Saudi Arabia’s Next Big Boom is Vertical — Elevators and Escalators Are the New Oil?
Saudi Arabia elevator and escalator market is on the rise, driven by the rapid urbanization and large-scale infrastructure projects associated with the country’s Vision 2030 initiative. With new installations projected to reach nearly 20,000 units by 2030, the market is expected to grow at a steady CAGR of 4%. This surge is largely fueled by the Kingdom's aggressive diversification strategy, as it seeks to transform from an oil-dependent economy into a thriving, diversified hub for tourism, technology, and modern infrastructure.
Massive Infrastructure Investment Boosts Market Growth
The Saudi Arabian government’s monumental investment of over $300 billion into key sectors like transport, utilities, and mega projects, including NEOM, the Riyadh Metro, and airport expansions, is catalyzing construction activity across the Kingdom. As Saudi Arabia’s economy transforms, elevator and escalator demand has become critical to support the growth of new cities, commercial buildings, and residential developments.
“Riyadh, Jeddah, Makkah, and Madinah account for more than 80% of the country’s elevator demand, driven by the rapid expansion of urban infrastructure and ongoing housing projects,” said a spokesperson from Arizton Advisory & Intelligence. “The Sakani housing program, which aims to boost homeownership to 70% by 2030, is a key contributor to the demand for vertical transportation solutions as affordable and luxury residences continue to rise.”
Tourism Boom and Global Events Further Fuel Growth, Saudi Arabia’s tourism sector, already growing rapidly, is set to receive a major boost with the nation’s ambition to attract 150 million tourists annually. The upcoming 2030 World Expo and the 2034 FIFA World Cup will also bring millions of visitors to the Kingdom, driving demand for world-class infrastructure, including elevators and escalators. As large-scale hospitality projects surge to accommodate the influx of tourists, the vertical transportation market is set to benefit greatly.
Key Developments in the Saudi Market
Major players in the elevator and escalator market are already making significant strides to meet the increasing demand.
In August 2024, Schindler Olayan announced a major deal to provide 134 Schindler 5500 elevators, including 45 passenger elevators and 89 service elevators, along with 150 escalators for The Avenues – Riyadh project, a multi-purpose development in the capital.
Mitsubishi Electric Building Solutions Corporation introduced the NEXIEZ-Fit™ elevator, a cost-efficient yet highly durable solution for both residential and commercial buildings.
KONE launched its High-Rise MiniSpace™ DX elevator in December 2024, which incorporates KONE UltraRope®, an innovative technology that is 80% lighter and three times more durable than traditional steel ropes, making it ideal for the growing demand for high-rise buildings.
Urbanization Accelerates in Riyadh and Other Major Cities
Riyadh is experiencing an unprecedented urban transformation, becoming a sprawling metropolis with a rapidly growing population. The development of a comprehensive metro system in Riyadh, aimed at improving connectivity, will not only support the city’s growing population but will also increase the need for advanced vertical transportation systems, including escalators and elevators in both residential and commercial buildings.
As the city shifts from traditional villa living to apartment-style housing, demand for vertical transportation in residential buildings is set to rise. Other cities like Jeddah, Makkah, and Madinah are also seeing substantial infrastructure development, further boosting the need for elevators and escalators.
Riyadh: A Hub for Tech, Real Estate, and Vertical Transportation
Riyadh is not only evolving as a key commercial and residential hub but is also positioning itself as a major data center hub for the region, driven by growing demand for AI infrastructure. With office rents climbing and economic activity accelerating in both the public and private sectors, the need for efficient vertical transportation solutions will only grow. The demand for elevators and escalators, critical for commercial and non-residential developments, will rise sharply, making them an integral part of Riyadh's urban transformation.
As Saudi Arabia’s urban landscape continues to expand, the demand for vertical transportation solutions such as elevators and escalators is set to grow significantly, providing new opportunities for businesses in the sector and supporting the Kingdom’s Vision 2030 goals of modernization and sustainability.
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