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Vietnam Elevator and Escalator Market By Type (Elevators, Escalators, Moving Walkways); By Working Mechanism (Hydraulic, Traction, Others); By Solution (New Installation, Maintenance, Modernization); By Application (Residential, Commercial, Industrial, Others); By Sales Channel (Direct, Channel) – Growth, Share, Opportunities & Competitive Analysis, 2024 – 2032

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Published: | Report ID: 39447 | Report Format : PDF
REPORT ATTRIBUTE DETAILS
Historical Period  2019-2022
Base Year  2023
Forecast Period  2024-2032
Vietnam Elevator and Escalator Market Size 2023  USD 443.52 Million
Vietnam Elevator and Escalator Market, CAGR  7.65%
Vietnam Elevator and Escalator Market Size 2032  USD 799.88 Million

Market Overview

The Vietnam Elevator and Escalator Market is projected to grow from USD 443.52 million in 2023 to an estimated USD 799.88 million by 2032, with a compound annual growth rate (CAGR) of 7.65% from 2024 to 2032. This robust growth trajectory reflects a significant expansion in the real estate sector, particularly within the realms of residential, commercial, and industrial developments. Increased urbanization and the growing number of high-rise buildings in major cities are also contributing to the market’s expansion. Furthermore, the government’s focus on infrastructure improvements, including airports, metro stations, and shopping complexes, has led to a surge in demand for advanced vertical transportation solutions.

Market dynamics are heavily influenced by technological innovations and the increasing emphasis on safety and energy efficiency. Manufacturers are integrating smart technologies such as IoT and AI to enhance the functionality and user experience of elevators and escalators. These advancements not only improve operational efficiency but also cater to the evolving safety regulations and building codes, which are becoming stricter in response to the rising focus on sustainability. Additionally, the trend towards modernization and aesthetic enhancement of existing buildings is driving the retrofitting activities in the sector, further bolstering market growth.

Geographically, the major urban centers such as Ho Chi Minh City and Hanoi are at the forefront of the Vietnam Elevator and Escalator Market’s expansion. These cities are experiencing a surge in both residential and commercial construction projects, which are primary drivers for the market. Key players in the market include global giants such as Otis, KONE, and Schindler, as well as strong local firms like Thangmay Fuji and Thangmay Mitsubishi. These companies are not only expanding their product offerings but are also actively engaging in strategic partnerships and innovations to secure a competitive edge in this growing market.

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Market Drivers

Urbanization and Real Estate Development:

Vietnam’s rapid urbanization is a central driver for the elevator and escalator market. As the population in urban areas grows, there is an increasing demand for residential and commercial buildings, which necessitates the installation of elevators and escalators. For instance, the urban population in Vietnam has grown by approximately 30% over the last decade. Cities like Ho Chi Minh City and Hanoi are witnessing a boom in the construction of high-rise apartments, office towers, and mixed-use developments. This urban expansion is not only limited to residential and commercial sectors but also includes the development of hospitality and retail spaces, all of which require extensive vertical transportation solutions to accommodate increased foot traffic and enhance building functionality.

Government Initiatives and Infrastructure Investments:

The Vietnamese government’s commitment to improving infrastructure is another significant catalyst for the market. Investments in public infrastructure projects such as airports, metro systems, and public buildings often include substantial allocations for advanced elevator and escalator systems. For example, the Vietnamese government has increased its infrastructure investments by 20% over the past five years. These projects aim to enhance the efficiency and safety of public services, fostering a conducive environment for the adoption of modern vertical transportation technologies. Additionally, the government’s policies encouraging the development of smart cities and sustainable buildings have led to increased requirements for high-efficiency and environmentally friendly elevator systems.

Technological Advancements and Safety Regulations:

Technological innovations are pivotal in driving the elevator and escalator market forward. For instance, the integration of technologies such as the Internet of Things (IoT), artificial intelligence (AI), and machine learning (ML) into elevator and escalator systems has increased by 50% over the last five years. Smart elevators and escalators, equipped with predictive maintenance and remote monitoring capabilities, offer enhanced safety, efficiency, and user experience. Moreover, Vietnam’s tightening safety regulations and standards for elevator and escalator operations compel building owners and operators to adopt the latest technologies that comply with these stringent requirements, thus propelling the market growth.

Retrofitting and Modernization of Existing Installations:

As buildings age, there is a growing need for the modernization of elevator and escalator systems to meet current safety, aesthetic, and performance standards. The retrofitting and modernization segment provides significant opportunities for market players, as many existing buildings in Vietnam require upgrades to their vertical transportation systems. This trend is particularly prevalent in older commercial buildings where improving the speed, efficiency, and safety of elevators and escalators can significantly enhance the overall value of the property and its appeal to tenants and visitors.

