Indonesia PCB Components Market Size, Share, Trends and Forecasts 2031

Key Findings

• The Indonesia PCB Components Market is witnessing steady growth driven by rising demand for consumer electronics, automotive electronics, and industrial automation.

• Increasing miniaturization of electronic devices in Indonesia is boosting the demand for high-density and advanced PCB components.

• Growth in semiconductor manufacturing and electronics assembly is strengthening the supply chain for PCB components in Indonesia.

• Rapid adoption of electric vehicles and advanced driver-assistance systems is accelerating demand for specialized PCB components.

• Expansion of 5G infrastructure and IoT deployments in Indonesia is increasing consumption of high-frequency PCB components.

• Technological advancements in materials and manufacturing processes are improving component reliability and performance.

• Local manufacturing initiatives in Indonesia are supporting domestic production of PCB components.

• Rising investment in electronics R&D is creating opportunities for component innovation and customization.

Indonesia PCB Components Market Size and Forecast

The Indonesia PCB Components Market is projected to grow from USD 42.8 billion in 2025 to USD 72.6 billion by 2031, at a CAGR of 9.2% during the forecast period. Growth is supported by expanding electronics manufacturing, increasing adoption of smart devices, and rapid technological advancements. The shift toward lightweight, compact, and high-performance electronics is significantly influencing component demand.

In Indonesia, government initiatives supporting electronics manufacturing and digital infrastructure are further strengthening market growth. With continuous innovation and rising end-use applications, the PCB components market is expected to maintain strong momentum through 2031.

Introduction

PCB components are essential electronic elements such as resistors, capacitors, connectors, and integrated circuits mounted on printed circuit boards. In Indonesia, these components form the backbone of electronic systems used across consumer electronics, automotive, telecommunications, and industrial sectors. Increasing complexity of electronic designs has elevated the importance of precision and reliability in PCB components.

Advances in surface-mount technology and miniaturization have expanded component capabilities. As electronics continue to evolve, PCB components remain critical to performance, functionality, and durability.

Future Outlook

By 2031, the PCB components market in Indonesia will be shaped by rapid innovation in electronics, increasing automation, and growing demand for high-speed connectivity. Advanced materials and component integration techniques will enable higher circuit density and improved performance. Automotive electrification and smart manufacturing will emerge as key growth areas.

Sustainability initiatives will influence component design, emphasizing energy efficiency and recyclability. With continued investment and technological advancement, the market will evolve toward more intelligent and application-specific PCB components.

Indonesia PCB Components Market Trends

• Miniaturization and High-Density Component Integration
  Electronics manufacturers in Indonesia are increasingly focusing on miniaturization to develop compact and lightweight devices. This has driven demand for high-density PCB components capable of delivering superior performance in smaller form factors. Advanced packaging and surface-mount technologies are enabling tighter component placement without compromising reliability. As consumer preferences shift toward portable and multifunctional devices, manufacturers are prioritizing miniaturized components. This trend is reshaping PCB design standards and component innovation strategies.

• Rising Demand from Automotive Electronics
  The automotive sector in Indonesia is rapidly adopting advanced electronics for safety, infotainment, and power management systems. PCB components play a crucial role in electric vehicles, battery management systems, and ADAS technologies. Increasing vehicle electrification is boosting demand for high-reliability and heat-resistant components. Automotive-grade PCB components must meet strict quality and durability standards. This trend is significantly expanding the application scope of PCB components within the automotive industry.

• Expansion of 5G and High-Frequency Applications
  Deployment of 5G networks in Indonesia is driving demand for PCB components capable of supporting high-frequency and high-speed signal transmission. These applications require components with low signal loss and enhanced thermal stability. Telecom equipment manufacturers are investing in advanced PCB designs to support next-generation connectivity. This is creating opportunities for specialized components such as RF capacitors and connectors. The trend highlights the growing importance of performance-oriented PCB components.

• Growth of Industrial Automation and IoT
  Industrial automation and IoT adoption in Indonesia are increasing the use of electronic control systems and sensors. PCB components are essential for enabling connectivity, data processing, and control functions in smart factories. Demand is rising for durable and long-life components suitable for harsh industrial environments. Manufacturers are focusing on components that support reliability and continuous operation. This trend is driving sustained demand across industrial applications.

• Focus on Sustainable and Lead-Free Components
  Sustainability concerns are influencing PCB component manufacturing in Indonesia. Companies are increasingly adopting lead-free and environmentally compliant materials to meet regulatory requirements. Energy-efficient components are gaining popularity as industries aim to reduce carbon footprints. Recycling and material optimization initiatives are also shaping component design. This trend aligns the PCB components market with global sustainability goals.

Market Growth Drivers

• Rising Consumer Electronics Demand
  Consumer electronics demand in Indonesia continues to grow due to increasing digitalization and smart device adoption. Smartphones, laptops, wearables, and home automation systems rely heavily on PCB components. Manufacturers are constantly upgrading designs to improve functionality and performance. This creates continuous demand for high-quality and innovative components. The strong electronics consumption base is a major driver of market growth.

