OTIS has expressed an optimistic outlook on the growing elevator market in Thailand, thanks to the Kingdom’s rapid urbanisation and government spending on new infrastructure projects.
As urbanisation drives the increased need for housing, the elevator industry expects to play an important role in supporting that growth. It will fuel the need for smart and efficient technologies to support urban growth.
“In Thailand, coupled with rapid urbanisation, there is a ramp up of public investment through a roll-out of new infrastructure projects, mostly related to enhancing urban transportation. There is also an increasing trend for mixed-use development,” said Ryan Mai, president of Otis Elevator – South Asia Pacific region.
Mai is responsible for operations in the India sub-continent, Asean, Australia and New Zealand. He is also a member of the Otis executive committee.
He said that the demographic and urbanisation changes such as a growing middle-class would continue to provide the impetus for growth.
“Governments in the region have also embarked on serious efforts to improve their growth potential by pushing ahead with structural reform, infrastructure development, and raising productivity,” Mai said.
“While this will take time to bear fruit, it presents great opportunities for growth. That said, the external environment remains a complex confluence of cyclical and structural forces that is often beyond our control. What we can, and will always, do is strengthen our robustness by keeping ourselves flexible and nimble.”
He said that the trend of urbanisation was making cities denser, with more high-rise residential and commercial buildings. This was very relevant for Otis as a major factor fuelling the demand for vertical transportation.
According to a United Nations world urbanisation report, 54 per cent of the world’s population lived in urban areas in 2016. By 2030, urban areas are projected to house 60 per cent of people globally, and one in every three people will live in cities with at least half a million inhabitants.
The research also notes that of the world’s 31 megacities – those with 10 million inhabitants or more – in 2016, 24 were located in the less developed regions or the “global South”.
The 10 cities that are expected to become megacities between 2016 and 2030 are Bangkok, Lahore (Pakistan), Hyderabad (India), Bogota (Colombia), Johannesburg (South Africa), Dar es Salaam (Tanzania), Ahmanabad (India), Luanda (Angola), Ho Chi Minh City (Viet Nam) and Chengdu (China).
“We believe that all of the segment fundamentals are in place to present opportunities for growth in the years to come. We will continue to work with our business partners – owners, developers, building managers – for sustainable growth,” said Mai.
He said the company was proud of its history and partnerships in Thailand, which began in 1959.
Projects included the Mandarin Oriental, Montien, Royal Cliff and Dusit Thani hotels, as well as the State Railway of Thailand’s Red Line project (115 escalators and 68 lifts) and the Langsuan Village project (54 lifts).
Otis has also been selected for the Bang Sue Grand Station, where close to 200 units would be installed, he said.
“We are committed to growing our presence in Thailand by bringing our global products and services to support continued urbanisation for example Otis’ flagship technology – the Gen2 – caters well to the need for vertical transportation that is sustainable and smart,” said Mai.