufacturing processes, improve product quality, and adhere to lean manufacturing principles, which collectively boost productivity and reduce operational costs.
- For example, a food and beverage manufacturer can implement automated systems with integrated programmable logic controllers (plcs) and manufacturing execution systems (mes) to ensure precise recipe management and full supply chain traceability, reducing human error and improving compliance with safety standards. However, the market is not without its challenges.
- The high upfront capital investment for systems like distributed control systems (dcs), coupled with a shortage of skilled technicians to manage and maintain them, can hinder adoption, particularly for small and medium-sized enterprises.
- Furthermore, the convergence of operational technology (ot) and IT networks creates vulnerabilities, making industrial network security a critical concern for protecting sensitive operational data and ensuring uninterrupted production.
What will be the Size of the Indonesia Automation Systems Market during the forecast period?
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How is the Indonesia Automation Systems Market Segmented?
The indonesia automation systems industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
- Component
- Solutions
- Services
- End-user
- Industrial
- Non-industrial
- Product type
- PLCs
- SCADA
- DCS
- HMI
- Others
- Geography
- APAC
- Indonesia
- APAC
By Component Insights
The solutions segment is estimated to witness significant growth during the forecast period.
Automation solutions are integral to optimizing business operations by mechanizing production with advanced field and controlling devices.
The adoption of industrial internet of things (iiot) and enterprise resource planning (erp) integration is driven by the need to use resources efficiently, improve productivity, and enhance plant operations. Government regulations targeting lower carbon dioxide emissions are a significant factor.
Core technologies like distributed control systems (dcs), manufacturing execution systems (mes), and human-machine interfaces (hmis) are central to achieving these goals, with deployments showing productivity gains of over 15%.
This shift is supported by robust asset management solutions and a focus on real-time data analysis to maintain a competitive edge through plant-wide automation integration and effective resource utilization monitoring, which are key for production process optimization and achieving operational efficiency gains.
The Solutions segment was valued at USD 1.39 billion in 2023 and showed a gradual increase during the forecast period.
Market Dynamics
Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
- Achieving operational excellence in the modern industrial landscape requires a holistic approach, starting with integrating plc and scada for process control to establish a foundational data layer. The benefits of dcs in continuous production environments, such as chemicals and power generation, are well-documented, ensuring stability and reliability.
- The role of mes in smart manufacturing is to bridge the gap between the plant floor and enterprise systems, enabling real-time visibility. The transformative impact of iiot on industrial automation cannot be overstated, as it facilitates unprecedented connectivity and data flow. Exploring the benefits of virtualization of automation control systems reveals significant cost savings on hardware and maintenance.
- As industries advance, implementing predictive maintenance with ai becomes crucial for minimizing downtime. This heightened connectivity, however, necessitates robust cybersecurity for industrial control systems. Decision-makers evaluating the roi of robotic automation in assembly must consider improvements in speed and quality. Furthermore, deploying cloud-based scada for remote monitoring offers unparalleled flexibility.
- Firms are increasingly using digital twins to optimize production before physical implementation. The focus on hmi design for improved operator efficiency ensures that human operators can effectively manage these complex systems. The rise of edge computing in real-time industrial applications addresses latency issues critical for control loops. Companies face upgrading legacy automation systems challenges, which require careful planning and investment.
- The benefits of amrs in warehouse logistics are clear, enhancing efficiency in material handling. Concurrently, achieving energy management through automated systems contributes to sustainability goals. Businesses leveraging data analytics for process optimization report decision-making cycles up to 40% faster than those using manual methods. Adherence to industrial network security best practices is non-negotiable.
- The role of sensors in automated data collection is fundamental, and successfully integrating erp with shop floor systems is key to enterprise-wide visibility. Finally, automating compliance management with automated reporting streamlines regulatory adherence.
What are the key market drivers leading to the rise in the adoption of Indonesia Automation Systems Industry?
- The simplification of manufacturing processes through the implementation of automation systems serves as a key market driver.
