Indonesia Hvac Rooftop Units Market Report: Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025-2030

Indonesia HVAC Rooftop Units Market valued at USD 1.1 Bn, driven by urbanization, energy efficiency, and construction growth. Key segments include split systems and 10-30 tons capacity.

The Indonesia HVAC Rooftop Units Market is valued at USD 1.1 billion, based on a five-year historical analysis. Growth is primarily driven by rapid urbanization, expanding commercial and residential construction, and a strong emphasis on energy-efficient solutions. The demand for HVAC systems has surged due to the expanding construction industry, increased data center development, and the need for climate control in densely populated urban areas. The adoption of inverter and VRF technologies, as well as smart building integration, further accelerates market expansion.

Key cities such as Jakarta, Surabaya, and Bandung dominate the market due to their rapid urban development and high population density. Jakarta, as the capital, has a significant concentration of commercial buildings, data centers, and infrastructure projects, while Surabaya and Bandung are experiencing similar growth trends, making them attractive markets for HVAC solutions.

The Regulation of the Minister of Energy and Mineral Resources of the Republic of Indonesia Number 14 of 2021 on the Application of Minimum Energy Performance Standards for Air Conditioning Equipment, issued by the Ministry of Energy and Mineral Resources, mandates energy efficiency standards for HVAC systems. This regulation requires all new installations to comply with specified minimum energy performance criteria, promoting the adoption of advanced technologies and environmentally friendly practices in the HVAC sector.

Indonesia HVAC Rooftop Units Market Segmentation

By Type:

The market is segmented into Single Package Rooftop Units, Split System Rooftop Units, Variable Refrigerant Flow (VRF) Rooftop Units, Chilled Water Rooftop Units, and Others. Split System Rooftop Units are gaining traction due to their flexibility, energy efficiency, and suitability for both residential and commercial applications. The adoption of VRF systems is also accelerating, particularly in commercial and mixed-use developments, due to their scalability and advanced control capabilities.

By Capacity:

The market is categorized by capacity into Below 10 Tons, 10-30 Tons, and Above 30 Tons. The 10-30 Tons segment is particularly dominant, serving a wide range of commercial applications such as office buildings, retail spaces, and hospitality projects, where moderate cooling and heating capacities are required. The versatility and energy efficiency of this segment make it the preferred choice for both new developments and retrofits.

Indonesia HVAC Rooftop Units Market Competitive Landscape

The Indonesia HVAC Rooftop Units Market is characterized by a dynamic mix of regional and international players. Leading participants such as PT Daikin Airconditioning Indonesia, PT Trane Indonesia, PT Carrier Indonesia, PT Mitsubishi Electric Indonesia, PT LG Electronics Indonesia, PT Panasonic Gobel Indonesia, PT York Indonesia, PT Gree Electric Appliances Indonesia, PT Hitachi Air Conditioning Indonesia, PT Fujitsu General Indonesia, PT Samsung Electronics Indonesia, PT Honeywell Indonesia, PT Johnson Controls Indonesia, PT Rheem Indonesia, and PT Lennox Indonesia contribute to innovation, geographic expansion, and service delivery in this space.

Indonesia HVAC Rooftop Units Market Industry Analysis

Growth Drivers

Increasing Urbanization:

Indonesia's urban population is projected to reach 57% by future, up from 56% in 2020, according to the World Bank. This rapid urbanization drives the demand for HVAC systems, particularly rooftop units, as urban areas require efficient climate control solutions. The construction of new residential and commercial buildings in urban centers is expected to increase the installation of HVAC systems, contributing to a projected increase in energy consumption of 5.5% annually in urban areas.

Rising Demand for Energy Efficiency:

The Indonesian government aims to reduce energy intensity by 1% per year, promoting energy-efficient technologies. The HVAC sector is a significant contributor to energy use, accounting for approximately 30% of total energy consumption in commercial buildings. As businesses seek to lower operational costs, the demand for energy-efficient rooftop units is expected to rise, with energy-efficient models projected to save up to 40% in energy costs compared to traditional systems.

Government Initiatives for Green Buildings:

The Indonesian government has implemented various initiatives to promote green building practices, including the Green Building Council Indonesia's certification program. In future, it is estimated that 25% of new commercial buildings will be certified green, driving the demand for HVAC systems that meet stringent environmental standards. This shift towards sustainability is expected to increase the adoption of rooftop units that utilize eco-friendly refrigerants and energy-efficient technologies.

Market Challenges

High Initial Investment Costs:

The upfront costs associated with installing HVAC rooftop units can be a significant barrier for many businesses. For instance, the average cost of a commercial rooftop unit can range from IDR 100 million to IDR 500 million (approximately USD 7,000 to USD 35,000), depending on capacity and features. This high initial investment can deter small and medium enterprises from adopting these systems, limiting market growth potential.

Limited Awareness of HVAC Benefits:

Many businesses in Indonesia remain unaware of the long-term benefits of HVAC systems, including energy savings and improved indoor air quality. A survey by the Indonesian HVAC Association indicated that only 40% of businesses understand the advantages of modern HVAC technologies. This lack of awareness can hinder market penetration, as companies may opt for less efficient cooling solutions, impacting overall market growth.

Indonesia HVAC Rooftop Units Market Future Outlook

As Indonesia continues to urbanize and embrace energy efficiency, the HVAC rooftop units market is poised for significant growth. The integration of smart technologies and IoT in HVAC systems will enhance operational efficiency and user experience. Additionally, the increasing focus on sustainable practices will drive demand for eco-friendly rooftop units. In future, the market is expected to witness a shift towards modular solutions, allowing for greater flexibility and customization in HVAC installations, catering to diverse consumer needs.

Market Opportunities

Growth in Smart Building Technologies:

The rise of smart building technologies presents a significant opportunity for HVAC rooftop units. In future, it is estimated that smart buildings will account for 30% of new constructions in urban areas, driving demand for HVAC systems that integrate with building management systems for enhanced efficiency and control.

Partnerships with Renewable Energy Providers:

Collaborations with renewable energy providers can create synergies that enhance the HVAC market. In future, the Indonesian government aims to increase renewable energy's share in the energy mix to 23%. This shift presents opportunities for HVAC companies to offer integrated solutions that utilize solar energy, reducing operational costs and promoting sustainability.