Report Description

Forecast Period

2024-2028

Market Size (2022)

USD 361.83 million

CAGR (2023-2028)

8.28%

Fastest Growing Segment

Traction

Largest Market

Northern






Market Overview

Vietnam Elevators & Escalators Market has valued at USD 361.83 million in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of  8.28% through 2028. Southern Region holds the largest market share of 49.44% in 2021 and grow with a CAGR of 8.67% during the forecast period. The elevator and escalator industry in southern region is expected to experience rising demands for maintenance, repair, and after-sales support, and also a substantial need for new installations. Furthermore, excessive government investment in infrastructure development in southern region, as well as an increasing number of commercial projects in a variety of sectors, are expected to boost the region’s elevator and escalator market in the coming years.

Key Market Drivers

Urbanization and Infrastructure Development:

One of the primary drivers of the elevator and escalator market in Vietnam is the rapid urbanization and continuous infrastructure development in the country. As Vietnam '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:

Vietnam , 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 Vietnam n 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. Vietnam n 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:

Vietnam '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 Vietnam n 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. Vietnam '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 Vietnam n 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:

Vietnam '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 Vietnam 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 Vietnam n 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 Vietnam 's elevator and escalator sector.


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Key Market Challenges

The elevator and escalator market in Vietnam 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 Vietnam n elevator and escalator market faces and explain their implications for the industry.

Regulatory Compliance and Safety Standards:

One of the major challenges in the Vietnam n 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:

Vietnam , 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 Vietnam n 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 Vietnam 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 Vietnam n 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:

Vietnam , 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 Vietnam n 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 Vietnam . 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 Vietnam , 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:

Vietnam , 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 Vietnam 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 Vietnam n 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 Vietnam 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 Vietnam n 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:

Vietnam '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 Vietnam n 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:

Vietnam '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 Vietnam n 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 Vietnam n 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

  • Northern Region holds a market share of 32.57% in 2021 and is growing with the CAGR of 7.53% during the forecast period. The widespread use of elevators and escalators in shopping centers, railway and metro stations, resorts, airlines, public buildings, high-rise apartments, and others is driving the growth in the Northern market. Moreover, rapid urbanization, significant architectural evolution, and growing government initiatives for the construction sector are primarily influencing the market.
  • Central Region holds a market share of 17.99% in 2021 and grow with a CAGR of 8.51% during the forecast period, owing to growing infrastructure development, bolstering of the construction sector, an increase in the number of residential buildings, and an aging population. Furthermore, the growing number of commercial complexes and government offices is propelling Elevators and Escalator Market in the central region.

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 Million 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 Vietnam 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, Vietnam wants to construct the nation's first 'floating airport' by 2035. The new airport development will boost the Vietnam Elevators & Escalators Market growth.

Key Market Players

  • Mitsubishi Elevator Vietnam Company Limited
  • Schindler Vietnam Ltd
  • Thang Long Elevator Equipment Group Co. Ltd
  • Fujitec Vietnam Co., Ltd.
  • KONE Vietnam LLC
  • Hitachi Elevator Vietnam Co., Ltd
  • Otis Elevator Vietnam Company

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 Vietnam Elevators & Escalators Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • Vietnam Elevator & Escalator Market, By Product Type:

o   Elevator

o   Escalator & Moving Walkways

  • Vietnam Elevator & Escalator Market, By Delivery Mode:

o   Maintenance & Repair

o   New Installation Modernization

  • Vietnam Elevator & Escalator Market, By End User Industry:

o   Residential

o   Commercial

o   Institutional

o   Infrastructural & Others

  • Vietnam Elevator & Escalator Market, By Elevator Technology:

o   Traction

o   Hydraulic & Machine room-Less traction

  • Vietnam Elevator & Escalator Market, By Elevator Door Type:

o   Automatic

o   Manual

  • Vietnam Elevator & Escalator Market, By Region:

o   Northern

o   Southern

o   Central

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Vietnam Elevator & Escalator Market.

Available Customizations:

Vietnam 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).

Vietnam 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]               

Table of content

1.         Product Overview

1.1.    Market Definition

1.2.    Scope of the Market

1.2.1.Markets Covered

1.2.2.Years Considered for Study

1.2.3.Key Market Segmentations

2.         Research Methodology

2.1.    Objective of the Study

2.2.    Baseline Methodology

2.3.    Formulation of the Scope

2.4.    Assumptions and Limitations

2.5.    Sources of Research

2.5.1.Secondary Research

2.5.2.Primary Research

2.6.    Approach for the Market Study

2.6.1.The Bottom-Up Approach

2.6.2.The Top-Down Approach

2.7.    Methodology Followed for Calculation of Market Size & Market Shares

2.8.    Forecasting Methodology

2.8.1.Data Triangulation & Validation

3.         Executive Summary

4.