The Global Elevator and Escalator Market Was Valued At USD 79.70 Billion in 2021. The Market 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.

Elevator and Escalator Market Overview:

The global COVID-19 pandemic has been unprecedented and shocking. Demand is lower than expected in all regions compared to what it was before the pandemic. According to our research, the global market was down 3.5% in 2020 compared to 2019.

In the research report, we looked at elevators, escalators, and other inter-floor transporters like moving walkways that are used for transportation in commercial buildings, residential buildings, and industrial settings. The research report gives a full picture of how sales are split between new installations in newly built infrastructure projects, replacement or repaired products as part of maintenance, and the replacement of old solutions with new technologies as part of modernization. The research report classifies each product segment by country and shows how much each segment is worth in these countries.

The elevator and escalator market is growing because more money is being put into building infrastructure for businesses and homes in both developing and developed economies. The product is likely to grow as more work is done on the biggest and tallest commercial buildings in many places. For example, White Magnolia Tower, Raffles City, Xujiahui Center, One Manhattan West, and Lakhta Center are all urban projects that manufacturers are trying to help with. The market is also expected to grow because manufacturers are putting more effort into making products that are safer.

Market Dynamics:

Latest Trends:

Established companies are focusing on making sustainable products to attract customers who care about the environment. LED lights, recycled materials, and paints that dissolve in water are all features of green elevators. Also, market vendors are putting more effort into using alternatives to rope and pulley systems, like magnetic motors, which are becoming more popular with customers. Also, because these green products are becoming more popular, manufacturers are investing in them. For example, in 2018, Singapore gave high ratings to the TransitMaster 140 escalator, the KONE S MonoSpace, and the KONE 3000 TranSys elevators, all of which were made by KONE.

Driving Factors:

The market is likely to grow because developing economies are spending more money on infrastructure. Also, the UNCTAD Trade and Development report looks at infrastructure projects in more than 40 developing countries. So, different emerging nations' efforts to boost their economies are likely to lead to the building of bridges, dams, and urban infrastructure like highways, schools, ports, and airports. This, in turn, is likely to drive the market. India, for example, wants to spend US$1.4 trillion on infrastructure over the next five years.

Also, the growth of smart cities is expected to push the market forward. For example, the Policy Forum said that China's investments in smart cities were around USD 30.4 billion in 2018 and are expected to reach more than USD 59.9 billion by 2023. The market is also growing because there is a high demand for high-speed lifts because more and more skyscrapers are being built. For example, the Merdeka PNB 118 in Malaysia is a 644m skyscraper that is still being built. It is expected that this tower will be the tallest building in Southeast Asia.

Elevators use between 2% and 7% of all the energy in a building, so there is a lot of room for improvement when it comes to energy use. So, elevator makers are focusing on making elevators that use less energy. With better hardware controls, these elevators use less energy and take up less space. Also, the increase in government programmes to save energy is likely to help the sales of energy-efficient products grow. For example, the Swiss government said that old elevators will be fixed up in 2019 to make them more energy efficient. Schindler Switzerland will be their technology partner. So, it's likely that there will be a lot of demand for good electric elevators.

Restraining Factors:

The market is likely to be affected by the growing worry about elevator and escalator accidents. The U.S. Bureau of Labor Statistics and the Consumer Product Safety Commission say that elevator and escalator accidents kill more than 30 people and hurt about 17,000 people seriously every year in the U.S. About 90% of deaths and 60% of serious injuries are caused by accidents in elevators. There are also a lot of times when workers get caught between moving parts of elevators and escalators while they are being maintained or fixed. But more safety and security measures in the workplace and better training are likely to cut down on accidents when fixing and maintaining things. Also, manufacturers' efforts to improve product quality and safety are likely to lead to more money coming into the market.

Segmentation Analysis:

By Product:

Escalators are expected to be the part of the market that grows the fastest. This is because of the high demand from commercial buildings like shopping malls, business parks, and other places. Also, the growing need for escalators and moving walkways is caused by the growth of aerospace infrastructure. For example, the U.K.'s Stansted Airport is getting a makeover that will cost USD 775 million and should be done by 2021. Also, the high number of elevators on the market is likely to lead to steady growth in the demand for elevators.

