Vietnam and Malaysia's Soaring Elevator and Escalator Markets Set for Major Growth by 2031
The elevator and escalator markets in Vietnam and Malaysia are experiencing unprecedented growth, as highlighted in recent reports by Arizton. With projections suggesting Vietnam will install over 51,000 units and Malaysia over 15,000 units by 2031, both countries are on the path to enhancing their urban infrastructure significantly.
Vietnam's elevator and escalator market is burgeoning, fueled by a robust pipeline of infrastructure projects and urban development initiatives. The country is poised to witness substantial installations, with forecasts estimating the total number of new elevators to reach around 51,03 thousand by 2031, marking a compound annual growth rate (CAGR) of 3.41%. Key factors contributing to this growth include significant public investments projected to exceed VND 995 trillion (around USD 37.8 billion) in 2026. This infusion of capital aims to modernize and expand the nation’s urban mobility and construction landscape.
Vietnam's government is focused on developing one million social housing units by 2030, with over 700,000 already launched and nearly 215,000 under construction. High-rise and mixed-use developments are on the rise, which in turn boosts demand for elevators capable of accommodating 2-15 passengers, essential for modern urban living.
Mitsubishi Electric has also recently strengthened its position in this market by acquiring Hitachi's stake in Mitsubishi Hitachi Home Elevator, indicating intensified competition and innovation in the sector.
Simultaneously, Malaysia is also venturing into a new phase of growth, with expectations for the installation of over 15,000 units by 2031. This growth trajectory is supported by a CAGR of 2.83% for new installations during the forecast period. The market size, in terms of installed base, is predicted to surpass 248,000 units by 2031. The country is heavily investing in urban transit projects, which include Light Rail Transit (LRT) and Autonomous Rapid Transit (ART) systems, intensifying the need for effective vertical transport solutions.
In July 2025, KONE launched its five-year Renaissance program focused on digitalization and sustainable modernization of buildings, which is a clear indication of the industry's shift towards efficiency and technological advancement. The demand for machine-room-less (MRL) elevators is particularly noteworthy, as they represent a significant share of new installations, growing at a projected CAGR of 2.96%.
One common thread linking both Vietnam and Malaysia is rapid urbanization and infrastructure expansion. Governments in both nations are rolling out major initiatives like Malaysia's 13th Malaysia Plan and Vietnam's long-term infrastructure development funding, which are supporting long-term construction and transport projects. The momentum created by such comprehensive planning invites greater investments in vertical transportation systems.
The expansion of major rail projects such as the Penang Mutiara LRT and the MRT3 Circle Line exemplify how these initiatives open doors for further development of elevators and escalators in Malaysia. Furthermore, combined with the Visit Malaysia 2026 initiative, hospitality and retail investments are expected to prompt an increased demand for efficient transportation solutions in urban environments.
The growing urban populations in cities like Hanoi and Ho Chi Minh City in Vietnam, along with the rise of Tier-2 cities, continue to strengthen the market, offering a vast array of opportunities for manufacturers and suppliers. As smart city projects gain traction, the need for energy-efficient vertical transportation solutions is becoming increasingly apparent.
In conclusion, both Vietnam and Malaysia are set to witness substantial growth in their elevator and escalator markets, backed by ambitious urban infrastructure projects and a drive for modernization. As these countries continue to develop, the importance of efficient and modern vertical transportation will be vital in meeting the needs of their growing urban populations. This anticipated growth presents not only a challenge but also significant opportunities for market players to innovate and lead in a competitive landscape, ensuring that the evolving needs of urban transport are met.
Vietnam's Expanding Market
Vietnam's elevator and escalator market is burgeoning, fueled by a robust pipeline of infrastructure projects and urban development initiatives. The country is poised to witness substantial installations, with forecasts estimating the total number of new elevators to reach around 51,03 thousand by 2031, marking a compound annual growth rate (CAGR) of 3.41%. Key factors contributing to this growth include significant public investments projected to exceed VND 995 trillion (around USD 37.8 billion) in 2026. This infusion of capital aims to modernize and expand the nation’s urban mobility and construction landscape.
Vietnam's government is focused on developing one million social housing units by 2030, with over 700,000 already launched and nearly 215,000 under construction. High-rise and mixed-use developments are on the rise, which in turn boosts demand for elevators capable of accommodating 2-15 passengers, essential for modern urban living.
Mitsubishi Electric has also recently strengthened its position in this market by acquiring Hitachi's stake in Mitsubishi Hitachi Home Elevator, indicating intensified competition and innovation in the sector.
Growth in Malaysia's Market
Simultaneously, Malaysia is also venturing into a new phase of growth, with expectations for the installation of over 15,000 units by 2031. This growth trajectory is supported by a CAGR of 2.83% for new installations during the forecast period. The market size, in terms of installed base, is predicted to surpass 248,000 units by 2031. The country is heavily investing in urban transit projects, which include Light Rail Transit (LRT) and Autonomous Rapid Transit (ART) systems, intensifying the need for effective vertical transport solutions.
In July 2025, KONE launched its five-year Renaissance program focused on digitalization and sustainable modernization of buildings, which is a clear indication of the industry's shift towards efficiency and technological advancement. The demand for machine-room-less (MRL) elevators is particularly noteworthy, as they represent a significant share of new installations, growing at a projected CAGR of 2.96%.
Urbanization Driving Market Dynamics
One common thread linking both Vietnam and Malaysia is rapid urbanization and infrastructure expansion. Governments in both nations are rolling out major initiatives like Malaysia's 13th Malaysia Plan and Vietnam's long-term infrastructure development funding, which are supporting long-term construction and transport projects. The momentum created by such comprehensive planning invites greater investments in vertical transportation systems.
The expansion of major rail projects such as the Penang Mutiara LRT and the MRT3 Circle Line exemplify how these initiatives open doors for further development of elevators and escalators in Malaysia. Furthermore, combined with the Visit Malaysia 2026 initiative, hospitality and retail investments are expected to prompt an increased demand for efficient transportation solutions in urban environments.
The growing urban populations in cities like Hanoi and Ho Chi Minh City in Vietnam, along with the rise of Tier-2 cities, continue to strengthen the market, offering a vast array of opportunities for manufacturers and suppliers. As smart city projects gain traction, the need for energy-efficient vertical transportation solutions is becoming increasingly apparent.
Conclusion
In conclusion, both Vietnam and Malaysia are set to witness substantial growth in their elevator and escalator markets, backed by ambitious urban infrastructure projects and a drive for modernization. As these countries continue to develop, the importance of efficient and modern vertical transportation will be vital in meeting the needs of their growing urban populations. This anticipated growth presents not only a challenge but also significant opportunities for market players to innovate and lead in a competitive landscape, ensuring that the evolving needs of urban transport are met.
Topics Consumer Products & Retail）
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