Sintered Steel Market in Indonesia

Sintered Steel in Indonesia Trends and Forecast

The future of the sintered steel market in Indonesia looks promising with opportunities in the engine, transmission, body, chassis, drivetrain, and electrical appliance markets. The global sintered steel market is expected to reach an estimated $26.4 billion by 2031 with a CAGR of 3.6% from 2025 to 2031. The sintered steel market in Indonesia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the increasing demand for high-strength materials, the rising industrial and manufacturing sector, and the expanding usage of this steel in the automobile sector.

• Lucintel forecasts that, within the process category, the additive manufacturing segment is expected to witness the highest growth over the forecast period.
• Within the application category, the engine is expected to witness the highest growth over the forecast period.

Emerging Trends in the Sintered Steel Market in Indonesia

Indonesia’s sintered steel market is rapidly transforming, backed by industrial development, manufacturing advancement, and government-driven localization initiatives. The nation is switching from primitive metallurgy to more sophisticated powder-based technologies to meet local and export requirements. With its expanding automotive base, electronics production, and energy infrastructure, Indonesia is embracing newer uses for sintered parts. Five compelling trends are driving this change, focusing on sustainability, innovation, and regional integration to facilitate Indonesia’s efforts to decrease imports and improve self-sufficiency in engineered materials.

• Integration of Sintered Steel in Railway and Transport Infrastructure: Indonesia’s investment in railroads and public transportation infrastructure is fueling the application of sintered steel for high-strength applications like brake systems, axle components, and couplers. Such components require reliability and longevity, making sintering an appropriate process. The trend fits the country’s efforts to contain wear-and-tear expenses and increase transport efficiency. Local manufacture of such components lessens reliance on international suppliers and increases technical autonomy, advancing the country’s transportation agenda and infrastructure robustness.
• Implementation of Sintered Parts in Farm Equipment: Increasing mechanization of farming is generating demand for productive machinery parts like sprockets, bearings, and gear sets. Sintered steel offers corrosion resistance and durability, particularly in rural and humid operating environments. Powder metallurgy is being used by manufacturers as farm equipment production expands to satisfy cost and accuracy requirements. The trend also favors small-scale toolmakers and the overall objective of farm modernization in rural Indonesia.
• Emphasis on Lightweight Component Manufacturing for Motorcycles: Indonesia’s two-wheeler industry is one of the biggest in the world. The demand for fuel-efficient, light motorcycles is driving the use of sintered steel for timing pulleys, cams, and valve elements. Powder metallurgy enables lightweight without a reduction in strength. With increased investment by local players and foreign players in motorcycle manufacturing, the requirement for precision lightweight components drives demand for sintered steel applications. It aids energy efficiency and cost-cutting measures.
• Electrical Appliance Component Manufacturing Localization: To drive Indonesia’s electronics and appliance industries, companies are localizing the manufacturing of sintered parts like magnetic cores, bushings, and couplings. The practice is boosted by import substitution and local sourcing policies of the government. With sintered steel, it becomes possible to produce small, dependable, and economical parts for fans, air conditioners, and washing machines. The transition strengthens local value chains and offers the appliance industry a better chance to compete globally.
• Growth into Marine and Offshore Equipment Applications: Indonesia’s maritime industry is growing with emerging shipbuilding and offshore ventures. Sintered steel is utilized in waterproof components like shaft bushings, gear housings, and pump parts. These components take advantage of powder metallurgy alloy flexibility and porosity management. The trend assists the marine industry in access to corrosion-resistant parts with low-cost production, enhancing performance in harsh offshore operating conditions and minimizing maintenance requirements.

Trends emerging in Indonesia’s sintered steel industry indicate a strategic move towards industrial autonomy and value-added manufacturing. Across transport, agriculture, and electronics industries, local industries are increasingly using sintered parts for performance and cost savings. These trends place Indonesia for long-term development in advanced application of materials.

