Indonesia steel wire market report Size, Share, Growth Drivers, Trends, Opportunities & Forecast 2025–2030
Description
Indonesia Steel Wire Market Overview
The Indonesia Steel Wire Market is valued at USD 1.0 billion, based on a five-year historical analysis of the steel wire rods segment, which forms the core of the steel wire market. This growth is primarily driven by the increasing demand for steel wire in construction, automotive, and industrial applications, alongside the country's rapid urbanization and infrastructure development initiatives. The construction sector remains the largest revenue-generating segment, while industrial manufacturing is witnessing the fastest growth, supported by government-backed infrastructure projects and rising domestic manufacturing activity .
Key regions dominating the market include Java and Sumatra, where industrial activities are concentrated. Java, being the economic hub, has a high demand for steel wire due to extensive construction projects, while Sumatra benefits from its natural resources and growing industrial base .
The Minister of Industry Regulation No. 35/M-IND/PER/3/2023, issued by the Ministry of Industry in 2023, mandates the use of domestically produced steel—including steel wire—for public infrastructure projects. This regulation requires government-funded infrastructure developments to prioritize local steel wire procurement, aiming to boost domestic manufacturing, ensure compliance with Indonesian National Standards (SNI), and reduce reliance on imports .
Indonesia Steel Wire Market Segmentation
By Type:
The market is segmented into various types of steel wire, including Galvanized Steel Wire, Stainless Steel Wire, High Carbon Steel Wire, Low Carbon Steel Wire, Spring Steel Wire, Steel Wire Rods, PC (Prestressed Concrete) Wire, and Others. Each type serves different applications and industries, catering to specific consumer needs. Galvanized steel wire dominates due to its extensive use in construction and infrastructure, while stainless and high carbon steel wires are preferred for automotive and industrial manufacturing .
By End-User:
The end-user segmentation includes Construction, Automotive, Industrial Manufacturing, Power & Energy, Agriculture, Electrical, and Others. Each sector utilizes steel wire for various applications, reflecting the diverse demand across industries. Construction is the leading end-user, followed by automotive and industrial manufacturing, driven by ongoing infrastructure expansion and increased vehicle production .
Indonesia Steel Wire Market Competitive Landscape
The Indonesia Steel Wire Market is characterized by a dynamic mix of regional and international players. Leading participants such as PT Krakatau Steel (Persero) Tbk, PT Gunung Raja Paksi Tbk, PT Ispat Indo, PT The Master Steel Mfg, PT Jakarta Cakratunggal Steel Mills, PT Inter World Steel Mills Indonesia, PT Lautan Steel Indonesia, PT Beton Jaya Manunggal Tbk, PT Sutindo, PT Bumi Kaya Steel Industries, PT Hanil Jaya Steel, PT Steel Pipe Industry of Indonesia Tbk (SPINDO), PT Citra Tubindo Tbk, PT Tatalogam Lestari, PT Sari Daya Plasindo contribute to innovation, geographic expansion, and service delivery in this space.
PT Krakatau Steel (Persero) Tbk
1970
Cilegon, Indonesia
PT Gunung Raja Paksi Tbk
1970
Bekasi, Indonesia
PT Ispat Indo
1976
Sidoarjo, Indonesia
PT The Master Steel Mfg
1972
Tangerang, Indonesia
PT Jakarta Cakratunggal Steel Mills
1976
Jakarta, Indonesia
Company
Establishment Year
Headquarters
Total Production Capacity (tons/year)
Revenue (USD million)
Revenue Growth Rate (%)
Market Share (%)
Capacity Utilization Rate (%)
Product Portfolio
eadth
Indonesia Steel Wire Market Industry Analysis
Growth Drivers
Increasing Construction Activities:
The construction sector in Indonesia is projected to reach IDR 1,422.7 trillion by in future, driven by urbanization and population growth. This surge in construction activities is expected to increase the demand for steel wire, which is essential for reinforcing concrete structures. The government’s commitment to building 1 million houses annually further supports this growth, creating a robust market for steel wire manufacturers to meet rising needs.
Rising Demand from Automotive Sector:
Indonesia's automotive industry is anticipated to produce over 1.65 million vehicles in future, reflecting a 10% increase from previous years. This growth is significantly boosting the demand for steel wire, which is used in various automotive components. The shift towards electric vehicles is also creating new opportunities for specialized steel wire applications, further enhancing market prospects in this sector.
