According to the report- South America Elevator & Escalator Market Research Report, 2027 published by Actual Market Research, the region stood at around USD 3.7 Billion in the year 2021 which was merely 3% of the total market. The economic condition can be said to the reason the region has been restrained from crossing a share of over 4% in the global elevator & escalator market. While income inequality has diminished across much of the region in recent years, social vulnerability remains widespread and institutional weaknesses continue to plague efforts to achieve fair development. The major market drivers in the South America region are the recovery in the construction industry, the surge in private-public partnerships, and the rapid urbanization in the region. However, the market is expected to grow over 6.5% CAGR.
Over the past few years, the South America elevator and escalator market registered sluggish growth in terms of several new installations, owing to the increase in the increase in the number of constructions in the region. The region has a dominance of the residential end user segment in 2021. In addition, increasing construction activities in the commercial vertical would further stimulate the growth of the market in the coming years. The growing government spending on infrastructural development projects aided the commercial end user segment to reach a market share of over 30% in 2021.
The unsuitable existing elevator design hampers the scope of modernization. This limited the growth of the segment in the year 2021, which has been showing marginal growth ever since. The dominance of the rest two segments has been in fluctuation with a negligible difference. The maintenance segment will continue to dominate the market revenue share because of increasing safety regulations and a high urbanization rate. There are significant demands for up gradation of the installed base to cater to the needs of its ever increasing user base.
The market is gaining momentum on the back of surging construction in commercial, industrial, and residential buildings. Energy efficiency has become a key trend nowadays, and so is the development of energy-efficient escalators. The pro-business policies of the government being implemented are likely to improve the overall economic outlook, which would drive growth over the coming years. The Brazilian market has been largely characterized by contracting growth owing to the high degree of political instability and corruption scandals surrounding the government, which has deterred investor sentiments. With the change in U.S. trade policies, the growth of Argentina is likely to be affected during the forecast period. Other countries like Chile and Peru are expected to perform well during the forecasted period. Major companies in the South America elevator and escalator market include Hitachi Ltd., Kone Corporation, Mitsubishi Electric, Otis Elevator, Schindler, and ThyssenKrupp.