Indonesia Devices - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Indonesia Devices Market size is estimated at USD 11.97 billion in 2024, and is expected to reach USD 13.16 billion by 2029, growing at a CAGR of 1.9% during the forecast period (2024-2029).

A growing percentage of consumers are seeking cross-functional devices with integrated features and capabilities. There seems to be an increasing demand for PCs in industries and sectors undergoing digitization or digital transformation. This could be due to the need for more advanced and powerful computing systems to handle the increased amount of digital data and processes or to support remote or hybrid work arrangements. The industrial and manufacturing sectors, in particular, seem to be driving this demand as they increasingly adopt automation and advanced digital technologies in their operations. Additionally, there are signs of increasing demand for PCs in the education sector, likely due to the digitalization of education and the shift toward online or remote learning and gaming.

Key Highlights

• According to GSMA Intelligence, 353.8 million cellular mobile connections were in Indonesia at the beginning of 2023. Further, mobile connections in Indonesia amounted to 128.0% of the total population in January 2023. Further, according to data released by Statistics Indonesia in August 2023, in 2022, Indonesia had 1.1 thousand telecommunications services providers, accounting for the largest provider in the industry. This was followed by fixed network providers, amounting to 325. Such a considerable rise in mobile connections would create lucrative opportunities for the studied market to grow.
• The government initiatives or policies toward the development of the telecom sector in the country are expected to drive the market. For instance, in October 2023, The Ministry of Communication and Information Technology is devising incentives to support the implementation of 5G telecommunications network technology in Indonesia. This step is taken as part of a strategy to optimize the 5G network to enhance internet speed significantly. The Minister of Communication and Information Technology has revealed that the government’s efforts are geared toward encouraging investment in this sector. One specific measure is to incentivize telecommunications operators to enable them to make large-scale investments. With these incentives in place, operators can avoid making a substantial upfront payment, which can reduce their investment costs.
• The digital economy in Indonesia is projected to boost the GDP by USD 150 billion by 2025. The Indonesian government is carrying out noteworthy infrastructure development to attain the goal. The government has undergone numerous national initiatives for digital transformation, including the e-smart IKM, 100 Smart City Movement, and Go Digital Vision 2020. The Indonesian Broadband Plan (IBP), a working strategy document to develop the Indonesian broadband sector to recover the welfare of citizens, has been put into recurrence by the Indonesian government as a summary for abundant projects for the ICT industry to broadcast the technologies. Such initiatives toward digitalization would propel the demand for devices in the Indonesian market.
• Players in the market are introducing new products to capture the market's share. For instance, in February 2023, Samsung Electronics introduced the Galaxy Book3 laptop series. The Galaxy Book3 Ultra, Book3 Pro 360, and Book3 Pro are part of the new range. The Galaxy Book3 Ultra, according to Samsung, boasts ultra-high-performance computing, while the Book3 Pro 360 has a 2-in-1 convertible form factor with S Pen capabilities. The Book3 Pro has a small profile. Link to Windows/Microsoft Phone Link, Samsung Multi Control, and Second Screen functions are available on the Galaxy Book3 series. With Galaxy Book Smart Switch, users can access their Samsung services and account information with a single sign-on and transfer data and settings from their previous Windows PC.

Indonesia Devices Market Trends

The PC Segment is Expected to Hold a Significant Share of the Market

• A desktop computer is designed for use at a single location on a desk due to its size and power requirements. It generally includes components such as a CPU, Monitor, and input devices. With the advancement in technologies and small form factor chips and components, companies in the desktop business have developed all-in-one desktops that integrate all the CPU components into the display.
• The basic hardware that is required for the systems to work comprises a motherboard, central processing unit (CPU), random access memory (RAM), power supply, hard drive (HDD), and solid-state drive (SSD), among others. Network-related hardware crucial in an IT environment comprises a digital modem (e.g., cable modem, DSL modem, etc.), router, network switch, access point, repeater, bridge, print server, and firewall. Additionally, driven by the increasing usage of technology in multiple aspects of society, the Indonesian information technology sector has grown significantly, offering a vast business potential for companies to meet sophisticated users and demanding customers.
• According to Statistics Indonesia data released in August 2023, in 2022, almost 16.7% of the urban population in Indonesia was using a computer. In general, the ownership rate of computers is relatively low, although the share of people who access the internet is still increasing. This is due to easier access and the general tendency to go online via a smartphone. The Indonesian Ministry of Communication and Informatics (MCI) hurled the Roadmap Indonesia Digital 2021-2024 to promote the country's digital transformation. The plan intended to offer the framework and steps needed to attain an equitable level of economic development based on technological advancement, digital connection, and innovation.
• Further, though laptops offer significant advantages, they limit the user in several aspects, such as being limited in performance compared to desktops of a similar price range. The upgradability of laptops is defined as only a few components that can be upgraded compared to desktops and others. Companies are investing in product development and launching different configuration laptops for particular use cases. For instance, HP is upgrading its Pavilion laptop line with new versions that feature 12th-generation Intel Core processors for enhanced performance. The all-new Pavilion series, HP Pavilion 15, HP Pavilion 14, and HP Pavilion x360, include a new processor, ocean-bound plastics, and recyclable aluminum.
• Companies in the business are launching products with enhanced capabilities, such as higher performance with the latest Apple, Intel, and AMD processors paired with high-end GPU, high-capacity RAM, and storage capabilities, and a variety of operating systems based on the manufacturer, connectivity such as Wi-Fi 5, 5G network, and Bluetooth 5.0, and accessories such as touch capacitive pens with inbuilt features and detachable keyboards. Apple provides its updated iPad Pro. This tablet is enhanced by an Octa-core M1 chip with a core Apple GPU, which offers a seamless experience for productivity, gaming, and video streaming. It includes a liquid retina display with ProMotion technology for high-quality graphics, sounds, hardware, and software, supported by partnerships with powerful game platforms, such as Unity and Unreal Engine.

