Vietnam Elevator Market

The global Vietnam Elevator Market is valued at USD 0.2 Billion in 2022 and is projected to reach a value of USD 0.4 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 5.10% between 2023 and 2030.

Premium Insights

The Vietnam Elevator market is experiencing significant growth due to several factors. Firstly, rapid urbanization across the country has increased the demand for infrastructure and modern buildings, which in turn creates a need for elevators. Additionally, the growing middle class in Vietnam has led to higher disposable incomes and a desire for improved quality of life, including accessibility, convenience, and safety, making elevators an essential feature in both residential and commercial properties. By 2030, Vietnam's housing demand will rise by 70 million m2 annually, or 17,500 30-story buildings, predicts the Ministry of Construction (MoC). According to Tran Tho Huy, general director of Thien Nam Elevator JSC, the low-level market segment, which includes buildings with 25 stories or fewer, accounted for 80% of the demand for lifts. Vietnamese businesses dominate this market, accounting for more than 50% of the total. Thien Nam and Thai Binh, two of the competitors, control 30% of the market. In addition to Thai Binh and Thien Nam, there are about 50 elevator trading companies, the majority of which outsource to a Vietnamese company rather than having manufacturing facilities in Vietnam.

• Urbanization and the rising need for vertical transportation in tall buildings are two key factors driving the Vietnam Elevator market. Elevators are essential in residential, commercial, and public buildings as Vietnam's cities continue to develop and grow.
• The Passenger Elevators segment dominated the market in 2022 with a market share of more than 46.2%
• The Commercial Sector dominated the market in 2022, accounting for around 23.98% of the market share in 2022.

Top Market Trends

1. Vietnam has seen a significant increase in tourism in recent years. As a result, there has been a rise in hotel construction and renovation projects, leading to the installation of elevators to meet the needs of tourists.
2. Vietnam, like many other countries, is experiencing an aging population. As elderly individuals require better accessibility, there is a growing need for elevators in residential buildings, hospitals, and healthcare facilities.
3. With a focus on sustainability, there is a rising demand for eco-friendly and energy-efficient elevators. The Vietnam Elevator market is witnessing a shift towards the installation of elevators that consume less energy and produce fewer emissions.
4. The elevator industry is undergoing rapid technological advancements, such as smart elevators equipped with features like remote monitoring, touchless controls, and energy-efficient systems. These innovations are being embraced by the Vietnam Elevator market to increase efficiency, convenience, and safety.
5. The government of Vietnam has been implementing stricter safety regulations for elevators to ensure passenger safety. This has prompted companies to invest in the installation of advanced safety features, leading to the growth of the elevator market.

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Economic Insights

As one of the fastest-growing economies in Southeast Asia, Vietnam has experienced rapid urbanization and industrialization in recent years. Due to this expansion, there is now more demand for infrastructure improvement, including the building of homes, businesses, and factories. Consequently, the demand for elevators has surged, fueling the growth of the elevator market. In recent years, Vietnam has made significant investments in the elevator market to support urbanization and technological advancements. One notable example is the collaboration between the Vietnamese government and Otis Elevator Company to develop and implement a sustainable urban mobility system, including elevators and escalators, in Ho Chi Minh City. However, fluctuations in the economy can also impact the elevator market. Economic downturns, such as recessions or financial crises, can negatively affect the construction sector and overall investment in new projects. As construction projects slow down or come to a halt, the demand for elevators decreases, reflecting a challenging market for elevator manufacturers and suppliers.

Market Segmentation

Vietnam Elevator The global Vietnam Elevator market can be categorized into Applications, Type, Region. The Vietnam Elevator market can be categorized into Residential, Industrial, Commercial, Industrial based on Applications. The Vietnam Elevator market can be categorized into Passenger Elevators, Freight Elevators, Hydraulic Elevators, Electric Traction Elevators, Capsule Elevators, Home Elevators, Others based on Type. The Vietnam Elevator market can be categorized into North America, Europe, Asia Pacific, Latin America, Middle East & Africa based on Region.

