The global waterproofing market size is witnessing significant growth, and Indonesia is no exception. The country’s waterproofing market reached a value of approximately USD 709.09 million in 2024 and is poised to grow at a robust compound annual growth rate (CAGR) of 4.90% during the forecast period of 2025-2033. By 2033, the market is expected to reach a value of around USD 1,088.56 million. This growth reflects a rising demand for waterproofing solutions in construction, infrastructure, and industrial applications.

In this blog post, we will delve into the market dynamics of Indonesia’s waterproofing industry, highlight key drivers of growth, explore emerging trends, and discuss the challenges and opportunities that lie ahead. Additionally, we will explore the various segments driving this expansion, providing a comprehensive understanding of the future of waterproofing in Indonesia.

Market Drivers

1. Rapid Urbanization and Infrastructure Development

Indonesia is experiencing rapid urbanization, with a growing population and increased demand for housing, commercial buildings, and infrastructure projects. As more residential and commercial buildings are constructed, the need for waterproofing solutions becomes paramount. Urban areas are particularly vulnerable to water damage due to heavy rainfall, flooding, and humid climates. Therefore, building structures need effective waterproofing systems to ensure durability and safety. As the construction sector continues to expand in cities like Jakarta, Surabaya, and Bandung, the demand for high-quality waterproofing materials and systems is expected to rise steadily.

2. Increasing Focus on Sustainability and Energy Efficiency

There is a growing awareness of sustainability in construction, with building owners and developers increasingly seeking environmentally friendly solutions. Waterproofing technologies have evolved to incorporate energy-efficient materials that help maintain optimal indoor conditions while reducing energy consumption. For example, advanced waterproofing systems with thermal insulation properties are becoming more popular, as they help maintain temperature control within buildings. These solutions reduce the overall carbon footprint, aligning with the global shift toward sustainable construction practices.

3. Government Initiatives and Regulatory Support

The Indonesian government has been actively promoting infrastructure development, especially through initiatives such as the National Medium-Term Development Plan (RPJMN) and the 100 Smart Cities initiative. These programs have led to substantial investments in infrastructure projects, including roads, bridges, and residential buildings. The government’s focus on improving the country’s infrastructure and housing sector directly contributes to the demand for waterproofing solutions. Furthermore, regulatory frameworks regarding construction safety and environmental standards are pushing builders to use waterproofing technologies that adhere to quality and environmental norms.

4. Climate Change and Increased Rainfall

Indonesia's tropical climate, characterized by heavy rainfall, has heightened the importance of waterproofing solutions. The increasing frequency and intensity of rainstorms, coupled with rising sea levels due to climate change, have made waterproofing a critical factor in preventing water damage to buildings and infrastructure. Water ingress can lead to significant structural damage, mold growth, and health risks, making effective waterproofing systems essential in safeguarding buildings against the elements.

Emerging Trends in the Waterproofing Market

1. Growth of Green Building Materials

The demand for green building materials is on the rise in Indonesia, and waterproofing solutions are no exception. Environmentally friendly waterproofing materials, such as those made from recycled content or natural substances, are becoming increasingly popular. These materials offer the same high-quality performance as traditional waterproofing options but with a lower environmental impact. Additionally, products that comply with international sustainability standards are gaining traction in the market.

2. Technological Advancements in Waterproofing Systems

Innovations in waterproofing technology are playing a significant role in market growth. New materials and techniques are being introduced to improve waterproofing effectiveness, durability, and ease of application. For example, liquid-applied membranes and self-healing coatings have emerged as cutting-edge solutions in the waterproofing sector. These advanced systems offer superior performance by preventing water penetration and automatically repairing any minor damages to the surface, ensuring long-lasting protection. With technological advancements, waterproofing systems are becoming more cost-effective and easier to maintain.

3. Expansion of the Construction and Renovation Sectors

In addition to new construction, the renovation and retrofitting of existing buildings present substantial growth opportunities for the waterproofing market. Many older buildings require extensive waterproofing upgrades to meet modern standards for energy efficiency and protection against water damage. This sector, which includes both residential and commercial buildings, is driving demand for waterproofing solutions tailored to specific needs, such as roof and basement waterproofing, as well as retrofitting waterproofing for windows and doors.

Market Challenges

1. High Initial Investment Costs

While waterproofing is essential for the protection of buildings, the initial cost of implementing high-quality waterproofing systems can be a challenge for some builders and property owners. The installation of advanced waterproofing solutions involves material costs, labor, and time, which can be significant. This challenge is particularly relevant in the residential sector, where budget constraints may limit the adoption of premium waterproofing products. However, the long-term benefits of waterproofing—such as preventing water damage and reducing maintenance costs—often justify the initial investment.

2. Lack of Awareness About the Importance of Waterproofing

Despite the growing demand, there is still a lack of awareness among some property owners, contractors, and builders regarding the importance of waterproofing. Many view waterproofing as an optional or secondary consideration rather than a critical aspect of building design. Raising awareness about the long-term benefits of waterproofing, including improved structural integrity and reduced maintenance costs, will be key to accelerating adoption.

Market Segmentation

The waterproofing market in Indonesia can be segmented based on application, product type, and end-user.

1. By Application: The most common applications for waterproofing systems include foundations, roofs, basements, and walls. Waterproofing membranes, coatings, and sealants are used in these areas to prevent water infiltration.

2. By Product Type: The market includes a variety of waterproofing materials, including bituminous, polyurethane, cementitious, and thermoplastic membranes. Each material has unique properties, such as flexibility, durability, and resistance to environmental factors, making them suitable for different applications.

3. By End-User: The major end-users of waterproofing solutions in Indonesia include the residential, commercial, and industrial sectors. The residential sector is the largest, driven by the rapid growth of urbanisation and new housing projects. The commercial sector, including offices, retail spaces, and hospitality buildings, also presents significant demand for waterproofing.