By Business:

The new equipment segment has contributed a lot to the growth of the market's revenue, and it is expected to continue to lead over the next few years. This is because more people are moving to cities, the population is changing, and more people are building things. In 2018, more than 166,000 new elevators and escalators were sent to KONE. Also, maintenance and updating of the equipment that is already there are expected to grow a lot over time. Manufacturers are focusing on services that add value to their products. For example, KONE has introduced services that use new technologies to make customers' lives better. In 2017, KONE started offering elevator maintenance services through the IBM Watson Internet of Things (IoT) platform. These services, called KONE care 24/7 connected services, can be tailored to the needs of each customer.

By Application:

There are a lot of elevators and escalators in places like malls, shopping centres, and co-working spaces. The commercial segment is driven by the move toward eco-efficiency, flexible design, and safety. Over the past few years, there has also been a rise in the number of people who work for themselves, which has led to a need for more co-working spaces. So, changing investments in office space are likely to help the market grow even more.

The market is also expected to grow because there will be more people building homes. The World Resources Institute says that by 2030, China will have spent more than USD 13 trillion on building. The industrial sector helps the market grow because there is a growing need for freight transport in many different industries.

Regional Insights:

Asia-Pacific is expected to have the largest share of the market, more than any other region. This is because demand from key economies and developing areas like India and Southeast Asia has risen sharply in recent years. Regional analysis shows that China has made a big difference in the growth of market revenue and has a large share of the elevator and escalator market.

India will have a notable CAGR as more and more smart cities are built.

Over the next few years, it is expected that the market will grow the fastest in India. The country is the third-largest market in the Asia-Pacific region because of how quickly it is growing and how many high-rise buildings and skyscrapers are being built. The people in the market have started working to set up a strong and effective supply chain across the Indian market. They are trying to set up a strong network of distributors and retailers in many states so that they can reach customers directly and know exactly what their needs are in the whole region.

In India, some of the most well-known companies have adopted a "go-to market" strategy. They go to trade shows and tech expos to promote their products and learn more about what customers want and how they feel about them. For example, KONE, one of the biggest companies that makes elevators and escalators, has signed up to take part in DiECE 2020 and has set up a virtual booth at the exhibition. Hitachi also took part in the Global Lift and Escalator EXPO 2021 to show off its new products.

Over the next few years, North America is expected to grow at a reasonable rate. A big reason why the market is doing so well, especially in the U.S., is that global manufacturers are working hard to make sure they have a strong presence there. Through mergers and acquisitions of the most important domestic players, a number of global market leaders are working to improve their operations and build a loyal customer base in the region. For example, TK Elevator bought Accurate Elevator in June 2021 to strengthen its position in the local market. Also, this is the fifth time in a row that TK Elevator has bought a company in the North American market in 2021.

In South America, the need for elevators is growing because of the building of low- to mid-rise commercial complexes, office buildings, and residential infrastructure projects. The market for services in shopping malls and movie theatres is also growing because more of these structures are being built. Market players have used an organic strategy in this region to take advantage of these growth opportunities and make a big difference. The manufacturers are working hard to add variety to their product lines. For example, Mitsubishi made its "u" series of escalators to focus on escalator sales in Asia-Pacific, the Middle East, and South America, which are all new and growing markets.

Europe is expected to grow slowly over the next few years. This is because more and more advanced products are being made in Europe, and more and more countries, like Germany and the U.K., are buying them. The market in this area will also have new chances to grow with the construction and renovation of high-rise buildings.

Scope Analysis

Recent Development:

• In 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.
• In 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.

Market Segmentation

By Product:

• Elevators
• Escalators
• Moving Walkway
• Others

By Application:

• Residential
• Commercial
• Industrial
• Others

By Business:

• New Equipment
• Maintenance
• Modernization
• Others

By Companies:

• 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)
• Others