Elevator and Escalator Market

Elevator and Escalator Market Size, Growth (2023 – 2028)

In 2021, the Global elevator and escalator Market size was estimated to be worth USD 34.83 billion, and it is expected to expand to USD 36.84 billion by 2028, with a CAGR of 0.8 percent from 2023 to 2028.

Market Overview:

Because of the increased economic and educational possibilities in metropolitan areas, the global urbanization rate has seen a huge increase in demand. The need for commercial and institutional buildings has increased as the urban population has grown. In order to accommodate more people, the size of commercial buildings has expanded in terms of square footage. The relevance of vertical transit systems for the proper operation of buildings has risen as a result. Because escalators allow people to go from one floor to another continually, these considerations have benefited the escalator business. Furthermore, in order to alleviate traffic congestion, several governments throughout the world are focusing on the building of efficient metro rail systems, which is driving market demand. Furthermore, the rise in the general public's purchasing power in emerging countries has resulted in a significant increase in the number of shopping malls. Escalators are less noisy and vibrational than staircases and may be built in the same area. These technological improvements have increased the market for escalators.

Recent Developments in Elevator and Escalator Industry:

• As Otis celebrates the 20th anniversary of its flagship Gen2® elevator, it also celebrates a milestone: surpassing one million units sold, making this revolutionary elevator the best-selling system of all time. Otis Worldwide Corporation (NYSE: OTIS) is the world's leading elevator and escalator manufacturer, installation, and service provider.
• Mitsubishi Electric Corporation (TOKYO: 6503) today announced the establishment of MELCO Elevator Lao Sole Co., Ltd. (MLAO) to accelerate the growth of its elevator and escalator activities in the promising Mekong regional market.
• KONE Elevator India, a leading elevator and escalator manufacturer and a wholly-owned subsidiary of Finland-based KONE Corporation, launched the world's first revolutionary class of digitally connected KONE DX-class elevators, which will redefine the elevator experience
• Commercial and residential buildings, medium to ultra-fast elevators - We are your partner for vertical transport!

ELEVATOR AND ESCALATOR MARKET REPORT COVERAGE:

Drivers and Restraints of Elevator and Escalator Market:

Drivers:

As a consequence of the rising transfer of a large population base from rural to urban regions, infrastructure development, such as the construction of high-rise buildings, has become more important to meet accommodation demands. According to the Department of Economic and Social Affairs of the United Nations, urban populations would account for 60% of global population by 2030 and 68 percent by 2050. In the not-too-distant future, this is expected to result in rapid urbanization. As a large number of people relocate to cities, especially in Asia, Africa, and the Middle East, the demand for eco-efficient and sustainable communities is increasing. In Asia, for example, more than half of the population now lives in cities, and as the working population transitions away from agriculture and toward service-based sectors, this tendency is projected to continue in the not-too-distant future.

Restraints:

Implementing safety regulations is critical in the elevator, and escalator sector since a lack of safety can result in catastrophic injuries or fatalities. Accidents are caused by factors such as risky riding habits, incorrect product design or selection, and a lack of sufficient maintenance. The level and expense of maintenance are the industry's primary challenges. Elevator and escalator accidents are common, but they may be avoided. Elevators in the United States transport billions of passengers each year, yet according to estimates from the US Bureau of Labor Statistics and the Consumer Product Safety Commission, there are roughly 27 deaths every year. To avoid mishaps, it is vital to detect aging equipment, flaws, and items that do not meet acceptable safety requirements. However, frequent inspection and maintenance come at a significant expense, which acts as a market restriction.

Opportunities:

Manufacturers are concentrating their efforts on creating new technologies in order to differentiate their products and maintain their market dominance. Smart elevators, for example, are the next generation of vertical transportation systems, with improved hardware and software systems controlling them. Elevator speed is crucial to decrease waiting time outside elevators of high-rise buildings due to growing building heights, which necessitates pre-emptive planning while designing the structures. With the focus on projects like "housing for all" and the development of smart cities, higher structures with even more efficient and creative transportation solutions will be required in the near future. Developing countries are expanding marketplaces with a surge in infrastructure and related services demand. The need for high-speed, energy-efficient elevators is increasing as the number of high-rise structures grows.

