Market Research Report

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

Saudi Arabia Elevator & Escalator Market Report - By Type (Elevator, Escalator), By Service (New Installation, Modernization, Maintenance), By End User (Residential, [Commercial, R...etail, Healthcare, Hospitality, Government & Transportation, Others], Industrial), Others Read more

  • Buildings, Construction, Metals & Mining
  • Apr 2024
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  • PDF, Excel, PPT

Market Definition

Elevators & escalators encompass the manufacturing, installation, maintenance, and servicing of vertical transportation systems used in various settings, including residential, commercial, industrial, and public infrastructure. Elevators are vertical transportation devices designed to move people or goods between floors within buildings, while escalators are moving staircases that transport people between different levels of a building in a continuous loop.

Market Insights & Analysis: Saudi Arabia Elevator & Escalator Market (2024-30):

The Saudi Arabia Elevator & Escalator Market is estimated to grow at a CAGR of around 7.5% during the forecast period, i.e., 2024-30. The market expansion would be driven by active efforts of the Saudi government toward diversifying the economy away from the oil & gas sector, coupled with massive investments in the development of other industries, such as healthcare, retail, building & construction, tourism, IT & telecom, etc., in line with Saudi Vision 2030. Consequently, the country is witnessing various ongoing & upcoming infrastructural, commercial, & residential development projects, i.e., stimulating elevator & escalator installations and fueling the overall market growth.

Report Coverage Details
Study Period Historical Data: 2019-22
Base Year: 2023
Forecast Period: 2024-30
CAGR (2024-2030) 7.5%
Region Covered Central, East, West, South
Key Companies Profiled Thyssenkrupp Elevator Saudi Arabia, Otis Elevator, Hyundai Elevator, Toshiba Elevator and Building Systems Corporation, Hitachi Elevator, Kone Middle East LLC, Fujitec CoLtd, Schindler
Unit Denominations USD Million/Billion

 

With rising urbanization & industrialization, alongside the mounting influx of tourists, migrants, and pilgrims in Saudi Arabia, more & more corporate offices, hotels, resorts, hospitals, malls, and others are being constructed across the country. Moreover, the increasing number of smart city construction activities, various ongoing industrial expansion projects, increased government support for housing developments, and the rising inflow of FDI (Foreign Direct Investments) are other prominent aspects creating new directions for the key companies operating in the Elevator & Escalator Market to yield significant profits over the coming years.

Furthermore, in 2021, Saudi Arabia implemented a directive targeting international companies that they must establish a regional headquarters (HQ) within the kingdom to remain eligible for government contracts beyond 2024. As a result, companies like Microsoft & Google are expanding their presence in the country, augmenting the construction of commercial buildings, thereby supporting the market growth.

Additionally, the Saudi Government’s Vision 2030 initiative has propelled significant investments into the city's infrastructure, including transportation systems, entertainment venues, and mixed-use developments, necessitating state-of-the-art elevators & escalators. Moreover, the government of Saudi Arabia plans to have 480 companies establish regional headquarters by 2030 to encourage higher corporate spending within the kingdom. Thus, the construction of skyscrapers will continue to grow in the country, amplifying the demand for elevators & escalators in Saudi Arabia in the forthcoming years.


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

Saudi Arabia Elevator & Escalator Market Driver:

Mushrooming Growth of the Healthcare Sector in Saudi Arabia – The extensive boom in healthcare infrastructure projects in the country, facilitated by public & private investments served as a prominent factor driving the demand for elevators and escalators in Saudi Arabia. According to Trade.gov, Saudi Arabia represents around 60% of the GCC nations' healthcare spending, and the country's government continues to place a high focus on the industry. The investments are dominantly made to attract both domestic and foreign patients, thereby fostering medical tourism from countries like the US and Canada.

Moreover, the Saudi government's ambitious investment plan of around USD 66 billion to bolster the healthcare industry by 2030 would further propel construction activities in this sector. As a result, the burgeoning healthcare sector, supported by both public-private partnerships and government investments, is set to drive the demand for elevators and escalators in Saudi Arabia for improved building infrastructure in the foreseeable future.

Saudi Arabia Elevator & Escalator Market Opportunity:

Growing Focus Towards Smart Cities to Boost the Demand for Elevators & Escalators in the Country – The government of Saudi Arabia has been focusing on building smart cities in the country to prioritize sustainability & environmental stewardship to attain its carbon emission target by 2030. These digital cities necessarily integrate advanced in-building transportation technologies to facilitate the residents, as well as corporate individuals, which augments the demand for elevator & escalator technologies that meet the building requirements.