Infrastructure Development Initiatives:
The Indonesian government has allocated IDR 422.7 trillion for infrastructure projects in future, focusing on transportation and public utilities. This investment is expected to drive demand for steel wire, as it is crucial for construction and reinforcement in infrastructure projects. The ongoing development of toll roads,
idges, and railways will significantly contribute to the growth of the steel wire market in the region.
Market Challenges
Fluctuating Raw Material Prices:
The steel wire industry faces challenges due to volatile raw material prices, particularly iron ore and scrap steel. In recent periods, iron ore prices have fluctuated between USD 90 to USD 130 per ton, impacting production costs. Such price instability can lead to reduced profit margins for manufacturers, making it difficult to maintain competitive pricing in the market.
Competition from Imported Products:
The influx of imported steel wire products, particularly from China and India, poses a significant challenge to local manufacturers. In recent periods, imports accounted for approximately 30% of the total steel wire consumption in Indonesia. This competition often leads to price undercutting, forcing local producers to innovate and improve efficiency to retain market share.
Indonesia Steel Wire Market Future Outlook
The Indonesia steel wire market is poised for significant growth, driven by increasing construction activities and government infrastructure initiatives. As the automotive sector expands, the demand for specialized steel wires will also rise. However, manufacturers must navigate challenges such as fluctuating raw material prices and competition from imports. Em
acing technological advancements and sustainable practices will be crucial for local producers to enhance their competitiveness and capitalize on emerging opportunities in the market.
Market Opportunities
Technological Advancements in Production:
The adoption of advanced manufacturing technologies, such as automation and AI, can enhance production efficiency and reduce costs. By investing in these technologies, local manufacturers can improve product quality and meet the growing demand for high-strength steel wires, positioning themselves favorably in the market.
Government Infrastructure Projects:
The ongoing government commitment to infrastructure development presents a significant opportunity for steel wire manufacturers. With IDR 422.7 trillion allocated for projects in future, companies can secure contracts for supplying steel wire, thereby increasing their market presence and driving revenue growth in the coming years.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
The Indonesia Steel Wire Market is valued at USD 1.0 billion, based on a five-year historical analysis of the steel wire rods segment, which forms the core of the steel wire market. This growth is primarily driven by the increasing demand for steel wire in construction, automotive, and industrial applications, alongside the country's rapid urbanization and infrastructure development initiatives. The construction sector remains the largest revenue-generating segment, while industrial manufacturing is witnessing the fastest growth, supported by government-backed infrastructure projects and rising domestic manufacturing activity .
Key regions dominating the market include Java and Sumatra, where industrial activities are concentrated. Java, being the economic hub, has a high demand for steel wire due to extensive construction projects, while Sumatra benefits from its natural resources and growing industrial base .
The Minister of Industry Regulation No. 35/M-IND/PER/3/2023, issued by the Ministry of Industry in 2023, mandates the use of domestically produced steel—including steel wire—for public infrastructure projects. This regulation requires government-funded infrastructure developments to prioritize local steel wire procurement, aiming to boost domestic manufacturing, ensure compliance with Indonesian National Standards (SNI), and reduce reliance on imports .
Indonesia Steel Wire Market Segmentation
By Type:
The market is segmented into various types of steel wire, including Galvanized Steel Wire, Stainless Steel Wire, High Carbon Steel Wire, Low Carbon Steel Wire, Spring Steel Wire, Steel Wire Rods, PC (Prestressed Concrete) Wire, and Others. Each type serves different applications and industries, catering to specific consumer needs. Galvanized steel wire dominates due to its extensive use in construction and infrastructure, while stainless and high carbon steel wires are preferred for automotive and industrial manufacturing .
By End-User:
The end-user segmentation includes Construction, Automotive, Industrial Manufacturing, Power & Energy, Agriculture, Electrical, and Others. Each sector utilizes steel wire for various applications, reflecting the diverse demand across industries. Construction is the leading end-user, followed by automotive and industrial manufacturing, driven by ongoing infrastructure expansion and increased vehicle production .
Indonesia Steel Wire Market Competitive Landscape
The Indonesia Steel Wire Market is characterized by a dynamic mix of regional and international players. Leading participants such as PT Krakatau Steel (Persero) Tbk, PT Gunung Raja Paksi Tbk, PT Ispat Indo, PT The Master Steel Mfg, PT Jakarta Cakratunggal Steel Mills, PT Inter World Steel Mills Indonesia, PT Lautan Steel Indonesia, PT Beton Jaya Manunggal Tbk, PT Sutindo, PT Bumi Kaya Steel Industries, PT Hanil Jaya Steel, PT Steel Pipe Industry of Indonesia Tbk (SPINDO), PT Citra Tubindo Tbk, PT Tatalogam Lestari, PT Sari Daya Plasindo contribute to innovation, geographic expansion, and service delivery in this space.
