(MENAFN- GlobeNewsWire - Nasdaq) AI-, IoT-, and cloud-enabled systems support predictive maintenance, reduce downtime and energy use, and strengthen recurring service revenueDublin, Oct. 12, 2026 (GLOBE NEWSWIRE) -- "Southeast Asia Elevator and Escalator Market Report 2026-2031" has been added to ResearchAndMarkets.com's offering.
The Southeast Asia elevator and escalator market was valued at 101,930 units in 2025 and is projected to reach 123,305 units by 2031, growing at a CAGR of 3.22%, according to the report. Market expansion is being supported by infrastructure investment, rapid urbanization, high-rise construction, transit modernization, aging demographics, and demand for intelligent vertical transportation systems.
Infrastructure and Real Estate Development Drive Market Growth
Large-scale government investment in railways, airports, smart cities, and transit-oriented developments is increasing elevator and escalator installations across Southeast Asia. Vietnam's high-speed rail, airport, and port pipeline is expected to generate substantial demand, while Indonesia's National Strategic Projects and the development of Nusantara are creating long-term opportunities. Rail network expansion in Malaysia, mixed-use construction in Thailand, and MRT modernization in Singapore are also strengthening the regional outlook.
Residential and commercial construction remains another major growth engine. Indonesia's housing deficit is accelerating vertical housing development, while housing initiatives in the Philippines and Vietnam are supporting installations across apartment, retail, hospitality, and entertainment projects. Cambodia's expanding high-rise construction sector is also contributing to demand. In addition, the region's emergence as a manufacturing and logistics hub is increasing requirements for industrial elevators and freight lifts.
An aging population is creating sustained demand for accessible mobility infrastructure in Malaysia, Vietnam, Thailand, Indonesia, the Philippines, and Singapore. Governments and developers are integrating elevators and escalators into residential buildings, healthcare facilities, commercial properties, and public transportation systems. Demographic change is also supporting the modernization and replacement of aging equipment to meet updated safety and accessibility standards.
AI, Smart Buildings, and Data Centers Create New Opportunities
AI-, IoT-, and cloud-enabled elevator technologies are expected to create significant opportunities across the Southeast Asia elevator and escalator market. Manufacturers are deploying predictive maintenance, remote diagnostics, traffic management, and safety monitoring solutions to improve reliability, reduce downtime, optimize energy consumption, and support recurring maintenance revenue.
Advanced digital elevator systems are being incorporated into major developments, including Singapore's Cross Island Line and Malaysia's Armani Hallson KLCC project. Growing demand for intelligent, energy-efficient, and sustainable buildings is expected to support new installations and modernization contracts throughout the forecast period.
Rapid data center construction in Malaysia, Thailand, Indonesia, the Philippines, and Vietnam is also increasing demand for specialized freight elevators. Hyperscale and AI-ready data center campuses require heavy-duty systems capable of transporting server racks, maintenance equipment, and technical personnel within multi-storey facilities.
Market Segmentation Highlights
Machine-room-less elevators held one of the largest shares by machine type in 2025. New installations are forecast to increase at a CAGR of 3.47%, supported by high-density residential and mixed-use construction. Passenger elevators represented the largest carriage-type segment in 2025, reflecting strong demand from residential, commercial, hospitality, and mixed-use buildings. Elevators with capacities of 2-15 persons are projected to record the largest incremental installation growth from 2025-2031, expanding at a CAGR of 3.40%. Residential elevators accounted for the largest volume of new installations in 2025, supported by apartment projects, urban housing programs, and low-to-midrise developments. Parallel escalators recorded the largest installation volume by product type and are expected to grow at a CAGR of 3.08% during 2025-2031. Commercial properties represented the leading escalator end-user segment, including shopping malls, airports, transit hubs, hotels, convention centres, office towers, and integrated developments.
Thailand's housing initiatives, including the "Homes for Thais" program, and Sansiri's planned residential project launches are expected to support future elevator demand. Vietnam is also experiencing strong momentum from social housing construction, with approximately 158,700 units scheduled for completion in 2026 and more than 700,000 units implemented toward the national target of one million homes by 2030.
Market Restraints
High installation, modernization, and maintenance costs remain significant barriers, particularly for smaller developers and cost-sensitive residential projects. Inspection, repair, component replacement, and regulatory compliance expenses add to the financial burden for building owners. Dependence on imported equipment and specialized technical expertise further increases procurement and servicing costs.
Currency volatility also presents a challenge because equipment and components are frequently sourced from China, Japan, South Korea, and Europe under foreign-currency contracts. Exchange-rate fluctuations can reduce contractor margins, increase project costs, and delay modernization programs, particularly in Indonesia, Malaysia, and Vietnam.
Competitive Landscape
Otis, KONE, Schindler, Mitsubishi Electric, and Hitachi are identified among the leading companies in the Southeast Asia elevator and escalator market. Other key vendors include Hyundai Elevator, Fujitec, Cibes Lift AB, Toshiba Elevator and Building Systems Corporation, Canny Elevator Co., Ltd., IFE Elevators Co., Ltd., Sigma Elevators, SJEC Corporation, Kalea Lifts, Stannah Lifts, Nibav Lifts, and established regional suppliers.
Competitive activity includes connected product launches, acquisitions, and major infrastructure contracts. KONE agreed to acquire TK Elevator in April 2026 in a transaction valued at €29.4 billion ($34.4 billion). Otis expanded its Gen3T connected elevator platform across Indonesia, Thailand, and Malaysia and secured a contract for the Dawn KLCC mixed-use development. The company also introduced the Gen3 Villa home lift in Southeast Asia in February 2026.
Hitachi Elevator (Thailand) was selected to provide escalators for the Hatai project in September 2025. In Vietnam, Hitachi secured an order for 63 units, comprising 32 elevators and 31 escalators, for Ho Chi Minh City's Urban Railway Line No. 1.
The report segments the elevator market by machine type, carriage type, capacity, and end-user, while the escalator market is analyzed by product type and end-user. Geographic coverage includes Indonesia, Thailand, Malaysia, Vietnam, the Philippines, and the Rest of Southeast Asia.
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