Market Size of indonesia cement Industry
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Study Period | 2018 - 2030 |
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Market Volume (2024) | 72.61 Million Tons |
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Market Volume (2030) | 109.24 Million Tons |
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Largest Share by End Use Sector | Residential |
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CAGR (2024 - 2030) | 7.05 % |
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Fastest Growing by End Use Sector | Industrial and Institutional |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Indonesia Cement Market Analysis
The Indonesia Cement Market size is estimated at 72.61 million Tons in 2024, and is expected to reach 109.24 million Tons by 2030, growing at a CAGR of 7.05% during the forecast period (2024-2030).
72.61 Million
Market Size in 2024 (Tons)
109.24 Million
Market Size in 2030 (Tons)
-0.75 %
CAGR (2018-2023)
7.05 %
CAGR (2024-2030)
Largest Market by Product
66.47 %
volume share, Blended Cement, 2023
Due to the high demand for blended cement in various applications from residential, commercial, etc., and weather-resistance and durable properties, the segment has dominated the market.
Fastest Market by Product
7.92 %
Projected CAGR, Fiber Cement, 2024-2030
Owing to sustained demand for housing and supportive government policy for the construction sector, the usage of fiber cement in construction, especially for residential decorative purposes increased and is expected to register the fastest growth.
Largest Market by End Use Sector
55.31 %
volume share, Residential, 2023
Due to the increasing usage of cement in major construction applications of apartments, bungalows, villas, and cooperate housing, the residential sector has dominated the market.
Fastest Market by End Use Sector
9.60 %
Projected CAGR, Industrial and Institutional, 2024-2030
Due to the government incentives to the manufacturing sector, coupled with growing demand for healthcare and educational hubs, the industrial and institutional sector is expected to grow at the fastest rate during the forecast period.
Leading Company
50.25 %
market share, SIG, 2022
The company dominated the market with its largest cement production capacity of around 60 million tons per year in 2022 in the country.
Indonesia's industrial construction sector, supported by government investments, is predicted to bolster cement production
- Cement, a crucial binding agent for construction, hardens to adhere to building materials like stones, bricks, and tiles. It finds extensive use in residential, commercial, infrastructure, and industrial projects. In 2022, Indonesia's cement market volume dipped by 14.19% compared to the previous year. Overcapacity and surging prices of raw materials, notably coal and crude oil, dampened cement demand in the country's construction sector. However, a positive shift was expected in 2023, with the market projected to grow by 21.63% in volume.
- In 2022, residential construction held a dominant position in Indonesia's cement market, accounting for a significant 30.6 million tons. In 2023, the market was poised for growth, with factors such as affordable housing initiatives, a burgeoning population with rising disposable incomes, and robust purchasing power set to drive demand for new residential units. The increase in new floor area for residential construction in 2023, compared to 2022, was projected to amount to 56 million sq. ft. Correspondingly, the Indonesian cement market for residential construction was anticipated to grow by 21.63% in volume.
- Indonesia's cement market for industrial construction is expected to witness the fastest CAGR of 9.61% in volume during the forecast period. The country is steadily transitioning into a manufacturing-focused economy and aims to position itself as an ASEAN hub for electric vehicles and petrochemicals by 2045. Initiatives like "Increase the Use of Domestic Products (P3DN)" further bolster this industrialization drive, leading to increased construction of manufacturing units and a subsequent rise in cement demand.
Indonesia Cement Industry Segmentation
Commercial, Industrial and Institutional, Infrastructure, Residential are covered as segments by End Use Sector. Blended Cement, Fiber Cement, Ordinary Portland Cement, White Cement are covered as segments by Product.
- Cement, a crucial binding agent for construction, hardens to adhere to building materials like stones, bricks, and tiles. It finds extensive use in residential, commercial, infrastructure, and industrial projects. In 2022, Indonesia's cement market volume dipped by 14.19% compared to the previous year. Overcapacity and surging prices of raw materials, notably coal and crude oil, dampened cement demand in the country's construction sector. However, a positive shift was expected in 2023, with the market projected to grow by 21.63% in volume.
- In 2022, residential construction held a dominant position in Indonesia's cement market, accounting for a significant 30.6 million tons. In 2023, the market was poised for growth, with factors such as affordable housing initiatives, a burgeoning population with rising disposable incomes, and robust purchasing power set to drive demand for new residential units. The increase in new floor area for residential construction in 2023, compared to 2022, was projected to amount to 56 million sq. ft. Correspondingly, the Indonesian cement market for residential construction was anticipated to grow by 21.63% in volume.
- Indonesia's cement market for industrial construction is expected to witness the fastest CAGR of 9.61% in volume during the forecast period. The country is steadily transitioning into a manufacturing-focused economy and aims to position itself as an ASEAN hub for electric vehicles and petrochemicals by 2045. Initiatives like "Increase the Use of Domestic Products (P3DN)" further bolster this industrialization drive, leading to increased construction of manufacturing units and a subsequent rise in cement demand.
| End Use Sector | |
| Commercial | |
| Industrial and Institutional | |
| Infrastructure | |
| Residential |
| Product | |
| Blended Cement | |
| Fiber Cement | |
| Ordinary Portland Cement | |
| White Cement | |
| Other Types |
Indonesia Cement Market Size Summary
The Indonesia cement market is poised for significant growth, driven by its critical role as a binding agent in construction projects across residential, commercial, infrastructure, and industrial sectors. Despite a dip in market volume in 2022 due to overcapacity and rising raw material costs, the market is expected to rebound with robust growth in the coming years. The residential construction sector has been a major contributor, supported by government initiatives for affordable housing and a growing population with increasing disposable incomes. The industrial construction segment is anticipated to experience the fastest growth, fueled by Indonesia's transition to a manufacturing-focused economy and efforts to become an ASEAN hub for electric vehicles and petrochemicals.
The market landscape is fairly consolidated, with major players like Anhui Conch Cement Company Limited, Bosowa Semen, Heidelberg Materials, PT Cemindo Gemilang Tbk, and SIG dominating the scene. These companies are actively expanding their production capacities and introducing new products to meet the growing demand. The commercial construction sector, which saw a decline in new floor area during the pandemic, is now rebounding due to increased foreign direct investment, necessitating new offices, warehouses, and retail spaces. The retail real estate segment is emerging as a particularly attractive area, with projections indicating substantial growth in commercial new floor area. Overall, the Indonesia cement market is set for a dynamic phase of expansion, supported by strategic government policies and private sector investments.
Indonesia Cement Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size, forecasts up to 2030 and analysis of growth prospects.)
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1.1 End Use Sector
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1.1.1 Commercial
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1.1.2 Industrial and Institutional
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1.1.3 Infrastructure
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1.1.4 Residential
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1.2 Product
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1.2.1 Blended Cement
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1.2.2 Fiber Cement
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1.2.3 Ordinary Portland Cement
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1.2.4 White Cement
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1.2.5 Other Types
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Indonesia Cement Market Size FAQs
What is the current Indonesia Cement Market size?
The Indonesia Cement Market is projected to register a CAGR of 7.05% during the forecast period (2024-2030).
Who are the key players in Indonesia Cement Market?
Anhui Conch Cement Company Limited, Bosowa Semen, Heidelberg Materials, PT Cemindo Gemilang Tbk and SIG are the major companies operating in the Indonesia Cement Market.