Challenges:

Elevators and escalators are subject to stringent restrictions and standards, which may stifle growth. Because even the tiniest flaw in a product might endanger a user's life, compliance with rules and standards is essential. American Society of Mechanical Engineers, the Elevator and Escalator Safety Trust, the Elevator Escalator Safety Foundation, and the Texas Health and Safety Code Safety's Elevator Advisory Board (Board) have all established rules and regulations to ensure public safety in the elevator industry. The ASME, for example, has established important codes for escalators, elevators, moving walkways, and similar equipment that cover safety in design, installation, operation, inspection, testing, maintenance, and alteration and repair. One of the bi-national codes for the elevators and escalators sector is ASME A17.7-2007/CSA B44.7-07. Manufacturers are expected to follow these requirements in order to maintain market share since even minor flaws in the operation of these machines can result in accidents, reducing a company's earnings.

Elevator and Escalator Market Segmentation Analysis:

By Type:

• Elevators (passenger, freight, single, and double-deck elevators) 
• Escalator 
• Moving walkways 

Elevators represent 2% to 7% of the total energy consumed in the entire building and have a significant margin for improvement in energy consumption. Therefore, manufacturers are focusing on the development of energy-efficient elevators. These elevators consume less energy with improved hardware and controls and offer greater compactness. In addition, increased government initiatives to conserve energy are expected to lead to the growth of the market for energy-efficient elevators and escalators. For example, the Swiss government encouraged the renovation of old elevators to improve energy efficiency in 2019, with Schindler Switzerland as a technology partner. Therefore, it is likely to result in a strong demand for electrically competent elevators.

By Service:

• New installation 
• Maintenance & repair 
• Modernization 

The elevator market derives its revenue from new elevator installations (unit and service), maintenance, and modernization. Smart elevators are gaining popularity in high-rise projects because they reduce waiting time and allow people to reach their destination floors in minimal time. These technological advancements in elevators will increase their adoption.

By End-use Industry: 

• Residential 
• Commercial 
• Institutional 
• Infrastructure 
• Others (industrial and marine industry) 

Escalators and elevators have a high penetration in shopping centers, such as shopping malls, shopping malls, and shared workplaces. The growing trend towards eco-efficiency, flexible design, and safety is driving the commercial segment. Additionally, the rise of self-employment has sparked demand for more coworking in recent years. Therefore, the evolution of office space investments is expected to further contribute to the growth of the escalator and elevator market. For example, in 2018, the Indian embassy official said it would raise around $ 775.7 million through the First Real Estate Trust of India.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

Elevator and Escalator Market Region Analysis:

Europe is expected to show growth in escalator and elevator maintenance and modernization.

85% of the market growth will come from APAC during the forecast period. China, India and Japan are the key markets for the elevator and escalator market in APAC. Market growth during this region are going to be faster than market growth in other regions. The development of smart cities due to the constant increase in urban population will facilitate the growth of the elevator and escalator market in APAC during the forecast period.

Increased commercial and residential construction activity in the Middle East and Africa is expected to contribute significantly to market growth.

IMPACT OF COVID-19 ON ELEVATOR AND ESCALATOR MARKET:

In addition, the disruption of the supply chain of raw materials and the closure of construction activities, caused by the COVID-19 pandemic, has caused a drop in the demand for elevators and escalators, which ultimately had a negative impact on the growth of your market Worldwide. The elevator and escalator market has been negatively affected in recent months due to lockdowns imposed in most countries due to the COVID-19 pandemic outbreak in December 2019. Several countries, including Italy, United States United States and India have witnessed curfew-like situations where businesses (except essential services) were not allowed to operate. Furthermore, the impact of the COVID-19 outbreak has slowed the growth of the construction industry in recent months, leading to delays, which can be attributed to several disrupted supply chains. Most commercial construction projects have been ordered closed to slow the spread of the virus. The factors mentioned above have had a significant impact on the demand for elevators and escalators market in recent months. Elevator and escalator manufacturers and the entire construction industry are expected to face various challenges as most commercial projects are likely to be unfinished or delayed due to supply chain disruptions, flow restrictions of cash, lack of availability of labor and stoppage of production. The cessation of construction activity at the project sites put increased financial pressure on several manufacturers and developers.

Key Players in the Market:

Major Key Players in the Global Elevator and Escalator Market are

• Fuji Electric Co. Ltd.
• Fujitec Co. Ltd.
• Hitachi Ltd.
• KÖHLER Elevator GmbH
• KONE Corp.
• Mitsubishi Electric Corp.
• Otis Worldwide Corp.
• Schindler Holding Ltd.
• thyssenkrupp Elevator AG
• Toshiba International Corp.