An elevator, also referred to as a lift, is a closed cabin that moves up or down to transport passengers or freight between different floors of a multi-storey building, whereas, an escalator is a moving staircase that carries passengers up and down between the floors of a building. By type, the elevator segment leads the market at a share of more than 55% in 2021.
According to the report, “Global Elevator & Escalator
Market Research Report, 2027” published by Actual Market Research, the market was valued at around USD 90 billion, which is anticipated to reach nearly USD 130 billion by 2027, registering a CAGR of more than 6% for 2022-2027. On the other hand, the moving walkway segment is to grow at more than 6%, while the escalator segment is to show a decline in the market. Market players are increasingly focusing on long-term maintenance and repair contracts. The growth in the elevator & escalator market is driven by various factors such as increasing urbanization, surging aged population, rising construction expenditure and increasing gross domestic product. The market faces challenges like the high installation price and lack of skilled workforce. The global market is to experience trends such as high demand energy-efficient elevators and virtualization of cities. The major driver for the elevator and escalator market growth is the increase in the residential use. The vertical transportation was much popular among the commercial buildings like malls and hotels, while the residential buildings lacked the required infrastructure and power backup, the building levelled fewer floors.
However, with the increase in more living space, even the residential buildings are now high rinsed, dominating the market in the year 2021. On the other hand, the commercial segment is to decline marginally in the same year. The tourism and industrial imprudent coupled with increasing government funding plays an important role in contributing to the other segment of end users. These factors are to influence the other end user segment that is expected to grow with an anticipated CAGR of over 6%.
The rapid urbanization and rising population are some of the factors responsible for the growth of megacities in few regions. Asia has efficient public infrastructure for mass transportation is required for the high population in megacities. The countries in Asia are planning to build metro rails in urban areas to reduce traffic congestion and improve transportation facilities. The metro project in the region and real estate investments around these projects will propel the demand for elevators and escalators. A rise in the price of the steel would adversely affect the profit margins of the vendors. Increasing raw material prices and the addition of advanced technologies in the equipment augment the price of raw material. This have been a major restraint in the global market for region like Latin America and Middle East & Africa, which together contributed to more than 12% of the market in 2021.
Various stakeholders involved in the supply chain of the elevators & escalators industry starting from raw materials suppliers, research & development, manufacturing, and the assembly team are the part of market ecosystem. Post this, the marketing and sales of the finished products take place which is only possible if an efficient distribution channel is developed. At last, the end-products are made available to the consumers and are installed at their sites. Apart from this, the companies also provide modernization services and maintenance & repair services. In this, the existing structures are taken care of by the equipment manufacturing companies. Globally, the market has been dominated by four key players: Otis Elevator Company, Schindler Holding Ltd., ThyssenKrupp Elevator AG and KONE Corporation, which together control a major share, holding to more than half of the market.