Forecast
Period
|
2024-2028
|
Market
Size (2022)
|
USD
2.82 Billion
|
CAGR
(2023-2028)
|
5.86%
|
Fastest
Growing Segment
|
Traction
|
Largest
Market
|
Southeastern
South Korea
|
Market Overview
South Korea Elevator & Escalator Market has
valued at USD 2.82 Billion in 2022 and is anticipated to project robust growth
in the forecast period with a CAGR of 5.86% through 2028. Expansion of the
construction sector is one of the major factors which will drive South
Korea 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 South Korea is the rapid urbanization and continuous
infrastructure development in the country. As South Korea'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:
South Korea, 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 South Korean 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. South Korean 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:
South Korea'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 South Korean 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. South Korea'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 South Korean 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:
South Korea'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 South Korea 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 South Korean
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 South Korea's
elevator and escalator sector.
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Key Market Challenges
The elevator and escalator market in South Korea
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 South
Korean elevator and escalator market faces and explain their implications for
the industry.
Regulatory Compliance and Safety Standards:
One of the major challenges in the South Korean
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 South Korean 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 South Korea 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 South Korean 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:
South Korea, 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 South Korean 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 South Korea.
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 South Korea, 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:
South Korea, 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 South Korea
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 South Korean 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 South Korea 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 South Korean 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:
South Korea'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 South Korean 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:
South Korea'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 South Korean 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 South Korean 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
Southeastern South Korea dominated the South Korea
Elevator & Escalator Market in 2022. Daegu received an annual allocation
for smart cities of USD 17 million as part of a National Innovation Programme
With a USD 4.9 trillion expenditure, Busan will
host the world EXPO in 2030. With a vision of achieving a per capita income of
50,000 USD, the city will rank among the top 30 global cities in the globe. The
city's employment rate will reach 70%. The city will become the third-most
significant global maritime city in the world. It will improve the city's
geoeconomic position as a gateway to Eurasia, further contributing to the South
Korea elevator and escalator market.
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 South Korea elevator and
escalator market.
According to the Ministry of Land, Infrastructure,
Transport, and Tourism (MOLIT), as a part of the Fourth nationwide railway
plan, the Jeolla Line, the Honam Line, and the Donghae Line will be upgraded to
provide high-speed services. In addition, West Coast will have its high-speed
line.
Another major route includes the direct route from
Gwangju to Daegu; these areas have been connected by high-speed rail. A new
line from Samcheok south of the East China Sea to Yongdeok in the north of
Pohang on the east coast is already under construction. This will now be
upgraded to a high-speed operation from Ganggen to Pohang by 2030.
The construction of a new airport on Gadeok Island,
the largest island in Busan, is a massive state project costing around 13.7
trillion won (USD 10.97 billion), which is intended to meet rising air traffic
demand and promote development in the nation's southeast. In the southern port
city of Busan, South Korea wants to construct the nation's first 'floating
airport' by 2035. The new airport development will boost the South Korea
elevator & escalator market growth.
Key Market Players
Hyundai Elevator Co.
Fujitec
Co., Ltd.
Mitsubishi
Electric Corporation
Toshiba
Elevator and Building Systems Corporation
Dover
Corporation
Hitachi
Otis Elevator Co., Ltd.
Shanghai
Mitsubishi Elevator Co., Ltd.
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
|
Automatic and Manual
|
Northern
Southern
Central
|
Report Scope:
In this report, the South Korea
Elevator & Escalator Market
has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- South Korea Elevator & Escalator Market,
By Product Type:
o Elevator
o Escalator & Moving Walkways
- South Korea Elevator & Escalator Market,
By Delivery Mode:
o Maintenance & Repair
o New Installation Modernization
- South Korea Elevator & Escalator Market,
By End User Industry:
o Residential
o Commercial
o Institutional
o Infrastructural & Others
- South Korea Elevator & Escalator Market,
By Elevator Technology:
o Traction
o Hydraulic & Machine room-Less traction
- South Korea Elevator & Escalator Market,
By Elevator Door Type:
o Automatic
o Manual
- South Korea Elevator & Escalator Market,
By Region:
o Northern
o Southern
o Central
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the South
Korea Elevator & Escalator Market.
Available Customizations:
South Korea 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).
South Korea Elevator & Escalator Market is an
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