Elevator and Escalator Market Size, Share & COVID-19 Impact Analysis, By Product (Elevators, Escalators and Moving Walkway), By Business (New Equipment, Maintenance, and Modernization), By Application (Residential, Commercial and Industrial), and Regional Forecast, 2021-2028

The global elevator and escalator market size was USD 77.82 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with elevators and escalators witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a huge decline of -3.5% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 79.7 billion in 2021 to USD 122.83 billion in 2028 at a CAGR of 6.4% in the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and drive the growth, returning to pre-pandemic levels once the pandemic is over.

In the research report, we have considered elevators, 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 covers holistic insights regarding the sales split of the global elevator and escalator product segment between a new installation in newly developed infrastructure projects, replacement or repaired product as a part of maintenance activities, or the replacement of old solutions and 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 is resulting in elevator and escalator market growth. Increasing construction works of the largest and tallest commercial projects in several regions are likely to develop the adoption of 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 market growth.

Abrupt Shutdown of Manufacturing Facilities 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 which also reduced new construction and modernization activities, hampering the sales and development of the global market. The reduced cash liquidity, uncertainty in the public investments, and pessimistic approach of the established potential investors dipped the growth of the market.

The disruption and complete breakdown of the supply chain of the manufacturing ecosystem has pivoted the degradation of the market across multiple regions. Numerous federal governments had mandated a temporary ban and had published immediate directives to shut the transportation of non-essential commodities, which created a massive state of imbalance between procurement of raw material for products and actual production at the manufacturing facilities. A complete disproportion in the supply and demand of raw materials has decreased the efficiency and output of the industry.

LATEST TRENDS

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Increasing Shift towards Environmentally Friendly Products to Surge Adoption of Green Labeled Products

The established manufacturers are focusing on building sustainable products to attract environmentally conscious consumers. Green elevators have various features, including 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 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.

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 said market. Moreover, the UNCTAD Trade and Development report analysis of more than 40 developing countries suggests a high emphasis on infrastructure projects. 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 market. For instance, India plans to invest USD 1.4 trillion in infrastructure by 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 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 high demand for high-speed lifts owing to the increasing construction of skyscrapers is resulting in the 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 to Bolster 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 lifts. These machines 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 promoted the refurbishment of old lifts so as to result in energy efficiency in 2019, with Schindler Switzerland as its technology partner. Thus, it is likely to result in high demand for proficient electric elevators.

RESTRAINING FACTORS

Rise in Elevator and Escalator Casualties is Impacting Market Growth

The increasing concerns about elevator and escalator accidents are expected to impact the market. According to the U.S. Bureau of Labor Statistics and Consumer Product Safety Commission, in the U.S., more than 30 people are killed, and around 17,000 are seriously injured in these incidents every year. Such incidents are responsible for around 90% of deaths and 60% of serious injuries. Incidents where workers are caught in between the moving parts of escalators and any such machines while maintenance and 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 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 market revenue.

SEGMENTATION

By Product Analysis

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Escalator Segment to Grow Rapidly Owing to Increasing Demand from Evolving Infrastructure

Based on products, the market is segmented into elevators, escalators, and moving walkways.

The escalators segment is expected to be the fastest-growing segment in the market. This is attributed to the high 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 transformation is expected to complete by 2021 at the expense of USD 775 million. Furthermore, the demand for lifts is expected to experience stable growth as a result of their high penetration in the market.

By Business Analysis

New Equipment is the Dominant Segment in This Market

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

The new equipment segment has significantly contributed to 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 are expected to showcase significant growth over the period 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.

Elevators and escalators have a high penetration in 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 are further expected to contribute to the growth of the market. For instance, in 2018, the Embassy Office Parks of India stated that it would collect around USD 775.7 elevator 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 INSIGHTS

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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 estimated to hold the lion’s share in the market, outpacing its peers owing to a steep rise in demand from the key economies and developing areas, such as India and Southeast Asia. Based on the findings of regional analysis, China has significantly contributed to the growth of the market revenue and holds a noteworthy elevator and escalator market share of the global market pie.

India to Witness Noteworthy CAGR with Increasing Development of Smart Cities

India is projected to witness the fastest pace for the growth of the market over the forecast period. The fast-paced development and increasing development of high-rise buildings and skyscrapers are the critical factors making the country the third-largest market within the Asia Pacific region. The market players have initiated their efforts for the establishment of a strong and effective supply chain across the market of India and are also working to deploy a strong network of distributors and retailers across multiple states to have a better direct customer reach and understand the exact requirements of the clients across the region.