Furthermore, ongoing construction activities of the Red Sea project, between the cities of Umluj & Al-Wajh to develop 22 islands powered by 100% renewable energy, is anticipated to augment demand for elevators & escalators with sustainable technologies to be deployed in the newer infrastructure. The construction is expected to comprise over 50 hotels, around 8,000 rooms, and up to 1,000 residential properties by 2030. Thus, there are significant growth opportunities for elevator and escalator manufacturers to expand their offerings in the country and capture revenue opportunities.

Saudi Arabia Elevator & Escalator Market Challenge:

Economic Fluctuations to Restrict the Market Growth – Saudi Arabia's economy is heavily dependent on oil exports, making it susceptible to fluctuations in global oil prices. During periods of economic downturn or low oil prices, the government often scales back spending on infrastructure projects, including construction ventures that typically require elevators and escalators. This reduction in government investment directly impacts the demand for such equipment, leading to a slowdown in the Saudi Arabia Elevator & Escalator Market.

Moreover, the cyclical nature of the oil market creates uncertainty for investors and businesses, leading to cautious spending behaviors. This cautious approach extends to the real estate sector, where developers hold off on new projects until economic conditions stabilize, thereby prolonging the sluggishness in demand for elevators and escalators.

Saudi Arabia Elevator & Escalator Market Trend:

Growing Traction Towards Elevators Integrated with Destination Control Systems (DCS) – Saudi Arabia is presently witnessing rapid urbanization and infrastructure development, leading to the construction of skyscrapers and high-rise buildings in cities like Riyadh and Jeddah. This development is increasing the need for efficient vertical transportation solutions to ensure smooth traffic flow. As a result, the demand for DCS-equipped elevators to optimize traffic flow, reduce wait times, and enhance user experience in densely populated buildings is gaining traction across the country.

Moreover, Saudi Arabia's Vision 2030 initiative emphasizes economic diversification and technological advancement, driving the adoption of smart solutions across various sectors, including construction and real estate. DCS-integrated elevators align with this vision by offering state-of-the-art, energy-efficient, and technologically advanced vertical transportation solutions. One such case is Jeddah Tower in which KONE Saudi Arabia has integrated the building elevators with Destination Control Systems (DCS). Apart from Kone, several companies including, Otis, Mitsubishi Electric Schindler, etc., are expanding their offering for DCS in the country.

Saudi Arabia Elevator & Escalator Market (2024-30): Segmentation Analysis

The Saudi Arabia Elevator & Escalator Market study by MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024-2030 at the national level. In accordance to the analysis, the market has been further classified as:

Based on Services:

  • New Installation
  • Modernization
  • Maintenance

New Installations of elevators and escalators hold a prominent market share. It owes to increasing urbanization, as well as various ongoing & existing construction & industrial expansion projects in line with Saudi Vision 2030, which are leading to the increasing installations of these machines across the country. More and more new infrastructures for hotels, resorts, shopping malls, office buildings, hospitals, railway networks, airport expansions, etc., are being constructed in Saudi Arabia owing to the growing number of tourists, migrants, and pilgrims in the country. Consequently, numerous new elevator & escalator installation orders in place are driving the industry. Moreover, on the real estate front, 8 new cities are planned, mainly on Saudi's western seaboard, along the Red Sea coast, with massive investments in delivering new homes, world-class offices, and hotel rooms.

These aspects indicate that various new installations of elevators & escalators are expected in the coming years, which, consequently, will bode well for the overall growth of the Saudi Arabia Elevator & Escalator Market through 2030.

Based on End User:

  • Residential
  • Commercial
    • Retail
    • Health Care
    • Hospitality
    • Government & Transportation
    • Others
  • Industrial

The Commercial & Residential segments are projected to acquire a significant share of the Saudi Arabia Elevator and Escalator Market during 2024-2030. It owes primarily to numerous infrastructural development projects associated with hotels, retail outlets, malls, corporate offices, residential buildings, etc., in the country, backed mainly by increasing greenfield investments and the active focus of the government on economic diversification.

In addition, the expanding presence of the leading hotel chains, airport & metro expansions, the booming tourism sector, as well as increased government funding in the development of hospitality, healthcare, retail, & residential sectors are other crucial aspects promulgating the market growth across the commercial sector.

