Indonesia Smart Cities Market Size & Share, by Functional Area (Smart Transportation, Smart Citizen Services, Smart Building, Smart Utilities); End-user (Healthcare, Transportation, Government, Utilities) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2033

  • Report ID: 4711
  • Published Date: Feb 22, 2023
  • Report Format: PDF, PPT
  1. An Outline of the Market
    1. Market Definition
    2. Market Segmentation
  2. Assumptions and Abbreviations
  3. Research Methodology and Approach
    1. Research Process
    2. Primary Research
      1. Service/Solution Providers
      2. End-users
    3. Secondary Research
    4. Market Size Estimation
  4. Summary of the Report for Key Decision Markers
  5. Forces of the Market Constituents
    1. Factors/Drivers Impacting the Growth of the Market
    2. Market Trends for Better Business Practices
  6. Key Market Opportunities for Business Growth
  7. Major Roadblocks for the Market Growth
  8. Government Regulation
  9. Technology Transition and Adoption Analysis
  10. Industry Risk Analysis
    1. Demand Risk Analysis
    2. Supply Risk Analysis
  11. Global Economic Outlook: Challenges for Recovery and its Impact on Indonesia Smart Cities Market
    1. Ukraine-Russia Crisis
    2. Potential US Economic Slowdown
  12. Recent Technological Advancement in Smart Cities Solutions
  13. Impact of COVID-19 on Indonesia Smart Cities Market
  14. Industry Pricing & Benchmarking Analysis
  15. Industry Growth Outlook 
  16. Industry Value Chain Analysis
  17. Use Case Analysis
  18. End User Analysis
  19. Competitive Positioning: Strategies to Differentiate a Company From Its Competitors
  20. Competitive Model: A Detailed Inside View for Investors
    1. Market share of Major Companies Profiled, 2022
    2. Competitive Positioning
    3. Business Profiles of Key Enterprises
      1. Cisco Systems, Inc.
        1. Detailed overview
        2. Assessment of Key Offerings
        3. Analysis of Growth Strategies
        4. Exhaustive Analysis on Key Financial Indicators
        5. Recent Developments
        6. Huawei Technologies Co., Ltd.
        7. Microsoft Corporation
        8. Oracle Corporation
      2. Schneider Electric
      3. Siemens AG
      4. IBM Corporation
      5. General Electric
      6. Honeywell International Inc.
      7. Telefonaktiebolaget LM Ericsson
      8. Other key players
  21. Indonesia Smart Cities Market Outlook & Projections, Opportunity Assessment, 2022 to 2033
    1. Market Overview
    2. Market Revenue by Value (USD Million) and Compound Annual Growth Rate (CAGR)
    3. Year-on-Year (Y-o-Y) Growth Trend Analysis
      1. By Functional Area
        1. Sub-segmented by Smart Transportation, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          1. Smart Ticketing, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          2. Traffic Management System, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          3. Freight Information System, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          4. Others, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
        2. Sub-segmented by Citizen Services, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          1. Smart Education, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          2. Smart Public Safety, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          3. Smart Healthcare, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          4. Smart Street Lighting, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          5. Others, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
        3. Sub-segmented by Smart Building, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          1. Building Energy Optimization, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          2. Emergency Management, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          3. Parking Management System, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          4. Others, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
        4. Sub-segmented by Smart Utilities, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          1. Distribution Management System, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          2. Substation Automation, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          3. Advanced Metering Infrastructure, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
          4. Others, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
        5. Others, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
      2. By End User
        1. Healthcare Sector, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
        2. Transportation Sector, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
        3. Government Bodies, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
        4. Construction Industry, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
        5. Utilities Sector, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
        6. Others, Market Value (USD Million), CAGR & Y-o-Y Growth Trend, 2022-2033F
  22. Cross Analysis of Functional Area W.R.TO. End Users (USD Million), 2022

Global Market Size, Forecast, and Trend Highlights Over 2023-2033

Indonesia Smart Cities Market size is projected to cross USD 236,430.6 Million by the end of 2033, growing at a CAGR of 22.6% during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of Indonesia smart cities was USD 27,211.8 Million. The growth of the market can be attributed to the rising population in urban areas and rapid prevalence of urbanization. The goal of smart cities is to lower the costs and inconveniences that are expected to come along with future urbanization. It offers a standard of living that can sustainably support the urban population and future generations. In 2022, around 58% of Indonesia's population lived in urban areas. Indonesia's urban population grew at an average yearly rate of around 2% from 18% in 1973 to approximately 58% in 2022.

