Indonesia Elevator and Escalator Market Size & Growth Forecast 2025-2030

INDUSTRY OVERVIEW

The Indonesia elevator and escalator market, by new installations, accounted for 10.25 thousand units in 2024 and is expected to reach 12.88 thousand units by 2030, growing at a CAGR of 3.88% during the forecast period. The increasing demand for high-rise structures and the government's focus on infrastructure investment in key economic cities have propelled the growth of the Indonesia elevator and escalator market. Moreover, one of the primary drivers is the country’s rapid urbanization and growing infrastructure demand due to the development of the Nusantara Capital City. This has led to a surge in the construction of high-rise buildings, both residential and commercial, which requires efficient vertical transportation solutions like elevators and escalators. However, economic challenges like high inflation & rising interest rates slowed the Indonesian construction industry which can impact the market demand for elevators & escalators.

Recent Developments in the Indonesia Elevator and Escalator Market

1. In August 2024, Otis unveiled its Gen3™ connected elevator platform at its ‘Platform for Possibility’ launch event in Jakarta. The Gen3 elevator includes the Otis ReGen drive, LED lighting, and sleep mode to help reduce energy usage and the elevator’s carbon footprint.
2. Furthermore, in 2024, Mitsubishi Electric Building Solutions Corporation launched its new elevator type, NEXIEZ-Fit’ in the ASEAN market. This elevator is compatible with low-rise residential buildings.
3. Moreover, in December 2024, KONE announced the launch of its High-Rise MiniSpaceTM DX elevator in Southeast Asia. The elevator comes with KONE UltraRope, which is 80% lighter than traditional steel rope and three times more durable.

KEY HIGHLIGHTS

1. The Indonesia elevators market by installed base is expected to reach 152 thousand units by 2030.
2. Elevators used in the residential sector accounted for the largest share in 2024, despite low purchasing power due to high interest rates. The market is set to recover in 2025 from high government expenditure in the development of Nusantara Capital City.
3. The machine room-less traction segment accounted for the largest market share due to its high popularity.
4. The Indonesia-installed base escalators market is expected to reach 25 thousand units by 2030.
5. Escalators used in commercial buildings accounted for the largest share in 2024 due to increasing commercial and mixed-use projects in the pipeline.
6. The parallel escalators segment accounted for the largest market share in 2024 due to the high preference for commercial elevators.
7. The modernization market in the Indonesia elevator and escalator market is expected to reach USD 231.8 million by 2029.
8. Badan Pusat Statistik (BPS) data shows Indonesia’s construction industry grew by 7.6% year-on-year in Q1 2024, with an expected average annual growth of 6% from 2025 to 2028, driven by investments in transport, energy, and housing. This growth will bolster the elevator and escalator market in Indonesia from 2025 to 2030.

MARKET DRIVERS & OPPORTUNITIES

Integration of Artificial Intelligence (AI) Expected to Unlock Future Opportunities in the Indonesia Elevator and Escalator Market

1. The integration of AI in the Indonesia elevator and escalator industry reflects a growing trend in the modernization of urban infrastructure. AI-driven solutions enhance safety, efficiency, and user experience in public and private transportation systems.
2. AI monitors real-time data from sensors installed in elevators and escalators to predict and prevent potential malfunctions. This reduces downtime and improves the reliability of equipment. Companies like KONE and Otis have already implemented AI-based predictive maintenance globally, including in Asia-Pacific regions like Indonesia.

Sustainable Construction Practices to Be a Major Demand Driver

1. Indonesia’s growing emphasis on modular construction, particularly in the housing market, is creating opportunities in the Indonesia elevator and escalator market. This shift is closely tied to the country’s move toward sustainable building practices, supported by collaborations between the government and the private sector.
2. With a housing deficit of 12.7 million units, especially in urban centers like Jakarta and Surabaya, the government has launched initiatives such as the three-million-house program under the National Affordable Housing Program (NAHP). Modular construction, with its faster build times and cost-efficiency, is positioned as a key solution to address this housing shortage.

