During last five years, elevator and escalator market registered significant growth in terms of new installations across various South-East Asian countries. Surging construction market, growing government spending, infrastructural development and increasing FDIs in retail and construction sectors have led for the growth of the market.
According to 6Wresearch, South-East Asia Elevator and Escalator Market is expected to grow at a CAGR of 3% during 2016-22. Growing number of skyscrapers, increasing deployment in residential vertical coupled with declining import taxes are driving the demand for elevator and escalator in South-East Asian region. Declining import taxes has resulted in reduction of prices of various commodities including elevator and escalator components. Vietnam Ministry of Finance has reduced tariff rates to zero on 90% of the goods under the ASEAN Trade in Goods Agreement (ATIGA).
According to Prijo Samuel, Assistant Research Manager, Research and Consulting, 6Wresearch, "Commercial vertical accounted for major revenue share in the overall market. Under commercial sector, South-East Asia region is witnessing significant development activities especially in the areas of retail, hospitality and transportation. Also, increasing construction in residential vertical is further anticipated to stimulate the growth of the market in the forecast period".
"Moreover, increasing number of foreign tourists has driven the construction of new hotels across the region, especially in Indonesia and Malaysia. On the contrary, due to political unrest in Thailand and slowdown of foreign investments in Philippines have significantly impacted government spending," Samuel further added.
According to Shefali Goel, Research Analyst, Research and Consulting, 6Wresearch, "Amongst all market segments, new installation segment contributes a major share in the market revenues. However, with growing elevator and escalator installed base in the region, maintenance segment is expected to witness key growth over the next six years."
"Further, Malaysia, Vietnam and Indonesia have accounted for largest revenue share in South-East Asia elevator and escalator market attributed to key construction projects in commercial vertical," Shefali concluded.
Some of the major companies in South-East Asia elevator and escalator market include Fujitec Co. Ltd, Hyundai Elevator Co. Ltd, Hitachi Ltd., Kone Corporation, Mitsubishi Electric, Otis Elevator, Schindler, ThyssenKrupp, and Toshiba Elevators.
Media Source: India Infoline