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Market Trends

Smart Technology Integration:

There is a growing trend towards integrating smart technologies in elevators and escalators. For instance, over the past five years, there has been a 30% increase in the integration of smart technologies such as IoT capabilities in elevator and escalator systems. These technologies enable predictive maintenance, where issues can be identified and addressed before they lead to system failures, minimizing downtime and ensuring continuous operation.

Energy Efficiency Focus:

Energy conservation is a significant trend in the market, driven by both environmental concerns and the desire to reduce operational costs. Elevators and escalators are being designed with energy-efficient features such as regenerative drives that recover energy during operation and LED lighting, contributing to the green credentials of modern buildings. For example, in the last decade, there has been a 40% increase in the design of elevators and escalators with energy-efficient features such as regenerative drives and LED lighting.

Increased Emphasis on Aesthetics:

Aesthetic considerations are becoming increasingly important in the design of elevators and escalators. For instance, sleek, visually appealing designs that complement the architectural elements of buildings have seen a 50% increase in demand over the past five years. Glass and transparent materials are popular choices, allowing for panoramic views and a sense of openness, particularly in high-rise buildings.

Adoption of High-Speed Elevators:

High-speed elevators are becoming more prevalent, especially in skyscrapers and high-rise commercial buildings, to improve efficiency and reduce wait times. For example, high-speed elevators have become more prevalent, especially in skyscrapers and high-rise commercial buildings, with a 70% increase in adoption over the past decade. These elevators are equipped with advanced control systems to handle high traffic smoothly and effectively.

Rising Demand for Customization:

Customization is a key trend, with clients seeking solutions that are tailored to the specific needs of their buildings. This includes custom dimensions, capacities, and interfaces, allowing for a seamless integration into new or existing structures.

Safety Enhancements:

Safety remains a top priority, with new installations and upgrades focusing on advanced safety features. These include improved door sensors, emergency communication systems, and better accessibility features to accommodate all users, including those with disabilities.

Market Expansion in Lesser-Tapped Regions:

The market is expanding beyond major urban centers. As smaller cities and towns develop, there is increased demand for elevator and escalator installations in residential complexes, shopping centers, and public buildings, broadening the market’s geographic footprint.

Market Restraints and Challenges

High Installation and Maintenance Costs:

One of the primary challenges in the Vietnam Elevator and Escalator Market is the high cost associated with the installation and ongoing maintenance of these systems. Elevators and escalators are complex mechanisms requiring sophisticated components and skilled labor, which can be expensive. Additionally, the need for regular maintenance to ensure safety and efficiency further adds to the operational costs, posing a significant hurdle, particularly for small and medium-sized enterprises.

Regulatory Compliance and Safety Standards:

Adhering to stringent safety standards and regulatory requirements can be a significant challenge. The Vietnamese government has implemented rigorous regulations to ensure the safety and reliability of elevator and escalator operations. Complying with these regulations requires manufacturers and operators to invest in technology upgrades and rigorous inspection schedules, which can be resource-intensive.

Technological Integration Challenges:

While the integration of advanced technologies such as IoT, AI, and machine learning presents an opportunity, it also poses challenges, particularly in terms of technical expertise and infrastructure readiness. The market demands constant innovation and upgrades, which can be a daunting task for companies that may not have the necessary technical capabilities or resources to keep pace with technological advancements.

Market Saturation in Urban Areas:

 The market in major urban centers like Ho Chi Minh City and Hanoi is approaching saturation, which limits new sales opportunities. As the most developed markets become crowded, companies must either find ways to innovate within these spaces or expand into less developed regions, which may have different market dynamics and challenges.

Supply Chain Disruptions:

The global nature of the elevator and escalator supply chain means that it is susceptible to disruptions caused by international trade disputes, tariffs, and logistic challenges. Such disruptions can lead to delays in the delivery of essential components, affecting the overall project timelines and increasing costs.

Skilled Labor Shortage:

The elevator and escalator industry in Vietnam faces a shortage of skilled technicians and engineers capable of installing, maintaining, and repairing sophisticated systems. This shortage can lead to delays in project completions and increased labor costs as companies compete for qualified personnel.

Market Segmentation Analysis

By Type

Elevators are the dominant segment in the market, extensively installed across residential, commercial, and industrial buildings due to their essential role in modern infrastructure. Escalators are predominantly found in high-traffic areas such as shopping malls, airports, and metro stations, facilitating efficient movement of large crowds. Meanwhile, moving walkways are gaining popularity, especially in airports and major transport hubs, where they provide quick and easy conveyance across long distances, enhancing the overall flow and convenience for travelers and daily commuters.

By Working Mechanism

Hydraulic elevators are favored for low-rise buildings, appreciated for their lower cost and easier installation process. Traction elevators are preferred in mid to high-rise structures due to their higher speed and greater energy efficiency. Additionally, more innovative mechanisms like vacuum and magnetic levitation are gaining traction. Although these technologies are currently less common, they are growing in interest due to their cutting-edge features and potential to enhance the efficiency of vertical transportation in modern architectural designs.

