“With rapid urbanization, governments and construction companies across the globe are focusing on optimum utilization of available spaces within urban cities. In order to cater to the needs of this growing urban population, the focus is on vertical growth, which refers to the construction of low, mid, and high-rise buildings”
The research study covers the present scenario and growth prospects of the global elevator and escalator market for 2016-2020. To determine the market size, the study considers revenue generated from elevators and escalators.
Elevators lead this market with a market share of 88.9% in 2015. The growth of this market can be attributed to the increase in number of high-rise constructions across the globe. Countries worldwide are witnessing very high rates of urbanization, which is creating a shortage of land. The most popular solution for this has been utilizing the vertical space more efficiently, thus driving the market segment.
While elevators will occupy a higher share of the overall market, the global escalator market will grow at a faster rate, with a CAGR of almost 12% through the forecast period. These are ideal for providing easy vertical movement in commercial spaces like shopping malls, hospitals, railway stations, and airports. With ease of movement in high demand from consumers, there will be high number of escalator installations across the globe.
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Technavio analysts highlight the following three factors that are contributing to the growth of the global elevator and escalator market:
- Vertical growth in global construction industry
- Development of public infrastructure
- Increased traction in maintenance and modernization of elevators and escalators
Vertical growth in global construction industry
“With rapid urbanization, governments and construction companies across the globe are focusing on optimum utilization of available spaces within urban cities. In order to cater to the needs of this growing urban population, the focus is on vertical growth, which refers to the construction of low, mid, and high-rise buildings,” says Navin Rejendra, one of the lead analysts at Technavio for embedded systems research.
High-rise buildings make optimum utilization of available space and accommodate a large number of people in consequent vertical spaces within a confined land space. As of 2016, there are more than 450 high-rise buildings are under construction, and around 400 high-rise buildings are in the pipeline during the forecast period. These are expected to drive the demand for elevators and escalators.
Development of public infrastructure
The global economy is displaying constant growth, fueling the demand for high-quality public infrastructure across the globe. Governments across the globe are trying to outdo each other by providing their citizens with a better quality of resources. The global demand for infrastructure investment will exceed USD 4 trillion in 2015 alone.
The developing countries, especially the BRIC nations, are engaged in the development of new infrastructure while developed countries such as the US and the UK are focusing toward reconstruction and revamping of their existing infrastructure. Public infrastructure projects such as airports, railway stations, and rapid transit systems are being undertaken to accommodate the ever-increasing demand. In order to provide smooth and efficient passage for the movement of passengers, effective deployment of elevator and escalator is a must. Hence, the growth in the global infrastructure construction sector is boosting the demand for elevators and escalators globally.
Increased traction in maintenance and modernization of elevators and escalators
“Over the last 5 years, the world has witnessed a large number of escalator and elevator installations. As the average lifespan of elevators and escalators ranges from 20 to 30 years, the equipment needs continuous maintenance or modernization in order to function efficiently. This is contributing to the growth of maintenance and modernization business of elevators and escalators across the globe,” says Navin.
Additionally, elevators and escalators installed during the 1900s are proving to be less cost-effective, as most of them use parts that are obsolete. This is pushing for their modernization, with the obsolete parts being replaced by new cost-effective and efficient parts. Not only does this ensures smooth operation, but also achieves optimum configuration and profitable operation of elevators.
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