Elevators Market: Snapshot
The global market for elevators heavily relies on the development of the residential and commercial construction sector globally. As a result, it presently draws a significant share in its overall revenues from sales across developing economies in regions such as Asia Pacific, Latin America, and Africa. In developed economies across Europe and North America, the market achieves more gains from repair and maintenance services as against new product sales. This is owing to the stagnant growth of the construction industry in these regions post the recent economic depression of 2008. However, the situation is steadily improving and the market for elevators is expected to witness healthy growth across Europe and North America as well in the next few years.
Transparency Market Research estimates that the global elevators market will exhibit a 7.4% CAGR in terms of revenue over the period between 2016 and 2023. At this pace, the market will rise from a valuation of US$181.50 bn in 2015 to US$330.45 bn by 2023. In terms of volume, the market is projected to expand at a healthy 6.3% CAGR over the said period.
Rising Need for Energy Efficiency to Drive Demand for Smart Elevators
On the basis of product types, the global elevators market is segmented into conventional elevators and smart elevators. Of these, the segment of conventional elevators dominated the global elevator market in terms of both revenue and volume in 2015. The segment held a share of over 80% in terms of revenue and over 75% in terms of volume of the overall market in the said year.
However, the segment of smart elevators is expected to emerge as the most lucrative one in the next few years. The market for smart elevators will be influenced by factors such as the rising adoption of wireless technology, enhanced security concerns, rapid urbanization, increasing demand for energy efficient solutions, and steady growth of global economies. Owing to these factors, a sharp shift from traditional hydraulic elevators to the smart elevators that consume less time and energy is expected to be witnessed in the coming years. The market for smart elevators is expected to exhibit a CAGR of 7.9% in terms of revenue and 6.6% in terms of volume from 2016 through 2023.
Asia Pacific to Continue to Uplift Growth Prospects
The market for elevators in Asia Pacific held the dominant share in the global elevators market, accounting for over 34% in terms of revenue and 50% in terms of volume in 2015. The vast rise in adoption of elevators in APAC’s burgeoning construction industry is a key driver of the market in the region. Governments of developing countries in the region are increasingly funding infrastructure development and construction activities, which is fuelling the growth of the elevator market. For instance, in the twelfth five-year plan (2012–2017), the government of India plans to invest more than 7% of its total budget for industrial infrastructure development and construction. This trend is expected to keep the elevators market guiding along a healthy growth path in the region in the next few years as well.
The elevators market in the Rest of the World (RoW) is expected to gain significant traction from 2016-2023. Including regions such as Middle East, Africa and Latin America according to the scope of the report, the market for elevators in the RoW sector is driven by the rising number of construction activities in the Middle East. At present, not many African countries have many skyscrapers and the demand for elevators is primarily for repair and maintenance purposes. However, new installations are projected to rise in the next few years owing to initiatives taken by the African government to improve infrastructure, which is presently one of the biggest obstacle to the region’s economic growth.
Some of the key vendors operating in the highly consolidated global market for elevators are Toshiba Corporation, Mitsubishi Electric Corporation, Kone Corporation, Schindler Holding Ltd., Hitachi Ltd., ThyssenKrupp AG, Otis Elevator Company, Kleemann Hellas SA, Hyundai Elevator Co., Ltd, and Fujitec Co., Ltd.
Elevators and escalators, which have become an integral part of the urban landscape, are installed in various public and private places such as retail outlets, hotels, IT parks, mixed-used buildings, residential buildings, commercial buildings and restaurants for the movement of people and good within the premises. All these public and private places with long walking distances and multiple floors make use of elevators to improve customer experience. The elevators are also installed in airports and vehicle parking. The vendors in the global elevator market compete on the basis of the installation, maintenance and modernization services for gaining prominence in the market. The global elevators market has been segmented on the basis of its types, application areas and geography.
Rapid urbanization and an increase in geriatric population globally coupled with the maintenance and modernization of the existing elevators are strongly driving the growth of the global elevators market. Furthermore, growing green building market facilitating the installation of “energy-efficient elevators” is steadily boosting the market growth. As buildings become more intelligent and rise higher, efficient elevator and escalator systems are having a significant impact by considerably driving down the costs of operating a building and allowing people to travel farther, more efficiently. New technologies adopted by the key players in the elevator market, such as coated steel belts which are helping to replace the conventional cable ropes in a few elevators are allowing for more efficient operation. The conjoint effect of all these drivers is thus set to bolster the growth of the global elevators market during the forecast period.
The continuing evolution of the Internet of Things (IoT) in the elevators market is offering a substantial growth opportunity to the growth of the global market. Internet of Things (IoT) is the interconnection of various devices and equipment which deliver a large amount of data over the internet. IoT makes it possible for a product to collect, exchange and analyse data with its operator, manufacturer and other devices, which is highly relevant to the elevator industry. IoT enables modern elevators to anticipate traffic and respond in real-time intelligently, communicate with service teams and allow passengers to summon the elevators via a mobile application. Further, by using a connected sensor in an elevator, the flow of passengers can be better managed by alleviating wait time. Dominant players in the elevator market such as ThyssenKruup Elevators, Otis Elevator Company and KONE Corporation are joining forces with Microsoft and IBM respectively for augmenting their operations and technological capabilities with IoT cloud services and advanced analytics technologies.
The competitive profiling of the key players in the global elevators which is inclusive of the different business strategies adopted by them and their recent developments, market across the geographic regions of North America, Europe, Asia Pacific and Rest of the World (including Latin America and Middle East and Africa) is covered under the scope of the study. The market attractive analysis of the major application areas has been included in the report, in order to provide a deep insight into the global elevators market.
The global elevators market report is inclusive of the market dynamics, i.e. market drivers, restraints and opportunities which are the distinct that help to understand the trends of the global market. Thus, the report provides exhaustive study of the global elevators market and offers the forecast of the market for the period from 2016 to 2023.
Some of the major players in the global elevators market include, Toshiba Corporation, Mitsubishi Electric Corporation, Otis Elevator Company, Schindler Holding Ltd., Hitachi Ltd., ThyssenKrupp AG, Kone Corporation, Kleemann Hellas SA, Hyundai Elevator Co., Ltd and Fujitec Co., Ltd. among others.
The global elevators market has been segmented into:
Global Elevators Market, by Type:
- Smart Elevators
- Conventional Elevators
Global Elevators Market, by Application:
- Parking Building
Global Elevators Market, by Geography: The market is broadly segmented on the basis of geography into:
- North America
- Rest of Europe
- Asia Pacific
- Rest of APAC
- Rest of the World
- Middle East
- Latin America