By Solution

The Vietnam Elevator and Escalator Market segments distinctly across new installations, maintenance, and modernization. New installations command a substantial market share, propelled by continuous construction and urbanization. Maintenance remains critical, ensuring safety and efficiency while providing a consistent revenue stream. Simultaneously, there is a growing trend towards modernization, as older buildings update their systems to meet current safety standards, improve efficiency, and comply with regulatory demands. Together, these segments underscore the market’s dynamic nature and its adaptation to evolving architectural and regulatory landscapes.

By Application

The Vietnam Elevator and Escalator Market is segmented into several key areas: Residential, Commercial, Industrial, and Others. The residential segment is particularly large, fueled by a boom in construction of living spaces. Commercial installations, prevalent in malls, offices, and business centers, also represent a significant portion of the market. The industrial sector utilizes these systems in manufacturing facilities and warehouses to enhance goods transportation. Additionally, the market catles to specialized needs in sectors like healthcare and education, showcasing its versatility and broad application spectrum.

By Sales Channel

In the Vietnam Elevator and Escalator Market, sales strategies are bifurcated into direct and channel sales. Direct sales involve manufacturers selling directly to end-users, a method typically employed for large-scale projects due to its streamlined nature and the significant volume of products involved. On the other hand, channel sales leverage distributors and resellers to extend market reach, particularly effective for engaging smaller contractors and businesses. This dual approach allows companies to effectively cover various segments of the market, ensuring that both large projects and smaller, more dispersed customers are adequately serviced.

Segments

Based on Type

  • Elevators
  • Escalators
  • Moving Walkways

Based on Working Mechanism

  • Hydraulic
  • Traction
  • Others

Based on Solution

  • New Installation
  • Maintenance
  • Modernization

Based on Application

  • Residential
  • Commercial
  • Industrial
  • Others

Based on Sales Channel

  • Direct
  • Channel

Based on Region

  • Urban Areas (e.g., Hanoi, Ho Chi Minh City)
  • Expanding into emerging cities and rural areas

Regional Analysis

Ho Chi Minh City (35%):

Ho Chi Minh City, as the economic powerhouse of Vietnam, holds the largest share of the market. The city’s continuous expansion, characterized by rising skyscrapers and commercial complexes, drives substantial demand for elevators and escalators. The focus on modernizing infrastructure and increasing investment in commercial real estate catalyze market growth in this region.

Hanoi (30%):

As the capital and the second-largest city in Vietnam, Hanoi also presents a significant market segment. The city’s urban development, coupled with governmental and foreign investments in infrastructure, supports a strong market for elevators and escalators. Hanoi’s emphasis on upgrading its tourist facilities and public transportation systems further boosts demand.

Da Nang (15%):

Da Nang, a major port city and burgeoning economic center in central Vietnam, has seen rapid urban development. Its strategic plan to become a smart and green city by 2025 includes extensive construction projects requiring advanced vertical transportation solutions, thus fueling the elevator and escalator market.

Key players

  • Otis Elevator Company
  • KONE Corporation
  • Schindler Group
  • ThyssenKrupp AG
  • Mitsubishi Electric Corporation
  • Hitachi, Ltd.
  • Toshiba Corporation
  • Fujitec Co., Ltd.
  • Hyundai Elevator Co., Ltd.
  • Sigma Elevator Company

Competitive Analysis

In the competitive landscape of the Vietnam Elevator and Escalator Market, these key players engage in fierce competition to capture market share. Innovation and technological advancement serve as the primary battlegrounds, with companies continuously upgrading their offerings to include energy-efficient, smart, and aesthetically pleasing models. Strategic partnerships, mergers, and acquisitions are also prevalent strategies used to expand market presence and enhance service capabilities. The leading companies maintain a competitive edge by providing comprehensive service packages, including installation, maintenance, and modernization, catering effectively to both new constructions and the retrofitting demands of older buildings.

Recent Developments

In May 2023, KONE Corporation, a leader in the elevator and escalator industry, secured ISO 27001 certification for its digital services, including KONE 24/7 Connected Services. Additionally, the company achieved the IEC 62443 cybersecurity certification for its DX class elevators. These certifications represent a landmark achievement in the sector, highlighting KONE’s commitment to maintaining the highest standards of digital service and cybersecurity. By obtaining these prestigious certifications, KONE sets a new benchmark for excellence, ensuring that their digital solutions are not only innovative but also secure and reliable, fostering trust among users and stakeholders.

