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The Elevator and Escalator Market size is estimated to grow at a CAGR of 8.92% between 2022 and 2027 and the size of the market is forecast to increase by USD 60.75 billion. The growth of the market depends on several factors, such as the increasing demand for smart elevators, the growing number of construction activities, and the growing investment in smart cities.
This report extensively covers market segmentation by product (elevators and escalators), application (commercial, residential, and industrial), and geography (APAC, Europe, Middle East and Africa, North America, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Elevator and Escalator Market Forecast 2023-2027
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
With the increasing number of migrants moving from rural areas to cities, it is becoming more important for cities to accommodate these people. As a result, the concept of smart cities is gaining momentum globally. An urban area is one with highly advanced infrastructure, communication, and sustainable real estate as well as market viability. In smart cities, information technology serves as the base for the essential services provided to residents.
Several smart city initiatives are being undertaken in different parts of the world. Smart cities will provide smarter solutions to address urban population growth, enabling them to manage traffic congestion in a more efficient way; this includes the introduction of energy-efficient road networks leading to effective public transport systems. Therefore, the growing momentum of smart cities and massive investments in their development are expected to spur the growth of the global elevators and escalators market during the forecast period.
The development of regenerative drives has resulted from the energy-efficient which needs to develop, in-building transport systems. Regenerative drives are one of the most noteworthy innovations in modern-day elevator technology. When going up with light loads or coming down with heavy loads, elevators tend to generate power that is more than the required amount. In the case of conventional elevator systems, this extra power is wasted as heat. This way, a significant amount of heat is wasted over the service life of an elevator.
Moreover, the regenerative drives save energy by enabling the motor to become a generator during periods of low loads. In such cases, the motor converts the mechanical power to electrical power and sends it back to the electrical grid, where it can be reused. The energy saved from regenerative drives is dependent upon factors such as the height of the building, the frequency with which elevators are used, and their weight. Therefore, the use of regenerative drives propels the growth of the global elevator and escalator market during the forecast period.
Various types of optimizing elevator energy consumption, such as the use of more efficient AC motors and regenerators, are available. However, these solutions have not gained much popularity. Most office supervisors look first to the lighting and heating and cooling frameworks when looking for ways to cut energy use in their buildings. That's a logical approach, since according to the US Department of Energy, these frameworks are responsible for more than fifty percent of the energy consumed by business buildings.
Moreover, companies such as Schindler offer elevator lighting systems as part of energy-saving solutions to expand their market footprint. Therefore, the factors like Reluctance to modernize elevators and reduce their energy use can negatively affect the growth of the global elevator and escalator market during the forecast period.
The elevator segment will account for a major share of the market's growth during the forecast period. An elevator, also known as a lift in many countries, is a vertical transportation vehicle that facilitates the movement of people or goods between various floors of a building or other multi-story structure.
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The elevator segment was valued at USD 80.00 billion in 2017 and continued to grow until 2021. Elevators can be rope-free or rope-dependent. An escalator is another type of vertical transport in the form of a moving staircase, which uses a motor-driven chain for movement over short vertical distances.
Escalators are crucial for the smooth vertical movement of people, especially in public places. These are of great importance in areas that are highly crowded by the general masses. The escalators are used as part of airports or shopping centers. Moving walkways have been put in place at historical centers, zoos, amusement parks, and exhibits to allow for the safe passage of guests and observers on a specific basis. Escalators transport individuals from one level to the next or between the floors of a building, theater, field, stadium, shopping center, or display. Some of the major factors driving the growth of the market are the rising demand for cost-effective and eco-friendly escalators in commercial and public buildings, increased spending on infrastructure by the Government of India, and a rise in urbanization in the country.
Based on Application, the market has been segmented into commercial, residential, and industrial. The commercial segment will account for the largest share of this segment. A considerable number of commercial buildings, including offices, hospitals, educational institutions, retail stores, and malls, utilize elevators and escalators due to the large footfall and offer convenience to their consumers. In view of the increased commercial building construction such as hotels and hospitals, elevators and escalators were found to be widely adopted in developing countries such as China and India. A sizable proportion of these investments has been in commercial constructions, including office and retail space and the hospitality sectors. In particular, the rise of urbanization creates a need to build commercial and public infrastructure for various purposes. The commercial segment in the global elevator and escalator market is expected to witness growth during the forecast period.
