Malaysia Elevator & Escalator Market to Reach USD572.39 Million by 2026

1

2015 – 2025

Published: December 2020Published: March 2021Published: April 2021

FY2017 – FY2027

MARKET INTELLIGENCE . CONSULTING

www.techsciresearch.com

MALAYSIA ELEVATORS &

ESCALATORS MARKET-FORECAST AND

OPPORTUNITIES

2016 – 2026

2© TechSci Research

Table of Contents

2

S. No. Contents

1. Product Overview

2. Research Methodology

3. Executive Summary

4. Impact of COVID-19 on Malaysia Elevators & Escalators Market

5. Voice of Customer

5.1. Brand Awareness

5.2. Brand Satisfaction

5.3. Factors Influencing Purchase Decision

5.4. Customer Satisfaction

5.5. Elevators and Escalators –Challenges

5.6. Annual Maintenance Contract (AMC) Expectations

6. Global Elevators & Escalators Market Overview

7. Malaysia Elevators & Escalators Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value & Volume

7.2. Market Share & Forecast

7.2.1. By Type (Elevator, Escalator and Moving Walkways)

7.2.2. By Service (Modernization, Maintenance & Repair and New Installation)

7.2.3. By Elevator Technology (Traction, Hydraulic and Machine Room-Less Traction)

7.2.4. By Elevator Door Type (Automatic and Manual)

7.2.5. By End User (Residential, Commercial, Institutional, Infrastructural andOthers)

7.2.6. By Region

7.2.7. By Company (2020)

7.3. Market Map (By Type, By Service, By Elevator Technology, By Elevator Door Type, By End User and By Region)


Table of Contents

3

S. No. Contents

8. Malaysia Elevators & Escalators Modernization, Maintenance & Repair Market Outlook


8.1.1. By Value


8.2.1. By Type

8.2.2. By End User

9. Malaysia Elevators & Escalators New Installation Market Outlook


9.1.1. By Value


9.2.1. By Type

9.2.2. By End User

10. Market Dynamics

10.1. Market Drivers

10.2. Market Challenges

11. Market Trends and Developments

12. Supply Chain Analysis

12.1. Elevators

12.2. Escalators

13. Policy & Regulatory Landscape

14. Import Export Analysis

15. Malaysia Economic Profile


Table of Contents

4

S. No. Contents

16. Company Profiles

16.1. KONE Elevator (M) Sdn. Bhd.

16.2. Antah Schindler Sdn. Bhd.

16.3. Hitachi Elevator Engineering (Malaysia) Sdn. Bhd.

16.4. Mitsubishi Elevator Malaysia Sdn Bhd

16.5. Otis Elevator Company Sdn. Bhd.

16.6. Tk Elevator Malaysia Sdn. Bhd.

16.7. MS Elevators Engineering Sdn. Bhd.

16.8. Hyundai Elevator Malaysia Sdn Bhd.

16.9. Fujitec (Malaysia) Sdn Bhd

16.10. MXC Elevator Sdn. Bhd.

17. Strategic Recommendations

18. About Us & Disclaimer

Product Overview


Product OverviewProduct of Interest: Elevators & Escalators

Review Period

2016 – 2019

Base Year

2020

Estimated Year

2021

Forecast Period

2022 – 2026

Year RangeMALAYSIA ELEVATORS &

ESCALATORS MARKET

BY TYPE

• Elevator

• Escalator

• Moving Walkways

BY SERVICE

• Modernization, Maintenance & Repair

• New Installation

An elevator or a lift can be defined as a machine installed in buildings to carry, lift, transport or move peopleand goods from one floor to another. An elevator can be used in various types of settings such as residentialcomplexes, commercial buildings, malls, hospitals, etc., for moving passengers or goods from one level toanother. Elevators can also be used in factories and industrial plants to transfer goods, machinery andfinished products between different floors.Escalator is a set of moving stairs, usually power driven, arranged like a continuous belt that carries peoplebetween the floors of a building while ascending or descending constantly.

