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, 2022-2029

The global elevator and escalator market was valued at USD 79.70 billion in 2021 and is projected to grow from USD 83.86 billion in 2022 to USD 132.08 billion by 2029, exhibiting a CAGR of 6.7% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market had exhibited a decline of -3.5% in 2020 as compared to 2019.

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 provides holistic insights regarding the sales split of the product segments between new installation in newly developed infrastructure projects, replacement or repaired product as a part of maintenance activities, or the replacement of old solutions 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 results in elevator and escalator market growth. Increasing construction works of the largest and tallest commercial projects in several regions are expected to develop 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 the market growth.

COVID-19 IMPACT

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

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

LATEST TRENDS

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Increasing Shift toward Environment-Friendly Products to Rise Adoption of Green Labeled Products

The established manufacturers are focusing on building sustainable products to attract environmentally conscious consumers. Green elevators have 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, which are gaining popularity among customers. Moreover, the recognition of 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 market. Moreover, the UNCTAD Trade and Development report analyzes more than 40 developing countries, emphasizing infrastructure projects. Thus, the evolving government initiatives from various emerging nations to drive their economy are likely to develop 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 in 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 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 due to the increasing construction of skyscrapers is resulting in market growth. For instance, the Merdeka PNB 118 is a 644m skyscraper under construction in Malaysia. This tower is expected to be the tallest building in Southeast Asia.

Energy-efficient Elevator and Escalator to Promote 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 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 promote growth in the sales of energy-efficient products. For instance, the Swiss government announced the refurbishment of old elevators to result in energy efficiency in 2019, with Schindler Switzerland as its technology partner. Thus, it is likely to result in a high demand for proficient electricity elevators. 

RESTRAINING FACTORS

Rise in Elevator and Escalator Casualties is Impacting Market Growth

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

SEGMENTATION

By Product Analysis

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

The escalators segment is expected to be the fastest-growing segment in the market. This is attributed to the high demand from commercial infrastructures, including shopping malls, commercial parks, and others. Moreover, the rising aerospace infrastructure development results 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 elevators is expected to experience stable growth due to their high penetration in the market.

By Business Analysis

New Equipment is the Dominant Segment in Market

The new equipment segment has significantly contributed to the market revenue growth 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 166,000 new elevators and escalators. Furthermore, maintenance and modernization of the existing equipment are expected to showcase significant growth over time. Manufacturers are focusing on providing value-added services. For instance, KONE introduced 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

Elevators and escalators have a high penetration in commercial centers such as malls, retail centers, and co-working places. The increasing shift toward 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 market growth.

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

REGIONAL INSIGHTS

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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.

India to Witness Noteworthy CAGR with Increasing Development of Smart Cities

India is projected to witness the fastest pace for the market's growth 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 to establish a strong and effective supply chain across the market in India. They are working to deploy a strong network of distributors and retailers across multiple states to have a better direct customer reach and understand the clients' exact requirements across the region.

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

North America is expected to 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 in North America.

In South America, construction of low to midrise commercial complexes, office buildings, and residential infrastructure projects is augmenting the requirement of elevators across the region of South America. Additionally, increasing construction of shopping malls and multiplex buildings is 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 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 due to increasing development of advanced products by Europe-based manufacturers and their growing adoption across countries such as Germany and the U.K. The development and renovation of high-rise buildings will also provide new growth opportunities for the market in this region.

KEY INDUSTRY PLAYERS

Prominent Market Players Are Engaged in Finalizing Strategic Mergers and Acquisitions to Operate Effectively in the Global Market

KONE operates as a prominent escalators and elevators manufacturer in diverse regions across the globe to solidify its presence as a global leader in the market. The company is keen to make strategic mergers and acquisitions of prominent entities. In 2018, KONE announced the acquisition of the repair and service segment of Heartland Elevator LLC. Heartland Elevator LLC has a significant presence in the Dallas Metropolitan region. The acquisition will aid the company in gaining more customer interaction in the aforementioned region.

KONE is also looking for acquisitions in Europe. The acquisitions are made based on the assessment and ability of the merger or acquisition to expand and cement the company's position in the region.

Key Players are Focusing on Strengthening their Offerings

Key players are adopting the strategy of acquiring small regional players to strengthen their service offerings and develop their domestic presence. Furthermore, advancement in technologies and persistent research result in the development of innovative products and services. Developments in product offerings by global market players and merger & acquisition activities collectively intensify the competitive landscape of the market across different regions. For instance, in 2021, Kone Corporation launched digitally connected KONE DX Class Elevators, which offer better performance and highly efficient operation of elevators. The digitally interconnected elevators can balance people flow with better productivity and enhance elevator connection at multiple entry levels.

List of Key Companies Profiled:

• thyssenkrupp AG (Cinven, Advent and RAG Foundation) (Germany)


• United Technologies (U.S.)


• Schindler (Switzerland)


• KONE CORPORATION (Finland)


• Hitachi, Ltd. (Japan)


• HYUNDAIELEVATOR CO., LTD. (South Korea)


• Mitsubishi Electric Corporation (Japan)


• Johnson Elevator Co., Ltd. (China)


• FUJITEC CO., LTD (Japan)


• Toshiba Corporation (Japan)

KEY INDUSTRY DEVELOPMENT:

• July 2021: A subsidiary organization of Hitachi Ltd. named Hitachi Elevator Asia Pte. Ltd. (Hitachi Elevator Asia) has developed an innovative elevator solution. This product provides a safer and hygienic elevator system that can find its application to comply with the safety regulations after the outbreak of COVID-19. The company has developed touchless lift solutions that can be operated using a 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

An Infographic Representation of Elevator and Escalator Market

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The 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, business, application, 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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