In addition to these, factors that are believed to fuel the market growth of Indonesia smart cities include the higher adoption of advance technology by the manufacturing sector. The manufacturers in Indonesia are a diverse set, the extent of developing and adoption new innovative technologies is different. In the recent industry 4.0 innovations around 6% of businesses implemented new technologies across their operations, moreover, nearly 30% did so to an intermediate degree, and around 64% adopted basic technology. Besides this, the market growth is also expected on the account of rising government efforts to augment the smart city missions. Ministry of Home Affairs of Republic Indonesia aiming to support 6th edition of Indonesia International Smart City Expo & Forum (IISMEX) that is going to be held on 5 – 7 July 2023. It is one of the largest yearly technology, ICT, and IOT exhibitions and forums in Indonesia and serves to address the informational and commercial demands of providers of smart city solutions.


Indonesia Smart Cities Market
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Indonesia Smart Cities Market: Key Insights

Base Year

2022

Forecast Year

2023-2033

CAGR

22.6%

Base Year Market Size (2022)

USD 27,211.8 Million

Forecast Year Market Size (2033)

USD 236,430.6 Million

 
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Indonesia Smart Cities Sector: Growth Drivers and Challenges

Market-Growth-Drivers

Growth Drivers

  • Proactive Government Initiatives for Executing Smart City Plan - In order to construct a green and smart metropolis, Indonesia is relocating its capital to East Kalimantan in Borneo. It is 2,000 kilometers to the northeast of Jakarta is where the country's new capital, Nusantara, is located. In addition, the government is setting aside 70% of the new city as green spaces to maintain the environmental sustainability. This is in keeping with the nation's goal of having 100% new and renewable energy by 2060 and net zero carbon emissions.

  • Growing Pervasion of Digitization in the Region - Digitalization is a key factor in the transformation of MSMEs. Digitization so far has benefited all the middles and small sized enterprises in lowering the operational cost, faster transaction, and capturing both national and international audience. Moreover, according to the World Economic Forum, in 2021, Indonesia have 202 million internet users that contributed USD 70 billion and it is further expected to jump to USD 146 billion by 2025.

  • Advancing Automation of Industry - The 4.0 Indonesia is a goal of the country to optimize the Fourth Industrial Revolution by boosting industries with the integration of technologies, such as robots, 3D printing, cloud, and others. Moreover, around 27% of industries are already using robotics and around 68% of industry are aware of it

  • Higher Adoption of Advanced Technology - The "Creating Indonesia 4.0" program was initially introduced in 2018, by President Joko Widodo. On the back of this program, Indonesia aims to become among the top 10 economies in the world by 2030, to leverage transformative technologies like the internet of things (IoT), artificial intelligence (AI), automation, and robots.

  • Rise in the Collaboration Among Public and private Sectors to boost the Transition - IAxiata and Huawei together had signed a memorandum of understanding (MoU) to partner up to create "5G City," with the goal of utilizing 5G technology to create a smart city, forecasting technological advancement, operating networks intelligently, and enhancing user experience.

Challenges

  • Rising Security Concern with the Increasing Usage of Smart Devices- Smart cities have created concerns about data security and privacy due to the widespread use of sensors, smart gadgets, higher connectivity and data monitoring in many parts of people's lives. Indonesia is one of the nations that is most susceptible to cyberattacks worldwide. Indonesia's National Cyber and Crypto Agency estimates that around 1 billion cyberattacks or online traffic anomalies occurred there in 2021.
  • Areas with Inadequate Infrastructure Cannot Access the Facility
  • Lack of Funding for the Development of Smart Cities


Indonesia Smart Cities Segmentation

Functional Area (Smart Transportation, Smart Citizen Services, Smart Building, Smart Utilities)