Market Segmentation

6

BY END USER

• Residential

• Commercial

• Institutional

• Infrastructural

• Others

BY ELEVATOR DOOR TYPE

• Automatic

• Manual

• Traction

• Hydraulic

• Machine Room-Less Traction

BY ELEVATOR TECHNOLOGY

BY REGION

• Central Region (West Malaysia)

• East Malaysia

• Northern Region (West

• Malaysia)

• Eastern Region (West Malaysia)

• Southern Region (West Malaysia)

7© TechSci Research 7

• An elevator refers to a carriage or platform that is

used for moving people or freight from one level

to another in a building. Most modern elevators

are designed with features like a voice

recognition system that provides an accessibility

aid for the blind, notifications for floor arrivals

and door closing in a computer voice, call buttons

for any emergency situations, direction lanterns

both inside and outside the carrier and LED/LCD

floor indicators for delivering a smooth and

passenger controlled flawless experience.

• Elevators are a standard part of any tall

commercial building such as malls, hospitals,

hotels, residential buildings, etc. Elevators can be

classified into two categories, depending on the

hoist mechanism and the design. Elevators are

classified into four types, namely, traction,

hydraulic, climbing and pneumatic elevators

depending on the hoist mechanism.

Product OverviewProduct of Interest: Escalators


Buying Criteria for Elevators

➢ Selection Range: The choice of which elevator to install starts from the available selection. In general, elevators are

grouped into people lifters and cargo platforms. Many types of elevators can be used for both, but cargo elevators tend to

be more heavy-duty and prioritize power over the smoothness of the ride. Passenger elevators tend to be more

comfortable, and elevators designed for people with disabilities can have various safety features, such as seat belts and

handrails.

➢ Installation Costs: Once the selection range for elevators is done, the cost of installation needs to be considered. Many

companies offer free installation of most or all of the models they sell, both for commercial and residential properties. The

actual cost of installation is often related more to the property where the installation is being performed rather than to the

elevator unit itself.

➢ Maintenance Requirements: Maintenance is one of the highest continuing costs of owning an elevator. It is necessary to

have basic maintenance to keep the elevator up and running well. Many elevator dealers offer maintenance contracts at the

time of purchase. These are often provided at steep discounts that help to promote sales, and buyers can potentially save

significant maintenance costs by signing up early.

➢ Performance Matters: Performance means different for each elevator installed. For passenger lifts, performance usually

means a smooth, safe ride with simple control inputs and enough room on the platform for riders to feel comfortable.

Commercial cargo lift elevators measure performance by lifting power and reliability over extended periods of use.

Whichever metric is important, it is important to evaluate the performance of the elevator models.



Buying Criteria for Elevators

➢ Servicing Requirement: Service requirement, servicing frequency and price are the most important factors that need to

be considered before the final purchase. This is helpful in analyzing the initial purchasing budget and updating the ongoing

safety requirements.

➢ Safety Matters: Safety is the first consideration with an elevator designed to carry people. Along with the safety

consideration in a residential elevator installed in the home, commercial elevator’s safe performance helps companies avoid

injuries and expensive workers’ compensation issues. Even cargo elevators must be regularly inspected and serviced to

keep them safe. A tipped load of cargo can be expensive, even if nobody has been hurt.

➢ Warranty Coverage: Typically, a high-quality elevator should last through many years of regular use and is advisable to

have a warranty. It is common for elevator manufacturers to offer a relatively short-term warranty on the products they

sell, especially for the makers of home elevators. On top of the factory warranty, many dealers offer extra coverage for

elevators. Often, the warranty is only valid if the installation work is being done through the same dealer who sold it.




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• An escalator is a set of moving stairs, usually

power-driven, arranged like a continuous belt

that carries people between the floors of a

building while ascending or descending

constantly. Important escalator characteristics

include step enhanced safety, auto start

feature either by photocell sensors or by

contact mats, power saving feature, landing

plates and handrail and balustrade design.

• Escalators are being majorly deployed in

commercial complexes such as shopping malls,

department stores, hotels, stadiums, arenas,

convention centers and transit systems like

airports and railway stations.

• Escalators can be broadly categorized into two

types – moving stairs and moving walkways.



