The elevator and escalator market size was valued at USD 75.3 billion in 2018 and is forecasted to reach USD 107 billion by 2024, growing with a CAGR of 6% during 2019-2024.
The global elevator and escalator market is evolving due to the changing dynamics of the global construction industry. Advancements in vertical transportation have transformed the construction sector, enabling the growth of high-rise buildings. This has fueled the need to install escalators and elevators on-premises. Currently, the global market is moving toward smart solutions. The increasing penetration of IoT in government, commercial, residential, and industrial sectors positively impacts the emerging ecosystem of next-generation escalators and elevators, thereby increasing revenues opportunities for vendors. Prominent manufacturers are integrating smart digital assistants capable of detecting, analyzing, and warning during contingencies. In 2017, ThyssenKrupp introduced a new breed of the elevator that used the power of magnetic levitation. The new technology increased the shaft height to 2,717 feet from 1,600 feet offered by traditional systems. This technology significantly reduces moving parts and components in elevators, escalators, and moving walkways, thereby reducing maintenance and modernization costs.
Further, magnetic levitation is seen as the future of escalators as they allow for both horizontal and vertical movements. Moreover, elevators would be free to move at any angle, thereby offering building engineers flexibility and versatility in building design.
IoT-enabled elevators offer improved performance with power optimization.
Smart elevators are transforming the way they run between floors. They improve the quality of rides. Further, IoT-enabled products have improved performance and offer continuous monitoring, which helps in power optimization. These machines gather data related to critical safety circuits, load weighing, number of trips, number of door cycles, wait times, traffic trends, ride analysis (acceleration and deceleration, jerk, bumps, vibration), and harmonic analysis (the harmonics of the machine, suspension members and guiding members). The insights gained from these data points help vendors to offer better aftersales service.
In addition, the global elevator and escalator market is witnessing the rise of connected technology throughout the manufacturing and distribution value chain, and industry 4.0 is affecting the market worldwide. Industry 4.0 uses the latest technology such as Artificial Intelligence (AI), radio-frequency identification (RFID) technology, and the Internet of Things (IoT). Industry 4.0 has transformed product design, planning, supply chain, and production through the concept of connected systems. It has advantages such as real-time networking of industrial processes, cost-effective customization, and streamlined coordination between human labor and machines. The application of IoT and the rise of smart buildings are expected to drive the global smart elevator and escalator market.
ELEVATOR AND ESCALATOR MARKET SEGMENTATION
This market research report includes a detailed segmentation of the global elevator and escalator market by
INSIGHTS BY PRODUCT
The maintenance segment is expected to grow at a CAGR of around 8% during the forecast period.
The growth of the construction and vertical construction industry is expected to boost the elevator and escalator market during the forecast period. Maintenance is the largest segment, expected to grow at a CAGR of around 8% during the forecast period. The maintenance market is proliferating due to the increased installed base and the need for safety and reliability. Regular maintenance helps to improve escalator safety and security, reduce the risk of accidents and mishaps, decrease significant repair costs, and lower equipment downtime. For instance, Gatwick London offered Otis, UK, a five-year maintenance contract for 340 escalators and moving walkways in the UK’s second-largest airport in February 2019.
The escalators and elevators are the second-largest markets of the segment. Increasing urbanization, affordable housing, real-estate reforms, growing infrastructure projects, and the growing trend of high-rise buildings are the key market growth enablers, especially in developing countries. To leverage market opportunities, vendors have strengthened their aftersales services and established their manufacturing units to bank on low labor costs. These measures are likely to decrease operational costs and increase profit margins for vendors. For instance, an elevator manufacturer KONE announced establishing its manufacturing plant in Chennai, which is expected to be operational by 2019. The plant is likely to manufacture 200-250 products per day.
INSIGHTS BY END-USER
Subsidized Government housing schemes and the increasing popularity of high-rise buildings facilitate the growth of the residential construction market.
Commercial, industrial, residential, and government are the prominent end-users in the global elevator and escalator market. The commercial sector dominated the market and is expected to grow at a CAGR of 6% during the forecast period. Stringent safety norms and building codes enforced by regulatory bodies globally have positively impacted the market. The hotel industry is one of the most crucial revenue generators, as it drives demand for premium and customizable products.
The residential sector is the second largest adopter of escalators and is highly influenced by the rise in the construction of residential, high-rise buildings, apartments, and housing projects. Growing urbanization, subsidized government housing schemes, and the increasing popularity of high-rise buildings are also aiding the growth of the residential construction market.
INSIGHTS BY GEOGRAPHY
APAC to emerge as the largest market by 2024
The global elevator and escalator market is segmented into APAC, Europe, MEA, North America, and Latin America. The market is highly influenced by the growth of the construction sector, stability in the economic environment and high penetration of IoT, and the prevalence of stringent safety regulations across the world. APAC dominated the global market and captured nearly half of the market in 2018. In APAC, China, India, and Japan were the major revenue contributors to the market.
Europe is the second-largest revenue generator in the global market. The market is driven by robust economic development in the region, growth in the construction industry, and the increasing penetration of IoT in consumer sectors. Europe hosts some of the largest retail economies in the world. The growth of online retail shopping centers also plays a vital role in developing the global elevator and escalator market.
INSIGHTS BY VENDORS
The elevator and escalator market has a diverse structure since each geography has its competitive dynamics and intensity of competition. The APAC market can be the most competitive due to its high product reach and increasing market demand. It is expected to witness healthy growth during the forecast period due to the increased adoption of elevators, escalators, and moving walkways worldwide. The report profiles leading players in the market and provides a value chain analysis of the global elevator and escalator market.
- Otis Elevators
The Elevator and Escalator market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
Segmentation by Product
- Elevators and escalators
- North America
- Latin America
- Middle East & Africa
- South Africa
- Saudi Arabia