PT Krakatau Steel (Persero) Tbk
1970
Cilegon, Indonesia
PT Gunung Raja Paksi Tbk
1970
Bekasi, Indonesia
PT Ispat Indo
1976
Sidoarjo, Indonesia
PT The Master Steel Mfg
1972
Tangerang, Indonesia
PT Jakarta Cakratunggal Steel Mills
1976
Jakarta, Indonesia
Company
Establishment Year
Headquarters
Total Production Capacity (tons/year)
Revenue (USD million)
Revenue Growth Rate (%)
Market Share (%)
Capacity Utilization Rate (%)
Product Portfolio
eadth
Indonesia Steel Wire Market Industry Analysis
Growth Drivers
Increasing Construction Activities:
The construction sector in Indonesia is projected to reach IDR 1,422.7 trillion by in future, driven by urbanization and population growth. This surge in construction activities is expected to increase the demand for steel wire, which is essential for reinforcing concrete structures. The government’s commitment to building 1 million houses annually further supports this growth, creating a robust market for steel wire manufacturers to meet rising needs.
Rising Demand from Automotive Sector:
Indonesia's automotive industry is anticipated to produce over 1.65 million vehicles in future, reflecting a 10% increase from previous years. This growth is significantly boosting the demand for steel wire, which is used in various automotive components. The shift towards electric vehicles is also creating new opportunities for specialized steel wire applications, further enhancing market prospects in this sector.
Infrastructure Development Initiatives:
The Indonesian government has allocated IDR 422.7 trillion for infrastructure projects in future, focusing on transportation and public utilities. This investment is expected to drive demand for steel wire, as it is crucial for construction and reinforcement in infrastructure projects. The ongoing development of toll roads,
idges, and railways will significantly contribute to the growth of the steel wire market in the region.
Market Challenges
Fluctuating Raw Material Prices:
The steel wire industry faces challenges due to volatile raw material prices, particularly iron ore and scrap steel. In recent periods, iron ore prices have fluctuated between USD 90 to USD 130 per ton, impacting production costs. Such price instability can lead to reduced profit margins for manufacturers, making it difficult to maintain competitive pricing in the market.
Competition from Imported Products:
The influx of imported steel wire products, particularly from China and India, poses a significant challenge to local manufacturers. In recent periods, imports accounted for approximately 30% of the total steel wire consumption in Indonesia. This competition often leads to price undercutting, forcing local producers to innovate and improve efficiency to retain market share.
Indonesia Steel Wire Market Future Outlook
The Indonesia steel wire market is poised for significant growth, driven by increasing construction activities and government infrastructure initiatives. As the automotive sector expands, the demand for specialized steel wires will also rise. However, manufacturers must navigate challenges such as fluctuating raw material prices and competition from imports. Em
acing technological advancements and sustainable practices will be crucial for local producers to enhance their competitiveness and capitalize on emerging opportunities in the market.
Market Opportunities
Technological Advancements in Production:
The adoption of advanced manufacturing technologies, such as automation and AI, can enhance production efficiency and reduce costs. By investing in these technologies, local manufacturers can improve product quality and meet the growing demand for high-strength steel wires, positioning themselves favorably in the market.
Government Infrastructure Projects:
The ongoing government commitment to infrastructure development presents a significant opportunity for steel wire manufacturers. With IDR 422.7 trillion allocated for projects in future, companies can secure contracts for supplying steel wire, thereby increasing their market presence and driving revenue growth in the coming years.
Please Note: It will take 5-7 business days to complete the report upon order confirmation.