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Product Definition: By Elevator Technology

Traction Setup

• Traction machinery is the most commonly used machinery in elevators. These types of elevators are equipped with

geared and gearless traction machines driven by AC or DC motors. Traction elevators dominated the Malaysia

elevators market over the past few years and the trend is expected to continue during the forecast period as well.

These elevators have the ability to work at an extensive variety of speed and high capacity. Traction elevators are

commonly used in residential and retail sectors of the country.

• Furthermore, traction elevators occupy less space in buildings. Owing to rising demand for energy efficient elevators

along with increasing ecological concerns, volume share of traction machinery equipped elevators is projected to

increase in the upcoming period.

Hydraulic Setup

• Hydraulic machinery pumps liquid which provides power in lifting the load upwards and settles down with its own

weight. These types of machinery are driven by a piston that travels inside a cylinder. This setup is mainly used in

industrial units due to its efficient load bearing capacity. As these lifts carry a large amount of weight, speed of the

lifts drastically slows down at 1m/s. With an increase in the usage of green and smart elevators, which are cost-

efficient, the share of hydraulic equipped elevators is anticipated to decline in the Malaysia elevators market during

the forecast period.

Machine Room-Less Traction

• A machine room-less (MRL) elevator does not have a separate room for housing the elevator's motor. The specially-

designed motor is installed directly in the hoistway, either at the top or bottom of the shaft. In many ways, an MRL

elevator looks like a “normal” elevator. The lift may be a traction or hydraulic machine.



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Product Definition: By Elevator Door Type

Automatic Doors

• With advancing technology and growing safety measures, demand for elevators equipped with automatic doors is

growing rapidly in Malaysia. Under the guidelines of the Malaysian Lift And Escalator Association (MALEA), elevators

installed at various end segments, including commercial, residential and government institutions, are required to

have automatic doors in order to maintain the security of passengers traveling in elevators. Owing to the

aforementioned factors, the demand for automatic door elevators in Malaysia is growing at a rapid pace.

• Moreover, the increase in demand for smart elevators equipped with the latest technological features is driving the

demand for elevators equipped with automatic doors across the nation. Elevators equipped with automatic doors are

anticipated to account for the largest volume share in the Malaysia elevators market during the forecast period.

Manual Doors

• Manual door elevators are mainly used in the manufacturing and industrial sectors to transport heavy goods and

products from one floor to another. Over the coming years, demand for elevators equipped with manual doors is

expected to decrease, due to growing adoption of automatic doors and evolving lifestyles of people which require

high-speed smart elevators.

Research Methodology



✓ Identifying Key Opinion

Leaders

✓ Questionnaire Design

✓ In-depth Interviews

Data Collection

Developing List of Respondents

Formulating Questionnaire

Market Profiling

Data Validation

Data Analysis

In-depth secondary research was conducted to

determine top players, overall market size and

segmental market size in Malaysia elevators &

escalators market.

In order to conduct industry experts’

interviews, TechSciformulated a detailed

discussion guide.

List of industry players and industry

specialists was developed.

TechSci conducted interviews with

industry experts and industry players for data collection and

verification.

Data obtained as a result of primary and secondary research was

validated through rigorous

triangulation.

The data was scrutinized using MS-Excel, statistical

tools and internal proprietary database to obtain qualitative and

quantitative insights about Malaysia elevators &

escalators market.

Data Collection

Data Filter& Analysis

Research &Intelligence

ActionableInsights

BusinessSolution

Primary Research Desk Research Company Analysis

✓ Recent Developments

✓ Market Changing

Aspects/Dynamics

✓ Government Policies

✓ Conclusion

✓ Market Participants

✓ Key Strengths

✓ LinkedIn✓ TechSci Internal

Database

✓ Factiva✓ Hoovers

Paid Sources

✓ Company Websites✓ Company Annual

Reports✓ White Paper Study✓ Financial Reports✓ Investor Presentations✓ Regulatory Body

Secondary ResearchPrimary Research

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Baseline Methodology

Our dedicated team of industry experts has monitored and analyzed various aspects of Malaysia elevators & escalators market.

The team has analyzed the outlook of various segments of this market, while considering the major influencing factors and

projected growth during the forecast period. The study includes market forecasting, which would enable our clients to take better

decisions while planning their strategy to achieve sustainability in Malaysia elevators & escalators market.

