The global Elevator and Escalator Market size was valued at USD 81.26 billion in 2021 and is projected to reach USD 130.25 billion by 2028, growing at a CAGR of 7.1% during the forecast period.
Elevator and Escalator Market Overview
The elevator and escalator markets are expanding as a result of increased investment in residential and commercial infrastructure projects in both developing and developed economies. The product is anticipated to grow as more of the largest and tallest commercial structures are constructed in various regions. For instance, manufacturers are keen to contribute to some of the urban projects are White Magnolia Tower, Raffles City, Xujiahui Center, One Manhattan West, and Lakhta Center. Additionally, manufacturers’ increased focus on providing goods with better safety is anticipated to fuel market expansion.
COVID-19 Impact Analysis
The COVID-19 pandemic caused an unusual and challenging global health disaster. Most significant economies enforced a severe and sudden nationwide lockdown to stop all financial activity in the area as a safety precaution. The abrupt closure hard-hit the labor-intensive and highly volatile construction industry. This aspect also decreased the amount of new building and modernization work done, which hindered worldwide market growth and sales. In addition, the market’s expansion was hampered by lower cash liquidity, uncertainties surrounding public investments, and the gloomy outlook of existing potential investors.
The disruption and total collapse of the manufacturing ecosystem’s supply chain have caused the market to deteriorate in numerous locations. Many federal governments had mandated a temporary prohibition. However, the governments immediately issued orders to stop the transit of non-essential goods, which significantly distorted the relationship between purchasing raw materials for products and manufacturing them in the factories. As a result, the efficiency and production of the sector have dropped due to a fundamental imbalance between the supply and demand for raw resources.
The global Elevator and Escalator Market is segmented based on Product (Elevators, Escalators, and Moving walkways), By Business (New Equipment, Maintenance, and Modernization), By Application (Residential, Commercial, and Industrial).
By Application Analysis, Commercial Segment Is the Largest Contributor in the Elevator and Escalator Market.
- Elevators and escalators are often used in commercial buildings, including shopping malls, office buildings, and co-working spaces. The retail sector is driven by the rising trend toward eco-efficiency, flexible design, and safety. Additionally, during the past several years, the demand for numerous co-working spaces has increased due to the rise in self-employment. Furthermore, changing office space investments are anticipated to support market expansion.
- More residential development projects are anticipated to fuel market expansion. According to the World Resources Institute, China is expected to spend more than USD 13 trillion on buildings by 2030. In addition, due to the increasing need for freight transit across many verticals, the industrial sector helps drive market expansion.
By Business Analysis, the new equipment Segment Is Expected to Dominate the Segment.
- The new equipment sector has dramatically aided the market’s revenue growth, which is expected to continue to dominate over the forecast period. Rapid urbanization, shifting demographics, and increasing construction activity are blamed. For instance, more than 166,000 new elevators and escalators were delivered to KONE in 2018. Additionally, it is anticipated that maintenance and modernization of the current equipment would experience significant expansion over time. Value-added services are the main emphasis of manufacturers. For instance, KONE created services that use cutting-edge technology to benefit clients. Through the IBM Watson Internet of Things (IoT) platform, KONE debuted its elevator maintenance offering in 2017 and customizable KONE care 24/7 linked services.
Increasing Investment in Infrastructure
- The market is anticipated to expand due to developing economies’ increased infrastructure spending. The UNCTAD Trade and Development report also analyses over 40 developing nations focusing on infrastructure initiatives. As a result, the market is anticipated to be driven by the growing government initiatives from various emerging countries to drive their economies, which are likely to result in the development of bridges, dams, and urban infrastructure growth such as roads, schools, ports, and airports. In the next five years, India, for instance, expects to invest USD 1.4 trillion in infrastructure.
- Additionally, the growth of smart cities is anticipated to propel the market. For instance, according to the Policy Forum, China invested around USD 30.4 billion in smart cities in 2018 and is projected to invest more than USD 59.9 billion by 2023. Additionally, the market is expanding due to the strong demand for high-speed elevators brought on by the expansion of skyscraper buildings. For instance, the 644-meter-tall Merdeka PNB 118 skyscraper is being built in Malaysia. As a result, the highest structure in Southeast Asia is anticipated to be this tower.
Energy-efficient Elevator and Escalator
Elevators have a significant energy consumption improvement potential, accounting for 2% to 7% of the total energy used in the structure. As a result, producers are putting their efforts into creating energy-efficient elevators. These elevators are more compact and consume less energy, thanks to enhanced hardware controls. Additionally, it is anticipated that the increase in government attempts to conserve energy will encourage development in the sales of energy-efficient products. For instance, the Swiss government stated that Schindler Switzerland would be its technological partner in 2019 for the repair of existing elevators to result in energy efficiency. As a result, efficient electrical elevators will probably be a significant need.
The Asia Pacific is expected to account for the largest market size during the forecast period.
- The Asia Pacific is expected to account for the largest market size during the forecast period. This dominance is owing to a sharp increase in demand from significant economies and growing regions like Southeast Asia and India. According to the results of the regional study, China has made a substantial contribution to the growth of market revenue and currently owns a significant market share for elevators and escalators.
- Over the projection period, India is anticipated to see the market’s quickest growth rate. The country is the third-largest market in the Asia Pacific because of its rapid expansion and the rise in the number of high-rise structures and skyscrapers. Therefore, the industry participants have started working to build a solid and efficient supply chain throughout the Indian market. To better contact their target market directly and comprehend their clients’ precise needs in the area, they aim to establish a robust network of distributors and merchants throughout several states.
Key Market Players and Competitive Landscape
Some of the major key players operating in the market are ThyssenKrupp AG (Cinven, Advent and RAG Foundation) (Germany), United Technologies (U.S.), Schindler (Switzerland), KONE CORPORATION (Finland), Hitachi, Ltd. (Japan), HYUNDAIELEVATOR CO., LTD. (South Korea), Mitsubishi Electric Corporation (Japan), Johnson Elevator Co., Ltd. (China), FUJITEC CO., LTD (Japan), and Toshiba Corporation (Japan).
This report categorizes the Elevator and Escalator Market as follows,
- Moving Walkway
- New Equipment