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

Malaysia elevator and escalator market is projected to witness a CAGR of 6.12% during the forecast period 2025-2032, growing from USD 700.67 million in 2024 to USD 1126.92 million in 2032. The market is well poised for growth due to rapid urbanization and development in infrastructures. With the population migrating to urban cities, the demand for high-rise housing and commercial buildings is growing immensely, coupled with increasing demand for efficient vertical transportation solutions. Elevators and escalators are considered integral components of modern architecture, enhancing accessibility and convenience in densely populated environments. Technological advancements are a key factor in this market's expansion. Innovations such as energy-efficient systems, IoT integration, and smart features improve elevators' performance, safety, and user experience. Such advancements attract developers and meet the demand of tech-savvy consumers seeking modern amenities in their living and working spaces. The government's efforts to create a smart city concept and public infrastructures enhance the demand for such solutions. Moreover, the increased use of environmentally friendly elevator and escalator technologies with a focus on sustainability in the construction sector led the elevator and escalator companies to launch new generation products in Malaysia.

For instance, in August 2024, Otis Elevator Company(M) Sdn. Bhd. unveiled its Gen3-connected elevator. Gen3 elevator is built on the proven design and flat-belt technology of Otis' best-selling Gen2 family of elevators, the Gen3 elevator is embedded with machine room and machine room-less options to accommodate a wide range of building uses, including residential and commercial.

Government Support Fuels the Demand in the Region

Government support is crucial in fueling the demand for escalators in Malaysia. With rapid urbanization and a growing population, the government actively invests in large-scale infrastructure projects, enhancing urban development. Initiatives under smart city developments and modern transportation systems significantly increase the demand for smart and innovative elevators and escalators in residential and commercial buildings, as these require reliable systems for easier accessibility. Additionally, financial incentives and subsidies encourage the adoption of advanced technologies in construction, promoting efficient vertical transportation solutions. Consequently, the government of Malaysia is investing in improving public infrastructure on tourism sites to avoid accidents in Malaysia caused by poor infrastructure.

For instance, in January 2024, the Malaysian government announced the installation of an escalator at the famous Batu Caves as an alternative for those unwilling to climb the 272 steps to the top of the main shrine. The government assistance allows the disabled and elderly to climb the steps to reach the main temple.

Growing Residential Real Estate Construction Drives the Growth of the Market

Residential real estate construction is also playing a crucial role in the Malaysia elevator and escalator market. With increasing urbanization, the demand for housing is massive, primarily high-rise buildings. Investment by the government in infrastructure projects increases this demand, as more residential units are constructed to accommodate the increasing population. Developers are incorporating modern vertical transportation solutions to meet the needs of urban living, ensuring convenience and accessibility. The trend toward mixed-use developments involves residential, retail, and office spaces, further fueling the demand for escalators and elevators. The correlation of growing demand between residential construction and vertical transportation solutions such as elevators further emphasizes the significance of elevators and escalators in enhancing living standards within Malaysia's emerging urban landscape.

For instance, in January 2025, Nibav Lifts Sdn. Bhd., a prominent name in the home elevator industry, announced the launch of its premium home lift range in Malaysia. Up to date with modern living, these home lifts combine the latest technology, exquisite design, and green functionality, offering Malaysian homeowners a sophisticated solution for vertical transport. First-of-its-kind, the newly launched home lifts are meeting the increased demand for compact, eco-friendly, and aesthetically pleasing elevators, making them a genial addition to many modern and traditional homes nationwide.

Elevator Segment Dominates the Market

The elevator segment dominates the Malaysia elevator and escalator market, with the highest demand due to the migration of citizens from rural to urban areas and the growing need for high-rise buildings to accommodate them. The government initiatives for infrastructure development and technological advancements by companies are attracting more developers and customers to use energy-efficient elevators embedded with smart features. This sector is developing rapidly due to the expanding residential sector as modern elevators become a part of newly constructed housing estates to meet the expectations of tech-savvy house owners and old-age citizens for easier vertical transportation. As cities continue to expand and grow, the need for vertical transportation efficiency solutions becomes crucial. This led to an upward trend in the installation of elevators by the companies operating in the market.

For instance, in June 2022, TK Elevator Malaysia Sdn. Bhd. launched its building operations platform MAX in Malaysia. The company says MAX brings cloud-based maintenance data and insights to building operations, creating additional value for building owners, property managers, and leading information personnel by offering improved streamlined operations and increased availability of vertical mobility systems.

Central Malaysia Leads the Market

Central Malaysia leads the elevators and escalators market, acquiring a major market share owing to rapid urbanization, as the significant population lives in urban areas of central Malaysia, while considerable infrastructure development occurs, especially in high-rise buildings. The market is expected to grow steadily over the next years and will be sufficiently valued because of strong demand. Technological advancements, including smart systems and IoT integration, improve safety and efficiency, further fueling the demand for elevators and escalators in central Malaysia. Major players in this industry are the large companies holding a significant share of the market and are installing, supplying, and manufacturing elevators for high-rise buildings in this region.

For instance, in December 2024, Otis Elevator Company(M) Sdn. Bhd., the world's leading elevator and escalator manufacturing, installation, and service company, will install seven Otis SkyRise and three Otis Arise elevators for the Chin Hin Group Property Dawn KLCC mixed-used building. Rising to an impressive 68 stories, Dawn KLCC stands near iconic landmarks such as the Petronas Twin Towers, Saloma Bridge, and Public Bank Tower. Scheduled for completion in 2029, this architectural marvel will feature lifestyle suites, luxury serviced residences, and a vibrant sky bar, offering breathtaking panoramic views of Kuala Lumpur city center.

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.

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.

Ongoing government investments in public infrastructure are expected to bolster market growth, creating opportunities for new installations and modernization of existing systems.

Supportive government policies aimed at modernizing urban infrastructure will create opportunities for market expansion, encouraging investments in advanced vertical transportation systems across the country.

Key Players Landscape and Outlook

The competitive landscape of the Malaysia elevator and escalator market is characterized by the presence of several key players. Prominent vendors include Schindler, TK Elevator, KONE, and Mitsubishi Electric, which command a significant market share. These companies leverage advanced technologies to enhance their product offerings, focusing on energy efficiency and smart systems that incorporate IoT for improved performance. Other notable competitors include Otis, Hitachi, and Fujitec, all of which contribute to a dynamic market environment. Each player is actively pursuing innovation and strategic partnerships to expand their reach and enhance service capabilities. The emphasis on sustainability and green building initiatives further intensifies competition as companies strive to meet evolving consumer demands and regulatory standards. This competitive landscape is expected to evolve as urbanization continues to drive demand for vertical transportation solutions across Malaysia's rapidly developing infrastructure.