|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
544.84 Million
|
|
CAGR
(2023-2028)
|
5.03%
|
|
Fastest
Growing Segment
|
Traction
|
|
Largest
Market
|
Central
|
Market Overview
Malaysia Elevators & Escalators Market has
valued at USD 544.84 Million in 2022 and is anticipated to project robust
growth in the forecast period with a CAGR of 5.03% through 2028. An elevator or a lift can be defined as a
machine installed in a building to lift, transport, or move people or things
from one floor to another. Elevators can be used in various facilities, such as
housing estates, commercial buildings, shopping malls, clinics, etc., to move
passengers and goods from one level to another. Elevators can also be used in
factories and industrial plants to transport goods, machines, and finished
goods between different floors.
Escalators or moving staircases are powered by
electricity, have a chain and drive sprocket, and are held in place by two
tracks. Elevators fall into four categories: traction, hydraulic, machine room
less traction. Escalators are divided into two categories: moving stairs and
moving walkways.
Key Market Drivers
Urbanization and Infrastructure Development:
One of the primary drivers of the elevator and
escalator market in Malaysia is the rapid urbanization and continuous
infrastructure development in the country. As Malaysia's 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:
Malaysia, 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 Malaysian 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. Malaysian 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:
Malaysia's 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 Malaysian 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. Malaysia's 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 Malaysian 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:
Malaysia's 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 Malaysia 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 Malaysian 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 Malaysia's elevator and escalator sector.
Download Free Sample Report
Key Market Challenges
The elevator and escalator market in Malaysia 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
Malaysian elevator and escalator market faces and explain their implications
for the industry.
Regulatory Compliance and Safety Standards:
One of the major challenges in the Malaysian
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:
Malaysia, 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 Malaysian 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 Malaysia 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 Malaysian 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:
Malaysia, 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 Malaysian 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 Malaysia.
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 Malaysia, 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:
Malaysia, 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 Malaysia 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 Malaysian 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 Malaysia 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 Malaysian 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:
Malaysia's 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 Malaysian 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:
Malaysia's
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 Malaysian 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 Malaysian 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. Traction
elevators are a commonly used type of elevator in commercial and residential
buildings. Presently, 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
The Central region (West Malaysia) is the largest
region in the Malaysia elevators & escalators market, owing to the
increasing investment in the construction sector and increasing urbanization in
Selangor and Kuala Lumpur. The Central region's elevators and escalator market
is expanding as a result of modernization, industrialization, and urbanisation
in infrastructure projects as well as increased demand for green elevators. The
market for elevators and escalators in this region is expected to increase rapidly
over the next few years as a result of rising infrastructure investment, which
would necessitate the installation of elevators in high-rise residential and
commercial structures.
Recent Developments
- Ulsan's 'Industrial Complex Renovation' project
aims to build a sophisticated cooperative complex. Over three years, starting
from 2021, Ulsan City will contribute a net of USD 1.52 billion, comprising USD
1.5 billion from the government and USD 2.3 million from the metropolitan area,
to generate 4,900 jobs and lure 4,000 mobility enterprises.
- It will assist 27 specific initiatives, such as
developing simulated autonomous welding systems based on artificial
intelligence (AI), support for the technology transformation of future
automotive cabinets and electric components, and demonstration projects. These
combined efforts are to provide support to the Malaysia elevator and escalator
market.
Key Market Players
- KONE Elevator (M) Sdn. Bhd.
- Antah Schindler Sdn. Bhd.,
- Hitachi Elevator ＆ Escalator (Malaysia) Sdn.,
- Mitsubishi Elevator Malaysia
Sdn. Bhd
- Otis Elevator Co.Sdn. Bhd.
- TK Elevator Malaysia Sdn. Bhd.
- MS ELEVATORS ENGINEERING
SDN. BHD.
- ORS ENGINEERING SDN. BHD.
- Hyundai Elevator Malaysia
Sdn Bhd.
- Fujitec Elevators &
Escalators (Malaysia) Sdn Bhd.
- MXC Elevator Sdn. Bhd
|
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
|
|
- Central Region
- East Malaysia
- Northern Region
- Eastern Region
- Southern Region
|
Report Scope:
In this report, the Malaysia Elevators &
Escalators Market has been segmented into the following categories, in addition
to the industry trends which have also been detailed below:
- Malaysia Elevator & Escalator Market, By
Product Type:
o Elevator
o Escalator & Moving Walkways
- Malaysia Elevator & Escalator Market, By
Delivery Mode:
o Maintenance & Repair
o New Installation Modernization
- Malaysia Elevator & Escalator Market, By
End User Industry:
o Residential
o Commercial
o Institutional
o Infrastructural & Others
- Malaysia Elevator & Escalator Market, By
Elevator Technology:
o Traction
o Hydraulic & Machine room-Less traction
- Malaysia Elevator & Escalator Market, By
Elevator Door Type:
o Automatic
o Manual
- Malaysia Elevator & Escalator Market, By
Region:
o Central Region
o East Malaysia
o Northern Region
o Eastern Region
o Southern Region
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Malaysia
Elevator & Escalator Market.
Available Customizations:
Malaysia Elevators & Escalators 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).
Malaysia Elevators & Escalators 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]