PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1359846
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1359846
Rapid urbanization and infrastructure development in Vietnam have increased the construction of high-rise structures, necessitating elevators and escalators for effective transit. The Vietnam Elevator and Escalator Market was valued at USD 412 million in 2022 and is expected to reach USD 951.36 million by 2030. The expanding middle class and rising discretionary income have increased demand for luxurious residential and business structures, necessitating lifts and escalators.
Furthermore, the Vietnamese government has undertaken several efforts to enhance transportation infrastructure, such as constructing lifts and escalators in public structures and transit hubs like metros and airports. In addition, implementing safety rules and the need for energy-efficient solutions have fuelled demand in Vietnam for contemporary elevator and escalator systems. Additionally, due to the growing use of automated building control tools and increasing interest in energy-efficient lifts and staircases, the market is expected to register a CAGR of 7.8% by 2030. Increasing emphasis on green and sustainable construction options Increased building activity, especially in developing countries like Vietnam has contributed to shaping the market's growth. Furthermore, technological developments such as smart lifts and location management systems coupled with increased desire for accessible solutions for persons with disabilities are fuelling the market growth.
An increasing focus is on delivering a holistic and tailored elevator experience to meet customers' demands effectively. This trend is becoming more prominent in various industries, including the hospitality and infrastructure sectors. Customized elevators and escalators are now employed as architectural centerpieces in shopping malls, commercial structures, and airports. For instance, KONE offers the N MonoSpace and N MiniSpace elevator models in Vietnam, which come in five unique themes inspired by colors, textures, and patterns, offering customers a personalized and aesthetically pleasing elevator experience.
The drive for energy-efficient solutions is poised to lead to the development of innovative, modernized elevator systems. Consequently, the rising demand for sustainability is expected to drive the adoption of such products in the Vietnamese market. Elevator manufacturers recognize the need to provide personalized, visually appealing, and environmentally friendly solutions to cater to customers' evolving preferences, especially in the context of urban development and infrastructure enhancement. This trend signifies a positive shift towards elevators and escalators that not only move people efficiently but also contribute to the aesthetics and sustainability of the built environment in Vietnam.
The rising demand for smart elevators is driven by the necessity to reduce waiting times outside elevators in tall buildings due to the increasing height of structures. This highlights the importance of early planning and thoughtful design when constructing high-rise buildings. With programs like the Sahaya Vietnam Housing Program and the development of smart cities, the need for taller structures equipped with efficient and advanced transportation solutions is becoming increasingly apparent.
In response to this demand, Vietnamese manufacturers focus on innovating and introducing new technologies to differentiate their products and maintain their market share. These technologies aim to enhance the efficiency and performance of elevators, providing users with a seamless and time-saving experience when navigating tall buildings. As urbanization and infrastructure development continue to reshape Vietnam's landscape, the role of smart elevators in providing efficient vertical transportation solutions will only become more crucial.
Vietnam is in rapid urbanization, with a rising influx of people migrating to urban areas to pursue better economic opportunities. This demographic shift has triggered an increased need for improved urban mobility and transportation infrastructure, notably elevators and escalators in public buildings, commercial hubs, and residential complexes. The Vietnamese government's dedication to developing smart cities and enhancing urban transportation systems has played a pivotal role in the nation's consistent growth of the elevator and escalator sector. Furthermore, the proliferation of high-rise structures, particularly in urban epicenters, has further underscored the necessity for vertical transportation solutions. As cities expand and modernize, the elevator and escalator industry is positioned to play a crucial role in facilitating efficient and convenient vertical movement, aligning with the evolving urban landscape in Vietnam.
The influx of Foreign Direct Investment (FDI) into Vietnam's real estate sector has significantly impacted the demand for elevators and escalators. FDI-supported real estate ventures often prioritize constructing high-rise structures to meet the increasing need for office spaces and upscale residences. These tall towers inherently require elevators and escalators to facilitate seamless vertical mobility within the buildings. As the construction of more skyscrapers becomes prevalent, the demand for vertical transportation systems escalates.