Based on Type

Passenger Elevators Offer Convenience and Ease of Accessibility

Passenger elevators dominate the Vietnam Elevator market due to the country's rapidly growing urbanization and modernization. As more people migrate to cities for work opportunities, the demand for residential and commercial buildings increases, resulting in a need for reliable and efficient transportation systems. Passenger elevators offer convenience and ease of accessibility, catering to the needs of the masses. Additionally, the rise of high-rise buildings and skyscrapers in urban areas further fuels the dominance of passenger elevators. They not only serve the purpose of transportation but also enhance the overall convenience and comfort for residents and visitors, making them an indispensable part of Vietnam's elevator market.

Based on End-User

Elevators in Commercial Buildings often Include Advanced Features.

The commercial sector dominates the Vietnam Elevator market primarily due to the booming business landscape in the country. With a thriving economy and increased investment in sectors such as retail, hospitality, and corporate offices, the demand for elevators in commercial establishments has surged significantly. Shopping malls, hotels, office buildings, and multiplexes require sophisticated and frequently used elevator systems to accommodate the flow of people in these bustling spaces. Furthermore, elevators in commercial buildings often include advanced features like modern technology integration, smart security systems, and energy-efficient components, making them suitable for meeting the specific demands of the commercial sector. This dominance is expected to grow further as Vietnam continues to attract international businesses and witness rapid infrastructural development.

Based on Region

Vietnam has a Significant Market Share in the Elevator Industry owing to its Skilled Labor Force, Affordable Prices, and Supportive Government Policies.

The country's rapid economic growth and urbanization have spurred the demand for elevators, particularly in commercial and residential buildings. Vietnam's elevator market has witnessed notable developments in terms of technological advancements, improved safety features, and energy-efficient solutions. This progress has been supported by both domestic manufacturers, such as Vinacomin, as well as international players like Mitsubishi Electric and Otis. Moreover, Vietnam's strong presence in the elevator market can be attributed to its skilled labor force, competitive pricing, and favorable government policies that encourage investment and promote sustainable development. These factors have positioned Vietnam as a regional leader in the elevator market, contributing to its continued success and growth. For instance, KONE Vietnam is one of the major corporations that prioritizes exploring and expanding business in new and potential markets. KONE Vietnam is not only recognized as a leading brand in the global elevator and escalator industry. With an eye toward the future, KONE Vietnam has also unveiled the most recent in the company's line of innovations, KONE 24/7 Connected Services, a solution made to assist clients in overcoming the difficulties caused by urbanization and technological disruption. To improve the safety and dependability of KONE products, 24/7 Connected Service makes use of artificial intelligence (AI) and the Internet of Things (IoT) to enable predictive maintenance. This translates to a safer, more pleasant, and more effective experience for KONE elevator and escalator users.

Competitive Landscape

With rapid urbanization and an increasing focus on infrastructure development, the demand for elevators in Vietnam has been on the rise. The market is dominated by key players such as Otis Elevator Company, Schindler, Mitsubishi Electric, and Thyssenkrupp. These companies have established a strong foothold in the market by offering a wide range of elevator solutions, including passenger elevators, freight elevators, and escalators. Moreover, local manufacturers such as Vinacomi and Dong Van are also gaining prominence, contributing to the competitive dynamics of the industry. As competition intensifies, companies are constantly striving to differentiate themselves by incorporating advanced technologies, ensuring energy efficiency, and providing excellent after-sales services to gain a competitive advantage in the Vietnam Elevator market.

The key players in the global Vietnam Elevator market include - KONE Vietnam Co. Ltd., TOSHIBA Elevator(Vietnam) Limited Liability Company, Schindler Vietnam Ltd., OTIS Elevator Company (Vietnam) Ltd., TK Elevator Vietnam Pvt. Ltd., Mitsubishi Elevator Vietnam Co., Ltd, Pacific Elevator Co., Ltd., VGSI Elevator LLC, Alpec Joint Venture Joint Stock Company, Thang Long Venture Joint Stock Company, Thyssen Krupp, HISA, Hitachi among others.

Recent Market Developments

• In May 2023, KONE Corporation, a market leader in the elevator and escalator sector, received ISO 27001 certification for its digital services, including KONE 24/7 Connected Services and IEC 62443 cybersecurity certification for its DX class elevators. The global elevator and escalator industry has never accomplished anything like this.
• In September 2022, Hitachi created a touchless operating panel that creates an elevator without physical floor buttons, giving users a completely new sensation.

Segmentation of the Global Vietnam Elevator Market