Published: Apr, 2018
Amidst a high degree of consolidation and intense competition, the global elevators market is flourishing on the back of rapid urbanization in emerging economies of Asia Pacific. Consistent efforts for research and development to come up with technologically advanced systems is the focus of key companies in the market to bag lucrative growth opportunities in these regions. Top companies are vying to sign contracts for installation and long-term maintenance of elevators in newly built high-rise residential and commercial buildings in developing nations.
Growth driven by acquisitions to expand product offerings and penetrate new markets is also aiding top companies to serve a larger geographical region and a varied consumer base. These companies are also aligning their business strategies to be in sync with technological shifts.
Otis holds dominance in the global elevator market on the back of its vast geographical presence and financial might. ThyssenKrupp AG, Schindler Holding Ltd., KONE Corporation, and Fujitec Co. Ltd. are to name other top companies in the elevators market. These companies are likely to continue expansion in APAC, wherein the building and construction sector is thriving.
Some other key companies in the global elevators market to name are Toshiba Corporation, Mitsubishi Electric Corporation, Hitachi Ltd., Kleemann Hellas SA, and Hyundai Elevator Co. Ltd.
As per estimates of a recent market study by Transparency Market Research (TMR), the global elevators market will clock a CAGR of 6.5% by revenue between 2017 and 2023 for the market to be worth US$330.45 bn by 2023-end. The demand in the market translated into a revenue of US$225.57 bn in 2017. By type, smart elevators are likely to witness rapid growth in the near future; the growth of the segment is because of reduced waiting time and energy efficiency. Application-wise, commercial spaces which include office spaces and warehouses hold dominance in the elevators market. Geographically, Asia Pacific is anticipated to emerge most lucrative in the upcoming years.
Increasing Installation of Energy Efficient Elevators in Buildings Propels Market
Worldwide, at present, rising green building norms is stoking the demand for energy efficient elevators. High rise buildings account for huge amount of greenhouse gas emissions which is necessitating sustainable green buildings to curb emissions. In the U.S., buildings alone account for almost 40% of total CO2 emissions, which out-consumes both transportation and industrial sectors. However, LEED-certified green buildings consume almost 25% less energy thereby helping curb emissions and lower utility bills. These attributes along with favorable government policies for the construction of green buildings make the U.S. leading country for green buildings. Asia Pacific which is emerging as a key market for green buildings due to environmental emission norms is anticipated to stoke demand for energy-efficient elevators. Energy-efficient elevators help reduce operational cost considerably especially for skyscrapers.
Rapid urbanization across emerging economies and the growth of the construction sector on the back of development of smart cities and changing demographics are some other key factors fuelling the global elevators market. As per records of the World Bank, 6 billion individuals are anticipated to live in urban areas by 2014. Advanced elevator and escalator systems go a long way for easy movement of passengers and goods in high rise buildings. It not only saves valuable time but also enhances efficiency manifold for passenger movement in busy commercial and residential buildings.
Safety Mandates to Prevent Accidents Impacts Growth
Stringent government regulations that monitor safety of elevators is challenging the growth of elevators market to some extent. For instance, elevator manufacturers in the U.S. need to adhere to regulations laid down by The American Society of Mechanical Engineers.
The review presented here is based on the findings of a TMR report, titled “Elevators Market ( Type - Smart Elevators and Conventional Elevators, Application - Commercial, Hotels, Retail, Residential, Transportation, Hospitals, Parking Building and Others) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2017 – 2023.”
- Substantial greenhouse gas emissions from buildings stoke demand for energy efficient elevators
- Rapid urbanization in emerging economies fuels growth
The global elevators market is segmented as follows;
Global Elevators Market, by Type
- Smart Elevators
- Conventional Elevators
Global Elevators Market, by Application
- Parking Building
Global Elevators Market, by Geography
- North America
- Rest of Europe
- Asia Pacific
- Rest of APAC
- Rest of the World
- Middle East
- Latin America
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