Indonesia Drywall And Gypsum Board Market Size, Share, Trends and Forecasts 2032

Key Findings

• The Indonesia Drywall and Gypsum Board Market is expanding steadily due to strong demand from residential and commercial construction.
• Rapid urbanization and infrastructure development are driving consistent installation volumes.
• Lightweight, fast-installation wall systems are replacing traditional masonry in many projects.
• Fire-resistant, moisture-resistant, and acoustic gypsum boards are gaining higher adoption.
• Growth in renovation and interior remodeling activities is supporting repeat demand.
• Green building standards are encouraging low-emission and recyclable gypsum products.
• Prefabrication and modular construction trends are accelerating drywall usage.
• Raw material and energy costs significantly influence production economics.

Indonesia Drywall and Gypsum Board Market Size and Forecast

The Indonesia Drywall and Gypsum Board Market is projected to grow from USD 54.2 billion in 2025 to USD 82.7 billion by 2032, registering a CAGR of 6.2% during the forecast period. Growth is driven by rising residential construction, commercial real estate development, and institutional building projects. Interior partitioning and ceiling applications account for a major share of board consumption. Increasing renovation and retrofit projects are generating sustained secondary demand. Lightweight construction practices and faster build cycles are reinforcing drywall preference. The market is expected to maintain stable expansion across Indonesia through 2032.

Introduction

Drywall and gypsum board are widely used building materials designed for interior walls and ceilings. These boards are manufactured using gypsum plaster sandwiched between protective facing layers and are valued for their ease of installation, fire resistance, and smooth finish. In Indonesia, drywall systems are widely used across residential, commercial, healthcare, and educational buildings. Compared to traditional brick and plaster construction, drywall enables faster project completion and lower labor intensity. Specialized variants provide moisture, fire, impact, and sound resistance. As modern construction prioritizes speed, efficiency, and performance, drywall and gypsum boards remain central to interior building systems.

Future Outlook

By 2032, the drywall and gypsum board market in Indonesia will increasingly align with modular construction, green building certifications, and performance-based materials. Demand for high-performance boards with fire, acoustic, and mold resistance will grow faster than standard boards. Prefabricated wall systems and off-site construction will expand drywall consumption. Recycling of gypsum and use of synthetic gypsum will gain importance in sustainability strategies. Digital construction planning and BIM-led material optimization will improve usage efficiency. Overall, the market will evolve toward performance-driven, sustainable, and prefabrication-friendly gypsum board systems.

Indonesia Drywall and Gypsum Board Market Trends

• Shift Toward Lightweight and Fast-Track Construction Methods
  Construction practices in Indonesia are increasingly shifting toward lightweight and rapid-build systems. Developers prefer drywall because it significantly reduces installation time compared to masonry. Faster project turnover improves capital efficiency for builders. Drywall systems also reduce structural load, enabling design flexibility in high-rise buildings. Labor productivity improves with standardized board formats and framing systems. This trend is steadily increasing drywall penetration across building types.

• Rising Demand for Fire-Resistant and Specialty Performance Boards
  Fire-rated and specialty gypsum boards are gaining strong traction in Indonesia. Building codes are becoming stricter regarding fire safety and compartmentalization. Fire-resistant boards are widely used in commercial and multi-family residential buildings. Impact-resistant and abuse-resistant boards are used in high-traffic areas. Specialty boards command higher margins for manufacturers. Performance-driven specification is reshaping product mix.

• Growth in Renovation and Interior Remodeling Activities
  Renovation and retrofit projects are increasing across Indonesia, driving secondary drywall demand. Interior remodeling often uses gypsum boards for quick wall and ceiling upgrades. Commercial space reconfiguration supports repeated installation cycles. Aging building stock creates ongoing renovation needs. Drywall enables low-disruption interior upgrades. This trend provides recurring and counter-cyclical demand.

• Integration with Modular and Prefabricated Construction
  Modular and off-site construction is expanding in Indonesia. Prefabricated wall and ceiling panels frequently use gypsum boards. Factory-controlled assembly improves quality and reduces waste. Drywall compatibility with modular framing systems supports adoption. Prefabrication shortens on-site construction timelines. This trend strengthens drywall’s role in industrialized construction.

• Sustainability and Low-Emission Product Development
  Sustainability standards are influencing gypsum board production in Indonesia. Manufacturers are developing low-VOC and recyclable board products. Synthetic gypsum from industrial by-products is increasingly used. Environmental product declarations are becoming common. Green building certifications favor compliant materials. Sustainability-driven innovation is shaping product strategies.

