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

MARKET OVERVIEW

The Thailand elevator and escalator market size by new installations accounted for 7.57 thousand units in 2024 and is expected to reach 9.95 thousand units by 2029, growing at a CAGR of 4.66% during the forecast period. The increasing demand for high-rise structures and the government's focus on infrastructure in key economic cities have propelled Thailand’s elevator business to new heights. Furthermore, one of the primary drivers of the Thailand elevator and escalator market is the country’s rapid urbanization and infrastructure development. 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.

KEY HIGHLIGHTS

1. 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 due to high government expenditures on construction projects.
2. Due to their high popularity, the machine room traction segment accounted for the largest market share in the Thailand elevator and escalator market.
3. Escalators used in the commercial sector accounted for the largest share in 2024 due to increasing public transit projects in the pipeline.
4. The parallel escalators segment accounted for the largest industry share in 2024 due to the high preference for commercial elevators.
5. The modernization market in the Thailand elevator and escalator market is expected to reach USD 177 million by 2029.
6. The anticipated economic growth in 2025, along with initiatives to address household debt, provide support to low- and middle-income households, and increase foreign arrivals, is anticipated to stimulate housing demand after an estimated 4.4% decline in 2024.

MARKET DRIVERS & OPPORTUNITIES

Integration of Artificial Intelligence (AI) in the Thailand Elevator and Escalator Market is Expected to Create Future Opportunities in the Market

1. The integration of AI in the Thailand elevator and escalator market 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 Thailand.
3. In 2023, Mitsubishi Elevator (Thailand) Co., Ltd. emphasized its commitment to enhancing vertical transportation (VT) equipment performance through a combination of human expertise and artificial intelligence (AI).

Sustainable Construction Practices to Drive Demand

1. Many construction projects in Thailand now aim for certifications like LEED (Leadership in Energy and Environmental Design) or EDGE (Excellence in Design for Greater Efficiencies). Elevators and escalators with energy-efficient technologies, such as regenerative drives and smart energy management systems, align with these green building standards and support the Thailand elevator and escalator market growth.
2. In September 2024, to support Thailand’s green transition, IFC (a member of the World Bank Group) is investing in a sustainability-linked bond (SLB) issued by Central Pattana Public Company Limited (CPN), a leading retail property developer in the country. This marks Central Pattana’s debut in issuing a sustainability-linked bond and IFC’s first investment in a publicly listed bond in Thailand.

Increased Investments in the Eastern Economic Corridor (EEC) Initiative to Boost the Construction Industry

1. The surge in investment in Thailand’s Eastern Economic Corridor (EEC) is driving a significant rise in construction projects, fueled by its strategic location, infrastructure development, and business-friendly policies. These investment plans have a positive impact on the Thailand elevator and escalator market growth. In 2024, 251 businesses invested USD 1.32 billion in the region, marking a 128% increase from the previous year.
2. These investments, led by major players from Japan, China, and Hong Kong, are expected to accelerate infrastructure expansion and new construction initiatives, creating jobs and strengthening Thailand’s economic position in ASEAN.

Development Projects in Tourism Sub-Sectors to Push Demand

1. Tourism remains vital to Thailand’s economy, contributing significantly to GDP and employment. Thailand aims to attract 40 million tourists in 2025 to recover from COVID-19 impacts but concerns about overcrowding and overtourism persist. The government plans to promote lesser-known destinations and increase visitor spending. Such factors are projected to support the Thailand elevator and escalator market growth during the forecast period.
2. Bangkok’s real estate market experienced notable growth between July and September 2024, with eight new hotels adding a total of 1,534 rooms. By September, Year-to-Date (YTD) hotel investment transactions in Thailand had reached approximately USD 404 million.

INDUSTRY RESTRAINTS

Labor Shortages to Hinder the Completion of Construction Projects

1. The Asia Pacific (APAC) region is experiencing a significant demographic change as the silver generation (individuals aged 60 and above) becomes prominent. Projections indicate that the population of this group is expected to reach 2.2 billion by 2050, constituting 25% of the global population. Moreover, the National Economic and Social Development Council (NESDC), Thailand’s major planning agency, in September 2024 warned that the working-age people and this population segment have been declining steadily over the years.
2. Thailand's labor market is facing structural challenges intensified by the digital revolution, leading to the demand for swift adjustments from workers, businesses, and the government for global competitiveness. Despite a rapid recovery from the COVID-19 crisis, persistent issues include workforce distribution shifts and declining productivity.

Rising Land and Housing Prices to Restrict Residential Construction Across the Country

1. In 2024, Thailand’s residential property market has been grappling with various challenges, including rising costs of land, labor, and construction materials, which have driven up housing prices.
2. The construction price index rose by 3.9% year-on-year, signaling higher costs for new residential projects expected in 2025. Unsold units, particularly townhouses, and condos priced between 2-5 million baht, have led developers to adopt competitive pricing strategies.
3. In H1 2024, land allocation permits nationwide dropped by 14.7% year-on-year, with the Northeast seeing the steepest decline at 67.1%. Similarly, approved construction areas fell by 14.9% year-on-year, with Bangkok and its surrounding areas experiencing a 24.8% decrease.

VENDOR LANDSCAPE

1. Mitsubishi Electric, Otis Elevator, TK Elevator, Schindler Group, and Kone Corporation are the top manufacturers in the Thailand elevator and escalator market.
2. Other prominent players in the Thailand elevator and escalator market are Hitachi Ltd., Fujitec Co., Ltd, Hyundai Elevator Co., Ltd., Mitsubishi Electric Corporation, 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. In 2024, Hyundai Elevator signed a memorandum of understanding (MoU) with Kakao Mobility to commercialize elevator-robot integration services.
5. For over two decades, KONE has been a pivotal partner in Thailand’s building industry. With its head office in Bangkok, branches in Pattaya and Phuket, KONE Academy in Muang Thong Thani, and 11 service hubs throughout the country, KONE's presence is substantial.

Recent Developments in the Thailand Elevator and Escalator Market

1. In August 2024, Otis unveiled its Gen3™ connected elevator platform at its ‘Platform for Possibility’ launch event in Bangkok.
2. In 2024, Mitsubishi Electric Building Solutions Corporation announced its new elevator type, ‘NEXIEZ-Fit’, which is an elevator that combines superior cost performance with carefully selected specifications.
3. In September 2024, Kone announced its New 2025-2030 Strategy “Rise”.