Methodology Followed for Calculation of Market Size:

Market Size by Value: Market size, in terms of value, for the year 2020 was calculated based on information collected through

exhaustive secondary research and primary surveys, with various key opinion leaders/stakeholders and industry experts.

The team interviewed more than 20 companies, 50 industry experts and other value chain stakeholders in Malaysia elevators &

escalators market to obtain the overall market size during 2016-2020, which was validated by the Delphi technique. Taking

standard deviation into consideration, the market size was averaged out, to arrive at the market size data for 2016-2020.



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Respondents were asked about the current and future market growth rates, as well as market shares by elevator door type, by

end user, by service, by elevator technology, by type, by region, and by company. Removing the outlier responses, the

geometric mean of growth estimates and provider wise revenue shares generated across various segments were considered to

arrive at the final revenue shares. Revenue shares generated across various segments were further triangulated from other

stakeholders depending upon the component.

Methodology Followed for Calculation of Market Shares:

Market shares by elevator door type, by end user, by service, by elevator technology, by type, by region, and by company

were calculated based on the responses received through primary surveys with industry experts, in which the respondents

were asked about the market shares of the leading elevators and escalator players. The final shares were calculated by taking

the geometric mean of the responses gathered from key opinion leaders after eliminating the outliers. Moreover, respondents

were asked about the leading companies operating and their competitive structure in Malaysia elevators & escalators market.

Methodology Followed for Forecasting:

TechSci Research performed periodical checks on data collected through the surveys with logical checks and analyzed the

survey results in SPSS/Tableau Software.



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Data triangulation techniques were applied to fill the gaps and to present a more meaningful picture of the market. To forecast

Malaysia elevators & escalators market, TechSci Research used various forecast techniques such as:

o Moving Average

o Time Series Analysis

o Regression Analysis

o Econometric and Judgmental Analysis

TechSci Research used its own forecast tool, which is based on the growth of various allied industries in respective regions.

TechSci Research also used the impact analysis during short, medium and long term period to estimate and analyze market

demand scenario.

Partial List of Companies Interviewed

KONE Elevator (M) Sdn. Bhd., Antah Schindler Sdn. Bhd., Hitachi Elevator Engineering

(Malaysia) Sdn. Bhd., Mitsubishi Elevator Malaysia Sdn Bhd., Otis Elevator Company Sdn.

Bhd., TK Elevator Malaysia Sdn. Bhd., MS Elevators Engineering Sdn. Bhd. Hyundai Elevator

Malaysia Sdn Bhd., among others

Partial List of Secondary Sources

Company Annual Reports, Press Releases, Industry Magazines, Industry Reports, Company

Websites, TechSci Research Proprietary Database & Knowledge Repository, etc.

*Note: (a) Sum of some shares may not be 100% due to round off till two decimal places.

(b) Volume figures across the report only include the data for new installation of elevators and escalators.


Industry Brief

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According to TechSci Research report, “Malaysia Elevators & Escalators Market By Type (Elevator, Escalator and Moving Walkways), By Service

(Modernization, Maintenance & Repair and New Installation), By Elevator Technology (Traction, Hydraulic and Machine Room-Less Traction), By Elevator Door

Type (Automatic and Manual), By End User (Residential, Commercial, Institutional, Infrastructural and Others), By Region, Competition, Forecast &

Opportunities, 2016-2026F”, Malaysia elevator & escalator market was valued USD411.94 million in 2020 and is forecast to grow at a CAGR of 5.44% in value

terms, to reach USD572.39 million by 2026. Growth in the market can be attributed to increasing capital flow into real estate and increased government’s

investment as part of “smart city plan” initiative. As part of the smart city plan, the government is planning to address issues and improve the quality of life of

urban dwellers.

In addition, increased development of high-rise residential and commercial buildings to accommodate increased population and increasing urbanization are

positively influencing Malaysia elevators & escalators market through 2026. The degree of urbanization is drastically increasing in the country, with a shift

towards metro cities such as Kuala Lumpur, Seberang Perai, etc., from rural cities. This is resulting in the growing demand for real estate properties that are

modernized enough to encapsulate the population within it. In addition, various government schemes have been implemented to increase urbanization which is

expected to increase the demand for elevators & escalators in the country.

