The global elevators and escalators market research report covers market sizing and forecast, market share, industry trends, growth drivers, and vendor analysis. The market study includes insights on market segmentation by product (elevators and escalators, modernization, and maintenance), end-user (commercial, industrial, residential, and government), and geography (APAC, Europe, North America, Latin America, and MEA).
Stringent safety regulations and growth in construction activities worldwide to drive the escalators and elevators market
The global elevators and escalators 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 elevators and escalators in premises. Currently, the global market is moving toward smart solutions. The increasing penetration of IoT in government, commercial, residential, and industrial sectors has a positive impact on the emerging ecosystem of next-generation elevators and escalators, thereby increasing revenues opportunities for vendors. Prominent manufacturers are integrating smart digital assistants that are capable of detecting, analyzing, and warning during contingencies. In 2017, ThyssenKrupp introduced a new breed of elevators 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 is significantly reducing moving parts and components in elevators, escalators, and moving walkways, thereby reducing both maintenance and modernization costs.
Further, magnetic levitation is seen as the future of elevators and 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. The global elevators and escalators market is expected to reach over $107 billion by 2024, growing at a CAGR of around 6% during 2018–2024. The research report also offers market share in million units.
IoT-enabled elevators offer improved performance with power optimization
Smart elevators are transforming the way elevators run between floors. Smart elevators improve the quality of rides. Further, IoT-enabled elevators have improved performance and offer continuous monitoring, which helps in power optimization. These elevators 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 elevators and escalators 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 Artifical Intelligence (AI), radio-frequency identification (RFID) technology, and Internet of Things (IoT). Industry 4.0 has transformed product design, planning, supply chain, and production through the concept of connected systems. It has an array of 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 elevators and escalators market.
This market research report includes a detailed segmentation of the global elevators and escalators market by product, end-user, and geography.
Elevators and Escalators Market: Product
The maintenance segment is expected to grow at a CAGR of around 8% during the forecast period
The global elevators and escalators market by products is classified into elevators and escalators, modernization, and maintenance. The growth of the construction and vertical construction industry is expected to boost the market during the forecast period. Maintenance is the largest segment, which is expected to grow at a CAGR of around 8% during the forecast period. The maintenance market is growing rapidly due to an increase in the installed base and the need for safety and reliability. Regular maintenance helps to improve the safety and security, reduce the risk of accidents and mishaps, decrease major repair cost, and lower equipment downtime. For instance, Gatwick London offered Otis, UK a five-year maintenance contract for 340 elevators, escalators, and moving walkways in the UK’s second largest airport in February 2019.
The elevators and escalators is the second largest market of the segment. Increasing urbanization, affordable housing and real-estate reforms, growing infrastructure projects, and increasing trend of high-rise buildings are the key growth enablers of the market, especially in developing countries. To leverage on 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, KONE announced to establish its elevator manufacturing plant in Chennai, which is expected to be operational by 2019. The plant is likely to manufacture 200–250 elevators per day.
Elevators and Escalators Market: End-user
Subsidized Government housing schemes and increasing popularity of high-rise buildings are facilitating growth of the residential construction market
Commercial, industrial, residential, and government are the prominent end-users in the global elevators and escalators market. The commercial sector dominated the market and is expected to grow at a CAGR of 6% during the forecast period. The presence of stringent safety norms and building codes enforced by regulatory bodies globally has positively impacted the market. The hotel industry is one of the most crucial revenue generators, as it drives demand for premium and customizable elevators and escalators.
The residential sector is the second largest adopter of escalators and elevators and is highly influenced by the rise in 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.
Elevators and Escalators Market: Geography
APAC to emerge the largest elevators and escalators market by 2024
In terms of geography, the global elevators and escalators 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 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 the development of the global elevators and escalators market.
Key Countries Profiled:
Key Vendor Analysis
The elevators and escalators market has a diverse structure since each of the geographies has its competitive dynamics and intensity of competition. The APAC market can be termed as the most competitive due to its high product reach and increasing market demand. It is expected that the market to witness healthy growth during the forecast period due to the high 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 elevators and escalators market.
Other prominent vendors are Mitsubishi Electric, Hitachi, Fujitec, Toshiba, Hyundai Elevator, SJEC, Electra Lift, Savaria, Lift-ok.com, Johnson, Orbis Elevator, Kleemann, GTS Elevator, ORONA, Omega Elevators, Fuji Elevators, GEEC (Gulf Elevators & Escalators Company), Sodimas, and L.T. Elevator.
Key Market Insights
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