Published: Jan, 2018
On the back of rapid urbanization in several emerging economies in Asia Pacific, the global elevators market is flourishing. A recent business publication by Transparency Market Research (TMR) has evaluated the lucrativeness of the market for elevators and escalators across the world and forecasted the demand, in terms of value, to increment at a notable CAGR of 7.4% during the forecast period of 2016 to 2023. In terms of volume, the market is anticipated to gain new demand at a CAGR of 6.3% during the said forecast period. As per the estimations of the report, the opportunities in the global elevators market will translate into a revenue of US$330.45 bn by 2023, substantially up from its calculated worth of US$181.50 bn in 2015.
Global Shares Consolidated Among Five Leading Players
As far as the competitive landscape is concerned, the analysts of the TMR report have detected a consolidated scenario wherein the top five vendors accounted for 75% of the total shares in the global elevators market. The dominance of the five market leaders, namely ThyssenKrupp AG, KONE Corporation, Schindler Holding Ltd., Otis Elevator Company, and Fujitec Co. Ltd., is a reflection of their financial might and geographical presence, which they have expanded aggressively in the recent past. In addition to that, the market leaders are constantly improving their product portfolio, enhancing their offerings according to customer’s needs and establish themselves with worth of mouth. Going forward, these players are expected to continue having a foray into the APAC region, wherein the building and construction sector is prospering. Relatively less-established players, such as United Technologies, Hitachi Ltd., Mitsubishi Electric Corporation, Hyundai Elevator Co., Ltd., Toshiba Corporation, and Electra Ltd., are finding it hard to eat into the shares of aforementioned market leaders but the sheer volume of demand is also ensuring their profitability. Provided these players get aggressive for their regional expansion, their future prospects in the global elevators market are bright.
Demand for Smart Elevators Expanding Quickly
Based on elevator type, the report segments the elevators market into conventional elevators and smart elevators. Currently, the former segment of conventional elevators provides for more than three-fourth of the total demand across the globe, although the latter, smart elevators segment, is projected for a better growth rate, which would be a reflection of increasing adoption of wireless technology. The smart elevators segment is projected to expand at a CAGR of 7.9% during the forecast period of 2016 to 2023, in terms volume. Application-wise, the market has been bifurcated into residential commercial, retail, hotels, hospitals, transportation, and parking building. Geographically, the report highlights Asia Pacific as most lucrative region, providing for more than one-third, 34%, of the total demand in 2015.
Prospering Building and Construction Industry Driving Demand
Apart from the rapid urbanization across various economies, the advancements in the construction industry on the back of development of smart cities and changing demographic trends are some of the other factors augmenting the demand in the global elevators market. The analysts have detected that advanced systems of escalators and elevators go a long way towards easing the vertical transportation requirements of passengers and goods. It not only reduces waiting time but also increases the efficiency of traffic management in high-traffic commercial and residential buildings.
On the other hand, uncertainty as well as risk pertaining to the global economy, high cost of installation, need for regular and expensive maintenance measures, and need to comply with standards and regulations are some of the restraints obstructing the global elevators market. Nevertheless, the vendors of this market stand to gain new opportunities on the back of adoption of green building codes and energy efficient products.
The information presented in this review is based on a Transparency Market Research report, titled, “Elevators Market ( Elevator 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 2016 – 2023.”
Key Segments of the Elevators Market
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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