Forecast
Period
|
2024-2028
|
Market
Size (2022)
|
USD
3.19 Billion
|
CAGR
(2023-2028)
|
3.16
%
|
Fastest
Growing Segment
|
Traction
|
Largest
Market
|
Kanto
|
Market Overview
Japan Elevator & Escalator Market has valued at
USD 3.19 Billion in 2022 and is anticipated to project robust growth in the
forecast period with a CAGR of 3.16% through 2028. Expansion of the
construction sector is one of the major factors which will drive Japan 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 Japan is the rapid urbanization and continuous
infrastructure development in the country. As Japan 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:
Japan , 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 Japan 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. Japan 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:
Japan 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 Japan 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. Japan 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 Japan 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:
Japan 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 Japan 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 Japan 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
Japan elevator and escalator sector.
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Key Market Challenges
The elevator and escalator market in Japan 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 Japan
elevator and escalator market faces and explain their implications for the
industry.
Regulatory Compliance and Safety Standards:
One of the major challenges in the Japan 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 Japan
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 Japan 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 Japan 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 Japan
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 Japan 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 Japan 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 Japan 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 Japan 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:
Japan 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 Japan 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:
Japan 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 Japan 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 Japan 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.
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Regional Insights
The Kanto region is home to some of the largest and
most important cities in Japan, such as Tokyo, Yokohama, and Saitama. These
cities are major economic and commercial hubs, and they are also home to a
large number of high-rise buildings. This makes Kanto a key market for
elevators and escalators.
Recent Developments
- In July 2023, Mitsubishi Electric announced an
investment of JPY 50 billion (USD 375 million) to expand its production
capacity for elevators and escalators in Japan. The investment will be used to
build a new factory in Ibaraki Prefecture, which is scheduled to start
operating in 2025.
- In June 2023, Hitachi announced an investment of
JPY 30 billion (USD 225 million) to develop new technologies for elevators and
escalators. The investment will be used to develop new energy-efficient and
eco-friendly products, as well as new technologies for safety and maintenance.
- In May 2023, Fujitec announced an investment of JPY
20 billion (USD 150 million) to expand its service network for elevators and
escalators in Japan. The investment will be used to hire new service
technicians and open new service centers.
- In April 2023, KONE announced an investment of JPY
10 billion (USD 75 million) to establish a new innovation center in Japan. The
innovation center will focus on developing new technologies for elevators and
escalators, as well as new business models..
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
|
|
- Kanto
- Chubu
- Kansai
- Rest of Japan
|
Report Scope:
In this report, the Japan Elevator
& Escalator Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- Japan Elevator & Escalator Market, By
Product Type:
o Elevator
o Escalator & Moving Walkways
- Japan Elevator & Escalator Market, By
Delivery Mode:
o Maintenance & Repair
o New Installation Modernization
- Japan Elevator & Escalator Market, By End
User Industry:
o Residential
o Commercial
o Institutional
o Infrastructural & Others
- Japan Elevator & Escalator Market, By
Elevator Technology:
o Traction
o Hydraulic & Machine room-Less traction
- Japan Elevator & Escalator Market, By
Elevator Door Type:
o Automatic
o Manual
- Japan Elevator & Escalator Market, By
Region:
o Kanto
o Chubu
o Kansai
o Rest of Japan
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Japan
Elevator & Escalator Market.
Available Customizations:
Japan 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).
Japan 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
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