Asia Pacific Elevator and Escalator - Market Size & Growth Forecast 2023-2029

INDUSTRY OUTLOOK

Asia Pacific elevator and escalator market size by new installations accounted for 941.1 thousand units in 2022, which is expected to reach 1,315.5 thousand units by 2029 growing at a CAGR of 4.90% during the forecast period. Increasing government investment towards green buildings, adopting the latest construction technologies, and rising High Net worth Individuals in Asian Countries are demand drivers for the Asia Pacific elevator and escalator market.

By the installed base, the Asia Pacific elevator market is expected to reach 8,571.5 thousand units by 2029. The growing focus on high-rise construction or skyscraper infrastructure led to certain innovations by the OEMs, from carbon-fiber cables to magnetic systems that would allow elevators to move sideways, opening new options in big building design. Japan Plans for Supertall Wooden Skyscraper in Tokyo, which is expected to be completed by 2041 at 1,148 feet tall.

KEY HIGHLIGHTS

• The increasing HNWIs continued to attract MNEs and their investments to the region. Singapore established the Southeast Asia Manufacturing Alliance in February 2021 to entice manufacturers to invest in Singapore and other ASEAN nations. The Economic Development Board (EDB), Enterprise Singapore, and several manufacturers in the business sector are allies in the partnership.
• Hitachi and Nissan Motor had experimented with harnessing energy from mini-EV(Nissan Sakura) to power an elevator in a six-story building in Japan. Concerning this, a 20 KW hour battery was connected to the building using a special adapter developed by Hitachi Building Systems. This experiment had been succeeded for nearly 15 hours, and around 416 times, the elevator could move up and down. Hitachi building systems aim to provide the system to apartment buildings in April 2023; for continuous operation of elevators during power outages, these systems are viable.
• At the national level in China, GB/T 24476-2017 is a recommended regulation that outlines the use of IoT for elevators and escalators. Furthermore, provincial government regulations are established to be put into place in various cities like Shanghai, Hangzhou, or Shenzhen. These regulations offer a series of more specific and extensive facts about the kind of data and services one wants to obtain from lifts using the IoT. In certain instances, this legislation is starting to turn obligatory.
• Demand for elevators and escalators will be fueled by Korea's National Strategic Smart Cities Program, which aims to service 70 cities by 2030, cover 60% of the country's population by 2040, and support the world's most efficient smart city program. Such projects will support the Asia Pacific elevator and escalator market growth.
• There are 731 smart city projects in India worth INR 46,366 crore which have been approved. Implementation has been initiated in 49 (6.7%) projects, with 24 (3.3%) completion. The rising popularity of smart and intelligent elevators with smart access control, innovative and sophisticated security systems, and improved elevator hardware and software technologies will fuel future growth.

Affordable Housing Schmes and Ascending Ultra High Net Worth Individuals to Hike Elevator Demand

• Thailand's National Housing Authority (NHA) will provide financial assistance to about one-third of the targeted group of 2.27 million households (approximately 650,000) that cannot access housing financing from regular financial institutions. During the next five years (2022–2026), the NHA plans to raise B134 billion (about USD 4 billion) to fund 16 national projects.
• Hyundai Elevator agreed with LG Electronics for Robotic Synchronization and Smart Building Solution Supply in August 2021. This will enable it to expand its elevator market through home networks applied with IoT, AI, contactless technologies, and connections with automatic driving robots.
• High-net-worth individuals (HNWIs) have been rising in Asian countries in recent years, likely impacting the real estate sector landscape since these individuals invest in luxury properties. The home lift industry has been a lucrative and booming business in Asia over the last few years, with a growing wealthy population seeking both luxury and comfort for their homes, driving the demand for luxury products such as home lifts and contributing to the Asia Pacific elevator and escalator market.
• Tengah, a smart and sustainable town in Western Singapore, was developed by the Housing & Development Board (HDB), with roughly 42,000 additional housing units spread across five residential districts. With the first apartments scheduled to be finished in 2023, more than 70% of housing units will be accessible through the HDB on long-term leases.

