Global Elevator and Escalator Market Research Report: Forecast (2024-2030)

Market Definition

Elevators and escalators are typically defined within the broader category of vertical transportation equipment. Elevators are vertical transportation devices that move people or goods between floors within buildings, while escalators are moving staircases designed to carry people between two successive floors of a building or structure. Escalators typically consist of interlocking steps that are powered by an electric motor and a system of chains and gears that enable the easy movement of steps in an escalator. This entire mechanism is contained in a set of trusses that connect the floors.

Market Insights & Analysis: Global Elevator and Escalator Market (2024-30):

The Global Elevator and Escalator Market size was valued at around USD 125.5 billion in 2023 & is estimated to grow at a CAGR of around 7.8% during the forecast period, i.e., 2024-30. Most of the market expansion can be attributed to the rapid urbanization worldwide, resulting in the erection of more buildings and the modernization of age-old infrastructure in the coming years. According to the World Bank, 56% of the world’s population, i.e., 4.4 billion inhabitants, were residing in cities as of 2022. The urban population is on the verge of folding itself by 2050 to the extent that nearly 7 out of 10 people will be living in cities.

Given the limited land area available for constructing new homes to inhabit a pool of migrants from the countryside to cities, the development of high-rise buildings has gained momentum in the past few years. Countries such as China, India, Southeast Asia, Bangladesh, Nigeria, South Africa, etc., are leading this market trend in 2024. With a massive residential flat count and several floors often exceeding 20, the role of conventional stairs for commuting purposes is negligible. Thus, the inevitable need to deploy elevators in these high-rise buildings, nearly two or three in one of them alone, is anticipated to drive the adoption of escalators in the forecast period.

Further, rapid commercial facility expansion in terms of the rise in the number of malls, shopping centers, cinemas, restaurants, and many more in emerging economies in Asia-Pacific, the Middle East & Africa, Eastern Europe, etc., has demonstrated the adoption of more elevators and escalators in recent years and is likely to strengthen in the coming years.

The elevator and escalator market is a global industry that covers the complete process from design, manufacturing, and installation to maintenance and modernization of both types of transport systems. This global market is affected by regional development rates, demographic changes in population numbers, building trends, altering safety guidelines, or introducing technological improvements. Major market players that focus on creating such machinery related to elevators & escalators comprise multinational companies like KONE Corporation, Schindler Group, and Otis Elevator Company, which seek continuous growth amidst an ever-changing economic landscape.

Moreover, considerable geriatric demography coupled with the differently-abled population has necessitated the deployment of elevators in homes as well as workplaces. Similarly, with multi-story structures, hospitals have begun to deploy escalators to ensure patient safety and easy transfer from one floor to another. These aspects are predicted to maximize the incorporation of elevators and escalators in most infrastructures, thereby contributing to market growth & expansion in the coming years.

Further, the changing dynamics in developing countries in terms of urban infrastructure growth, including metro rail projects, schools, and airports, will again push the market ascension in the forecast period. Similarly, the advent of energy-efficient elevators and escalators would provide lucrative prospects for the Global Elevator and Escalator Market in the coming years.

Global Elevator and Escalator Market Driver:

Increasing Investment in Construction Projects – The global elevator and escalator market is set to grow due to the rising construction of new residential and commercial properties in both developing and developed economies. Infrastructure-related projects are being invested in by over 40 developing countries, as per the UNCTAD Trade report. Additionally, numerous government initiatives from these nations aim to boost demand for elevators and escalators further during the forecast period. For instance,

• India is planning to invest USD 1.4 trillion in residential and commercial infrastructure by 2025.

Furthermore, developing smart cities is also expected to augment the size & volume of the Global Elevator and Escalator Market. For instance,

• The source of the Policy Forum stated that the Chinese government's investment in the smart city was USD 30.5 billion in 2019, and investment is expected to reach USD 60.2 billion by 2028.

In addition, the increasing construction of high-rise buildings in developed and developing countries drives the growth & expansion of the market.

Global Elevator and Escalator Market Opportunity:

Rising Adoption of Energy-Efficient Elevators & Escalators Presents Lucrative Opportunities – The major opportunity area emerging in the global elevator and escalator market is energy-efficient elevators and escalators. Elevators' energy consumption accounts for around 2% to 7% of the total energy consumption of the whole building. Thus, minimizing this energy loss remains a challenge for manufacturers. In a bid to tackle this, leading brands in the market are bringing their focus to developing energy-efficient elevators. Since governments worldwide are already emphasizing the usage of products with minimal carbon footprints, energy-efficient elevators, and escalators are likely to provide lucrative opportunities for manufacturers in the coming years. For instance,

• In October 2022, EOX, a new energy-saving and natively digital elevator platform, was launched by TK Elevator. With its new eco-mode, weight-optimized design, and regenerative drive technology, the EOX requires 30% less energy than its conventional counterparts.

Global Elevator and Escalator Market Challenge:

Surging Number of Casualties Impeding Market Growth & Expansion – According to information from the Consumer Product Safety Commission and the U.S. Bureau of Labor Statistics, accidents involving elevators and escalators result in roughly 30 fatalities and 17,000 serious injuries annually in the United States at the year-end of 2022. Nearly 90% of fatalities and 60% of major injuries are caused by elevators. 14 (nearly half) of the annual deaths involve accidents while working on or near elevators, including constructing, repairing, and maintaining elevators, as well as operating in or near elevator shafts. Incidents involving workers caught in or between escalator and elevator moving parts, on platforms that collapse, or struck by escalators are numerous. Thus, these factors are negatively impacting market growth and are likely to hinder market growth & expansion during the forecast period.