Rapid Urbanization Is Driving the Demand for Infrastructure and Supports Indonesia Elevator and Escalator Market Growth

1. Urbanization has become prominent in Indonesia, transforming cities like Jakarta, Surabaya, and Medan over the decades. According to the Central Statistics Agency (BPS), 56.7% of Indonesia’s population resided in urban areas by 2020, a significant increase from 49.8% in 2010.
2. IKN is projected as a new economic hub, expected to contribute USD 180 billion to Indonesia’s GDP and create 4 million jobs by 2045. Early signs of transformation are already visible in East Kalimantan, where economic growth accelerated from 4.48% in 2022 to 6.22% in 2023, driven primarily by the construction sector.

Booming Manufacturing Sector Driving Demand

1. Indonesia’s manufacturing sector has emerged as a base of the nation’s economic growth, contributing significantly to its GDP and attracting substantial foreign direct investment (FDI). With its large domestic market, and government-led incentives, Indonesia has positioned itself as a key player in the global manufacturing landscape.
2. Indonesia’s nickel reserves are driving significant international projects. In April 2024, Huayou Cobalt’s subsidiary, Huaneng New Material Indonesia, began construction of a precursor production facility in the Weda Bay Industrial Park. This initiative is a key component of Huayou’s strategy to establish an integrated nickel supply chain, enhancing its competitiveness in the new energy materials sector. Furthermore, the rise of these production hubs has driven increased demand for elevators and escalators, critical for supporting the infrastructure of modern manufacturing facilities. As more plants are established across Indonesia, the need for vertical transportation solutions will grow, fueling the expansion of the Indonesia elevator and escalator market.

INDUSTRY RESTRAINTS

Skilled Labor Shortage in The Country to Hamper the Demand

1. In 2024, this outflow of talent became a common phenomenon, particularly among the younger generation. According to an IMF report, the country’s unemployment rate stood at 5.2% in April 2024, with many graduates struggling to secure jobs domestically.
2. The migration of skilled workers abroad has created a pronounced skills gap, making it difficult for industries to find and retain qualified labor. This shortage is expected to hinder domestic innovation and infrastructure development, including the installation and maintenance of the Indonesia elevator and escalator market.

Declining Middle-Class Population in Indonesia

1. The decline in Indonesia’s middle-class population has emerged as a significant concern, highlighted during the Economic Outlook 2025 conference in 2024, hosted by the National Research and Innovation Agency (BRIN). According to data from the Central Statistics Agency, the trend began during the COVID-19 pandemic in 2020 and has persisted in the years since.
2. The primary drivers of this decline include increasing economic pressures such as higher taxes and rising living costs. Middle-class households have faced significant challenges, including increased income tax rates, additional levies like TAPERA (a mandatory savings program for housing), and taxes on sweetened food and beverages. These factors have constrained their economic capacity, reducing discretionary spending and investment.

VENDOR LANDSCAPE

1. Schindler, TK Elevators, Otis, KONE, and Mitsubishi Electric are the top manufacturers in the Indonesia elevator and escalator market.
2. Other prominent players in the Indonesia elevator and escalator market are Hitachi Ltd., Fujitec Co., Ltd, Hyundai Elevator Co., Ltd., Toshiba Elevator and Building Systems Corporation, Sigma Elevator, Ife Elevators Co., Ltd, Sicher Elevator Co., Ltd., BLT Brilliant Lifts & Escalators Pvt. Ltd., Tokyo Elevator Indonesia, and others. These leading players continuously innovate to provide state-of-the-art technology, ensuring safety, efficiency, and sustainability.
3. In 2024, KONE introduced the High-Rise MiniSpace™ DX elevator in Southeast Asia. This advanced elevator is designed to serve buildings exceeding 60 floors, offering enhanced energy efficiency, customization options, and sustainability features.
4. Additionally, the government has projected the property sector to witness strong growth in 2025, under the supervision of the Ministry of Housing and Settlement Areas (PKP) and the existence of special housing programs such as the construction of the 3 million Houses per year Program.