Recent Developments in the Sintered Steel Market in Indonesia

Indonesia’s sintered steel sector is experiencing significant change, propelled by shifts in industrial policy, new plant investments, and greater engagement with international players. The government’s goal of enhancing domestic value addition is providing a favorable environment for technology upgrading and process innovation. Recent trends suggest robust momentum in matching local capabilities to international standards. These shifts are not only increasing production capacity but also enhancing the quality and variety of sintered products.

• Establishment of Local Powder Metallurgy Research Centers: Indonesia has initiated new powder metallurgy research centers as part of its industrial modernization plan. These labs will help enhance the quality of sintered materials, cut imports, and provide training for expert engineers. The partnerships with academic bodies and private organizations facilitate quicker R&D in component design and alloy composition. The program is assisting the development of technical bases required for local production of sintered steel and local innovation in line with Indonesia’s overall goal of developing domestic industrial capacity.
• Collaborations with Japanese and Korean Sintering Experts: Several Indonesian companies have embarked on joint ventures with Asian business partners to access technology in sintering, tools, and training. Through such partnerships, local businesses are able to improve facilities and increase production for automobile and appliance components. By applying know-how in tooling, pressing, and control of furnaces, these partnerships speed up the nation’s access to international quality standards. This also creates new export routes and enhances Indonesia’s dominance in regional supply chains.
• Government incentives for localization of engine parts: Indonesia has brought fiscal incentives and land-use assistance through its import curbing programs to promote domestic production of engine parts utilizing sintered steel. These involve tax concessions and speedy permits for powder metallurgy facilities. The action is intended to support increased domestic value addition and cut back on finished import dependence for motorcycles and light vehicles. Consequently, component producers are investing in sintering technologies increasingly.
• Sintering production processes digitalization: Producers are increasingly using IoT sensors and automation in sintering operations to enhance consistency in products and minimize energy consumption. Government-initiated smart industry policies underpin the transition. Real-time monitoring technology optimizes press configurations, sintering temperatures, and quality monitoring. The transition facilitates greater efficiency and enables lean manufacturing practices, placing local manufacturers on a competitive footing. Digital retrofitting has the maximum effect when it comes to scaling up production without sacrificing precision.
• Growing Application of Reused Powders in Sintered Parts: To foster sustainability, some Indonesian producers now add recycled metal powders to sintered components. Scrap from machining activity is cleaned and recycled for reuse in blends of powders. The move lessens material expense and ecological footprint while keeping performance on target. Government sustainability requirements and increasing raw material costs are motivating wider implementation. The transition fosters circular manufacturing and brings sintered steel manufacturing into compliance with environmentally friendly objectives.

Recent trends in Indonesia’s sintered steel industry indicate a multi-faceted thrust towards capability building, innovation, and sustainable development. Strategic partnerships, policy reformation, and in-country R&D are deepening the ecosystem. These trends are rendering the market more autonomous, internationally competitive, and consistent with long-term industrial aspirations.

Strategic Growth Opportunities for Sintered Steel Market in Indonesia

Indonesia is going through a change in its industrial composition, which is opening up new growth prospects for the sintered steel industry. With industries like automotive, electronics, energy, and agriculture changing, the need for affordable, long-lasting, and precision-engineered parts is on the rise. Powder metallurgy and sintered steel applications are best positioned to cater to these needs. Targeting major end-use industries, Indonesia can greatly increase its sintered steel presence by embracing technology, local production expertise, and application-specific innovations.