Global Elevator and Escalator Market Trend:

Growing Demand for IoT-Integrated Elevators & Escalators – With the advent of advanced technologies such as the Internet of Things (IoT) and its integration into elevators & escalators, manufacturers have maximized their revenues in the past few years. The integration has led to the smooth functioning of these setups in terms of gathering, analyzing, and exchanging data and maintaining entry and exit-related records. Other than this, the IoT has enabled elevators and escalators to anticipate traffic and respond in real time with minimal error. These advantages have compelled investors and manufacturers to integrate such products with cutting-edge technologies, which, in turn, is augmenting the market size & volume. For instance,

• In 2022, Hyundai Elevator Co. and LG Uplus Corp., a major wireless carrier, collaborated to manufacture smart safety management systems, including IoT sensor safety rings, belts, and hats, and exclusive applications for elevator installers and control platforms.

Global Elevator and Escalator Market (2024-30): Segmentation Analysis

The Global Elevator and Escalator Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024-2030 at the global level. According to the analysis, the market has been further classified as:

Based on Type:

• Elevator

• Traction
• Hydraulic
• Machine Room less

• Escalator

• Moving Walkway
• Moving Stairs

Between the two, the market share of elevators is much better than that of escalators in 2023. However, escalators are expected to grow substantially and emerge as the fastest-growing category in the market during the forecast period. It owes principally to the higher installation rate witnessed by the escalators, especially in the Middle East and Asian countries, owing to the higher infrastructural development, such as aerospace, entertainment, etc., in recent years.

Another factor driving the demand for escalators is the swift inclination of facility owners toward installing efficient elevators, entwined with growing awareness regarding the benefits of these varieties, including less energy consumption, smoother rides, high speeds, & the capability to serve high-rise buildings like skyscrapers. Moreover, their long vertical distance-traveling abilities make them suitable for mid-rise, high-rise, & even ultra-high-rise buildings. Backed by such aspects, the installation of elevators, in particular, is expanding and positively influencing the industry altogether.

Based on Application:

• Residential
• Commercial
• Industrial

The residential segment dominated the Global Elevator and Escalator Market and is projected to continue to register the highest market share during the forecast period. Elevators and escalators have a high penetration in residential homes, multi-homes, and residential apartments. An increasing shift toward eco-friendly, safe, and flexible design drives the segment's growth. Increasing residential construction activities are further expected to propel market growth. For instance,

• According to the World Resources Institute, China will spend more than USD 13 trillion on residential buildings by 2030.

In addition, the residential segment is also expected to attract sales of moving walkway products. The high level of residential infrastructure trend is anticipated to fuel the sales of moving walkways and thereby intensify the growth of the market.

Global Elevator and Escalator Market (2024-30): Regional Projections

Geographically, the Global Elevator and Escalator Market expands across:

• North America
• South America
• Europe
• The Middle East and Africa
• Asia-Pacific

Geographically, the Asia-Pacific region has historically acquired a significant market share of the Global Escalator and Elevator Market, with China and India holding prominent market shares. It owes principally to the ongoing expansive policies and several initiatives the governments have laid down to encourage the modernization and urbanization of states across the region. With countries like India making a substantial shift from being an agrarian economy to an IT-based industrial and commercial hub with the government's thrust on 'Digital India' and 'Make in India' policies, the need for more advanced and technically equipped buildings has been on the rise. In fact, according to the United Nations and India, a massive urban population is set to witness a surge between 2024 and 2030, adding around 184 million people to its urban base.

Besides, the Smart Cities Mission has further encouraged such advancements in India, thereby bringing the opportunity for new entrants as well as behemoths to come up with more compatible and innovative escalators and elevators to cater to the demand projected by emerging economies across the Asia-Pacific. As such, market players have begun to deploy a strong network of distributors and retailers across multiple states to achieve direct customer reach and understand the client's exact requirements. These aspects are expected to bolster the installation of elevators and escalators across the region, thereby fostering market expansion.

Global Elevator and Escalator Industry Recent Development:

• In 2023: Fujitec Singapore Corp. Ltd., a subsidiary of Fujitec Co. Ltd., finished revamping 19 elevators in Singapore's One Raffles Place (previously known as OUB Center). The updated elevators come with cutting-edge features such as faster speed and innovative systems that reduce travel time, providing enhanced comfort and stability to the passengers.
• In 2023: Hitachi Elevator Engineering Company, a Hitachi Ltd. subsidiary, successfully acquired its biggest deal in Hong Kong, which involves 160 elevators, escalators, and moving walks for Sun Hung Kai Properties Limited's Hong Kong West Kowloon Station complex. These products are being produced by Hitachi Elevator (China) Co., Ltd., consisting of 115 out of a total of 22 high-speed elevators that will be delivered by December 2024.
• In 2023: the Finnish multinational elevator and escalator corporation, KONE, declared the introduction of its latest lift innovation, the KONE MonoSpace 600. This state-of-the-art technology is intended to be more economical and environmentally friendly.

Gain a Competitive Edge with Our Global Elevator and Escalator Market Report

1. Global Elevator and Escalator Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Global Elevator and Escalator Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.