|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
0.43 Billion
|
|
CAGR
(2023-2028)
|
4.8%
|
|
Fastest
Growing Segment
|
Traction
|
|
Largest
Market
|
Java
|
Market Overview
Indonesia Elevator & Escalator Market has
valued at USD 0.43 Billion in 2022 and is anticipated to project robust growth
in the forecast period with a CAGR of 4.8% through 2028. Expansion of the
construction sector is one of the major factors which will drive Indonesia
elevator and escalator market. The increasing number of new hotels and shopping
mall projects is driving the country's continued growth in the construction
sector. Furthermore, significant FDI inflows into the retail and construction sectors
indirectly stimulate the country's escalator and elevator markets. Furthermore,
large construction players in the industry are rising due to which the
investments in infrastructure development and technological progressions for
economic transformation are increasing, which is expected to have a positive
impact on the country's construction market over time, boosting the country's
escalator and elevator market.
Key Market Drivers
Urbanization and Infrastructure Development:
One of the primary drivers of the elevator and
escalator market in Indonesia is the rapid urbanization and continuous
infrastructure development in the country. As Indonesia cities expand and
become more densely populated, the demand for high-rise buildings, commercial
complexes, and residential towers has surged. To accommodate these vertical
structures, there is an increasing need for reliable vertical transportation
solutions, making elevators and escalators an essential part of modern urban
infrastructure.
Aging Population:
Indonesia , like many developed countries, is
experiencing an aging population. With a growing elderly demographic, there is
a heightened need for accessibility and mobility solutions. Elevators and
escalators play a pivotal role in ensuring that older individuals and those
with mobility challenges can access various facilities and services, which
further drives the demand for these systems in public spaces and residential
buildings.
Building Safety Regulations:
The Indonesia government has introduced and
enforced stringent building safety regulations over the years. Compliance with
these regulations has led to a significant increase in the installation and
maintenance of elevators and escalators. Building owners and developers must
adhere to these safety standards to ensure the well-being of occupants, thereby
fostering a competitive market for elevator and escalator solutions.
Technological Advancements:
Advancements in elevator and escalator technology
have also contributed to market growth. Indonesia manufacturers have been at
the forefront of developing cutting-edge, energy-efficient, and smart elevator
and escalator systems. These innovations enhance user experience, improve
energy efficiency, and reduce maintenance costs, making them more appealing to
businesses and property owners.
Tourism and Hospitality Industry:
Indonesia thriving tourism and hospitality
industry, driven by its rich cultural heritage and world-class attractions, has
spurred the construction of hotels, resorts, and entertainment complexes. These
facilities demand top-quality vertical transportation solutions to ensure the
comfort and convenience of guests. As a result, the elevator and escalator
market benefits from the continuous expansion of the tourism sector.
Foreign Investment and Partnerships:
Foreign investment and partnerships have played a
significant role in the Indonesia elevator and escalator market's growth. Many
global elevator and escalator manufacturers have established a presence in the
country or formed collaborations with local companies. This has led to the
introduction of international expertise, advanced technologies, and a wider
range of product offerings, ultimately driving market expansion.
Sustainable Practices and Energy Efficiency:
Environmental concerns and the push for
sustainability have prompted a shift towards more energy-efficient and
eco-friendly elevator and escalator systems. Indonesia commitment to reducing
its carbon footprint has led to a preference for elevators and escalators that
consume less energy and incorporate sustainable materials. This aligns with
global efforts to combat climate change and encourages the adoption of modern,
eco-conscious solutions.
Government Initiatives:
Government initiatives have played a vital role in
the Indonesia elevator and escalator market's growth. Financial incentives,
subsidies, and regulatory support have been provided to encourage property
owners and developers to install energy-efficient and accessible vertical
transportation systems. These initiatives not only promote industry growth but
also align with broader societal goals.
Rising Commercial Real Estate:
Indonesia burgeoning commercial real estate sector,
driven by a dynamic business environment and global investments, has led to an
increasing number of office buildings, corporate parks, and mixed-use
developments. In these modern spaces, elevators and escalators are essential
for efficient vertical transportation, further boosting the market.
