Indonesia Power Quality Equipment Market Report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030

Indonesia Power Quality Equipment Market Overview

• The Indonesia Power Quality Equipment Market is valued at USD 1.5 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for reliable power supply in industrial and commercial sectors, coupled with the rising adoption of renewable energy sources. The need for advanced power quality solutions to mitigate voltage fluctuations and harmonics has further propelled market expansion. Additionally, the region's rapid industrialization and expanding manufacturing activities have intensified the need for stable power infrastructure to avoid equipment damage and production losses.
• Key cities such as Jakarta, Surabaya, and Bandung dominate the market due to their significant industrial activities and urbanization. Jakarta, being the capital, serves as a hub for various industries, while Surabaya and Bandung are vital for manufacturing and commercial enterprises. The concentration of economic activities in these regions drives the demand for power quality equipment.
• Indonesia's regulatory framework supports power quality infrastructure development through government-led initiatives focused on grid modernization and industrial development. These initiatives promote the adoption of advanced power quality technologies and support infrastructure expansion across the nation, fostering a more reliable power infrastructure.

Indonesia Power Quality Equipment Market Segmentation

By Equipment Type:

The equipment type segmentation includes Uninterruptible Power Supply (UPS), Harmonic Filters, Static VAR Compensators (SVC), Power Quality Meters, Voltage Regulators, and Others. Among these, Uninterruptible Power Supply (UPS) systems dominate the market due to their critical role in providing backup power and ensuring operational continuity for businesses. The increasing reliance on technology and the need for uninterrupted power supply in sectors like IT, healthcare, and manufacturing have led to a surge in UPS adoption. Additionally, the growing awareness of power quality issues has driven demand for harmonic filters and voltage regulators, making them significant contributors to market growth.

By End-User:

The end-user segmentation encompasses Industrial & Manufacturing, Commercial, Utilities, Residential, Transportation, and Others. The Industrial & Manufacturing sector leads the market, driven by the need for reliable power supply and quality assurance in production processes. Industries such as automotive, electronics, and food processing are increasingly investing in power quality equipment to minimize downtime and enhance operational efficiency. The commercial sector also shows significant growth, as businesses seek to protect their equipment and ensure uninterrupted service delivery.

Indonesia Power Quality Equipment Market Competitive Landscape

The Indonesia Power Quality Equipment Market is characterized by a dynamic mix of regional and international players. Leading participants such as Schneider Electric, Siemens AG, ABB Ltd., Eaton Corporation, General Electric, Mitsubishi Electric, Emerson Electric Co., Rockwell Automation, Honeywell International Inc., Schneider Electric Indonesia, PT. Fuji Electric Indonesia, PT. PLN (Persero), PT. ABB Sakti Industri, PT. Siemens Indonesia, PT. Indika Energy Tbk contribute to innovation, geographic expansion, and service delivery in this space.

Indonesia Power Quality Equipment Market Industry Analysis

Growth Drivers

• Increasing Demand for Reliable Power Supply:Indonesia's electricity consumption reached approximately300 terawatt-hours (TWh)in future, driven by a growing population and industrial activities. The government aims to achieve a99.6%electrification rate in future, which necessitates enhanced power quality equipment to ensure reliability. As industries expand, the need for uninterrupted power supply becomes critical, leading to increased investments in power quality solutions to mitigate outages and voltage fluctuations.
• Government Initiatives for Renewable Energy:The Indonesian government has set a target of generating23%of its energy from renewable sources in future, translating to an increase in renewable energy capacity from12.6 gigawatts (GW)in future to45 GWin future. This transition necessitates advanced power quality equipment to manage the variability of renewable energy sources, thus driving market growth. Investments in solar, wind, and hydroelectric projects are expected to further boost demand for power quality solutions.
• Rising Industrialization and Urbanization:Indonesia's urban population is projected to reach68%in future, up from57%in future, leading to increased industrial activities. The manufacturing sector alone contributed approximatelyUSD 220 billionto the GDP in future. This rapid urbanization and industrial growth create a pressing need for reliable power quality equipment to support new infrastructure and industrial facilities, ensuring operational efficiency and reducing downtime.

Market Challenges

• High Initial Investment Costs:The upfront costs associated with power quality equipment can be significant, often exceedingUSD 50,000for advanced systems. Many small and medium enterprises (SMEs) struggle to allocate such capital, hindering their ability to invest in necessary technologies. This financial barrier limits the adoption of power quality solutions, particularly in regions where budget constraints are prevalent, thus stalling market growth.
• Lack of Awareness Among End-Users:A substantial portion of Indonesian businesses, particularly SMEs, remains unaware of the benefits of power quality equipment. Surveys indicate that over60%of these businesses do not understand how power quality impacts operational efficiency. This lack of awareness leads to underinvestment in necessary technologies, resulting in continued issues with power reliability and quality, which could otherwise be mitigated through proper equipment.

Indonesia Power Quality Equipment Market Future Outlook

The Indonesia power quality equipment market is poised for significant transformation as the country embraces sustainable energy solutions and smart grid technologies. With the government's commitment to renewable energy and the integration of IoT in power management, the demand for advanced power quality solutions is expected to rise. Additionally, the growing focus on energy efficiency and cost reduction will drive innovation, leading to the emergence of hybrid power systems that enhance reliability and performance in the energy sector.

Market Opportunities

• Expansion of Smart Grid Technologies:The Indonesian government plans to investUSD 1.5 billionin smart grid infrastructure in future. This investment will create opportunities for power quality equipment manufacturers to provide solutions that enhance grid reliability and efficiency, ultimately supporting the integration of renewable energy sources and improving overall energy management.
• Increasing Adoption of Energy Storage Systems:The energy storage market in Indonesia is projected to grow toUSD 500 millionin future, driven by the need for reliable energy supply. This growth presents opportunities for power quality equipment providers to develop integrated solutions that enhance energy storage capabilities, ensuring stability and efficiency in power distribution networks.