- Key drivers are reshaping the industrial sector, with a strong emphasis on achieving lean manufacturing principles through advanced automation.
- The adoption of manufacturing execution systems (mes) and shop floor-to-top floor integration enables a holistic view of operations, allowing companies to achieve a 25% reduction in production waste. This is crucial for managing manufacturing process complexity and enhancing production throughput.
- Furthermore, the need for efficient resource utilization monitoring and carbon footprint reduction is compelling businesses to invest in sophisticated process control systems and energy management systems. By leveraging real-time production monitoring, firms can improve resource allocation accuracy by 15%.
- The strategic implementation of these technologies facilitates a shift toward more sustainable and cost-effective production models, underpinned by a clear return on investment (roi) calculation and a commitment to quality control automation.
What are the market trends shaping the Indonesia Automation Systems Industry?
- A primary market trend is the strategic shift from traditional on-premises infrastructure to scalable, cloud-based automation systems.
- The market is experiencing a significant shift as organizations embrace the virtualization of automation control systems, a trend that improves resource allocation and has been shown to reduce server hardware costs by up to 60%. This is complemented by the move toward cloud-based automation platforms, which enhance data accessibility and collaboration across geographically dispersed teams.
- The integration of the industrial internet of things (iiot) with operational technology (ot) is fundamental, enabling advanced sensor data analytics for predictive insights. Technologies such as autonomous mobile robot (amr) systems and robotic process automation (rpa) are becoming more prevalent, automating both physical and digital tasks.
- This transition to a more connected, intelligent environment is driven by the pursuit of operational efficiency gains, supported by robust data-driven decision making and a focus on cybersecurity threat mitigation in newly digitized ecosystems.
What challenges does the Indonesia Automation Systems Industry face during its growth?
- The increasing prevalence of cybersecurity threats poses a significant challenge to market growth and system integrity.
- Despite the benefits of automation, significant challenges persist, primarily centered on industrial network security and the high total cost of ownership. The convergence of it/ot convergence strategies exposes critical infrastructure to new threats, with some analyses indicating that industrial systems face an attack surface increase of over 50% with iiot integration.
- Concurrently, the substantial capital expenditure planning required for advanced systems like dcs and industrial robotics integration presents a barrier for many enterprises; some SMEs report that initial capital costs can delay adoption by 18-24 months.
- Addressing the need for legacy system migration and ensuring that predictive analytics for operations are properly implemented require specialized skills, which are often in short supply. Overcoming these hurdles is essential for harnessing the full potential of plant-wide automation integration and realizing long-term operational benefits.
Exclusive Technavio Analysis on Customer Landscape
The indonesia automation systems market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the indonesia automation systems market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape of Indonesia Automation Systems Industry
Competitive Landscape
Companies are implementing various strategies, such as strategic alliances, indonesia automation systems market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
ABB Ltd. - Vendors provide integrated automation for industrial robotics, process control, and power management, driving operational excellence across industrial sectors.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- ABB Ltd.
- Beckhoff Automation
- Daifuku Co. Ltd.
- Emerson Electric Co.
- Hitachi Ltd.
- Honeywell International Inc.
- INTECH Process Automation Inc.
- Jogja Automation System
- MIDEA Group Co. Ltd.
- Mitsubishi Electric Corp.
- Okura Yusoki Co. Ltd.
- OMRON Corp.
- PT. Almec Indonesia
- PT. Chiyoda Kogyo Indonesia
- PT. Jakarta System Integrators
- PUI PT MIA RC ITS
- Rockwell Automation Inc.
- Schneider Electric SE
- Siemens AG
- Yaskawa Electric Corp.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Recent Development and News in Indonesia automation systems market
- In September, 2024, Rockwell Automation will announce the completed acquisition of a leading autonomous robotics firm, enhancing its portfolio by merging PLC-based control with advanced autonomous mobile robot (AMR) capabilities for optimized material handling.
- In November, 2024, Siemens AG will launch a new line of AI-integrated HMI solutions designed to provide predictive maintenance analytics, enabling smart factories to reduce unplanned equipment downtime and improve operational intelligence.