The Indonesia smart cities market is segmented and analyzed for demand and supply by functional area into smart transportation, smart citizen services, smart building, smart utilities, and others. Out of the five functional areas, the smart citizen services segment is estimated to gain the largest market size of USD 89,441.7 Million by the end of 2033 by growing at a CAGR of 23.1% over the projected time frame. Moreover, the segment garnered a revenue of USD 9,796.2 million in 2022. Furthermore, the smart citizen services is categorized into smart education, smart public safety, smart healthcare, smart street lighting, and others.  The growth of the segment can be attributed to the rising government effort for augmenting the smart education in the region. On November 19, 2019, the Ministry of Education and Culture hosted the launch of the World Bank's overview of the Promise of Education in Indonesia. Moreover, rising technology integration in healthcare is also expected to boost the segment growth.  In 2021, Mandaya Hospital Group came into strategic partnership to combine Philips latest technology in the new flagship hospital. Mandaya showcased their new smart hospital that are patient centered by the use of turnkey solution.

End-user (Healthcare, Transportation, Government, Utilities)

The Indonesia smart cities market is also segmented and analyzed for demand and supply by end-user into healthcare sector, transportation sector, government bodies, construction industry, utilities sector, and others. Amongst these five segments, the government bodies segment is expected to garner a revenue of USD 73,790 million at the end of 2033. Moreover, in 2022, the segment generated a revenue of USD 7,973.1 million. However, it is expected to grow at a CAGR of 23.3% over the forecasted period. The growth of the segment is credited to rise in the implementation of technology in the government sector. The president of Indonesia, declared his ambition to digitalize government by 2025 in 2019, it included a framework and implementation guidelines for online governance tools in public services. Furthermore, KOMINFO, the ministry of telecommunication announced that eight super apps would replace more than 20,000 current government applications. On the other hand, the transformation of the public service delivery by including the use of technology is also expected to boost the segment growth. For instance, the Maros, South Sulawesi, Population and Civil Registration Office now enables service customers to print citizenship documents at home following registration through a smartphone app. Moreover, telehealth consultations were added to the Mobile JKN app by Indonesia's national healthcare and social insurance organization in April 2020. Now, the app links patients and medical professionals directly.

Our in-depth analysis of the global market includes the following segments:

            By Functional Area

  • Smart Transportation
  • Smart Citizen Services
  • Smart Building
  • Smart Utilities
  • Others

            By End User

  • Healthcare Sector
  • Transportation Sector
  • Government Industry
  • Utilities Sector
  • Others

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Companies Dominating the Indonesia Smart Cities Landscape

top-features-companies
    • Telefonaktiebolaget LM Ericson
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Honeywell International Inc.
    • General Electric
    • IBM Corporation
    • Siemens AG
    • Schneider Electric.
    • Oracle Corporation
    • Microsoft Corporation
    • Huawei Technologies Co. Ltd.
    • Cisco Systems Inc.

In-the-news

In The News

  • Telefonaktiebolaget LM Ericsson collaborated with Indosat Ooredoo, the leading communication service provider in Indonesia. Indosat rolled out 5G service in Jakarta that is powered by Ericsson. They further plan to launch it in other big cities, including Makassar and Surabaya.

  • Microsoft Corporation intends to launch the first data center region in Indonesia to deliver cloud services with an advanced level of data security and privacy. It is a part of its major initiative, Berdayakan Ekonomi Digital Indonesia program.


Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 4711
  • Published Date: Feb 22, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing automation of industry, rising government initiatives, growing urbanization and digitization are the major factors driving the market growth.

The market is anticipated to attain a CAGR of 22.6% over the forecast period, i.e., 2023-2033.

Lack of adequate infrastructure, rising concerns associated with security and privacy, and shortage of enough funds are estimated to be the growth hindering factors for the market expansion.

The major players in the market are Honeywell International Inc., General Elect, IBM Corporation, Siemens AG, Schneider Electric., Oracle Corporation, Microsoft Corporation, Huawei Technologies Co. Ltd., and Cisco Systems Inc.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by functional area, and by end user.

The smart citizen services segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
Indonesia Smart Cities Market Report Scope
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