Indonesia DOAS (Dedicated Outdoor Air System) Market Outlook to 2030

Indonesia DOAS Market Overview

• In 2023, The Indonesia DOAS (Dedicated Outdoor Air System) Market has experienced substantial growth, this is reflected by the Global DOAS (Dedicated Outdoor Air System) Market reached a valuation of USD 3.8 billion in 2023. driven by increasing awareness of indoor air quality, energy efficiency, and the rise of green building initiatives.

• Key players in the Indonesia DOAS market include Daikin Industries, Ltd., Johnson Controls, Inc., Carrier Corporation, LG Electronics Inc., and Trane Technologies plc. These companies dominate the market due to their extensive product portfolios, strong distribution networks, and continuous innovation in air quality management solutions.
• Jakarta city is the dominant in the Indonesia DOAS Market. The city dominance is attributed to its high concentration of commercial and residential buildings, rapid urbanization, and significant investments in infrastructure development.
• Daikin is investing 6 trillion rupiah (USD 400 million) to build a new residential air conditioner factory in the Greenland International Industrial Center (GIIC) near Jakarta. This investment aims to enhance production capacity and meet the growing demand for energy-efficient residential air conditioners in Indonesia.

Indonesia DOAS Market Segmentation

The Indonesia DOAS Market can be segmented based on several factors:

By Product Type: Indonesia DOAS Market is segmented by Product Type into Packaged DOAS, Split DOAS, and Rooftop DOAS. In 2023, packaged DOAS dominated the market. driven by their ease of installation and maintenance. Packaged DOAS units are preferred for their compact design, which integrates all components into a single unit, reducing installation space and costs. Brands like Daikin and Carrier have popularized these systems due to their efficiency and reliability.

• By End-User: Indonesia DOAS Market is segmented by End-User into Commercial Buildings, Residential Buildings, and Industrial Facilities. In 2023, commercial buildings dominated the market, driven by the high demand for energy-efficient HVAC solutions in offices, hotels, and shopping malls.
• By Region: Indonesia DOAS Market is segmented by region into North, South, East, and West. In 2023, North region dominated the market due to its extensive urban development and high concentration of commercial and residential buildings. The region's robust infrastructure and investment in smart city projects contribute to its dominance.

Indonesia DOAS Market Competitive Landscape

• In 2024, LG Electronics introduced a new range of IoT-enabled DOAS systems in Indonesia. These systems offer real-time monitoring and control of indoor air quality, enhancing user experience and system efficiency. The launch is part of LG's strategy to capture a larger market share through innovative and smart HVAC solutions.
• In 2022, Carrier collaborated with Marriott International to develop innovative building systems for modular and IoT-connected hotels. This partnership aims to enhance construction processes, reduce costs, and improve energy efficiency, which could have implications for their offerings in markets like Indonesia.

Indonesia DOAS Industry Analysis

Indonesia DOAS Market Growth Drivers

• Government Initiatives and Regulations: The Indonesian government has launched programs aimed at improving energy efficiency and indoor air quality, such as the Energy Conservation Program initiated in 2023. This regulatory support encourages the adoption of energy-efficient HVAC systems, including DOAS, as part of broader sustainability goals.
• Technological Advancements: Innovations in DOAS technology, particularly the integration of IoT and smart controls, have improved system efficiency and user control. Manufacturers like LG Electronics and Daikin are introducing advanced models that allow for real-time monitoring and optimization of air quality, further driving market growth.
• Surge in Residential and Commercial Construction: Increasing construction activities in Indonesia, particularly in both residential and commercial sectors, are significant drivers for the DOAS market. The rise in new building projects and renovations is creating a demand for efficient HVAC systems, including DOAS, to enhance indoor air quality and energy efficiency.

Indonesia DOAS Market Challenges

• Lack of Skilled Workforce: The implementation and maintenance of DOAS systems require specialized skills. According to the Indonesian HVAC Association, there is a shortage of over 2,000 skilled HVAC technicians as of 2024. This gap in skilled labor hinders the efficient deployment and operation of DOAS systems, impacting overall market growth. Efforts to train and certify more professionals in this field are crucial to overcoming this challenge.
• Regulatory Hurdles: Navigating Indonesia's regulatory landscape can be complex, with varying standards and compliance requirements across regions. In 2024, industry reports highlighted that inconsistent enforcement of building codes and energy standards created barriers for HVAC system installations. Manufacturers and installers need to stay updated with regulatory changes and ensure compliance to avoid legal and operational setbacks.

Indonesia DOAS Market Government Initiatives

• Energy Conservation Program: Launched in 2023, the Energy Conservation Program aims to improve energy efficiency across various sectors, including buildings. The program encourages adopting energy-efficient HVAC systems like DOAS, significantly reducing energy consumption. It targets cutting building energy usage by up to 30 million MWh, promoting widespread DOAS system adoption to lower the current 60 million MWh annually.
• Green BuildingStandards andRegulations: Regulation GR16/2021: Thisregulation laysout a suite ofgreen buildingstandards inIndonesia butis only mandatoryfor very largebuildings (those witha floor areaabove 5,000 m). It aims toaddress the buildingsector's contributionto greenhousegas emissions, which accountedfor23% oftotal energyconsumptionin2021 and is expectedto rise to 40% by 2030.

Indonesia DOAS (Dedicated Outdoor Air System) Future Market Outlook

The Indonesia DOAS (Dedicated Outdoor Air System) Market is poised for remarkable growth, driven by expansion of production capacity, increased market demand, and technological innovations in production technologies.

Market Future Trends

• Increasing Adoption of Smart DOAS Systems: Over the next five years, the adoption of smart DOAS systems is expected to grow significantly in Indonesia. By 2028, it is estimated that over 50% of new installations will feature IoT-enabled capabilities, allowing for real-time monitoring and optimization of air quality. This trend is driven by the demand for smarter, more efficient building management systems
• Expansion of Green Building Projects: The Indonesian government's focus on sustainable construction is expected to drive the DOAS market's growth. By 2028, the number of green buildings equipped with DOAS systems is projected to reach 2,000, supported by government incentives and regulations promoting energy efficiency. This expansion will create new opportunities for DOAS manufacturers and suppliers as the market shifts towards energy-efficient solutions