KEY MARKET INSIGHTS
The global elevator and escalator market was valued at USD 79.70 billion in 2021. The market is projected to grow from USD 83.86 billion in 2022 to USD 132.08 billion by 2029, exhibiting a CAGR of 6.7% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market had exhibited a decline of -3.5% in 2020 as compared to 2019.
In the research report, we have considered , escalators, and related inter-floor transporters such as moving walkways installed and used in commercial infrastructures, residential buildings, and industrial setups for transportation. The research report provides holistic insights regarding the sales split of the product segments between new installation in newly developed infrastructure projects, replacement or repaired product as a part of maintenance activities, or the replacement of old solutions replaced with a novel technology under modernization operations. The research report provides product-based country-level classification and value share of every product segment in these stated countries.
The rising investment in commercial and residential infrastructure projects in the developing and developed economies results in elevator and escalator market growth. Increasing construction works of the largest and tallest commercial projects in several regions are expected to develop the product. For instance, White Magnolia Tower, Raffles City, Xujiahui Center, One Manhattan West, and Lakhta Center are a few of the projects in the urban areas where the manufacturers are focused on contributing. Also, the increasing focus of manufacturers in offering products with improved safety is expected to result in the market growth.
COVID-19 IMPACT
Abrupt Manufacturing Facilities Shutdown Has Curbed Potential Market Development
The COVID-19 pandemic created an unprecedented and difficult health emergency across the globe. As a safety measure, most of the prominent economies imposed a hefty and abrupt nationwide lockdown curbing the financial activities within the region. The sudden closure had a hard-hitting impact in the labor-intensive and highly volatile construction sector. This factor also reduced new construction and modernization activities, thereby hampering the sales and development of the global market. The reduced cash liquidity, uncertainty in public investments, and pessimistic approach of the established potential investors dipped the market growth.
The disruption and complete breakdown of the supply chain of the manufacturing ecosystem have pivoted the degradation of the market across multiple regions. Numerous federal governments had mandated a temporary ban. The governments published immediate directives to shut the transportation of non-essential commodities, which created a massive imbalance between procurement of raw material for products and actual production at the manufacturing facilities. A complete disproportion in the supply and demand for raw materials has decreased the efficiency and output of the industry.
LATEST TRENDS
Increasing Shift toward Environment-Friendly Products to Rise Adoption of Green Labeled Products
The established manufacturers are focusing on building sustainable products to attract environmentally conscious consumers. Green elevators have LED lights, recycled materials, and water-soluble paints. Furthermore, market vendors are focusing on using alternatives to rope and pulley systems, such as magnetic motors, which are gaining popularity among customers. Moreover, the recognition of such green products is attracting investments from the manufacturers. For instance, in 2018, the KONE solutions, including TransitMaster 140 escalator, KONE S MonoSpace, and KONE 3000 TranSys elevators, received Singapore green building product certificates with high ratings.
DRIVING FACTORS
Increasing Investment in Infrastructure to Propel Growth
The increasing infrastructure spending by developing economies is expected to result in the growth of the market. Moreover, the UNCTAD Trade and Development report analyzes more than 40 developing countries, emphasizing infrastructure projects. Thus, the evolving government initiatives from various emerging nations to drive their economy are likely to develop bridges, dams, and urban infrastructure growth such as highways, schools, ports, and airports, which, in turn, is expected to drive the market. For instance, India plans to invest USD 1.4 trillion in infrastructure in the next five years.
Moreover, the development of smart cities is expected to drive the market. For instance, the Policy Forum stated that China’s smart city investment was around USD 30.4 billion in 2018 and is expected to reach more than USD 59.9 billion by 2023. In addition, the high demand for high-speed lifts due to the increasing construction of skyscrapers is resulting in market growth. For instance, the Merdeka PNB 118 is a 644m skyscraper under construction in Malaysia. This tower is expected to be the tallest building in Southeast Asia.
Energy-efficient Elevator and Escalator to Promote Market Growth
Elevators represent 2% to 7% of the total energy consumed in the whole building and have a significant scope of improvement regarding energy consumption. Thus, manufacturers are focusing on the development of energy-efficient elevators. These elevators use less energy with the help of improved hardware controls and offer improved compactness. In addition, the surge in government initiatives to save energy is further expected to promote growth in the sales of energy-efficient products. For instance, the Swiss government announced the refurbishment of old elevators to result in energy efficiency in 2019, with Schindler Switzerland as its technology partner. Thus, it is likely to result in a high demand for proficient electricity elevators.
RESTRAINING FACTORS
Rise in Elevator and Escalator Casualties is Impacting Market Growth
The increasing concerns about elevator and escalators accidents are expected to impact the market. According to the U.S. Bureau of Labor Statistics and Consumer Product Safety Commission, more than 30 people are killed and around 17,000 are seriously injured in elevator and escalator incidents every year in the U.S. Elevator incidents are responsible for approximately 90% of deaths and 60% of serious injuries. Incidents where workers are caught in between the moving parts of elevators and escalators while maintenance & repair services are also high in number. However, the increasing safety and security measures regarding the workplace and training are expected to reduce the incidents during repairing and maintenance activities. Furthermore, the surge in product quality and high safety measures induced by manufacturers are likely to result in market revenue growth.
SEGMENTATION
By Product Analysis
Escalator is Fastest Growing Segment Owing to Increasing Demand from Evolving Infrastructure
The escalators segment is expected to be the fastest-growing segment in the market. This is attributed to the high demand from commercial infrastructures, including shopping malls, commercial parks, and others. Moreover, the rising aerospace infrastructure development results in the rise in demand for escalators and moving walkways. For instance, the U.K.’s Stansted Airport transformation is expected to complete by 2021 at the expense of USD 775 million. Furthermore, the demand for elevators is expected to experience stable growth due to their high penetration in the market.
Source: www.fortunebusinessinsights.
