Market Overview on Elevators and Escalators

Synopsis: The elevator and escalator industry, valued at USD 83.86 billion in 2022, is poised to swell to USD 142.52 billion by 2030, marking a CAGR of 7.0%. These systems are prominently found in commercial structures, homes, and industries, aiding in movement across floors.

Market Dynamics:

Driving Factors:

• A surge in construction activities in nations like India, China, and the U.S. propels the market.


• The launch of skyscraper projects and a growing emphasis on safety enhancements further spur growth.


• Notably, in 2021, Dubai's Deyaar Development allocated USD 272 million for the Business Bay Tower.

Current Trends:

• Sustainability is key. Manufacturers are emphasizing green solutions like LED lighting and water-soluble paints.


• Rope and pulley systems, including magnetic motors, are gaining traction.


• Hitachi's "Urban Ace Human Friendly” elevator is a prime example, emphasizing safety and comfort.

Impacts of COVID-19:

• The pandemic severely hampered market growth due to sudden curfews and the stalling of construction projects.


• Disruptions in supply chains and manufacturing worsened liquidity, causing uncertainty.


• China experienced significant short-term setbacks, but recovery seems imminent with innovative approaches in the industry.

Market Constraints:

• Safety remains a concern. In 2020, U.S. reports suggested around 17,000 injuries and over 30 fatalities tied to elevator and escalator incidents.


• Nevertheless, an emphasis on safety measures and improved product quality is expected to bolster market confidence.

Segments Overview:

By Product:

• Categories include elevators, escalators, and moving walkways.


• Escalators are surging in demand due to increasing commercial spaces. For instance, the Stansted Airport's revamp in the UK was budgeted at $775 million.

By Business:

• Segments involve new equipment, maintenance, and modernization.


• Maintenance leads, growing at a 7.0% CAGR, supported by initiatives like Schindler Group's partnership with citizen M Hotels Chain.


• New equipment also showcases growth. In 2022, Kone bagged orders for over 172,000 units.


• Modernization, growing at an 8.8% CAGR, is influenced by the shift towards greener technologies. Otis Elevator's new offerings, "Otis Gen3tm" and “Gen 360tm”, serve as prime examples.

In summary, the global elevator and escalator market is witnessing growth driven by construction, safety, and sustainability trends. Though hampered by the pandemic and safety concerns, innovations and green technologies are carving a way forward.

Elevators and Escalators Market Overview: Application & Regional Highlights

Application Analysis:

• Segmentation encompasses industrial, residential, and commercial applications.


• The residential category takes the lead and forecasts a 7.2% CAGR growth. This growth can be attributed to the ubiquitous presence of elevators and escalators in homes and apartment buildings.


• Emphasizing eco-friendliness, safety, and versatility, the commercial segment is gaining momentum, particularly with increasing investments in office spaces. Furthermore, as the World Resources Institute reveals, by 2030, China intends to allocate over USD 13 trillion on housing.


• The commercial division anticipates a 6.8% CAGR, driven by grand commercial structures and evolving technological infrastructures. On the other hand, the industrial sector pins its hopes on moving walkway sales, fueled by the trend of industrial automation.

Regional Insights:

• China's anticipated robust growth owes to its construction endeavors involving skyscrapers. The nation also witnesses a boost from manufacturers' R&D investments.


• Several milestones mark the industry's journey. For example, KONE Corporation's virtual showcase at DiECE 2020 and Hitachi's participation in the Global Lift and Escalator EXPO 2021.


• North America's potential growth rests on its economic stability and enhanced living standards. Strategic acquisitions, such as TK Elevator GmbH's purchase of Florida's Accurate Elevator in 2021, exemplify the market's growth dynamics.


• Latin America expects a steady growth trajectory, driven by diverse construction projects across Brazil and Argentina.


• Europe's growth is anchored in technological advancements and the embracement of these products, especially in nations like Germany and the U.K.

