Escalator and Elevator Market Size, Share & Industry Analysis, By Product (Elevators, Escalators and Moving Walkway), By Business (New Equipment, Maintenance and Modernization), By Application (Residential, Commercial and Industrial), and Regional Forecast, 2019-2026

The global escalator and elevator market size stood at USD 70.95 billion in 2018 and is projected to reach USD 114.65 billion by 2026, exhibiting a CAGR of 6.4% during the forecast period.

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The rising investment in commercial and residential infrastructure in the developing and developed economies is resulting in the growth of the market. Construction works of the largest and tallest commercial projects in several regions are likely to increase the adoption of the product. For instance, White Magnolia Tower, Raffles City, Xujiahui Center, One Manhattan West, and Lakhta Center are few of the projects in the urban areas where the escalator and elevator manufacturers are focused on contributing. Also, the increasing focus of manufacturers in offering products with improved safety is expected to result in the escalator and elevator market growth.

MARKET TRENDS

Increasing Shift towards Environmentally Friendly Products is Resulting in the Adoption of Green Labeled Products

The elevator and escalator manufacturers are focusing on building sustainable products to attract the environmentally conscious consumers. Green elevators have various features including LED lights, recycled materials, and water-soluble paints. Furthermore, the escalators and elevators companies are focusing on using alternatives to the rope and pulley systems such as magnetic motors are gaining popularity among customers. Moreover, the recognition provided to 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.

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MARKET DRIVERS

Increasing Investment in Infrastructure is Expected to Propel Growth

The increasing infrastructure spending by developing economies is expected to result in the growth of escalators and elevators market. Moreover, the UNCTAD Trade and Development report analysis of more than 40 developing countries suggest high emphasis on infrastructure project. Thus, the evolving government initiatives from various emerging nations to drive their economy is likely to result in the development of bridges, dams, and urban infrastructure growth such as highways, schools, ports, and airports which, in turn, is expected to drive the escalator and elevator market. For instance, India plans to invest USD 1.4 trillion on infrastructure by the next five years.

Moreover, the development of smart cities is expected to drive the escalators and elevators market. For instance, the Policy Forum stated that China’s smart city investment was estimated to be around USD 30.4 billion in 2018 and is expected to reach more than USD 59.9 billion by 2023. In addition, the surge in demand for high speed lifts owing to the construction of skyscrapers is resulting in the escalator and elevator market growth. For instance, the Merdeka PNB 118 is a 644m skyscraper that is under construction in Malaysia. This tower is expected to be the tallest building in Southeast Asia and is likely to be complete by 2021.

Energy Efficient Elevators and Escalators are Resulting in the Growth of the Market

Elevators represent 2% to 7% of the total energy consumed in the whole-building and have 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 result in the growth of energy efficient escalators and elevators market. For instance, the Swiss government promoted the refurbishment of old elevators so as to result in energy efficiency in 2019 with Schindler Switzerland as its technology partner. Thus, it is likely to result in the high demand for electricity proficient elevators. 

MARKET RESTRAINT

Rise in Escalator and Elevator Causalities is Impacting the Market Growth

The increasing concerns about the elevators and escalators accidents are expected to impact the market. According to the U.S. Bureau of Labor Statics and Consumer Product Safety Commission, in the U.S., more than 30 people are killed and around 17,000 are seriously injured in escalators and elevators incidents every year. The elevator incidents are responsible for around 90% of deaths and 60% of the serious injuries. Incidents where workers are caught in between the moving parts of elevators and escalators while maintenance and repair service are also high in number. However, the increasing safety and security measures regarding the workplace and training are expected to reduce the incidents taking place during the repairing and maintenance activities. Furthermore, the surge in product quality and high safety measures induced by manufacturers are likely to result in the growth of the escalator and elevator market revenue.

SEGMENTATION

By Product Analysis

Escalator is the Fastest Growing Segment in the Market Owing to the Increasing Demand from the Evolving Infrastructure

Based on product, the market is segmented into elevators, escalators, and others.

The escalators segment is expected to be the fastest growing segment in the market. This is attributed to the increasing demand from the commercial infrastructures including shopping malls, commercial parks, and others. Moreover, the rising aerospace infrastructure development is resulting in the rise in demand for escalators and moving walkways. For instance, the U.K.’s Stansted Airport’s transformation is expected to complete by 2021 at an expense of USD 775 million. Furthermore, the demand for elevators is expected to experience a stable growth as a result of their high penetration in the market.