Sumatra is Expected to Hold a Significant Share of the Market

• The nation has made digital transformation a primary priority, and it is progressing quickly as more businesses adopt formal strategies to aid in their initiatives. By offering new technology, managed services providers in the nation greatly emphasize lowering security risks and improving operations for the end users. However, using outsourced services for an organization's IT resources can be an appealing way to significantly reduce costs, improve connectivity, and enhance the performance and uptime of applications and devices. Also, government regulations are rapidly encouraging the nation's traditional industries to embrace digital transformation and increase their usage of IT technologies. Therefore, they are increasing their demand for mobility services and fueling market expansion.
• According to the data released by Statistics Indonesia in June 2023, in 2022, preliminary figures showed that the GDP from information and communications in Indonesia amounted to around IDR 812.81 trillion. Further, in 2023, approximately 72% of primary school (Sekolah Dasar/SD) students in Indonesia had access to mobile phones. Such a rise in IT contribution toward the country's economy is expected to create an opportunity for the studied market to grow during the forecast period.
• The use of mobile devices in the workplace has numerous benefits, the most important of which is increased employee productivity. Delegating routine and menial tasks to AI and introducing self-learning algorithms may help reduce human workload, making AI one of the most important managed mobility services trends in the future. Several companies have used hybrid cloud technology in recent years to simplify business processes such as time tracking, expense report management, and customer relationship management. It enhances remote workforce support, security, risk management, data scalability, and management. This is expected to drive the managed mobility service market even further in the coming years.
• Many large supermarkets now supply their customers with mobile devices while shopping. Department stores often offer fixed tablets to perform a similar role. These can ring up items while shopping, check inventory levels, and act as a final point of sale in-store. These devices provide a smooth and safe customer experience with fewer resources required. Mobile device management helps secure customer data by restricting the user (retail staff) from booking apps containing sensitive customer information and exposing only the part the administrator wants to reveal.​ With retail stores using mobile devices as digital signage and self-service devices, it is essential to ensure these devices do not leave the premises. Enterprise mobility management tools have the capability to ensure the devices cannot leave a specific geographical location.​
• Mobile application management services in healthcare guarantee low service downtime, accurate infrastructure sizing for application support, and high application performance through systematic capacity and availability planning. Through an application management service center, players also provide day-to-day application support, including maintenance, enhancements, vendor fixes, and patches, and take corrective action to application-specific production problems via tier II and tier III support.​ According to Healthcare Finance, currently, the healthcare system is observing a rise in the outsourcing of medical billing services by hospitals and physicians due to the necessary implementation of the complex ICD-10 coding system, increasing healthcare costs, and a federal mandate to implement electronic health records for the maintenance of reimbursement levels.

Indonesia Devices Industry Overview

The Indonesia Devices market is semi-consolidated, with a few prominent players such as Lenovo Group Limited, Samsung Electronics, Apple Inc., Dell Inc., and The Hewlett-Packard Company (HP). To increase market share, corporations continually spend on strategic partnerships and product development. The following are some recent market developments:

In March 2024, Indonesia's first 5G Smart Warehouse and Innovation Center, a collaboration between telecommunications giant Telkomsel and global ICT leader Huawei, was unveiled in Bekasi Regency, West Java. This pioneering establishment highlights 5G's capabilities and underscores its potential to revolutionize warehouse management. Enhancing operational efficiency is poised to open up fresh avenues for the logistics sector, aligning with Indonesia's ambitious Golden Vision 2045 for a digitally empowered economy.

In January 2024, Telkom Indonesia and Indosat Ooredoo Hutchison announced a strategic partnership that aims to boost the country's internet infrastructure. Both companies have agreed to bolster their respective data center businesses. The partnership comes amid a massive wave of digital transformation in Southeast Asia, including Indonesia, witnessing increasing demand for data centers. This rising demand creates opportunities for strategic collaboration, with the recent surge in the e-commerce sector and the adoption of technology in business processes further increasing the need for reliable data center infrastructure.

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