Infrastructure Modernization:
The need to upgrade and modernize existing
buildings and infrastructure has created a substantial demand for elevator and escalator
replacement and retrofit projects. As Indonesia continues to rejuvenate older
structures, there is a growing market for the replacement and upgrading of
outdated vertical transportation systems, providing ample opportunities for
manufacturers and service providers. The Indonesia elevator and escalator
market has experienced remarkable growth, thanks to a confluence of factors.
Rapid urbanization, aging population, stringent safety regulations,
technological advancements, tourism, foreign investment, sustainability
initiatives, and government support have all played pivotal roles in propelling
this industry. With the market poised for further expansion, it is essential
for businesses and investors to keep a close eye on these key drivers as they navigate
the dynamic landscape of Indonesia elevator and escalator sector.
Download Free Sample Report
Key Market Challenges
The elevator and escalator market in Indonesia has
witnessed substantial growth in recent years, driven by various factors.
However, along with opportunities, this industry also faces several challenges
that have the potential to impact its continued expansion. In this
comprehensive analysis, we will delve into the key challenges that the
Indonesia elevator and escalator market faces and explain their implications
for the industry.
Regulatory Compliance and Safety Standards:
One of the major challenges in the Indonesia
elevator and escalator market is the need to comply with stringent regulatory
standards. The government has imposed strict safety regulations to ensure the
well-being of users and prevent accidents. Manufacturers, installers, and
building owners must adhere to these standards, which can be complex and
demanding. Non-compliance can lead to costly delays, fines, or even legal
repercussions.
While these regulations are crucial for user
safety, they can pose challenges for market players in terms of compliance
costs and project timelines. However, adherence to these standards is essential
for maintaining public trust and the reputation of the industry.
Aging Infrastructure:
South Korea, like many developed nations, has a
significant number of aging buildings, including those with outdated elevator
and escalator systems. Modernizing these structures and retrofitting them with
newer, more efficient systems can be a complex and expensive process. Many
property owners are reluctant to invest in upgrades due to cost considerations,
which can hinder market growth.
Implication: The need for infrastructure
modernization presents both opportunities and challenges. While it offers a
market for elevator and escalator replacement projects, convincing property
owners to invest in these upgrades can be difficult, and cost barriers may slow
down the adoption of modern systems.
Economic Volatility:
The Indonesia
economy, like any other, is susceptible to fluctuations, both domestic
and international. Economic uncertainties can impact the construction industry,
which, in turn, affects the demand for elevators and escalators. A sluggish
economy can lead to delays in new construction projects and reduce investments
in vertical transportation systems.
Implication: Economic volatility can disrupt the
steady growth of the elevator and escalator market. Manufacturers and service
providers may need to adapt to these fluctuations and find ways to remain
competitive during economic downturns.
Competition:
The elevator and escalator market in Indonesia is
highly competitive, with both domestic and international players vying for
market share. Intense competition can lead to price wars, reducing profit
margins for companies in the industry. Additionally, the need to differentiate
through innovation and service quality can be challenging. The competitive
landscape necessitates constant innovation and cost-effective solutions.
Companies must continually invest in research and development to stay ahead of
the competition, which can strain resources.
Labor Shortages and Skilled Workforce:
A shortage of skilled labor in the elevator and
escalator industry is a significant challenge. The installation, maintenance,
and repair of these systems require specialized knowledge and skills. As the
industry grows, recruiting and retaining a skilled workforce becomes more
critical, and shortages can lead to delays and service quality issues. The lack
of skilled workers can lead to inefficiencies and reduced customer
satisfaction. Companies may need to invest in training programs and offer
competitive salaries to attract and retain skilled professionals.
Environmental Sustainability:
While environmental sustainability is a driver for
market growth, it also poses challenges. Elevator and escalator systems must
become more energy-efficient and eco-friendly to meet the demands of
environmentally conscious consumers. Achieving this while maintaining
high-performance standards can be technically challenging and costly. Balancing
performance and sustainability can be a complex task. Manufacturers need to
invest in eco-friendly technologies and materials, which may increase
production costs. Finding cost-effective solutions that meet environmental
standards is a constant challenge.
