Indonesia IoT Market Size (2024 - 2029)

Indonesia IoT Market Analysis

The Indonesia IoT Market size is estimated at USD 11.33 billion in 2024, and is expected to reach USD 26.5 billion by 2029, growing at a CAGR of 15.21% during the forecast period (2024-2029).

IoT includes a wide range of devices connected to the internet that facilitate better services and offer an easier life to customers. The Internet of Things (IoT) has emerged as a widely used technology used by many people and companies across Indonesia.

• The rising proliferation of smartphones, Internet connectivity, technological advancements, and increasing e-commerce are some factors driving the IoT market in Indonesia. The State Cyber and Password Agency (BSSN) in Indonesia stated a significant rise in Internet of Things (IoT) users compared to the number of connected smartphone users. Therefore, it is evident that the development of IoT in Indonesia is becoming more and more widespread.
• Last year, the Ministry of Communication and Informatics (Kemkominfo) and the Indonesian Internet of Things Association (ASIOTI) held the IoT Creation Program to encourage the formation of local startups focusing on developing IoT devices and solutions.
• Indonesia is anticipated to witness an acceleration in implementing IoT-based solutions across various industry verticals. For instance, in the healthcare sector, IoT devices help monitor blood pressure and glucose levels and allow physicians to make swift diagnoses and real-time decisions to benefit patients. In the military industry, IoT is used in drones for territorial surveillance of Indonesian territory. Rise of Industrial Revolution 4.0. has increased the demand for IoT to address the challenges in logistics, financial transactions, manufacturing, and others. Businesses in Indonesia are widely adopting IoT in intelligent buildings and smart offices.
• The Indonesian government is actively investing in the construction of smart cities. The development of digital technology has accelerated the country's smart city concept and trend. Digital disruption is changing how governments manage organizations and solve problems in the community. The smart city is anticipated to open up new regional investment opportunities.
• The Indonesian IoT market has become more robust in the post-COVID-19 era. It has opened new business opportunities and revenue streams, improved business management, and facilitated new service delivery across fields. Demand for the Internet of Medical Things has increased among medical professionals to collect and analyze patient data. Medical clinics increasingly rely on direct messaging software to contact patients. Public infrastructures utilize IoT to manage health crises and climate disasters and maintain effective city networks. The rise of an increasingly interconnected and digitized world will likely increase Indonesia's demand for IoT hardware, software, and services.

Indonesia IoT Industry Segmentation

The Internet of Things (IoT) is a network of connected devices and related technologies that facilitates communication between various devices and the cloud and between devices. IoT services represent end-to-end services that enable organizations to collaborate with external providers to design, build, and operate IoT solutions and consulting for IoT planning.

The Indonesia IoT market is segmented by type (hardware, software, and services), by application (automotive IoT, consumer IoT, healthcare IoT, industrial IoT, smart cities, and other applications), by region (Java, Sumatra, Kalimantan, and other regions).

The market sizes and forecasts are provided in terms of value (USD) for all the above segments.