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The global elevators market size stood at USD 40.74 billion in 2018 and is projected to reach USD 65.46 billion by 2026, exhibiting a CAGR of 6.3% during the forecast period.
The rise in the demand for residential construction owing to the increasing multi-family housing projects is resulting in the growth of this market. Increasing demand for energy-efficient elevators will further drive product penetration in the near future. The smart elevators are increasingly gaining popularity among customers owing to their enhanced connectivity and predictive maintenance capability. The surge in demand for high-rise accommodation owing to the rise in population and rapid urbanization is likely to result in increased product adoption.
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Customized Elevators are Gaining Popularity among Customers and are Contributing to the Growth of the Market
The increasing focus on holistic user experience to improve the quality of the journey is resulting in the development of new aesthetic styles to suit the different needs of customers. This is an emerging trend across various verticals including the medical infrastructure and the hospitality industry. Furthermore, customized elevators are becoming a part of architectural features in shopping centers, complexes, and airports. KONE launched Nmono and Nmini lifts with five different themes based on their lighting, materials, and patterns. Furthermore, the sustainability of products is playing a major role in the development of this market. The increasing demand for elevators high sustainability is further expected to drive product penetration.
Increasing Demand for Smart Elevators is Expected to Drive the Market
The rise in the adoption of innovative technology owing to the increasing automation in industry verticals and reduction of waiting time is likely to result in the growth of smart elevators. Various key features of smart machines are gaining popularity among customers. These include a touch screens, as well as digital security controls such as biometrics, destination dispatching, and access control systems. The better serviceability through reduction of waiting time and increased traffic management is likely to result in the growth of this market. Thus, manufacturers are focusing on designing smart products to provide an enhanced user experience. For instance, in November 2019, KONE launched its new DX Class elevators with built-in connectivity. These machines enable customized and plug-in of additional software and service throughout the lifetime of a product.
Increasing Demand for Sustainability is Gaining Popularity in the Elevators Industry
An increasing shift toward cost and energy efficiency is expected to drive the elevator market growth in the near future. Thus, manufacturers are continuously working on upgrading technology to provide sustainable solutions to their customers. The companies are further adhering to certification standards to gain a competitive edge. For instance, KONE developed 14 elevator models which meet A-Class ISO 25745 highest energy efficiency rating. The energy-efficient solutions are likely to result in the creation of innovative modernized solutions. For instance, KONE provides a wide range of solutions, starting from retrofitting LED lights to regeneration technology elevators. Thus, many manufacturers are launching eco-friendly solutions including products and services. For instance, in 2018, Otis India launched a green elevators modernization package based on their flagship product Gen2 series.
Increasing Safety Concerns are Expected to Impact the Market
The rise in safety concerns has resulted in the slow adoption of products. However, the increasing safety standards in elevators are likely to result in the growth of the market. The manufacturers are focusing on adopting safety measures for the customers as well as the employees. For instance, Mitsubishi Electric and Mitsubishi Electric Building Techno-Service collaboratively developed M’s BRIDGE, IoT-based remote maintenance service for real-time data analysis of machines.
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Traction with Machine Room Segment Holds the Major Share of the Market
Based on type, the market is segmented into traction with machine room, machine room-less traction, and hydraulic.
Traction elevators are the most commonly used products owing to their various benefits including energy efficiency, smooth transportation, and smaller motor size. Besides, they are faster as compared to the hydraulic. Hence, they are suitable for high rising modern buildings. The hydraulic machine is commonly used in low-rise applications and for transporting heavy loads. The high-cost efficiency of hydraulics as compared to traction ones is expected to result in the increased penetration of traction elevators in the market. Machine room-less traction elevators are also known as MRL. They offer increased compactness, easy installation, and cost-efficiency. Thus, the increased demand of MRL in applications with limited space and budget is expected to contribute positively to the market growth.
Modernization and Maintenance is Expected to Propel the Market
Based on installation type, the global elevator market is segmented into new installation, maintenance, and modernization.
