UAE Elevator and Escalator Market - Size & Growth Forecast 2024-2029

MARKET OUTLOOK

The UAE elevator and escalator market size by new installations accounted for 9.6 thousand units in 2023 and is expected to reach 12.8 thousand units by 2029, growing at a CAGR of 4.91% during the forecast period. The Abu Dhabi Smart City Summit (ADSCS) launched its third edition under the theme "Smart Cities for a Sustainable World," organized by the Department of Municipalities and Transport (DMT). Key highlights include partnerships with major city service and technology providers like e& and Huawei to enhance smart city projects and implement AI solutions. The summit also featured the signing of Memorandums of Understanding (MoUs) between DMT and entities like Huawei and Etisalat. Significant projects presented include the Smart City Platform, smart parks with IoT devices, and Hala Wi-Fi, aiming to strengthen UAE's digital infrastructure and provide extensive public Wi-Fi coverage. These partnerships will boost the digital connectivity in elevators installed in the UAE. Further, the growth in skyscrapers, infrastructure, and foreign investment will be a long-term demand driver for the UAE elevator and escalator market.

KEY HIGHLIGHTS

• In 2023, according to the Council of Tall Buildings and Urban Habitat, 175 buildings of 200m and higher were completed, and a 7.4% increase was witnessed over 2018. In the UAE, 11 buildings of 200m and higher were completed in 2023, making it the second largest after China. The construction of tall buildings will boost the demand for elevators in the UAE.
• In an unprecedented move, RAKEZ has partnered with the British Chamber of Commerce Dubai (BCCD), marking a Memorandum of Understanding (MoU) signing. This agreement outlines a collaborative effort to support British investors in Ras Al Khaimah and facilitate their entry into the emirate. This initiative is poised to enhance business activities and promote international connectivity between Ras Al Khaimah and the UK, benefiting the wider region.
• ZāZEN Properties, a leading sustainable property developer in the UAE, reports that 40,000 permits were issued for sustainable buildings in 2022. Their flagship project, ZāZEN One, and the latest development, ZāZEN Gardens, contribute to the UAE's environmentally-focused efforts through LEED Gold certification and Well-Being Integration.
• In the UAE, initiatives like the government's "Operation 300bn" strategy aspire to elevate the industrial sector's GDP contribution to AED 300 billion (US $81.7 billion) by 2031. Embracing technologies like artificial intelligence is a key focus to drive the industrial sector's advancement, and demand for industrial elevators also rises.
• The Abu Dhabi government's decision to reduce tourism and municipality fees in its hotels signifies a significant milestone for the emirate's economy. These proactive measures are expected to attract more tourists, stimulate the tourism industry's growth, and position Abu Dhabi as a leading global leisure and travel hub.

Rising Number of Skyscrapers and Sheikh Zayed Housing Program to Hike the UAE Elevator and Escalator Market Growth

• In 2023, the Council of Tall Buildings and Urban Habitat reported a 7.4% increase in the completion of buildings exceeding 200 meters, totaling 175 globally. 11 such buildings were completed in the UAE, positioning it as the second-largest contributor after China. Dubai is currently constructing The Tower in Dubai Creek Harbor, set to surpass the height of the Burj Khalifa at 2,700 feet (828 meters) and costing over USD 1 billion.
• Dubai has introduced a five-year multiple-entry visa to enhance travel between India and the UAE, facilitating economic partnerships and promoting tourism. The visa allows a 90-day stay, extendable once, within a total period not exceeding 180 days in a year, offering flexibility for business and leisure travelers. This initiative aims to bolster tourism, strengthen bilateral ties, and capitalize on the significant visitation from India in 2023, contributing to Dubai's tourism sector growth.
• The Sheikh Zayed Housing Program stated that the program provided 4,334 housing grants, with the approvals being 1,025 grants and 3,309 housing loans and funding at over AED 3.338 billion (USD 0.9 billion) in 2023. Also, 801 government houses were allocated among residential compounds in Dubai, Sharjah, Ajman, and Ras Al Khaimah in 2023.

The Twin City Agreement, UAE Tourism Strategy 2031 to Boost the Demand for New Installations

• In February 2024, Abu Dhabi and Shenzhen, China, established a significant partnership by signing a 'Twin City' agreement. Supported by a Memorandum of Understanding (MoU) signed by the Chairman of the Department of Municipalities and Transport (DMT) of Abu Dhabi and the Mayor of Shenzhen, the agreement was announced during the inaugural 'Abu Dhabi x Shenzhen Innovation Forum' (ADSZIF) held in Shenzhen from January 25 to 26, 2024.
• The UAE Tourism Strategy 2031 is categorized as one of the major initiatives within the 'Projects of the 50' framework, which outlines significant projects for the upcoming years. This strategy encompasses 25 initiatives and policies to foster the growth and advancement of the UAE's tourism sector and support the UAE elevator and escalator market.
• One of the under-construction commercial projects in Abu Dhabi is Masdar City, which has a projected value of USD 22,000 million and is supposed to be completed by 2025.

Elevators Reaching Their Average Life Expectancy Mainly in High-Rise Apartment Buildings to Create Demand for Maintenance of Elevators in the UAE Elevator and Escalator Market

• Otis has introduced its enhanced ‘Signature Service’ offering in the UAE. Signature Service includes new digital technologies with the company’s legacy of special care for its customers’ people-moving equipment.
• The long-term growth potential of the UAE elevator and escalator market's modernization market is driven by a digital economy approach that integrates emerging technologies like artificial intelligence and cybersecurity and supports SME digitization.
• The UAE Ministry of Infrastructure Development intends to adopt the latest infrastructure development technologies according to the highest standards while renovating its building construction standards. Several projects enabled by artificial intelligence have been established in cooperation with the private sector, which aligns with the UAE's concept and strategy of AI.

VENDOR LANDSCAPE

• The key players in the UAE elevator and escalator market are KONE, Otis, Mitsubishi Electric, Schindler, Hyundai Elevator, TK Elevator, and Hitachi.
• The top 4 prominent vendors, including KONE, Otis, Mitsubishi Electric, and Schindler, account for over 48% of the UAE elevator and escalator market share.
• In 2023, the Middle East remained a significant market for elevator and escalator companies, with India and the Middle East highlighted regions for KONE. Despite a decline in European residential markets, activity remained high in the Middle East, indicating resilience and growth opportunities in the region.

Recent Developments in the UAE Elevator and Escalator Market

• In March 2024, Emaar Properties hired Otis to upgrade 34 elevators and eight escalators in the Burj Khalifa. The upgrade involves installing an advanced elevator management system (EMS panorama) for real-time remote control and management.
• In June 2023, Otis launched its Otis ONE IoT service platform in the Middle East, offering over 30 years of remote monitoring expertise with cutting-edge cloud technology, machine learning, and IoT. This solution provides transparent, real-time monitoring to customers and service professionals, enabling proactive identification and resolution of potential issues to ensure the smooth operation of elevators and escalators. It is currently accessible in the UAE, Kuwait, Qatar, Bahrain, and the Kingdom of Saudi Arabia.
• In June 2023, KONE was selected to provide elevators for the fourth phase of our large-scale Riviera project in MBR City. KONE LLC will supply and install upscale KONE elevators for the initial six buildings within phase four of Riviera, a waterfront community in MBR City inspired by the French Mediterranean lifestyle.