• Automotive Powertrain and Transmission Components: Indonesia is growing its vehicle manufacturing capacity, and localizing powertrain and transmission component production presents a key growth opportunity. Sintered steel gears, bearings, and clutch hubs are lightweight, accurate, and well-suited to mass production. As fuel-efficient and low-emission vehicles gain popularity, their makers can take advantage of the performance characteristics of sintered components. Localization also diminishes reliance on imports and reduces costs, presenting strategic advantages for both OEM and supplier.
• Manufacturing of Electric Motor and Magnetic Components: EV growth and home appliances are leading demand for sintered steel-based magnetic components and motor components. They comprise stators, rotors, and soft magnetic components that provide efficiency and compactness. Indonesia can spur this segment by assisting local suppliers and enhancing magnetic alloy processing. As electrification trends intensify, this opportunity contributes to larger energy and technology objectives, and creates opportunities for component exports to Southeast Asian markets.
• Precision Parts for Agricultural Machinery: Indonesia is upgrading its agricultural industry with a focus on low-maintenance, long-lasting machinery. Sintered steel makes possible the manufacture of sprockets, bushings, and gear components that are resistant to corrosion and inexpensive. These parts best suit rough landscapes and high-humidity conditions prevalent in Indonesian agricultural areas. By targeting rural equipment manufacturers, the suppliers of sintered steel can capitalize on this increasing demand and encourage sustainable food production systems.
• Renewable Energy System Components: Indonesia is also expanding investment in solar, wind, and biomass power. Sintered steel can contribute to these systems in gears, couplings, and structural components in turbines and pumps. Its toughness and fatigue resistance qualify it for tough and off-grid energy situations. Localization of these parts makes the system more reliable and less expensive. The opportunity also fits the country’s long-term climate and energy resilience strategies.
• Components of Medical and Healthcare Devices: Indonesia’s health manufacturing sector is expanding, offering potential for sintered steel components for surgical equipment, diagnostic devices, and mobility devices. Such applications are accommodated by the precision and biocompatibility of particular sintered alloys. By embracing cleanroom production practices and investing in quality control systems, producers can achieve international medical standards. This growth strategy supports public health objectives and ensures access to regional healthcare export markets.

Strategic application-driven expansion in sintered steel provides Indonesia with a route to industrial diversification and resistance. Across automotive and energy, agriculture, and healthcare, sintered steel satisfies demand for cost-effective, high-performance components. These prospects make the country’s local value chains stronger and its manufacturing competitiveness in strategic industries better.

Sintered Steel Market in Indonesia Driver and Challenges

The market for sintered steel in Indonesia is shaped by a multifaceted combination of technological advances, economic developments, and changing policy environments. Industrial localization, increasing end-use demand, and sustainability ambitions are the major drivers that are leading the market growth while issues about skills gaps, raw material availability, and process uniformity continue to be deterrents. Comprehension of these drivers and challenges is imperative in defining the future of sintered steel in the nation and harmonizing industry growth with national aspirations.

The factors responsible for driving the sintered steel market in Indonesia include:
• Development of Domestic Automotive and Machinery Industries: Indonesia’s auto and machinery sectors are growing steadily, fueling local production demand for sintered parts. Powertrain and structural parts enjoy the benefits of powder metallurgy’s strength, accuracy, and mass production. Government encouragement of local content and subsidies for component manufacturing further drive this trend. With increasing vehicle and equipment production, sintered steel is critical in enabling efficient and scalable part production within country.
• Industrial Localization Support by Government: Indonesia’s reduction of imports and promotion of domestic production are behind the adoption of powder metallurgy. Fiscal incentives, access to land, and technical assistance are encouraging domestic companies to invest in sintering capacity. The emphasis improves supply chain resilience and generates local employment opportunities. The policy framework offers a basis for enduring market stability and attracts inward investment from international sintering specialists with technical expertise and quality systems.
• Rising Demand from Energy and Infrastructure Projects: Mass energy and infrastructure projects are heightening demand for robust components fabricated from sintered steel. Gears, valves, and joints used in power generation and transport systems derive advantages from the fatigue strength and design flexibility of the material. Domestic production simplifies supply chain reduction and improves system dependability. These projects generate long-term demand and provide potential for local suppliers to expand operations and advance part design innovation.
• Emergence of Electric Cars and Smart Devices: The shift to electric and smart home technology is developing new applications for sintered steel in motors, sensors, and control units. Heat-resistant sintered components in compact form are the perfect fit for these new technologies. Those local producers that make this adoption early can gain market share advantage. With emphasis on energy efficiency and automation, the sintered steel market can gain from being a part of next-generation products.
• Technology Developments in Sintering Machines: Indonesia is accessing advanced sintering presses, computerized mixing systems, and accurate furnaces. These machines enhance production accuracy, uniformity, and part quality. New equipment also enables small and medium companies to enter the market with competitive products. Adoption of technology minimizes scrap rates, boosts throughput, and provides opportunities to serve high-tolerance markets like aerospace and electronics.

