During the last five years, the elevator and escalator market registered significant growth in terms of new installations across various South-East Asian countries. Surging the construction market, growing government spending, infrastructural development, and increasing FDIs in the retail and construction sectors have led to the growth of the market.
According to 6Wresearch, South And Southeast Asia Elevator & Escalator Market are expected to grow at a CAGR of 3% during 2016-22. A growing number of skyscrapers, increasing deployment in residential vertical coupled with declining import taxes are driving the demand for elevator and escalator in the South-East Asian region. Declining import taxes has resulted in the 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 the commercial sector, the South-East Asia region is witnessing significant development activities especially in the areas of retail, hospitality, and transportation. Also, increasing construction in the residential vertical is further anticipated to stimulate the growth of the market in the forecast period".
"Moreover, an 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 the slowdown of foreign investments in the 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, the 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 the 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.
Other Key Reports Available:
Media Courtesy : India Infoline