Indonesia Elevator and Escalator Market Assessment, By Type, By Working Mechanism, By Solution, By Application, By Region, Opportunities, and Forecast, 2018-2032F

Indonesia elevator and escalator market is projected to witness a CAGR of 4.99% during the forecast period 2025-2032, growing from USD 647.28 million in 2024 to USD 955.60 million in 2032. The elevator and escalator market is growing at a robust rate, driven by rapid urbanization, significant infrastructure development, and ongoing technological advancements. As urban areas expand, the demand for efficient vertical transportation solutions in residential, commercial, and industrial sectors continues to rise. This market encompasses a diverse range of products, including elevators, escalators, moving walkways, and specialized lifts designed for various applications. Innovations in integrating smart technology, energy-efficient systems, and advanced safety features increase operational efficiency. The Western Indonesia region leads in this expansion market, where vast investments are put into high-rise buildings and the development of smart cities like Jakarta for improving urban mobility. Along with this, the growing market for vertical transportation in Indonesia is fueled by the integration of IoT technologies in elevators and escalators that enhance service efficiency and reduce operational costs. As the market continues to grow, manufacturers are likely to continue to invest in research and development and cooperate with other companies to address the demands of high-rise real estate requirements.

For instance, in December 2024, PT. Fuji Elevator Indonesia officially renewed its cooperation agreement with its long-term partner in Indonesia, marking a continued deepening of their collaboration and joint exploration of the vast potential of the Indonesian elevator market. Fuji Elevator will continue to promote the popularization of high-quality "seamless operation" elevators globally, bringing unprecedented elevator experiences to more users. The elevator and escalator market will continue to experience growth as it evolves to suit the needs of modern infrastructure and urban living.

Growing Commercial Segment in the region

The growing commercial market bolsters the demand, driven by the growing construction of offices, retail establishments, and hotels. This segment is growing significantly due to significant infrastructural investments and demand for efficient vertical transportation in high-rise buildings in Indonesia. Building owners are focusing on energy efficiency and optimizing the traffic flow of residents, and therefore, smart elevators are in huge demand. Moreover, ongoing projects of offices, shopping malls, railways, and airports, across the country further stimulate this demand in the market. With increasing modernization requirements in new commercial development, the elevator and escalator market is expected to maintain its growth trajectory.

For instance, in February 2024, the PT Citas Otis Elevator undertook the comprehensive modernization of 10 elevators at the Hotel Borobudur Jakarta. Otis will install Gen2 units selected to further enhance the "artistic ambiance" of the Borobudur Hotel with custom materials, lighting, and accessories within the cabin. The historic five-star hotel features unique design elements that are deeply rooted in Indonesian culture.

New Infrastructure and Buildings Construction Drives the Market

The elevators and escalators market in Indonesia is experiencing significant growth, driven predominantly by new infrastructure and the construction of buildings. This growth is fueled by rapid urbanization and increasing investment in residential and commercial properties through city expansion and development. High-rise buildings require efficient vertical transport, delivered by the latest innovations in elevator technology, including elevator destination control, intelligent elevator dispatch, energy-efficient elevator systems, AI-powered predictive elevator maintenance, and high-speed elevators making elevators the most demanding building systems. Additionally, significant government funding for infrastructure projects, such as airports and metro stations, enhances the need for these systems. Smart city initiatives and shifting of cities further promote modern vertical transport solutions, stimulating market demand.

For instance, in February 2024, PT. Mitsubishi Jaya Elevator and Escalator (MJEE) secured a major order to supply 33 elevators and 22 escalators units, for the Indonesia new capital relocation project. This order is for elevators and escalators for key government facilities such as the Presidential Palace and the Executive Office of the President, which are under construction in Nusantara, the new capital.

