Skim Coating in Indonesia Trends and Forecast
The future of the skim coating market in Indonesia looks promising with opportunities in the residential and commercial markets. The global skim coating market is expected to reach an estimated $4.2 billion by 2031 with a CAGR of 3.6% from 2025 to 2031. The skim coating market in Indonesia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the growing demand for home and commercial space renovations, the rising consumer preference for smooth and aesthetic interior finishes, and the increase in construction activity in developing regions.
• Lucintel forecasts that, within the type category, 26%-28% water demand is expected to witness higher growth over the forecast period.
• Within this application category, residential is expected to witness higher growth.
Emerging Trends in the Skim Coating Market in Indonesia
Indonesia’s skim coat market is changing at a fast rate, fueled by urbanization, sustainable building practices, and technological innovations in application. Demand for eco-friendly and high-performance products is dictating emerging industry trends. Contractors and developers are increasingly looking for coatings that are energy efficient, durable, and visually appealing. These trends mirror the construction industry’s shift towards contemporary solutions that respond to climate issues, health considerations, and workforce efficiency. While manufacturers adapt to market demand through innovation in formulations, the skim coating market is emerging as a critical part of next-generation infrastructure in residential, commercial, and public construction projects.
• Low-VOC and Water-Based Coatings: A shift away from solvent-based coatings towards low-VOC, water-based coatings is increasingly evident in Indonesia. The reason behind this is tighter environmental regulations and increasing consumer awareness regarding indoor air quality. Water-based skim coats have become popular for residential and commercial interior use due to reduced odor and safer application. They are being marketed through green building initiatives. Low-VOC product innovators are encouraging manufacturers to adopt more environmentally friendly technologies. This is likely to be a sustained trend as the nation aligns with international environmental regulations.
• Heat-Reflective Coatings: Reflective skim coatings are finding growing application in Indonesia’s hot and humid weather to minimize heat absorption on building surfaces. They improve indoor comfort and reduce energy costs related to air conditioning. The trend is strong in the residential and commercial markets due to the pursuit of energy-efficient building solutions. Reflective additives in skim coatings also provide extended surface life and better protection against UV radiation. With increasing electricity prices and environmental concerns, developers are adopting these coatings as part of green building initiatives.
• Self-Cleaning and High Durability Additives: Urban pollution and maintenance concerns are driving demand for skim coatings with self-cleaning and dirt-resistant characteristics. Products with hydrophobic additives are gaining popularity in both new developments and renovation works. These coatings reduce maintenance needs and help retain surface appearance over time. Higher durability and resistance to cracks or peeling are becoming key differentiators in both private and public infrastructure projects. The trend supports longer lifecycle value, making the coatings attractive to developers focused on long-term maintenance efficiency.
• Antimicrobial and Anti-Pollution Coatings: Health and hygiene concerns, especially in healthcare, education, and public facilities, are increasing demand for antimicrobial and anti-pollution skim coatings. Built-in resistance to bacteria, mold, and airborne pollutants is becoming essential in high-traffic or sensitive environments. This trend, accelerated by the COVID-19 pandemic, continues to shape purchasing behavior. Manufacturers producing certified antimicrobial coatings are accessing new market segments focused on safety compliance. These applications enhance value by contributing to healthier indoor environments.
• Digital Color Matching and Decorative Finishes: With growing interest in aesthetics, digitally tailored skim coatings with decorative textures and precise color matching are becoming popular in urban and upscale housing projects. Homeowners and developers now prefer continuous finishes that reflect individual design choices. Digital color technology and on-site customization improve decision-making and customer satisfaction. The trend supports product differentiation and deeper customer engagement. Decorative skim coatings are evolving from utility products into essential components of interior design strategies.
New trends in Indonesia’s skim coating market are revolutionizing product development and application. The shift toward eco-friendly, high-performance, and digitally enhanced coatings is aligning with modern construction practices. These trends promote long-term value creation and strengthen market competitiveness.