Green Building and Certifications in the Building sector lead to adopting Energy Efficient Vertical transportation installations in the Asia Pacific Elevator And Escalator Market.

• Adopting green building strategies and obtaining green certifications have been crucial in the building sector. These green certifications mandate the region's adoption of green or energy-efficient elevators. Furthermore, this leads to reducing of carbon emissions in the building sector. New regulations in China require that 70% of new urban buildings be certified green buildings by 2022. Major municipalities, including Shanghai, Beijing, and Shenzhen, plan to exceed that goal, requiring all new commercial buildings to be green. This also includes plans to renovate schools, hospitals, and public buildings to be more energy efficient.
• Under the 12th Malaysia Plan, 13 urban renewal projects have been authorized (12MP). Under the Ministry of Natural Resources and Urban Development, all of these projects are at varying levels of planning and execution. Increasing competition among township developers in Malaysia and their major focus on increasing property value has pushed them towards undertaking various multifunctional development projects in residential, commercial, institutional, and healthcare facilities.
• In 2025, Osaka will host high-profile events such as the G20 and the World Expo. As a result of the city's popularity as a tourist destination, Kansai Airport announced a USD 911 million expansion to enhance its facilities and increase capacity. In contrast, hotel and restaurant building increased six-fold. The addition of a direct train link between Umekita and Kansai Airport has increased demand for vertical transportation equipment.

Elevators Over Their Average Life Expectancy to Create Demand for Maintenance and Upgradation of Components in the Asia Pacific Elevator And Escalator Market

• The Ministry of Construction of Vietnam issued Circular 03/2021/TT-BXD, establishing national standards for apartment buildings due to numerous major accidents using lifts in apartment complexes. By July 2021, there will be more specifications for lifts in residential buildings.
• The Malaysian context can be adjusted with a similar creative approach. Some nations, like Malaysia, also promoted the elderly using elevators rather than escalators. It was witnessed that elderly people were responsible for 30% of accidents on moving walkways, escalators, and elevators.
• In 2019, Hitachi introduced an advanced lift remote monitoring and maintenance service in Singapore, providing real-time operational data about the lifts and implementation of preventive maintenance.
• Fire and Rescue NSW data shows elevator rescue numbers have risen 80% since 2014. One thousand six hundred twenty people across New South Wales were rescued from elevators in 2018. This is a sign that elevators need to undergo regular maintenance to avoid accidents.
• In October 2021, a quake of a magnitude of 5 on the Japanese seismic intensity scale struck Tokyo's 23 wards, the first time the Japanese capital has been struck so strongly in the 10.5 years since the Great East Japan Earthquake. Around 78,000 elevators were affected. Since this earthquake struck at night, only 25 people were trapped inside.
• According to major elevator manufacturer KONE, China will comprise half of the global service industry by 2025. Since the country has the largest installed base and most of the equipment might either reach its service life or have gone through wear and tear.

VENDOR LANDSCAPE

• Otis, Schindler, TK Elevator, and KONE are the top 4 manufacturers in the Asia Pacific elevator and escalator market, with a share of over 55%.
• Schindler is among 67 businesses operating in New South Wales to have obtained a silver partnership in the NSW Sustainability Advantage Program, which aims to help organizations achieve performance and improve their environmental approach.
• Mitsubishi Elevator Singapore PTe equips employees with the necessary skills and knowledge to provide safe people transportation systems in public and private housing and commercial complexes by establishing a new technical training center and strategic alliances with the Institute of Technical Education and the Building & Construction Authority.
• In January 2022, KONE announced to equip metro line S1 in Suzhou, China, with 30 KONE Monospace elevators and 141 KONE Transit Master escalators. In addition, the contract includes eight years of standard maintenance for the elevators and 13 years for the escalators.
• The Otis production site in Korea is the newest factory to receive ISO14001 certification. More than 90% of companies' factories have achieved this accreditation by meeting international criteria. Otis set some lofty long-term ESG goals earlier this year, including having all its factories achieve ISO 14001 accreditation by 2025.