Indonesia Elevator and Escalator Market Forecast Report 2025-2030: Integration of AI to Unlock Future Opportunities, Sustainable Construction Practices to Be a Major Demand Driver
Research and Markets
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Schindler, TK Elevators, Otis, KONE, and Mitsubishi Electric are the top manufacturers in the Indonesian elevator and escalator market. 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.
The Indonesia Elevator and Escalator Market was valued at 10,257 Units in 2024, and is projected to reach 12,886 Units by 2030, rising at a CAGR of 3.88%. The modernization marketfor elevators and escalators in Indonesia is projected to reachUSD 231.8 million by 2029.
TheIndonesia elevators marketis projected to reach aninstalled base of 152 thousand units by 2030. In 2024,residential sector elevatorsheld the largest market share, despite challenges from low purchasing power caused by high interest rates. A recovery is expected in 2025, supported bygovernment expenditureon the development of theNusantara Capital City. Themachine room-less traction segmentled the market due to its strong popularity.
TheIndonesia escalators marketis expected to reach aninstalled base of 25 thousand units by 2030. In 2024,commercial buildingsaccounted for the largest share, driven by a growing pipeline ofcommercial and mixed-use projects. Theparallel escalators segmentheld the largest share, reflecting the high preference for commercial escalator solutions.
MARKET DRIVERS & OPPORTUNITIES
Integration of Artificial Intelligence (AI) Expected to Unlock Future Opportunities in the Indonesia Elevator and Escalator Market
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.
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
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.
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
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.
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
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.
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
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.
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
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.
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.
KEY QUESTIONS ANSWERED
What is the number of installed bases in the Indonesia elevator and escalator market in 2024?
What will be the growth rate of the Indonesia elevator and escalator market?
How big is the Indonesia elevator and escalator market?
What are the key opportunities in the Indonesia elevator and escalator industry?
What are the key Indonesia elevator and escalator market players?
Key Attributes:
Report Attribute
Details
No. of Pages
115
Forecast Period
2024 - 2030
Estimated Market Value in 2024
10257 Units
Forecasted Market Value by 2030
12886 Units
Compound Annual Growth Rate
3.8%
Regions Covered
Indonesia
Elevators Market in Indonesia
Market Overview
Growth in Sky-Scrappers
Key Infrastructure Projects Under Construction
Product Life Cycle of Elevators (Age of Elevators)
Elevators Market Size: New Installation & Installed Base
Market Segmentation: Elevators
Machine
Carriage Type
Capacity
End-users
Escalator Market in Indonesia Elevators Market Size: New Installation & Installed Base
Market Segmentation: Escalator
Product
End-user
VENDOR LANDSCAPE
Key Vendors
Otis
KONE
TK Elevator
Schindler
Mitsubishi Electric
Hitachi
Hyundai Elevator
Fujitec
Other Prominent Vendors
Toshiba Elevator and Building Systems Corporation (TELC)
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