Furthermore, FDI in the real estate domain frequently extends to investments in hotels, resorts, and tourism-related properties. These establishments depend on elevators and escalators to accommodate tourists and guests, further contributing to the overall demand for vertical transportation systems. In 2023, investments in Vietnam's real estate sector reached approximately USD 4.2 billion, comprising 14.7 percent of the total Foreign Direct Investment (FDI) inflow into Vietnam. This substantial investment influx has fueled various construction projects, particularly high-rise buildings and modern properties, resulting in an increased requirement for elevators and escalators. This trend is expected to persist as Vietnam's economy thrives and urbanizes, solidifying the elevator and escalator industry as a crucial component of the nation's construction and infrastructure development landscape.
The Vietnamese government has strongly emphasized infrastructure development in recent years, launching various pivotal transportation projects across cities like Hanoi and Ho Chi Minh City. These projects encompass metro lines, railway stations, airports, ports, and more, creating a promising market for elevators, escalators, passenger conveyor systems, and intelligent monitoring systems within these initiatives. These efforts aim to harmonize local infrastructure with national and regional counterparts, effectively addressing the "People Flow" challenge in urban areas and contributing to sustainable development endeavors.
Furthermore, the government is actively promoting the development of smart cities in Vietnam, exemplified by projects such as Thu Thiem Eco Smart City, Ecopark Smart City, The BRG Smart City in Hanoi, and several other smart urban initiatives. These undertakings drive the demand for cutting-edge technologies in elevators and escalators to ensure a high-quality living experience for residents and consumers. Additionally, the Vietnamese government has implemented stricter safety standards for elevators to enhance passenger safety. This regulatory initiative has incentivized companies to invest in advanced safety features, fostering growth within the elevator market. A noteworthy example is the collaboration between the Vietnamese government and Otis Elevator Company to develop and implement a sustainable urban mobility system encompassing elevators and escalators in Ho Chi Minh City.
The COVID-19 pandemic impacted many sectors around the globe, including the Vietnam Elevator and Escalator industry. The pandemic has disrupted supply networks, decreased demand for elevator and escalator services, and raised user safety concerns. One of the most significant effects of the epidemic on business has been the disruption of supply networks. With many nations imposing lockdowns and travel limits, transporting raw materials and completed goods has become more complex. In addition, the pandemic has decreased demand for lift and escalator services in Vietnam. Strict social separation policies and work-from-home policies have reduced foot traffic in business buildings, resulting in less use of lifts and stairs. Companies in the sector have seen lower earnings as demand has declined.
Leading companies in Vietnam are launching digitally connected elevators to improve user experience. Digitally connected elevators provide a superior user experience. Users can benefit from features like predictive maintenance, which minimizes downtime, and personalized service, where elevators can recognize and respond to user preferences. Moreover, digitally connected elevators enable remote monitoring and management. This is especially valuable for large buildings or remote locations, as maintenance and diagnostics can be conducted without physical presence, saving time and resources.
In May 2023, KONE Corporation, a prominent elevator and escalator industry player, achieved ISO 27001 certification for its digital services, encompassing KONE 24/7 Connected Services. Furthermore, the company earned the IEC 62443 cybersecurity certification for its DX class elevators. This achievement marks a significant milestone in the global elevator and escalator sector, setting a precedent for excellence in digital services and cybersecurity standards.
In September 2022, Hitachi introduced an innovative touchless operating panel, revolutionizing the elevator experience by eliminating physical floor buttons. This groundbreaking technology offers users an entirely new and contactless way to operate elevators, enhancing convenience and safety.
In February 2020, Hitachi Elevator Vietnam launched its new office in Ho Chi Minh City. The office is equipped with Hitachi's intelligent destination control system (DFRS), one of the best vertical traffic optimization solutions for modern office buildings.
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work