In February 2021, Schindler Group entered into a significant partnership with citizenM hotels, a leading Dutch boutique hotel chain. This agreement involves Schindler providing service and modernization for the hotel chain’s existing escalators and elevators globally. Additionally, Schindler will install vertical mobility solutions in new hotels being developed by citizenM. This partnership underscores Schindler’s commitment to enhancing infrastructure in hospitality facilities worldwide, ensuring that guest experiences are smooth and efficient. It also solidifies Schindler’s position as a preferred provider of vertical transportation solutions in the international hotel sector.

Starting from 2021, the city of Ulsan initiated a major ‘Industrial Complex Renovation’ project aimed at establishing a sophisticated cooperative complex. Over three years, Ulsan City plans to invest a total of USD 1.52 billion, with contributions including USD 1.5 million from the government and USD 2.3 million from the metropolitan area. This ambitious project is designed to create approximately 4,900 jobs and attract around 4,000 mobility enterprises. By enhancing its industrial infrastructure, Ulsan is positioning itself as a significant hub for innovation and business in the mobility sector, contributing to regional economic growth and development.

In September 2022, Hitachi unveiled a pioneering touchless operating panel for elevators, revolutionizing user interaction by eliminating the need for physical buttons. This innovative technology allows passengers to select floors and control the elevator via contactless gestures, significantly enhancing user convenience and safety. By introducing this touchless technology, Hitachi addresses growing concerns about hygiene and public health, particularly in the context of ongoing global health challenges. The introduction of such advanced features demonstrates Hitachi’s commitment to leading the industry in adopting new technologies that improve user experiences and safety standards.

Market Concentration and Characteristics 

The Vietnam Elevator and Escalator Market is moderately concentrated, with a few global players like Otis, KONE, Schindler, and Mitsubishi Electric, dominating the industry alongside prominent regional players. These key players maintain their market dominance through continual technological innovation, extensive service networks, and strong brand reputations. The market is characterized by high entry barriers due to the significant capital investment and technical expertise required, which limits the entry of new competitors. Additionally, the market shows a growing trend toward customization and technologically advanced solutions, catering to the increasing safety and efficiency demands of modern urban infrastructure projects in Vietnam. As urbanization intensifies, these companies are competitively positioned to leverage new construction and retrofitting opportunities, especially in burgeoning urban centers and developing regions.

Report Coverage

The research report offers an in-depth analysis based on Type, Working Mechanism, Solution, Application, Channel and Region. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.

Future Outlook

  1. As Vietnam’s urbanization continues, demand for elevators and escalators in new residential, commercial, and industrial constructions will significantly increase.
  2. The market will likely see greater integration of IoT, AI, and machine learning technologies, enhancing operational efficiency and safety in elevator and escalator systems.
  3. Energy-efficient and eco-friendly designs will become more prevalent as market players respond to increasing environmental concerns and regulatory demands.
  4. Companies will expand beyond saturated urban markets like Ho Chi at Minh City and Hanoi, tapping into emerging markets in other regions.
  5. Stricter safety regulations and building codes will drive upgrades and modernization of existing systems, ensuring compliance and enhancing market growth.
  6. The development of smart cities across Vietnam will create new opportunities for advanced, integrated vertical transportation solutions.
  7. Post-pandemic, health-oriented features such as touchless controls and air-purifying technologies will become standard to ensure public health safety.
  8. As the installed base of elevators and escalators grows, there will be a higher demand for regular maintenance and repair services, providing steady revenue streams for service providers.
  9. There will be an increased demand for customized and premium products catering to the luxury residential and upscale commercial projects.
  10. The market will witness heightened competition and potential mergers and acquisitions as companies strive to consolidate their market presence and expand their service offerings.

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Frequently Asked Questions:

What is the projected market size of the Vietnam Elevator and Escalator Market by 2032?

The Vietnam Elevator and Escalator Market is expected to reach USD 799.88 million by 2032, growing at a CAGR of 7.65% from 2024 to 2032.

How is urbanization influencing the Vietnam Elevator and Escalator Market?

Rapid urbanization in Vietnam, particularly in major cities like Ho Chi Minh City and Hanoi, is driving demand for residential and commercial buildings, thereby boosting the need for elevators and escalators.

What role do technological advancements play in the market?

Technological innovations, including the integration of IoT and AI, are enhancing the functionality and efficiency of elevators and escalators, catering to evolving safety regulations and consumer demands for smart building solutions.

Which cities are leading in the Vietnam Elevator and Escalator Market?

Ho Chi Minh City and Hanoi are the leading markets, due to their extensive urban development and the proliferation of high-rise buildings requiring advanced vertical transportation solutions.

What are the primary factors driving the retrofitting and modernization of elevators and escalators in Vietnam?

The need to comply with updated safety regulations and improve the aesthetic and functional aspects of aging buildings are key drivers for the retrofitting and modernization segment in the Vietnam Elevator and Escalator Mark

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