Recent Developments in the Skim Coating Market in Indonesia
Indonesia’s skim coating market has witnessed several important developments in production, sustainability, technology, and distribution. As demand rises for smart and efficient building materials, businesses are investing in local production, launching eco-friendly products, and expanding digital platforms. These developments reflect broader shifts in the construction materials industry, responding to national growth targets and international sustainability goals. The latest changes are helping improve delivery speed, product performance, and market reach within the country.
• Growth of Local Capacity: Leading domestic and international manufacturers have increased their production capacities in Indonesia to meet rising demand and reduce lead times. New factories are being set up to support regional distribution, ensure consistent product availability, and cut logistics expenses. Expanding local capacity allows manufacturers to stay competitive by offering faster delivery and customizing formulations to suit local building needs. This development also creates new jobs and aligns with government efforts to strengthen local industrial capabilities in the building materials sector.
• Introductions of Low-VOC and Recycled Products: Companies are launching skim coatings with low-VOC content and recycled components to support Indonesia’s sustainability targets. These products comply with updated green building codes and appeal to environmentally conscious developers. Including recycled materials reduces reliance on virgin resources and adds value to the product lifecycle. Manufacturers embracing such innovations are better positioned to secure deals in public and private sectors that require environmental compliance. This marks a shift toward more sustainable product design and resource conservation practices.
• Development of Water-Based Technologies: Water-based skim coatings now dominate Indonesia’s architectural coatings segment. These products offer low odor, enhanced safety, and compliance with health regulations. They are especially favored in residential interiors, schools, and healthcare environments where air quality is a priority. Advancements in high-bond, fast-drying water-based formulations support faster construction schedules. This trend reflects evolving consumer preferences and regulatory support for safer construction materials.
• State-of-the-Art Additive Research and Development: Increased R&D investment has led to the creation of advanced additives for skim coating, such as reflective particles, antimicrobial agents, nanomaterials, and improved binders. These technologies boost performance in extreme weather conditions and polluted urban environments. They contribute to durability, ease of application, and multi-functional capabilities. R&D is helping manufacturers address complex construction requirements and secure competitive projects. This trend underlines the critical role of innovation in maintaining market leadership.
• E-Commerce and Digital Marketing Growth: E-commerce and digital platforms are reshaping how skim coatings are marketed and sold in Indonesia. Companies now offer virtual consultations, digital catalogs, and direct-to-site deliveries. This improves accessibility in secondary or remote regions with limited physical retail presence. Digital tools also enhance product education and technical assistance. Manufacturers are expanding reach, improving service quality, and strengthening brand identity through investments in online infrastructure.
Recent developments in Indonesia’s skim coating market are enhancing operational efficiency, sustainability, and customer accessibility. From green product launches to digital transformation and local production upgrades, these changes are laying a solid foundation for the industry’s future growth and competitiveness.
Strategic Growth Opportunities for Skim Coating Market in Indonesia
Indonesia’s skim coating industry is picking up pace with growing construction and renovation activities in residential, commercial, infrastructure, and green building applications. Increasing demand for shorter construction periods, smooth surface finishes, and environmentally friendly materials is driving new application-based opportunities. Developers, builders, and manufacturers are emphasizing innovation and customization to support changing project needs. Strategic expansion aims to meet performance, cost-effectiveness, and sustainability in applications. These opportunities are transforming market positioning, allowing companies to offer differentiated solutions and achieve competitive advantage in Indonesia’s dynamic building market.
• Urban Development and Residential Housing: Indonesia’s fast pace of urbanization is driving demand for residential construction, particularly in urban and suburban areas. Skim coatings are employed intensively for surface preparation for new homes and redevelopment projects, providing smooth finishes that are suitable for painting or decorative use. Consumers are gravitating towards low-dust, fast-drying products that conform to interior design and health safety. Manufacturers are creating DIY-compatible products to fulfill market demand. Tailoring coatings to climate sustainability and surface consistency increases product uptake. This application segment has long-term volume demand and brand exposure for manufacturers targeting commercial space and office infrastructure.
• Commercial Spaces and Office Infrastructure: Commercial building expansion in the form of shopping malls, hotels, and office buildings is necessitating high-performance skim coatings. Such applications demand fast-set, smooth, and attractive surface finishes to facilitate rapid construction cycles. Coatings that minimize downtime and enable quicker occupancy are top preference from developers. Anti-crack skim coatings with better finish quality are extensively applied in commercial interiors. Producers with ready-to-use coating formulations that have certified safety and performance features obtain bulk supply contracts. Use of this application provides a basis for premium product positioning and repeat purchasing by facility managers and developers.