Market Growth Drivers

• Expansion of Residential and Commercial Construction
  New housing and commercial projects in Indonesia are major drivers of drywall demand. Urban population growth increases housing needs. Office, retail, and hospitality projects use large volumes of gypsum board. Interior partitioning is drywall-intensive. Construction pipeline strength directly supports market growth. Building activity remains the primary demand driver.

• Cost and Time Efficiency Compared to Traditional Methods
  Drywall systems reduce construction time and labor costs. Faster installation lowers total project cost. Reduced curing time compared to wet plaster accelerates schedules. Predictable installation improves planning accuracy. Developers prioritize time-to-completion advantages. Efficiency benefits strongly drive adoption.

• Building Code Support for Fire and Acoustic Performance
  Building regulations in Indonesia increasingly specify fire and acoustic ratings. Gypsum boards inherently provide fire resistance. Acoustic-rated assemblies use multiple board layers. Code-driven specifications ensure consistent demand. Compliance requirements support specialty board sales. Regulation-backed performance drives growth.

• Growth of Institutional and Infrastructure Buildings
  Hospitals, schools, airports, and public buildings in Indonesia consume significant drywall volumes. These projects require partitioning and ceiling systems. Performance boards are widely specified in institutional settings. Government infrastructure investment supports demand. Institutional construction provides stable volume. Public sector projects are key contributors.

• Ease of Customization and Design Flexibility
  Drywall allows flexible interior design and layout changes. Architects in Indonesia prefer gypsum board for design adaptability. Curved walls, recessed features, and integrated systems are easier to execute. Future layout changes are simpler and cheaper. Flexibility adds lifecycle value. Design adaptability supports continued use.

Challenges in the Market

• Energy-Intensive Manufacturing and Cost Pressures
  Gypsum board production is energy-intensive in Indonesia. Fuel and electricity costs impact margins. Energy price volatility affects production economics. Emission regulations increase compliance costs. Producers must invest in efficiency upgrades. Energy intensity is a structural challenge.

• Raw Material Supply and Synthetic Gypsum Dependence
  Gypsum supply availability influences production stability. Synthetic gypsum supply depends on industrial processes. Changes in power generation mix affect by-product gypsum volumes. Natural gypsum mining faces environmental scrutiny. Supply variability creates risk. Raw material dependency is a constraint.

• Moisture Sensitivity and Performance Limitations
  Standard drywall is sensitive to prolonged moisture exposure. Improper installation can lead to mold or damage. Moisture-resistant boards increase cost. Application limitations exist in wet areas. Performance constraints affect material selection. Moisture risk remains a challenge.

• Waste Generation and Disposal Concerns
  Construction and demolition waste includes significant drywall scrap. Disposal regulations are tightening in Indonesia. Landfill restrictions increase handling costs. Recycling infrastructure is still developing. Waste management adds compliance burden. Waste concerns affect sustainability perception.

• Competition from Alternative Wall Systems
  Alternative systems such as fiber cement boards and modular panels compete with drywall. In some applications, masonry remains preferred. Composite wall systems offer higher durability. Material substitution occurs based on project needs. Competitive alternatives limit share growth. Substitution pressure is moderate but persistent.

Indonesia Drywall and Gypsum Board Market Segmentation

By Product Type

• Standard Gypsum Board

• Fire-Resistant Board

• Moisture-Resistant Board

• Acoustic Board

• Impact-Resistant Board

By Application

• Interior Walls

• Ceilings

• Partitions

• Linings and Claddings

By End-User

• Residential Construction

• Commercial Construction

• Institutional Buildings

• Industrial Buildings

By Installation Type

• New Construction

• Renovation and Remodeling

Leading Key Players

• Saint-Gobain

• Knauf Group

• USG Corporation

• National Gypsum Company

• Georgia-Pacific LLC

• Etex Group

• Boral Limited

• Yoshino Gypsum Co., Ltd.

Recent Developments

• Saint-Gobain expanded low-carbon and high-performance gypsum board lines targeting green buildings in Indonesia.

• Knauf Group invested in energy-efficient gypsum board plants to reduce production emissions.

• USG Corporation introduced advanced fire- and impact-resistant board products for commercial projects.

• Etex Group strengthened modular drywall system offerings aligned with prefabricated construction trends.

• National Gypsum Company expanded specialty board capacity to meet institutional construction demand.

This Market Report Will Answer the Following Questions

1. What is the projected market size and growth rate of the Indonesia Drywall and Gypsum Board Market by 2032?

2. Which product types and applications are driving the highest demand in Indonesia?

3. How are modular construction and renovation trends influencing drywall usage?

4. What challenges affect energy cost, raw materials, and waste management?

5. Who are the key players shaping capacity, innovation, and competition in the drywall and gypsum board market?