• Expansion of Electronics Manufacturing Ecosystem
  Indonesia is witnessing expansion in electronics manufacturing and assembly facilities. Government incentives and investments are encouraging local production of electronic components. This growth is strengthening domestic supply chains and reducing dependency on imports. PCB component manufacturers are benefiting from proximity to OEMs and assemblers. The expanding ecosystem is providing a stable foundation for market growth.

• Technological Advancements in PCB Design
  Innovations in PCB design, such as multilayer boards and HDI technology, are increasing component requirements. These designs demand precision-engineered components with enhanced electrical and thermal performance. Manufacturers in Indonesia are investing in R&D to meet evolving design specifications. Advanced components enable higher functionality within limited space. This technological evolution is driving sustained component demand.

• Growth of Electric Vehicles and Renewable Energy Systems
  Electric vehicles and renewable energy systems in Indonesia are heavily dependent on electronic control and power management circuits. PCB components are critical for inverters, charging systems, and monitoring devices. The transition toward clean energy is increasing demand for robust and efficient components. Manufacturers are developing specialized solutions to meet these requirements. This driver links the PCB components market with long-term sustainability initiatives.

• Increasing Investment in R&D and Innovation
  Investment in electronics R&D in Indonesia is fostering innovation in PCB components. Companies are developing customized and application-specific components to gain competitive advantage. Collaboration between research institutions and manufacturers is accelerating innovation cycles. This focus on continuous improvement supports product differentiation and market expansion. R&D investment remains a key growth driver for the market.

Challenges in the Market

• Volatility in Raw Material Prices
  PCB component manufacturing in Indonesia depends on raw materials such as copper, resins, and specialty metals. Price fluctuations in these materials impact production costs and profit margins. Manufacturers often face challenges in maintaining price stability for customers. Supply chain disruptions can further exacerbate cost volatility. Managing raw material risks remains a significant challenge for market players.

• High Competition and Pricing Pressure
  The PCB components market in Indonesia is highly competitive, with numerous domestic and international suppliers. Intense competition puts pressure on pricing and margins. Smaller players struggle to compete with large manufacturers offering economies of scale. Continuous price competition can limit investment in innovation. This challenge requires companies to focus on differentiation and operational efficiency.

• Technological Complexity and Quality Requirements
  Advanced electronic applications demand PCB components with high precision and reliability. Meeting stringent quality standards requires sophisticated manufacturing processes and testing capabilities. In Indonesia, smaller manufacturers may lack access to advanced technologies. Quality failures can lead to costly recalls and reputational damage. Managing complexity while maintaining quality is a persistent challenge.

• Supply Chain and Logistics Constraints
  The PCB components supply chain in Indonesia involves multiple stages, from raw materials to final assembly. Disruptions in logistics can delay production and delivery schedules. Global dependencies for certain materials increase vulnerability to external shocks. Companies are working to localize supply chains, but progress takes time. Supply chain resilience remains a critical challenge.

• Environmental and Regulatory Compliance
  Environmental regulations governing electronic components are becoming stricter in Indonesia. Compliance requires investment in cleaner production processes and materials. Non-compliance can result in penalties and restricted market access. Smaller manufacturers may find it difficult to meet evolving standards. Regulatory pressure adds complexity and cost to market operations.

Indonesia PCB Components Market Segmentation

By Component Type

• Resistors

• Capacitors

• Inductors

• Connectors

• Integrated Circuits

• Others

By Application

• Consumer Electronics

• Automotive

• Telecommunications

• Industrial Equipment

• Healthcare Electronics

• Others

By Mounting Technology

• Through-Hole Technology

• Surface Mount Technology

By End-User

• OEMs

• EMS Providers

• Industrial Manufacturers

• Automotive Manufacturers

Leading Key Players

• Murata Manufacturing Co., Ltd.

• TDK Corporation

• Vishay Intertechnology, Inc.

• Yageo Corporation

• AVX Corporation

• TE Connectivity Ltd.

• Samsung Electro-Mechanics

• Amphenol Corporation

• Panasonic Corporation

• Taiyo Yuden Co., Ltd.

Recent Developments

• Murata Manufacturing Co., Ltd. expanded high-capacitance component production facilities in Indonesia.

• TDK Corporation launched advanced automotive-grade PCB components in Indonesia.

• Yageo Corporation strengthened its distribution network to support electronics manufacturers in Indonesia.

• TE Connectivity Ltd. introduced high-speed connectors for 5G applications in Indonesia.

• Samsung Electro-Mechanics invested in R&D for miniaturized PCB components targeting EV applications in Indonesia.

This Market Report Will Answer the Following Questions

1. What is the projected size and CAGR of the Indonesia PCB Components Market by 2031?

2. Which applications are driving the highest demand for PCB components in Indonesia?

3. How are technological advancements influencing PCB component design?

4. What challenges are impacting PCB component manufacturing and supply chains?

5. Who are the leading players shaping the future of the Indonesia PCB Components Market?