Maintenance and Downtime:
Elevators and escalators require regular
maintenance to ensure safety and efficiency. Downtime for maintenance and
repairs can be disruptive to building owners and users. Minimizing service
interruptions while maintaining safety standards is a continuous challenge for
the industry.
Balancing maintenance schedules with minimal
disruptions is crucial. Companies must invest in predictive maintenance
technologies to reduce unexpected downtime and improve service efficiency.
Technological Advancements:
While technological advancements can be a driver,
they can also present challenges. Rapid technological changes require companies
to continually upgrade their systems and offer innovative features. This can be
costly, and there's a risk of market saturation as customers wait for the next
big technological leap.
Companies need to balance the adoption of new
technologies with cost considerations. Overreliance on technological
advancements can lead to high production costs without a corresponding increase
in market demand.
Supply Chain Disruptions
The Indonesia elevator and escalator market relies
on the supply of various components and materials. Disruptions in the global
supply chain, whether due to natural disasters, political conflicts, or other
factors, can lead to delays in manufacturing and installation, affecting
project timelines and costs. Companies need to diversify their supply chain
sources and establish contingency plans to mitigate the impact of supply
disruptions.
Changing Demographics:
Indonesia, like many developed nations, is
experiencing demographic changes, including a declining birth rate and an aging
population. These shifts can impact the demand for elevator and escalator
systems in different ways. A smaller younger population may mean less demand
for new residential buildings, while an aging population may increase the need
for retrofitting existing structures.
Market players must adapt to changing demographics
by exploring niche markets or diversifying their product and service offerings
to meet evolving needs.
The Indonesia
elevator and escalator market faces a range of challenges that require
strategic planning and innovation to overcome. These challenges include
regulatory compliance, aging infrastructure, economic volatility, competition,
labor shortages, environmental sustainability, maintenance, technological
advancements, supply chain disruptions, and changing demographics. Addressing
these challenges is essential for the industry's continued growth and success.
Market players must adapt, invest in research and development, and navigate
these obstacles to thrive in a competitive and evolving landscape.
Key Market Trends
Smart and
Connected Systems:
Smart and connected
elevator and escalator systems have gained immense popularity in Indonesia.
These systems are equipped with sensors, internet connectivity, and data
analytics capabilities. They offer enhanced user experiences, increased energy
efficiency, and real-time monitoring and maintenance, thereby ensuring smooth
and secure vertical transportation.
Manufacturers and service
providers need to invest in IoT (Internet of Things) technology, data
analytics, and cybersecurity to meet the growing demand for smart systems. This
trend also opens doors for new service offerings such as predictive maintenance.
Energy
Efficiency and Sustainability:
As Indonesia, like many
other nations, prioritizes environmental sustainability, there's a growing
demand for eco-friendly and energy-efficient elevator and escalator solutions.
This trend aligns with government initiatives and global efforts to reduce carbon
emissions and energy consumption in buildings. Manufacturers must develop and
promote green technologies, such as regenerative drives and energy-efficient
materials, to cater to environmentally conscious consumers and meet stricter
environmental regulations.
Aging
Population-Focused Designs:
Indonesia, with its
rapidly aging population, is witnessing a trend toward elevators and escalators
designed to accommodate the specific needs of elderly individuals and
individuals with mobility challenges. Features like lower handrails, anti-slip
flooring, and tactile buttons make these systems more accessible and
user-friendly. Manufacturers and
designers need to incorporate accessible design features to meet the needs of
an aging demographic. Offering inclusive solutions can also help tap into a
growing market segment.
Customization
and Aesthetics:
Consumers in Indonesia
are increasingly demanding elevators and escalators that fit the aesthetic and
functional requirements of modern buildings. Customization options, including
personalized interior designs, materials, and finishes, are on the rise. This
trend aligns with the country's emphasis on design and aesthetics. Players need
to offer a wide range of customization options to cater to diverse
architectural and design preferences. Collaboration with architects and
interior designers becomes crucial.
Maintenance
and Servicing Contracts:
The Indonesia market is experiencing a surge in long-term
maintenance and servicing contracts. Building owners and managers are
recognizing the importance of regular upkeep to ensure safety and performance.
These contracts include preventive maintenance, routine inspections, and
predictive maintenance. Service providers need to focus on offering
comprehensive maintenance and servicing contracts to build long-term
relationships with clients. Predictive maintenance using data analytics can
reduce downtime and enhance service quality.