The new installation segment holds the major share of this market. This is attributed to the increasing innovative offerings by the manufacturers. For instance, in 2019, Mitsubishi India Private Limited launched NEXIEZ-LITE MRL elevator, an Indian-produced model focusing on the mid-rise and low-rise residential buildings. Furthermore, the increasing urbanization and geriatric population is resulting in product adoption. The modernization segment is expected to be the fastest-growing segment owing to the increased requirements for reliability and sustainability of the aging installed base. Also, the increasing safety concerns are expected to drive the maintenance segment of the market. Furthermore, amidst the outbreak of COVID-19, the maintenance of elevators is considered to be a critical service and has been allowed with certain limitations. Thus, services such as maintenance and modernization are expected to show growth by the second half of 2020.
High Product Penetration in Commercial Sector is Expected to Drive the Market
Based on application, the market is categorized into residential, commercial, and industrial.
The commercial segment has dominated the global market and is expected to remain the same over the forecast period. This is attributed to the high product penetration owing to the rise in shopping centers and office spaces. Also, the increasing construction activities including high-rise tower buildings are expected to result in the growth of the commercial segment. For instance, in 2019, in China, the construction industry of Tianjin CTF Finance Centre, a 1,739-foot tall tower was completed. Also, the ascend of high-rise residential construction activity is resulting into increased product adoption in the residential spaces. The transportation of heavy loads is resulting in the adoption of hydraulic elevators in the industrial sector which is expected to positively contribute to the market revenue.
Asia Pacific Elevators Market, 2018 (USD Billion)
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Geographically, the market is segmented into five major regions, North America, South America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.
The Asia Pacific holds the major share of the market owing to the rise in demand because of the increasing commercial and residential construction activities. However, the outbreak of coronavirus has created uncertainty. The market is expected to recover by the second half of 2020. China is expected to show relatively slow growth whereas the rest of Asia Pacific with slight growth. The maintenance and modernization services market is expected to witness strong growth in Asia Pacific.
The new installation business segment is expected to remain stable in North America, the Middle East & Africa, and Europe, whereas the modernization and maintenance service market is expected to show slight growth in these regions. Europe is second to Asia Pacific with respect to the market share owing to the high adoption of products in the residential and commercial buildings. The increasing industrial sector in Mexico is expected to positively contribute to the elevators market growth in Latin America. Furthermore, the commercial sector in North America is positively contributing to the market growth owing to the high product penetration in commercial spaces.
Schindler is Focusing on the Development of Smart Elevators
One of the key market players - Schindler is strengthening the connectivity for its customers of a digital portfolio. In 2019, Schindler and Telefonica partnered up to provide IoT connectivity for smart elevators and escalators. This digital platform is expected to considerably improve equipment uptime and reliability through real-time data analysis. Furthermore, the interactive personalized services offered by it are further expected to result in market growth.
Key players such as KONE are focusing on expansion by building new manufacturing facilities to cater to the regional demand. For instance, in November 2019, KONE India Pvt. Ltd. inaugurated its manufacturing plant in India. This plant will focus on the market demand from India as well as the neighboring regions such as Bhutan, Bangladesh, Nepal, and Sri Lanka. As a result of advanced features, digitally connected machines are gaining popularity in the market. For example, KONE DX Class elevator offers easy remote access of digital services (such as KONE Residential Flow), and advanced display, sound, and lighting options.
The market report provides detailed information regarding various insights into the industry. Some of them are growth drivers, restraints, competitive landscape, regional analysis, and challenges. It further offers an analytical depiction of the elevators market trends and estimations to illustrate the forthcoming investment pockets. The market is quantitatively analyzed from 2019 to 2026 to provide financial competency. The information gathered in the report has been taken from several primary and secondary sources.
An Infographic Representation of Elevators Market
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Value (USD billion)
As per Fortune Business Insights, the market was worth USD 40.74 billion in 2018.
The market is expected to reach USD 65.46 billion in the future.
The market is projected to grow at a CAGR of 6.3% during the forecast period (2019-2026).
Traction with machine room segment is expected to lead the market during the forecast period.
The increasing demand for smart elevator is expected to drive the market.
KONE CORPORATION, Schindler, Mitsubishi Electric Corporation, thyssenkrupp AG, and United Technologies are the top companies in the market.
Asia Pacific is expected to hold the highest share of the market.
The commercial application holds the major market share.
The New Installation segment is expected to lead the market.
The customized products are gaining popularity and emerging as one of the trends in the market.
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