According to the report titled - Asia Pacific Elevator & Escalator
Market Research Report, 2027 by Actual Market Research, the region is dominating the market with key economies and developing areas, such as India and Southeast Asia. The market was valued at USD 41 billion in 2021, dominated the global market with nearly half of the share. The region is to continue developing at a rapid pace, with economic growth projected to reach an annual average rate the fastest among all global regions. Many countries in Asia face the important challenge of an aging population and declining productivity growth with a need for structural reforms.
The increasing transformation activities in the construction and the infrastructure of the region have been the major reason for the rapid growth of the elevator and escalator market in the region. China has 14 cities with populations in excess of 5 million, including Shanghai with 22 million people. It is here that companies debut their most impressive innovations, such as Mitsubishi Electric’s first-in-the-world spiral escalator in the Daimaru department store. Thus, it is no wonder that the country has held a larger market share since 2021 and will continue to do so during the forecast period.
The growth in the construction market, upcoming new hotels, & shopping malls coupled with growing government spending on infrastructural development projects and increasing inflow of FDI towards the construction industry are some key factors that have resulted in the overall growth of the market in Asia. The new installation segment held to a share of 50.09% in the year 2015. With major of the fixtures being a decade old or more, the region is to witness the highest anticipated CAGR from the maintenance & repair segment.
Asia-Pacific offers potential growth opportunities, as developing countries such as China and India are projected to be emerging markets, making the Asia-Pacific region the fastest-growing market for elevators & escalators. The expansion of the elevators & escalators market in this region is propelled by factors such as the growth of the residential, commercial, institutional, and infrastructure industries. The growing passenger traffic at airport terminals will drive the market for the horizontal moving walkway segment, which is anticipated to cross a market value of over USD 6 Billion by the end of the forecast period.
The increasing shift towards eco-efficiency, flexible design, and safety is driving the commercial segment. Besides, the increase in self-employment has led to the demand for multiple co-work places over the past few years. 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. Further, a rise in the steel's price would adversely impact 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. Customers expect constant support and after-sales-services from OEMs to maintain the effective performance of elevators and escalators. The bigger and well-established vendors in the market such as ThyssenKrupp, Schindler, Mitsubishi, Hitachi, and Fujitec provide integrated maintenance solutions to their customers.