• Public Infrastructure and Institutional Projects: Government public infrastructure investments in school, hospital, and administrative building construction are driving demand for skim coatings with durability and regulatory features. Such projects demand fire-resistant, impact-resistant, and environmental safety coatings. Manufacturers who align with government orders via BIS or SNI certification enjoy a competitive edge. Offering coatings that can endure intensive walking traffic as well as diverse climatic conditions brings repeated use in institutional works. Participating in infrastructure works provides recurring income as well as improved public sector procurement channel credibility.
• Prefabricated and Modular Construction: Prefabricated and modular construction is increasing in Indonesia because it is faster and cost-effective. Factory-controlled environments require skim coatings to have high adhesion, low shrinkage, and compatibility with varied substrates. Companies investing in automation-compatible, rapid-cure coatings are facilitating efficient production processes. These applications minimize on-site finishing requirements and fit into industrialized construction strategies. As demand for prefab housing and temporary infrastructure increases, suppliers providing coatings designed for prefab panels can expand product reach and achieve early mover advantage in a growing niche.
• Green Building and Sustainable Architecture: Green building practices in Indonesia are promoting use of sustainable construction materials. Low VOC skim coatings, bio-based content, and recyclable packaging are in increasing demand among contractors seeking green certifications like EDGE and Green ship. Developers who target indoor air quality, energy efficiency, and resource saving select products bearing eco-labels. Companies that offer third-party certification and technical documentation are projecting their products as central to sustainable construction. This use supports long-term policy changes and provides access to high-value projects financed by institutional or foreign funding.
Strategic development in Indonesia skim coating market is being fueled by demand in residential, commercial, public, modular, and green building sectors. These opportunities are promoting product specialization, encouraging sustainability, and enhancing competitive differentiation. Organizations aligning products with sector-specific requirements are optimally positioned to advance sustainably in Indonesia growing construction environment.
Skim Coating Market in Indonesia Driver and Challenges
The market for skim coating in Indonesia is determined by a mix of technological, economic, and regulatory drivers. As the construction sector becomes more modernized, performance-driven, cost-efficient, and environment-compliant, material demand is increasing. Concurrently, producers also face raw material volatility, labor scarcity, and changing compliance demands. These drivers and challenges are important for stakeholders to comprehend to adopt measures that promote sustainable growth, product development, and operating efficiency across application segments and project sizes.
The factors responsible for driving the skim coating market in Indonesia include:
• Urbanization and Residential Demand: Indonesia’s urban population keeps increasing, which leads to more housing development in most cities and suburban areas. This increases persistent demand for skim coatings in new buildings and the renovation of homes. Skim coatings enhance the look and surface preparation for paint or wallpaper. Government-sponsored housing initiatives such as FLPP are responsible for new developments in the affordable housing sector. This driver provides stable volume demand and allows manufacturers to bring affordable solutions to market while creating strong retail and contractor networks in emerging residential clusters.
• Growth of Commercial Real Estate: Indonesia’s economic growth is fueling the development of retail malls, hotels, and office complexes. These structures demand quick construction and impeccable surface finishes to maximize visual appeal and reduce project durations. Skim coatings with quick-drying and crack-resistant properties are best suited for upscale commercial interiors. Developers want certified products that adhere to indoor safety and air quality requirements. This driver enables repeat orders from commercial builders and opens up entry into long-term maintenance contracts, thereby improving overall profitability and brand visibility.
• Infrastructure Development Programs: Major infrastructure projects like toll roads, airports, ports, and mass transit terminals are generating substantial demand for long-lasting, regulation-conformant coatings. Public works projects most often call for materials compliant with national and global safety codes. Skim coatings for such applications need to be reliable under heavy traffic and changing environmental conditions. Suppliers of pre-approved formulating and project credentials are most attractive in public bids. This driver enables manufacturers to access anticipated and large volume streams of demand while establishing institutional credibility.
