Elevator market soars as domestic companies gain ground

Elevators have become essential accessories in modern buildings in Bangladesh, and high-rise structures are unimaginable without lifts. 

Lifts are now being used in even three and four-storey buildings, leading to an increase in their use across the country. Consequently, the elevator market is also growing.

According to industry experts, the housing sector is expanding nationwide due to the rising number of middle and upper-class families and rapid urbanisation. Particularly, in recent years, the construction of modern high-rise residential and commercial buildings has significantly increased.

As a result, there is a huge demand for elevators in the country. In addition to imports, local companies are also investing in this sector.

Experts say that 6,000-6,500 units of elevators are sold annually in the country, with a market value of about Tk1,500 crore. Over the past few years, the elevator market has grown at a rate of 10-15% annually.

However, the country's major lift market is still Dhaka-centric. About 45% of lifts are sold in Dhaka and surrounding areas, while 20% are sold in the Chattogram region. Besides, Cox's Bazar, Sylhet, Khulna, and Rajshahi also have significant markets for elevators.

Although a major part of the elevator market still relies on imports, two domestic companies, Walton and Pran-RFL Group, are currently manufacturing and marketing elevators. With the entry of these domestic companies, the local market is establishing a strong base in the lift industry.

"We have 70 to 80 members in our association. However, around 150 to 200 companies are selling lifts and elevators in the country. Only 20 to 25 of them import lifts and escalators," said Muhammad Zakirul Huque, director of the Bangladesh Elevator Escalator and Lift Importer Association (BEELIA). 

He stated that five years ago, 100% of the country's elevator needs were met by imported products. However, this scenario has evolved dramatically, with the share of imports now having reduced to 70-75%. This reduction is primarily due to the emergence of local companies that have started manufacturing elevators, contributing to the nation's self-reliance in this sector.

"The changing dynamics in the elevator industry, marked by the rise of local manufacturing, are reshaping the market and driving increased demand. This shift not only strengthens the country's self-reliance but also opens up new avenues for growth and development in the sector," Huque added.
 
Local companies' share increasing, import dependence decreasing

Five years ago, 2,500-3,000 units of elevators were imported annually. KONE, ThyssenKrupp, Sigma, Schindler, Otis, Macpursa, SRH, Hyundai, Mitsubishi, and Fuji used to market elevators in the country. They primarily imported and sold elevators from China, Korea, the US, and

European countries. Pran-RFL Group marketed under its own brand name, Property Lift, through imports.

In 2018, when Walton started manufacturing elevators domestically for the first time, the market scenario began to change. At present, 25-30% of the elevator demand in the country is met by local manufacturing.

Currently, Walton company manufactures elevators with capacities ranging from 300kg to 5,000kg. Walton has an annual production capacity of 1,000 units of elevators.

Jenan Ul Islam, executive director and chief business officer of Walton Lift, said, "We started working with lifts in 2014. We completed the setup with all the latest machinery and top technology from around the world and developed our own R&D. Finally, commercial production started in 2018."

He mentioned that keeping in mind the safety of customers, about 15 safety devices have been added to Walton's elevators. Additionally, there are after-sales service opportunities available across the country.

Pran-RFL Group has been importing elevators for more than three decades. They set up an elevator assembly and manufacturing plant in 2020. Currently, Pran-RFL Group is marketing their lifts under the brand name "Property Lift." Company officials stated that they are making advanced technology elevators according to customer needs.

However, more than two hundred companies still import elevators into the country, according to industry sources. Nevertheless, the number of companies providing elevator import, marketing, and after-sales service in compliance with all regulations is not more than 10.

In addition, some local companies are making and selling elevators by adding equipment to various workshops in the country. Businessmen say that as infrastructure development, especially the construction of large buildings, continues in the country, the use of elevators will also increase.

Price and quality  

There are various types of elevators available on the market today, including passenger, cargo, hydraulic car lifts, scissor, home, hospital, and capsule-type lifts. These elevators are used in homes, multi-storey shopping malls, hospitals, and industries. Domestic manufacturing companies are currently producing all types of elevators.

In the country, elevators are available for approximately Tk10-15 lakh to Tk1 crore. However, the price also varies depending on the specifications. For example, a Walton 630kg lift for a 10-storey building costs Tk25-26 lakh. The price of domestically produced elevators is Tk3-4 lakh less than imported elevators.

However, many local companies are supplying elevators without ensuring proper standards, said industry stakeholders.

Jenan Ul Islam emphasised that safety and after-sales service are the most important factors when buying an elevator. Currently, many elevator companies in the country are selling elevators at low prices without safety devices or after-sales services. As a result, there is a risk of accidents due to these non-standard lifts.

Future prospects

According to data from Fortune Business Insights, the global market for elevators was worth $83.86 billion in 2022. This market is estimated to grow to $132.08 billion by 2030, with an average annual growth rate of more than 7%. In contrast, the growth rate in Bangladesh is over 10%.

Sector stakeholders say the elevator market will gain more momentum when the Purbachal housing project in Dhaka and the construction of industries in various economic regions of the country commence. 

Additionally, following the construction of the Padma Bridge, various housing projects and multi-storey buildings have started in the Barishal and Khulna regions. As a result, the elevator market is expected to expand in these two regions in the near future. They believe that the elevator market could surpass Tk3,000 crore in the next decade.

RN Paul, managing director of RFL Group, said, driven by rapid urbanisation and the growth of high-rise buildings, the future of the lift industry in Bangladesh looks very promising.

"For Property Lifts, we plan to continue expanding our manufacturing capabilities, investing in R&D to introduce more innovative products, and enhancing our service offerings. We aim to be the leading lift supplier not only in Bangladesh but also in the international markets," he added.