Retrofitting
and Modernization:
The demand for
retrofitting and modernization projects in Indonesia is on the rise. Many
existing buildings with outdated elevator and escalator systems are seeking
upgrades to improve performance, safety, and energy efficiency.
Manufacturers and service
providers should offer retrofit solutions and collaborate with property owners
to provide cost-effective modernization options.
Advanced
Safety Features:
Safety remains a top
priority in the Indonesia market.
Advanced safety features, such as destination control systems, infrared
sensors, and remote monitoring, are gaining traction. These features not only
enhance passenger safety but also reduce the risk of accidents.
Implication:
Manufacturers should prioritize the integration of advanced safety features and
promote their benefits to gain a competitive edge in the market.
Mixed-Use
and High-Rise Buildings:
Indonesia urban landscape
is characterized by mixed-use developments and high-rise buildings. These
architectural trends require efficient vertical transportation systems.
Elevators and escalators designed to handle the unique challenges of such
structures are in high demand.
Implication:
Manufacturers should develop systems that are tailored to the needs of
high-rise and mixed-use buildings, including faster speed options and advanced
traffic management systems.
Diversification
of Materials and Components:
The Indonesia market is witnessing a diversification of
materials and components used in elevator and escalator construction. The use
of lighter, stronger materials and components such as carbon-fiber belts,
magnetic levitation, and advanced control systems is on the rise.
Manufacturers should stay
updated with the latest materials and components to enhance the performance,
safety, and efficiency of their systems. Continuous innovation in materials and
components is key to staying competitive.
Competitive
Pricing and Financing Models:
Indonesia price-conscious
consumers are looking for cost-effective elevator and escalator solutions. As a
result, competitive pricing and flexible financing models are becoming
increasingly important in the market
Manufacturers and service
providers must find ways to offer value for money while also providing flexible
financing options to accommodate different customer budgets.
Collaboration
with Architects and Developers:
Elevator and escalator
manufacturers are increasingly collaborating with architects and developers
from the initial stages of building design. This collaborative approach ensures
that the vertical transportation systems are seamlessly integrated into the
building's overall design and functionality.
Implication:
Collaborative efforts with architectural and construction professionals can
lead to innovative solutions that are more architecturally integrated,
aesthetically pleasing, and efficient.
The Indonesia elevator and escalator market is marked by a
series of dynamic trends that are shaping the industry's future. From the
adoption of smart and connected systems to a focus on sustainability, aging
population-focused designs, and customization, these trends are driven by
consumer demands, technological advancements, and evolving urban landscapes.
Manufacturers, service providers, and stakeholders need to embrace these trends
to remain competitive and meet the diverse needs of the Indonesia market. Staying at the forefront of
innovation and collaboration will be essential to capitalize on the
opportunities presented by these trends while addressing the associated
challenges.
Segmental Insights
Elevator Technology Insights
In terms of Elevator Technology, ‘Traction’ is the
most dominating segment, with a market share of 79.35% in 2021. The traction
elevators are a commonly used type of elevator in commercial and residential
buildings. Presently, the traction elevators use flat steel belts rather than
conventional steel ropes. Flat steel belts are very lightweight because of
their carbon fiber core and high-friction coating and can function without
oil/lubricant. Hence, because of the mentioned aspects, the traction elevator is
likely to grow faster.
Service Insights
In terms of service, ‘New installations’ is the
leading segment due to the expansion of high-rise residential buildings
combined with a growing commercial segment and increasing capital arrival into
the real-estate sector. Additionally, an increase in new plans and projects for
the construction of skyscrapers is also boosting the market growth.
Additionally, the government's focus on smart cities and progress in
infrastructure, including metro and railway development projects, is expected
to have an optimistic impact on the Global Elevator & Escalator Market.
Moreover, an increasing number of tourists, the increasing development of green
buildings, and increasing infrastructure projects also generate demand for the
installation of elevators & escalators.
Download Free Sample Report
Regional Insights
High population density: Java is the most populous
island in Indonesia, with over 140 million people. This means that there is a
large potential market for elevators and escalators in Java.