- In February, 2025, Emerson Electric Co. will unveil a strategic partnership with a major software provider to co-develop a next-generation, cloud-based Distributed Control System (DCS) platform specifically tailored for the life sciences and pharmaceutical sectors.
- In May, 2025, a major Japanese automotive manufacturer will announce a substantial investment to construct a new, fully automated electric vehicle (EV) battery production facility in West Java, leveraging advanced robotics and Manufacturing Execution Systems (MES).
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Indonesia Automation Systems Market insights. See full methodology.
| Market Scope | |
|---|---|
| Page number | 191 |
| Base year | 2024 |
| Historic period | 2019-2023 |
| Forecast period | 2025-2029 |
| Growth momentum & CAGR | Accelerate at a CAGR of 10.7% |
| Market growth 2025-2029 | USD 1482.0 million |
| Market structure | Fragmented |
| YoY growth 2024-2025(%) | 9.4% |
| Key countries | Indonesia |
| Competitive landscape | Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Research Analyst Overview
- The convergence of operational technology (ot) and advanced digital tools is redefining industrial capabilities. Core components like programmable logic controllers (plcs), supervisory control and data acquisition (scada), and distributed control systems (dcs) are now enhanced with machine learning models and sensor data analytics.
- The integration of manufacturing execution systems (mes) with enterprise resource planning (erp) enables seamless shop floor data collection and real-time process control. This shift toward cyber-physical systems is supported by the industrial internet of things (iiot) and cloud-based automation platforms, which facilitate predictive maintenance algorithms and digital twin simulation.
- In this landscape, boardroom decisions increasingly revolve around industrial network security to protect interconnected assets, from remote terminal units (rtus) to automated assembly lines. Deploying predictive maintenance algorithms using sensor data analytics has been shown to reduce unplanned equipment downtime by as much as 30%.
- The evolution includes control system virtualization, software-defined controllers, and the deployment of edge computing devices, all contributing to smarter, more resilient operations through intelligent instrumentation and process control systems.
What are the Key Data Covered in this Indonesia Automation Systems Market Research and Growth Report?
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What is the expected growth of the Indonesia Automation Systems Market between 2025 and 2029?
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USD 1.48 billion, at a CAGR of 10.7%
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What segmentation does the market report cover?
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The report is segmented by Component (Solutions, and Services), End-user (Industrial, and Non-industrial), Product Type (PLCs, SCADA, DCS, HMI, and Others) and Geography (APAC)
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Which regions are analyzed in the report?
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APAC
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What are the key growth drivers and market challenges?
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Simplification of manufacturing through automation system, Cybersecurity threats
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Who are the major players in the Indonesia Automation Systems Market?
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ABB Ltd., Beckhoff Automation, Daifuku Co. Ltd., Emerson Electric Co., Hitachi Ltd., Honeywell International Inc., INTECH Process Automation Inc., Jogja Automation System, MIDEA Group Co. Ltd., Mitsubishi Electric Corp., Okura Yusoki Co. Ltd., OMRON Corp., PT. Almec Indonesia, PT. Chiyoda Kogyo Indonesia, PT. Jakarta System Integrators, PUI PT MIA RC ITS, Rockwell Automation Inc., Schneider Electric SE, Siemens AG and Yaskawa Electric Corp.
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Market Research Insights
- The market's momentum is defined by strategic imperatives such as production process optimization and supply chain traceability, which are addressed through smart factory initiatives. Companies pursuing lean manufacturing principles are achieving operational efficiency gains of up to 30% by implementing data-driven decision making and real-time data analysis.
- Central to this is workforce upskilling programs designed to manage increasing manufacturing process complexity. While capital expenditure planning remains a hurdle, robust return on investment (roi) calculation models demonstrate significant long-term value. For instance, investments in automated quality inspection can reduce defect rates by over 50%.
- This focus on asset performance management and production throughput enhancement is driving the adoption of plant-wide automation integration, shaping a more resilient and competitive industrial landscape.
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