Key Industry Players:

• Major industry players are strategically positioning themselves through mergers and acquisitions.


• KONE Corporation, a leading player, is known for its diverse elevator and escalator offerings. In 2022, Otis expanded its portfolio through 26 strategic acquisitions, valued at USD 46 million. Furthermore, its acquisition of the minority interest in Zardoya Otis SA, made possible with the USD 1.75 billion debt from 2021, showcases its expansive endeavors.


• Not stopping there, KONE also eyes European acquisitions, ensuring its robust regional presence.


• Other industry stalwarts like ThyssenKrupp AG and Otis Corporation are broadening their horizons by absorbing regional entities. This strategy amplifies their global presence and service offerings. One of the significant launches, Kone Corporation's KONE DX Class Elevators in 2021, emphasized digital connectivity, performance, and energy efficiency.

In essence, the global elevator and escalator industry is witnessing profound growth, powered by strategic corporate maneuvers and regional developments.

List of Key Companies Profiled:

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


• CT Elevator Pte Ltd (Singapore)


• Schindler (Switzerland)


• KONE CORPORATION (Finland)


• Hitachi, Ltd. (Japan)


• HYUNDAI ELEVATOR CO. LTD. (South Korea)


• Mitsubishi Electric Corporation (Japan)


• Otis Worldwide Corporation (U.S.)


• FUJITEC CO., LTD (Japan)


• Toshiba Corporation (Japan)

Industry Updates & Highlights:

Developments:

August 2021: Hyundai and LG Electronics formed a strategic alliance through a Memorandum of Understanding (MoU) focusing on the provision of smart building solutions and enhancing robotic integration. The collaboration seeks to synchronize technologies for elevators and autonomous driving robots. The primary goal is to create a smart building ecosystem using LG Electronics’ signature technologies and home network systems.

July 2021: Hitachi Elevator Asia, an affiliate of Hitachi Ltd, unveiled innovative elevator technology. This innovation offers a safer and more sanitary elevator system relevant in the context of the COVID-19 pandemic. Features include touchless button controls, multifloor lift navigation, and integrated mobile control mechanisms.

June 2021: Otis Elevator Company introduced their Gen 3 and Gen360 elevator platforms, equipped with digital and mobile controls. These platforms cater to both low and high-rise structures, whether commercial or residential. Notably, the Gen360 platform has expanded its footprint to over six European countries.

January 2021: Schindler pioneered the ElevateMe App – a user-friendly mobile application that grants passengers the convenience of summoning elevators and choosing their destination floor via their smartphones, eliminating the need for physical button pressing.

October 2020: Mitsubishi Electric directed its efforts to strengthen its foothold in the Asia Pacific region. The enterprise rolled out strategies to amplify its production capacity and is intensively refining its distribution networks, especially in Japan and Thailand.

Report Overview:

This comprehensive report delves deep into the intricate dynamics, competitive scenarios, and evolutions of the industry. It offers estimations and forecasts based on products, business models, applications, and regions. In addition, the report imparts valuable insights such as Porter's five forces analysis, company profiles, SWOT analysis, and a snapshot of the broader macro and microeconomic factors. Key mergers, acquisitions, and other vital industry events are also highlighted for a holistic understanding.

SCOPE AND BREAKDOWN OF THE REPORT

Commonly Asked Questions:

1. What was the valuation of the elevator and escalator market in 2022?


2. What's the projected worth of the global elevator and escalator market in upcoming years?


3. What is the anticipated Compound Annual Growth Rate (CAGR) for the global market?


4. Which market segment is predicted to dominate in the forecasted timeframe?


5. What are the primary drivers propelling the market growth?


6. Who are the leading companies in the global landscape?


7. Which geographical region is poised to have the major market share?


8. Can you highlight the prevailing market trends?


9. Which business segment is likely to take the lead in the market?

Which application sector currently has the dominant market share?