Challenges in the sintered steel market in Indonesia are:
• Technical Expertise and Skilled Labor Shortage: One of the biggest hurdles is the scarcity of skilled engineers and technicians with experience in powder metallurgy. Without requisite expertise in mixing, pressing, and sintering operations, consistent quality is a challenge to attain. Technical training initiatives and university-industry collaborations are essential to bridge this gap. Overcoming this issue is essential to unlocking the true potential of local sintered steel production.
• Over-Reliance on Imported Metal Powders: Indonesia’s over-reliance on imported metal powders causes supply volatility and increased costs. Domestic alloy powder production capacity is still underdeveloped. The reliance decreases pricing competitiveness and elevates lead times. Establishing powder plants or arrangements with local suppliers can alleviate this bottleneck and enhance supply chain command for domestic sintered part makers.
• Quality Control and Repeatability Problems: Maintaining consistent quality across sintered steel production lines remains a technical hurdle. Variability in powder characteristics and furnace conditions can lead to defects. Many small producers lack the metrology tools and automated systems needed to ensure repeatability. Investing in quality monitoring, certification systems, and advanced inspection tools is essential to meet application-specific standards and expand into regulated markets.

Indonesia’s sintered steel industry is supported by strong drivers of expansion, such as industrial growth, favorable policies, and increasing application demand. Technical and supply-side issues need to be addressed, however, to allow consistent advancement. Striking the balance in these elements will decide how favorably Indonesia is positioned in the regional sintered materials value chain and is able to maintain long-term competitiveness.

List of Sintered Steel Market in Indonesia Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, sintered steel companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the sintered steel companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7

Sintered Steel Market in Indonesia by Segment

The study includes a forecast for the sintered steel market in Indonesia by process, steel type, application, and end use.

Sintered Steel Market in Indonesia by Process [Analysis by Value from 2019 to 2031]:

• Metal Injection Molding
• Additive Manufacturing
• Conventional Manufacturing
• Powder Forged Manufacturing

Sintered Steel Market in Indonesia by Steel Type [Analysis by Value from 2019 to 2031]:

• Stainless Steel
• Carbon Steel
• Alloy Steel
• Tool Steel

Sintered Steel Market in Indonesia by Application [Analysis by Value from 2019 to 2031]:

• Engines
• Transmissions
• Bodies
• Chassis
• Drivetrains
• Electrical Appliances
• Others

Sintered Steel Market in Indonesia by End Use [Analysis by Value from 2019 to 2031]:

• Transportation
• Electrical
• Industrial
• Others

Features of the Sintered Steel Market in Indonesia

Market Size Estimates: Sintered steel in Indonesia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Sintered steel in Indonesia market size by process, steel type, application, and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different process, steel type, application, and end use for the sintered steel in Indonesia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the sintered steel in Indonesia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

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FAQ

Q1. What are the major drivers influencing the growth of the sintered steel market in Indonesia?
Answer: The major drivers for this market are the increasing demand for high-strength materials, the rising industrial and manufacturing sector, and the expanding usage of this steel in the automobile sector.
Q2. What are the major segments for sintered steel market in Indonesia?
Answer: The future of the sintered steel market in Indonesia looks promising with opportunities in the engine, transmission, body, chassis, drivetrain, and electrical appliance markets.
Q3. Which sintered steel market segment in Indonesia will be the largest in future?
Answer: Lucintel forecasts that additive manufacturing segment is expected to witness the highest growth over the forecast period.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 10 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the sintered steel market in Indonesia by process (metal injection molding, additive manufacturing, conventional manufacturing, and powder forged manufacturing), steel type (stainless steel, carbon steel, alloy steel, and tool steel), application (engines, transmissions, bodies, chassis, drivetrains, electrical appliances, and others), and end use (transportation, electrical, industrial, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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