Some of the prominent manufacturers have adopted a go to market strategy in the market of India and are participating in various trade shows and tech expo to promote their products and gain valuable insights regarding customer viewpoints and demands. For instance, In August 2020, one of the largest providers named KONE has registered its participation in DiECE 2020 and had put a virtual stall in the exhibition. Additionally, Hitachi also participated in Global Lift, and Escalator EXPO 2021 to market a new and novel range of products.

North America region can register a decent pace of growth over the forecast period. The efforts made by the global manufacturers to solidify their presence in the regional market is a critical reason behind the flourishing market, especially in the U.S. Numerous established global market players are strategically working to elevate their operations and establish a loyal customer base in the region through strategic mergers and acquisitions of the prominent domestic players. For instance, In June 2021, TK Elevator finalized its acquisition of Accurate Elevator to fortify its presence in the regional market. Moreover, this acquisition is the fifth successive acquisition made by TK Elevator in 2021 across the market of North America.

In South America, the construction of low to mid-rise commercial complexes, office buildings, and residential infrastructure projects are augmenting the requirement of lifts across the region of South America. Additionally, increasing construction of shopping malls and multiplex buildings are fostering the market by service in these infrastructures. To capitalize on these growth opportunities and create a noteworthy impact, market players have adopted an organic strategy going forward in this region. The manufacturers are making efforts to inculcate diversity in their product portfolio. For instance, Mitsubishi launched its U series escalators to focus on escalator sales in the emerging opportunistic markets of Asia Pacific, the Middle East, and South America.

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Europe is projected to progress with a modest growth rate over the forecast period owing to the increasing development of advanced products by Europe-based manufacturers and their increasing adoption across countries, such as Germany and the U.K. The development and renovation of high-rise buildings can also provide new growth opportunities for the market in this region.

KEY INDUSTRY PLAYERS

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

In 2018, KONE finalized the acquisition of the service and repair operational segment of Heartland Elevator LLC. The company has made the acquisition a strategic decision to fortify its operation in the market of North America. The move will also assist the company in gaining prominence in the region of the Dallas Metropolitan Area.

In 2017, KONE announced the acquisition of Germany-based Alois Kasper GmbH. The strategic acquisition will aid KONE to bolster its sales footprints in the region of Europe with a stronghold in 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 is resulting in the development of innovative products and services. Developments in the product offerings by global market players and mergers and acquisition activities are collectively intensifying the competitive landscape of the market across different regions. For instance, in 2021, Kone Corporation launched “digitally connected KONE DX Class Elevators,” and these lifts offer better performance and highly efficient operation. The digitally interconnected elevators can balance the people flow with better productivity and can also enhance the connection at multiple entry levels.

LIST OF KEY COMPANIES PROFILED:

• thyssenkrupp AG (Cinven, Advent and RAG foundation) (Essen, Germany)


• United Technologies (Massachusetts, United States)


• Schindler (Ebikon, Switzerland)


• KONE CORPORATION (Espoo, Finland)


• Hitachi, Ltd. (Tokyo, Japan)


• HYUNDAI ELEVATOR CO., LTD. (Gyeonggi-do, South Korea)


• Mitsubishi Electric Corporation (Tokyo, Japan)


• Johnson Elevator Co., Ltd. (Jiangsu, China)


• FUJITEC CO., LTD (Tokyo, Japan)


• Toshiba Corporation (Tokyo, Japan)

KEY INDUSTRY DEVELOPMENTS:

• July 2021: A subsidiary organization of Hitachi Ltd. named Hitachi Elevator Asia Pte. Ltd. (“Hitachi Elevator Asia”) has developed an innovative solution. This product provides a safer and hygienic system that can find its application to comply with the safety regulations after the outbreak of the COVID-19 pandemic. The company has developed touchless lift solutions that can be operated using the touchless button to navigate lift on multiple floors and mobile access system which help the certified phones to operate the lift from a remote mobile phone.


• 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

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The market research report provides an in-depth analysis of the industry dynamics and competitive landscape. The report also provides market estimation and forecast based on product type, Industry, and regions. It provides various key insights, including recent industry developments in the market, such as mergers & acquisitions, macro, and microeconomic factors, SWOT analysis, and company profiles.

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