By Business Analysis

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New Equipment is the Dominant Segment in the Market

Based on business, the market is segregated into new equipment, maintenance, and modernization.

The new equipment segment has significantly contributed in the growth of the market revenue and is expected to remain dominant over the forecast period. This is attributed to the surge in urbanization, changing demographics, and rise in construction activities. For instance, in 2018, KONE received more than 1,66,000 new orders of elevators and escalators. Furthermore, maintenance and modernization of the existing equipment is expected to showcase significant growth over the period of time. Manufacturers are focusing on providing value added services. For instance, KONE is introducing services that utilize new technologies to create value for customers. In 2017, KONE introduced its elevator maintenance offering with customizable KONE care 24/7 connected services through the IBM Watson (Internet of things) IoT platform.

By Application Analysis

Commercial Segment to Dominate Owing to High Product Adoption

Based on application, the market is segmented into residential, commercial, and industrial.

Escalators and elevators have a high penetration in the commercial centers such as malls, retail centers, and co-working places. The increasing shift towards eco-efficiency, flexible design, and safety is driving the commercial segment. Besides, the increase in self-employment has led to the demand for multiple co-work places over the past few years. Thus, evolving investments in office space is further expected to contribute to the growth of the escalator and elevator market. For instance, in 2018, the Embassy Office Parks of India stated that it would raise around USD 775.7 million through India’s First Real Estate Trust.

The increasing residential construction activities are further expected to propel the market demand. According to the World Resources Institute, China is expected to spend more than USD 13 trillion on buildings by 2030. The industrial sector is contributing to the market growth owing to the growing demand for freight transport needs across numerous verticals.

REGIONAL ANALYSIS

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Based on region, the market is segmented into North America, Europe, the Middle East & Africa, Asia Pacific, and Latin America.

Asia Pacific is the dominating region owing to the increasing demand from the key economies and developing areas, such as India and South East Asia. China has significantly contributed to the growth of the market revenue and holds the major escalator and elevator market share.

Europe is expected to showcase growth in the maintenance and modernization of escalators and elevators. The increasing commercial and residential construction activities in the Middle East & Africa are expected to significantly contribute to the market growth. For instance, in 2019, the Kalba Waterfront mall contract was awarded to MJM contracting in Sharjah by Eagle Hills. The political uncertainty of Brazil is further expected to impact the growth of the market in Latin America. North America is expected to exhibit growth in elevators and escalators service offering over the forecast period.

KEY INDUSTRY PLAYERS

KONE is Engaging in Mergers and Acquisition to Expand its Product Portfolio and Strengthen its Presence

In 2018, KONE acquired the service and repair business of Heartland Elevator LLC. This is further expected to strengthen the domestic operations of KONE in the Dallas Metropolitan area.

In 2017, KONE acquired Alois Kasper GmbH based in Germany. This acquisition is likely to strengthen KONE’s presence in the European region including Frankfurt and Saarland.

Key Players are Focusing on Strengthening Their Offerings

Key players are adopting the strategy of acquisition of small regional players so as to strengthen their service offerings as well as develop their domestic presence. Furthermore, the advancement in technologies and persistent research are resulting in the development of innovative products and services. For instance, in 2018, Otis launched “’Otis One’, an IoT service platform which personalizes the service experience. This is attributed to the real-time, transparent information exchange tools, and predictive maintenance functions provided by it. 

List of Key Companies Profiled:

• thyssenkrupp AG (Cinven, Advent and RAG foundation)


• United Technologies


• Schindler


• KONE CORPORATION


• Hitachi, Ltd.


• HYUNDAIELEVATOR CO., LTD.


• Mitsubishi Electric Corporation


• Johnson Elevator Co., Ltd.


• Fujitec Co., Ltd.


• Toshiba Corporation

KEY INDUSTRY DEVELOPMENT:

• May, 2019: Schindler and Telefonica formed a partnership for digital connectivity. This collaboration is aimed to provide IoT connectivity for all the smart escalators and elevators of Schindler.


• February, 2020: Thyssenkrupp sold its elevator technology business to a confederation led by Cinven, Advent, and RAG foundation. This transaction is expected to be complete by the end of 2020.

REPORT COVERAGE

An Infographic Representation of Elevator and Escalator Market

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The escalator and elevator market report offers an in-depth analysis of the market. It further provides details on the adoption of escalator and elevator across several regions. Information on trends, drivers, opportunities, threats, and restraints of the market can further help stakeholders to gain valuable insights into the market. The report offers a detailed competitive landscape by presenting information on key players, along with their strategies, in the market.

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