Elevators Segment Dominate the Market

The elevator segment dominates the market, supported by technological advancements and increasing infrastructure projects worldwide. Manufacturers are introducing new models with features such as smartness, energy efficiency, and enhanced safety features, to align with the rising demand of the urban population. Rapid urbanization and high-rise building construction need modern vertical transportation solutions, hence fueling the demand further. The government's smart city projects and transportation hubs have also been an initiative to improve the public infrastructure, thereby creating a good environment for new installations. The growth of cities and the requirement for efficient mobility solutions are in direct proportion, and the installation of advanced elevators is pivotal in meeting those demands, thereby driving market growth and enhancing user experience in residential and commercial premises.

For instance, in June 2024, the Indonesian government began constructing a glass elevator and a viewing platform at the iconic viewpoint above the famous Kelingking 'T-Rex' beach on the island of Nusa Penida, Bali. The country's Tourism and Creative Economy Ministry announced the project in 2023. The glass lift on Kelingking Beach will be a tourism innovation in Indonesia. The elevator is set to replace an incredibly steep and dangerous walkway, which has seen countless injuries over the last few years.

Western Indonesia Leads the Market

Western Indonesia is leading the elevator and escalator market, owing to the rapid urbanization and fast-paced infrastructure development in key cities like Jakarta and Surabaya. The high-rise building and commercial spaces construction activity has been accelerated in this region, which created a demand for efficient vertical transportation. The initiatives of the government to establish Metro transits to enhance mobility in the city, support the growth of the escalators and elevators. In this region, competition will ensure innovation so that the latest technologies are available to meet the growing needs of the urban population. As the economy of Western Indonesia develops further, it is expected to emerge as a strategic position in the elevator and escalator market and will continue to strengthen and remain at the top of the industry.

For instance, in July 2024, PT Citas Otis Elevator was selected for an elevator and escalator replacement and modernization project. Otis will modernize 39 units at the mall, including replacing 25 escalators and 8 elevators and modernizing six escalators. To provide a smoother, quieter, and more comfortable ride, the existing machine belts in several elevators will be replaced with Otis' Gen2 patented polyurethane-coated steel flat belts that significantly decrease vibration. PT Citas Otis Elevator will modernize 39 units, including replacing 25 escalators and eight elevators and modernizing six escalators of Millennium Mall.

Future Market Scenario (2025 - 2032F)

The elevator and escalator market is expected to benefit from ongoing urbanization, with a significant increase in high-rise buildings and infrastructure projects, particularly in emerging economies.

Innovations such as smart elevators and energy-efficient systems will drive demand, as consumers increasingly seek solutions that enhance safety, efficiency, and sustainability in vertical transportation.

The development of smart cities will create new opportunities for the elevator and escalator market, integrating advanced vertical transportation systems into comprehensive urban planning to improve mobility.

As older infrastructure requires upgrades to meet regulatory standards and modern expectations, the maintenance and modernization segment is projected to grow significantly, providing a steady revenue stream for manufacturers of elevators.

Key Players Landscape and Outlook

The competitive landscape of the elevator and escalator market is characterized by a mix of established global players and emerging companies, creating a dynamic environment. Major companies such as Otis, Schindler, Kone, ThyssenKrupp, and Hitachi dominate the market, leveraging their extensive experience and technological innovations to maintain leadership positions. These firms are focusing on enhancing product offerings through smart technology integration, energy-efficient systems, and advanced safety features to meet the evolving demands of urbanization and infrastructure development. Instance, strategic partnerships and local acquisitions allow global players to penetrate regional markets effectively. Additionally, the increasing emphasis on sustainability is pushing manufacturers to develop eco-friendly products that comply with green building standards. The competitive landscape will likely continue to shift as companies adapt to changing market dynamics, technological advancements, and consumer preferences in vertical transportation solutions.

For instance, in December 2024, PT Fujitec Indonesia, a group company of Fujitec Co., Ltd., delivered 19 modernized elevators to the 48-story Wisma 46 office building in central Jakarta. Wisma 46's elevators are Fujitec Indonesia's first to include the EZSHUTTLE destination-dispatch system, which automatically assigns elevator cars to passengers based on their destination floors. Shaped like a fountain pen, Wisma 46 is one of Jakarta's most iconic office buildings.