Rapid urbanization: Java is also the most urbanized
island in Indonesia, with over 50% of the population living in urban areas.
Urbanization is driving the construction of new high-rise buildings, which in
turn is increasing the demand for elevators and escalators.
Growing infrastructure development: The Indonesian
government is investing heavily in infrastructure development in Java. This
includes the construction of new roads, bridges, and public transportation
systems. Infrastructure development is also creating new demand for elevators
and escalators.
Presence of major cities: Java is home to some of
the largest and most important cities in Indonesia, such as Jakarta, Bandung,
and Surabaya. These cities are major economic and commercial hubs, and they are
also home to a large number of high-rise buildings. This makes Java a key
market for elevators and escalators.
In addition to these factors, Java also has a
well-developed distribution and service network for elevators and escalators.
This makes it easier for businesses and individuals in Java to purchase and
maintain elevators and escalators.
Recent Developments
- As of 2022, Indonesia had plans to introduce a
long-term residency visa program to attract foreign investors, especially those
interested in capital and property investment, including individuals from
mainland China and Hong Kong. This initiative aims to encourage foreign capital
inflow and boost the property industry in the country, positioning Indonesia as
an attractive destination for foreign investors.
- Currently, only 1% of Indonesia's annual new homes
meet the criteria for green housing. The government has taken some steps
towards promoting green construction by mandating green certification for
multi-story commercial and residential buildings that meet specific standards.
- However, landed houses, which constitute 88% of the
government's Public-Private Partnership Socialized Housing (PSR) program, are
exempt from the green building requirements set forth by the Green Building
Certification program launched in 2021.
- In 2022, local and provincial governments allocated
approximately IDR95 trillion (~$6.3 billion), equivalent to about 10% of their
budget, for capital expenditures. This investment aims to enhance and develop
local infrastructures, driving the transformation of at least 100 cities in
Indonesia into Smart Cities by 2045.
- Indonesia's National Medium Term Development Plan
2020-2024 accelerates the development of downstream mining, oil, gas, and
copper industries. Various industrial projects like Teluk Bintuni Industrial
Zone and Batulicin Industrial Zone are underway. Thus, increased spending on
these industries would drive demand for industrial elevators in Indonesia's
elevator and escalator market.
Key Market Players
- KONE Corporation
- Hitachi
Group
- Otis
Elevator Company (UTC)
- Mitsubishi
Electric Corporation
- Schindler
Holding Ltd.
- Fujitec
Company Limited
- thyssenkrupp
AG
- Toshiba
Elevator and Building Systems Corporation
|
By Product Type
|
By
Delivery Mode
|
End User Industry
|
By Elevator Technology
|
By Elevator Door Type
|
By Region
|
- Elevator
- Escalator
& Moving Walkways
|
- Maintenance & Repair
- New Installation Modernization
|
- Residential
- Commercial
- Institutional
- Infrastructural & Others
|
- Traction
- Hydraulic & Machine room-Less traction
|
|
- Java
- Sumatra
- Kalimantan
- Bali & Nusa Tenggara
|
Report Scope:
In this report, the Indonesia
Elevator & Escalator Market
has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- Indonesia Elevator & Escalator Market, By
Product Type:
o Elevator
o Escalator & Moving Walkways
- Indonesia Elevator & Escalator Market, By
Delivery Mode:
o Maintenance & Repair
o New Installation Modernization
- Indonesia Elevator & Escalator Market, By
End User Industry:
o Residential
o Commercial
o Institutional
o Infrastructural & Others
- Indonesia Elevator & Escalator Market, By
Elevator Technology:
o Traction
o Hydraulic & Machine room-Less traction
- Indonesia Elevator & Escalator Market, By
Elevator Door Type:
o Automatic
o Manual
- Indonesia Elevator & Escalator Market, By
Region:
o Java
o Sumatra
o Kalimantan
o Bali & Nusa Tenggara
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Indonesia
Elevator & Escalator Market.
Available Customizations:
Indonesia Elevator & Escalator Market report
with the given market data, Tech Sci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Indonesia Elevator & Escalator Market is an
upcoming report to be released soon. If you wish an early delivery of this
report or want to confirm the date of release, please contact us at [email protected]