• Technological Progress and R and D Emphasis: Continuing investments in research and development are enhancing skim coating formulations with enhanced adhesion, improved drying speed, and multi-functional properties. The application of sprayable technologies and additives like anti-microbial agents and reflective compounds is on the rise. These advances enhance application ease and improve end-user experience. Firms investing in R and D can innovate at a quicker pace and address local construction issues. This driver is opening up opportunities for product differentiation, premium pricing, and lower labor dependency, enabling long-term market leadership.
• Green Construction Movement and Sustainability: There is an increase in Indonesia’s focus on environmental sustainability, which is driving product decisions in construction sector. Skim coatings with low VOC emissions and biodegradable materials are preferred in projects seeking certifications such as Green ship or LEED. Developers and public authorities look for materials that enhance indoor air quality and have less environmental impact. This driver encourages manufacturers to reformulate products and use sustainable packaging. It also provides access to environment-led tenders and high-end project sectors, making sustainability a key growth driver.
Challenges in the skim coating market in Indonesia are:
• Fluctuating Raw Material Prices: Prices of skim coating materials like binders, polymers, and additives become volatile due to international supply chain disruptions and trade policy fluctuations. Volatility in costs impacts cost structures, especially for small and medium-sized businesses. It is challenging to pass costs on to customers in price-sensitive markets. Firms have to implement flexible procurement strategies and improve production efficiency to address this problem. Diversified supplier networks and long-term contracts help reduce risks from uncertain input costs.
• Skilled Labor Shortages: Construction sector in Indonesia is low on properly trained applicators for skim coating. Substandard work leads to poor-quality finishes and repeated callbacks, which impact product reputation. Problem is more critical in rural and semi-urban locations. Manufacturers are making investments in application training and creating user-friendly products with minimal skill dependency. The challenge also presents opportunities in marketing mechanized tools and contractor certification programs to ensure consistent quality and build customer satisfaction.
• Sophisticated Regulatory Compliance: It is a challenge for both local and foreign producers to deal with Indonesia construction regulations, which differ from province to province and project types. Compliance entails frequent testing, documentation, and certification according to national standards like SNI. Noncompliance can result in being barred from public projects as well as penalties. It may be challenging for smaller companies to comply with all certification requirements on schedule. Firms need to make investments in regulatory knowledge and simplify product testing and labeling steps to achieve legal market entry and institutional buyer confidence.
Indonesia skim coating market is progressing with strong drivers like urbanization, commercial growth, infrastructure expansion, innovation, and sustainability patterns. Market players need to overcome raw material uncertainty, labor shortages, and regulatory complexity, though. Those that embark on flexible strategies, invest in training and compliance, and emphasize value-driven product innovation will be in their best positions to succeed. As market matures, balancing opportunity with resilience will be what defines success in all application segments.
List of Skim Coating 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, skim coating companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the skim coating companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Skim Coating Market in Indonesia by Segment
The study includes a forecast for the skim coating market in Indonesia by type and application.
Skim Coating Market in Indonesia by Type [Analysis by Value from 2019 to 2031]:
• 26%-28% Water Demand
• 28%-30% Water Demand
Skim Coating Market in Indonesia by Application [Analysis by Value from 2019 to 2031]:
• Residential
• Commercial
• Others
Features of the Skim Coating Market in Indonesia
Market Size Estimates: Skim coating in Indonesia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Skim coating in Indonesia market size by type and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different type and application for the skim coating in Indonesia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the skim coating 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 skim coating market in Indonesia?
Answer: The major drivers for this market are a growing demand for home and commercial space renovations, rising consumer preference for smooth and aesthetic interior finishes, and an increase in construction activity in developing regions.
Q2. What are the major segments for skim coating market in Indonesia?
Answer: The future of the skim coating market in Indonesia looks promising with opportunities in the residential and commercial markets.
Q3. Which skim coating market segment in Indonesia will be the largest in future?
Answer: Lucintel forecasts that 26%-28% water demand is expected to witness higher 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 skim coating market in Indonesia by type (26%-28% water demand and 28%-30% water demand), and application (residential, commercial, 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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