Malaysia elevator & escalator market is segmented based on type, service, elevator technology, end-user, elevator door type, and regional distribution. Based

on type, the market is fragmented into elevator, escalator and moving walkways. Elevator segment led the market with a share of 90.49% in 2020 and the trend

is likely to continue through 2026, which is majorly attributable to the growing infrastructural development in the country including ongoing and planned

construction projects such as Merdeka 118, Tun Razak Exchange, and Bukit Bintang City Centre (BBCC), among others.

Based on service, the market can be categorized into modernization, maintenance & repair and new installation. Modernization, maintenance & repair segment

is projected to account for the share of 64.90% in 2026 as all the new & existing elevators & escalators require routine repair & maintenance in order to ensure

proper functioning. When compared with 2020, market share of above-mentioned segment is anticipated to increase through 2026 due to aging infrastructure

requiring repair and maintenance.

KONE Elevator (M) Sdn. Bhd, Antah Schindler Sdn. Bhd., Hitachi Elevator Engineering (Malaysia) Sdn. Bhd., Mitsubishi Elevator Malaysia Sdn Bhd, Otis

Elevator Company Sdn. Bhd., Tk Elevator Malaysia Sdn. Bhd., MS Elevators Engineering Sdn. Bhd., Hyundai Elevator Malaysia Sdn Bhd., and Fujitec

(Malaysia) Sdn Bhd, among others are leading players operating in the Malaysia elevator & escalator market. Malaysia elevator & escalator is a highly

competitive market with four companies, including KONE Elevator (M) Sdn. Bhd, Otis Elevator Company Sdn. Bhd., TK Elevator Malaysia Sdn. Bhd, Antah

Schindler Sdn. Bhd, occupying 60% of the market share in 2020. Companies operating in the market are investing in product development and getting quality

certification to stay ahead in the competitive market. TK elevator Malaysia Sdn. Bhd. uses twin elevator technology which involves two independently operating

cabs in the same shaft. Twin technology is used for reducing power requirement while increasing the floor space.

“Elevator aesthetics is turning out to be a key component in influencing customer elevator purchase decisions. Nowadays, more and more property owners are

starting to consider the aesthetical value of their building’s elevators in order to ensure that they make the best first impression on visitors and prospective

clients. Moreover, the country’s government is focusing on smart cities and smart building development, which includes the adoption of smart technologies to

enhance the operational efficiency and effectiveness of the vertical transportation system.” said Mr. Karan Chechi, Research Director with TechSci Research, a

research based global management consulting firm.


Sample Data - Snapshot

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2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F

Value (USD Million)

Malaysia Elevators & Escalators Market Size, By Value (USD Million), 2016-2026F

CAGR 2016-2020By Value: xx%

CAGR 2021E-2026FBy Value: xx%

Malaysia Elevators & Escalators Market Share, By Type, By Value, 2016-2026F

2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F

Elevator 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%

Escalator 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%

Moving Walkways 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00%

Malaysia Elevators & Escalators Modernization, Maintenance & Repair Market Share, By End User, By Value, 2016-2026F

2016 2017 2018 2019 2020 2021E 2022F 2023F 2024F 2025F 2026F

Residential 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%

Commercial 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%

Infrastructural 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00%

Institutional 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00%

Others 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%


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FORECAST AND OPPORTUNITIES2016 – 2026

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The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is made that it is timely,accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from various sources including which it considersreliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness of any information and it is not responsible for any errors oromissions or for the results obtained from the use of such information and especially states that it has no financial liability whatsoever to the subscribers / users of thisreport. The information herein, together with all estimates and forecasts, can change without notice. All the figures provided in this document are indicative of relative marketsize and are strictly for client’s internal consumption. Usage of the same for purpose other than internal will require prior approval of TechSci Research.

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Malaysia Elevator & Escalator Market to Reach USD572.39 Million by 2026

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Transcript of Malaysia Elevator & Escalator Market to Reach USD572.39 Million by 2026