Table of Contents
92 Pages
- 1. Indonesia steel wire Size, Share, Growth Drivers, Trends, Opportunities & – Market Overview
- 1.1. Definition and Scope
- 1.2. Market Taxonomy
- 1.3. Market Growth Rate
- 1.4. Market Segmentation Overview
- 2. Indonesia steel wire Size, Share, Growth Drivers, Trends, Opportunities & – Market Size (in USD Bn), 2019–2024
- 2.1. Historical Market Size
- 2.2. Year-on-Year Growth Analysis
- 2.3. Key Market Developments and Milestones
- 3. Indonesia steel wire Size, Share, Growth Drivers, Trends, Opportunities & – Market Analysis
- 3.1. Growth Drivers
- 3.1.1. Increasing Construction Activities
- 3.1.2. Rising Demand from Automotive Sector
- 3.1.3. Infrastructure Development Initiatives
- 3.1.4. Export Opportunities in Southeast Asia
- 3.2. Restraints
- 3.2.1. Fluctuating Raw Material Prices
- 3.2.2. Stringent Environmental Regulations
- 3.2.3. Competition from Imported Products
- 3.2.4. Supply Chain Disruptions
- 3.3. Opportunities
- 3.3.1. Technological Advancements in Production
- 3.3.2. Growing Demand for Specialty Steel Wires
- 3.3.3. Government Infrastructure Projects
- 3.3.4. Expansion into Untapped Markets
- 3.4. Trends
- 3.4.1. Shift Towards Sustainable Manufacturing
- 3.4.2. Increasing Use of Steel Wires in Renewable Energy
- 3.4.3. Adoption of Automation in Production
- 3.4.4. Rising Popularity of High-Strength Steel Wires
- 3.5. Government Regulation
- 3.5.1. Import Tariffs on Steel Products
- 3.5.2. Environmental Compliance Standards
- 3.5.3. Safety Regulations in Manufacturing
- 3.5.4. Quality Control Standards for Exports
- 3.6. SWOT Analysis
- 3.7. Stakeholder Ecosystem
- 3.8. Competition Ecosystem
- 4. Indonesia steel wire Size, Share, Growth Drivers, Trends, Opportunities & – Market Segmentation, 2024
- 4.1. By Type (in Value %)
- 4.1.1. Galvanized Steel Wire
- 4.1.2. Stainless Steel Wire
- 4.1.3. High Carbon Steel Wire
- 4.1.4. Low Carbon Steel Wire
- 4.1.5. Spring Steel Wire
- 4.1.6. Steel Wire Rods
- 4.1.7. PC (Prestressed Concrete) Wire
- 4.1.8. Others
- 4.2. By End-User (in Value %)
- 4.2.1. Construction
- 4.2.2. Automotive
- 4.2.3. Industrial Manufacturing
- 4.2.4. Power & Energy
- 4.2.5. Agriculture
- 4.2.6. Electrical
- 4.2.7. Others
- 4.3. By Application (in Value %)
- 4.3.1. Fencing
- 4.3.2. Reinforcement
- 4.3.3. Wire Ropes
- 4.3.4. Springs
- 4.3.5. Fasteners
- 4.3.6. Cables
- 4.3.7. Others
- 4.4. By Distribution Channel (in Value %)
- 4.4.1. Direct Sales
- 4.4.2. Distributors
- 4.4.3. Online Sales
- 4.4.4. Retail Outlets
- 4.4.5. Others
- 4.5. By Price Range (in Value %)
- 4.5.1. Economy
- 4.5.2. Mid-Range
- 4.5.3. Premium
- 4.5.4. Others
- 4.6. By Region (in Value %)
- 4.6.1. Java
- 4.6.2. Sumatra
- 4.6.3. Kalimantan
- 4.6.4. Sulawesi
- 4.6.5. Bali
- 4.6.6. Others
- 5. Indonesia steel wire Size, Share, Growth Drivers, Trends, Opportunities & – Market Cross Comparison
- 5.1. Detailed Profiles of Major Companies
- 5.1.1. PT Krakatau Steel (Persero) Tbk
- 5.1.2. PT Gunung Raja Paksi Tbk
- 5.1.3. PT Ispat Indo
- 5.1.4. PT The Master Steel Mfg
- 5.1.5. PT Jakarta Cakratunggal Steel Mills
- 5.2. Cross Comparison Parameters
- 5.2.1. Total Production Capacity (tons/year)
- 5.2.2. Revenue (USD million)
- 5.2.3. Revenue Growth Rate (%)
- 5.2.4. Market Share (%)
- 5.2.5. Capacity Utilization Rate (%)
- 6. Indonesia steel wire Size, Share, Growth Drivers, Trends, Opportunities & – Market Regulatory Framework
- 6.1. Building Standards
- 6.2. Compliance Requirements and Audits
- 6.3. Certification Processes
- 7. Indonesia steel wire Size, Share, Growth Drivers, Trends, Opportunities & – Market Future Size (in USD Bn), 2025–2030
- 7.1. Future Market Size Projections
- 7.2. Key Factors Driving Future Market Growth
- 8. Indonesia steel wire Size, Share, Growth Drivers, Trends, Opportunities & – Market Future Segmentation, 2030
- 8.1. By Type (in Value %)
- 8.2. By End-User (in Value %)
- 8.3. By Application (in Value %)
- 8.4. By Distribution Channel (in Value %)
- 8.5. By Price Range (in Value %)
- 8.6. By Region (in Value %)
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