Report Overview

Urbanization, infrastructure development, increasing construction activities, rapid urban population growth, government initiatives promoting vertical mobility solutions, and rising demand for modernization and energy-efficient elevator and escalator systems in commercial and residential buildings are propelling the growth of the Vietnam Elevators and Escalators Market during the forecast period between 2023 and 2029.

Vietnam Elevators and Escalators Market – Trends & Forecast Report, 2029

Vietnam elevators and escalators market size was estimated at USD 361.83 million in 2022. During the forecast period between 2023 and 2029, the size of Vietnam elevators and escalators market is projected to grow at a CAGR of 3.26% reaching a value of USD 438.68 million by 2029. The major factor driving the growth of Vietnam elevators and escalators market is an increasing demand for vertical transportation solutions driven by urbanization and infrastructure development projects across the country. The market has seen a rise in the installation of energy-efficient and eco-friendly elevators and escalators, as sustainability becomes a priority. Also, there is an increasing focus on advanced technologies such as smart elevators equipped with IoT capabilities and touchless control systems in response to the COVID-19 pandemic. The market is also experiencing a surge in maintenance and modernization services to enhance the lifespan and efficiency of existing vertical transportation systems. Overall, the Vietnam elevators and escalators market is characterized by innovation, sustainability, and a focus on enhancing user experience.

Vietnam Elevators and Escalators Market - Overview

Escalators and elevators are vertical transportation systems designed to move people between different floors or levels of a building. Escalators consist of a series of steps that continuously cycle, transporting passengers in a smooth, inclined motion. They are commonly used in public spaces such as malls, airports, and train stations. Elevators, on the other hand, are enclosed cabins that move vertically along a shaft, allowing people to access various floors with ease. They are essential in high-rise buildings and serve as a vital means of transportation for individuals with mobility challenges. Both escalators and elevators provide convenient and efficient solutions for vertical movement, enhancing accessibility and improving the flow of people in modern infrastructure.

Growth Drivers

Rapid Urbanization in Vietnam

In recent years, Vietnam witnessed a significant surge in urbanization, fueling the demand for advanced infrastructure and modernization across various sectors. This urban shift has emerged as a crucial growth driver for the Vietnam elevators and escalators market. As cities expand vertically with high-rise buildings and commercial complexes, the need for efficient vertical transportation systems has become paramount. Developers and building owners recognize the importance of elevators and escalators in enhancing accessibility, convenience, and safety. Also, the rising middle-class population's aspirations for improved lifestyles and increased mobility further boost the demand. This favorable combination of urbanization, infrastructure development, and changing consumer preferences is propelling the rapid growth of the Vietnam elevators and escalators market.

Restraints

Regulatory Restraints

In Vietnam's dynamic elevator and escalator market, regulatory restraints pose significant challenges to industry growth. The country's strict safety regulations and bureaucratic processes hinder the pace of expansion and innovation in this sector. Implementing new technologies and introducing advanced features often requires lengthy approval procedures, causing delays and increasing costs for market players. Also, the complex and fragmented regulatory landscape creates compliance burdens, especially for international companies seeking to enter the Vietnamese market. While safety is of utmost importance, streamlining regulations and fostering a more efficient approval system could enhance the industry's growth potential and pave the way for improved mobility solutions in Vietnam.

Impact of COVID-19 on Vietnam Elevators and Escalators Market

The COVID-19 pandemic adversely affected Vietnam elevator and escalator market. As the country implemented strict lockdown measures and social distancing protocols, construction projects were halted or delayed, leading to a decline in demand for elevators and escalators. Supply chains were disrupted, affecting the timely delivery of equipment and components. Also, concerns over virus transmission in confined spaces like elevators led to reduced usage and heightened safety requirements. However, as Vietnam gradually recovers and eases restrictions, the market is expected to rebound with increased investments in infrastructure and construction projects, driving the demand for elevators and escalators during the forecast period.

Vietnam Elevators and Escalators Market

Segmental Coverage

Vietnam Elevators and Escalators Market – By type

On the basis of type, Vietnam elevators and escalators market is divided into Elevator, Escalator, and Moving Walkways segments. The elevator segment is the largest one in terms of market size and demand. Elevators are essential for vertical transportation in high-rise buildings, commercial complexes, and residential towers. With the rapid urbanization and construction boom in Vietnam, the demand for elevators has been steadily increasing. The Elevator segment encompasses several types, including passenger elevators, freight elevators, and service elevators, catering to diverse needs and requirements. This segment plays a crucial role in enhancing accessibility, convenience, and efficiency in Vietnam's vertical transportation infrastructure.

Vietnam Elevators and Escalators Market – By Service

On the basis of service, Vietnam elevators and escalators market is divided into New Installation, Maintenance & Repair, and Modernization segments. The maintenance & repair segment is the largest in terms of market size and revenue generation. This segment focuses on the upkeep, servicing, and repair of existing elevators and escalators throughout Vietnam. With a substantial number of buildings, commercial spaces, and residential complexes already equipped with elevators and escalators, the demand for maintenance and repair services remains consistently high. This segment plays a crucial role in ensuring the smooth operation, safety, and longevity of the existing elevator and escalator infrastructure in Vietnam.

Vietnam Elevators and Escalators Market – By Elevator Technology

Based on elevator technology, Vietnam elevators and escalators market is divided into Traction Elevator, Machine Room Less Traction Elevator, and Hydraulic segments. The traction elevator segment dominates the market. This is because traction elevators are commonly used in high-rise buildings and offer smooth and efficient vertical transportation. These elevators utilize a counterweight and a motor-driven system to move the elevator car. With the growing urbanization and construction of tall buildings in Vietnam, the demand for traction elevators is expected to remain robust, making it the largest segment in the country's elevator and escalator market.

Vietnam Elevators and Escalators Market – By End-Use Industry

Based on end-use industry, Vietnam elevators and escalators market is divided into Residential, Commercial, Institutional, and Infrastructure segments. The commercial sector is the largest contributor to the growth of Vietnam elevators and escalators market. The commercial segment encompasses various establishments such as offices, shopping malls, hotels, and retail spaces, which require efficient vertical transportation solutions to cater to the high volume of foot traffic. With the rapid growth of Vietnam's economy and the development of commercial infrastructure across the country, the demand for elevators and escalators in this segment has witnessed significant expansion. The commercial sector's prominence is driven by the need for smooth and reliable transportation systems to enhance customer experience, ensure accessibility, and optimize operational efficiency in commercial establishments.

Competitive Landscape

Major players in the Vietnam elevators and escalators market include Hitachi Ltd, Hyundai Elevator, Kleemann, Kone Corporation, Mitsubishi Electric Corporation, Orona, Otis Elevator, Schindler Group, Sigma Elevator Company, Thyssenkrupp AG, and Toshiba Elevators and Building Systems Corporation. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Scope of the Report

By Type

• Elevator

• Escalator

• Moving Walkways

By Service

• New Installation

• Maintenance & Repair

• Modernization

By Elevator Technology

• Traction Elevator

• Machine Room Less Traction Elevator

• Hydraulic

By End-Use Industry

• Residential

• Commercial

• Institutional

• Infrastructure