The rapid urbanization and expanding middle-class population lead to an increase in demand for vertical transportation in residential buildings. It is expected that this trend will lead to migration from rural to urban areas in search of jobs and better living standards., thus increasing demand for adequate housing and nonresidential accommodation. Additionally, the awareness regarding accessibility for differently-abled individuals in residential buildings drives the demand for elevators and escalators in the residential sector. Demand for new housing, particularly in developing countries, will be enhanced by the increasing rural migration which leads to urbanization. The growing demand for housing is expected to intensify the already existing scarcity of land, thus resulting in the vertical growth of cities, which in turn, will play a vital role in the demand for elevators and escalators. Therefore, this drives the growth of the residential segment in the global elevator and escalator market during the forecast period.
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APAC is estimated to contribute 75% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The governments of China, India, Japan, Singapore, and Malaysia have earmarked large-scale investments in urban infrastructure projects. Besides, the governments of China and India are focusing on the development of smart cities due to the ever-increasing urban population. Increased demand for more effective power, transport and housing, and other infrastructure in these regions is expected over the period under analysis due to rapidly growing urbanization.
Moreover, in Asia, the percentage of urban populations is growing. The growing number of construction activities in emerging economies, backed by the increased government spending on infrastructure development, is expected to play a key role in driving the demand for elevators and escalators in the region. The construction and expansion of public projects, such as shopping malls, airports, and metros, act as a major booster for market growth in APAC.
In 2020, the market in APAC witnessed certain challenges owing to the COVID-19 outbreak. However, the large-scale vaccination drives that were conducted by the governments across the region in the first half of 2021 helped stabilize the situation. As a result, operations in the industrial and construction sector were resumed. The rise in the construction industry and the growing adoption of high-rise buildings and mid-rise buildings in the region will drive the demand for elevators and escalators, which in turn will boost the growth of the regional elevator and escalator market during the forecast period. The demand for lifts and escalators in the region is growing as a result of an effective mobility system at healthcare facilities, shopping malls, and airports. Therefore, the elevator and escalator market in the region will witness growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Braun Elevator - The company offers elevators and escalators such as passengers, goods, and car elevators.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Brobeil Aufzuge GmbH and Co.KG, ESCON Elevators Pvt. Ltd., Fuji Electric Co. Ltd., Fuji Elevators Co., Fujitec Co. Ltd., HIRO LIFT Hillenkotter and Ronsieck GmbH, Hitachi Ltd., Hyundai Elevator Co. Ltd., Kohler Co., KONE Corp., Mitsubishi Electric Corp., Otis Worldwide Corp., Savaria Corp., SCHAEFER GmbH, Schindler Holding Ltd., thyssenkrupp AG, Toshiba Corp., Weidmuller Interface GmbH and Co. KG, and WITTUR HOLDING GmbH
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The elevator and escalator market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Elevator And Escalator Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.92% |
Market growth 2023-2027 |
USD 60.75 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.45 |
Regional analysis |
APAC, Europe, Middle East and Africa, North America, and South America |
Performing market contribution |
APAC at 75% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Braun Elevator, Brobeil Aufzuge GmbH and Co.KG, ESCON Elevators Pvt. Ltd., Fuji Electric Co. Ltd., Fuji Elevators Co., Fujitec Co. Ltd., HIRO LIFT Hillenkotter and Ronsieck GmbH, Hitachi Ltd., Hyundai Elevator Co. Ltd., Kohler Co., KONE Corp., Mitsubishi Electric Corp., Otis Worldwide Corp., Savaria Corp., SCHAEFER GmbH, Schindler Holding Ltd., thyssenkrupp AG, Toshiba Corp., Weidmuller Interface GmbH and Co. KG, and WITTUR HOLDING GmbH |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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