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.
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
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.
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,
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.
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
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.
Compliance and Safety Standards:
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.
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.
, 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.
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.
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.
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.
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.
Shortages and Skilled Workforce:
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 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.
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.
maintenance schedules with minimal disruptions is crucial. Companies must
invest in predictive maintenance technologies to reduce unexpected downtime and
improve service efficiency.
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.
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.
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.
, 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.
players must adapt to changing demographics by exploring niche markets or
diversifying their product and service offerings to meet evolving needs.
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
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
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
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
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
Maintenance and Servicing
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.
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
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.
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
Competitive Pricing and
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
Manufacturers and service providers must find ways
to offer value for money while also providing flexible financing options to
accommodate different customer budgets.
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
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
Elevator Technology Insights
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.
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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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.
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.
'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.
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.
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.
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.
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
Elevator Vietnam Company Limited
- Thang Long Elevator Equipment Group
- Fujitec Vietnam Co., Ltd.
- Hitachi Elevator Vietnam Co., Ltd
- Otis Elevator Vietnam Company
End User Industry
By Elevator Technology
By Elevator Door Type
- Escalator & Moving Walkways
- Maintenance & Repair
- New Installation Modernization
- Infrastructural & Others
- Hydraulic & Machine room-Less
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 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 Infrastructural & Others
- Vietnam Elevator &
Escalator Market, By Elevator Technology:
o Hydraulic & Machine room-Less traction
- Vietnam Elevator &
Escalator Market, By Elevator Door Type:
- Vietnam Elevator &
Escalator Market, By Region:
Company Profiles: Detailed analysis of the major companies present in the Vietnam Elevator
& Escalator Market.
Vietnam Elevators & Escalators Market report
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to a company's specific needs. The following customization options are
available for the report:
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market players (up to five).
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