Saudi Arabia Elevator & Escalator Market- Recent Development:

  • June 2023: Otis Global Corporation launched the Otis ONE IoT service platform in Saudi Arabia, which integrates over 30 years of remote monitoring experience with cloud technology, machine learning, and Internet-of-Things (IoT). This innovative solution for elevators combines real-time surveillance with proactive issue detection to facilitate quick recovery.
  • August 2023: Hyundai Elevator, via its Chinese subsidiary, expressed keen interest in participating in the extensive NEOM initiative in Saudi Arabia. The company is expected to play a vital role as one of the key contributors to the development of NEOM's intelligent metropolis while serving as an essential center for numerous related ventures.

Gain a Competitive Edge with Our Saudi Arabia Elevator & Escalator Market Report

  • Saudi Arabia Elevator & 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 the market dynamics & make informed decisions.
  • 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.
  • Saudi Arabia Elevator & 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.

Frequently Asked Questions

   A. The Saudi Arabia Elevator & Escalator Market is expected to grow at a compound annual growth rate (CAGR) of 7.5 % from 2024 to 2030.

   A. The mushrooming growth of the healthcare sector is the prominent factor expected to drive the Saudi Arabia Elevator & Escalator Market during 2024-30.

   A. ThyssenKrupp Elevator Saudi Arabia, Otis Elevator Company Saudi Arabia Limited, Hyundai Elevator, Toshiba Elevator & Building Systems Corporation, Hitachi Elevator, Kone Middle East LLC, Fujitec Saudi Arabia Co. Ltd., Schindler Olayan Elevator Co. Ltd., Mitsubishi Electric Saudi Ltd., Gulf Elevators and Escalators Co. and Others are the top players in the Saudi Arabia Elevator & Escalator Market.

   A. Commercial & Residential segment held the largest share of the Saudi Arabia Elevator & Escalator Market.

   A. The growing traction towards elevators integrated with destination control systems (DCS) is one of the key trends shaping the growth of the Saudi Arabia Elevator & Escalator Market

   A. The mounting focus towards smart cities in the country is one of the growth opportunities driving the Saudi Arabia Elevator & Escalator Market.

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. Macroeconomic Outlook
  5. Saudi Arabia Elevator & Escalator Imports-Exports Statistics
  6. Saudi Arabia Tax Structure
  7. Saudi Arabia Elevator & Escalator Market Trends & Developments
  8. Saudi Arabia Elevator & Escalator Market Dynamics
    1. Drivers
    2. Challenges
  9. Saudi Arabia Elevator & Escalator Market Hotspot & Opportunities
  10. Saudi Arabia Elevator & Escalator Market Regulations, Norms, & Product Standards
  11. Saudi Arabia Elevator & Escalator Market Analysis, 2019-2030F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Units Sold (Thousands)
    2. Market Share & Analysis
      1. By Type
        1. Elevator- Market Size & Forecast 2019-2030, (Thousand Tons)
        2. Escalator- Market Size & Forecast 2019-2030, (Thousand Tons)
      2. By Service
        1. New Installation- Market Size & Forecast 2019-2030, (Thousand Tons)
        2. Modernization- Market Size & Forecast 2019-2030, (Thousand Tons)
        3. Maintenance- Market Size & Forecast 2019-2030, (Thousand Tons)
      3. By End User
        1. Residential- Market Size & Forecast 2019-2030, (Thousand Tons)
        2. Commercial- Market Size & Forecast 2019-2030, (Thousand Tons)
          1. Retail- Market Size & Forecast 2019-2030, (Thousand Tons)
          2. Healthcare- Market Size & Forecast 2019-2030, (Thousand Tons)
          3. Hospitality- Market Size & Forecast 2019-2030, (Thousand Tons)
          4. Government & Transportation- Market Size & Forecast 2019-2030, (Thousand Tons)
          5. Others- Market Size & Forecast 2019-2030, (Thousand Tons)
        3. Industrial- Market Size & Forecast 2019-2030, (Thousand Tons)
      4. By Region
        1. East
        2. West
        3. South
        4. Central
      5. By Company
        1. Market Share & Analysis
        2. Competition Characteristics
  12. Saudi Arabia Elevator Market Analysis, 2019-2030F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Units Sold (Thousands)
    2. Market Share & Analysis
      1. By Type
        1. Traction- Market Size & Forecast 2019-2030, (Thousand Tons)
        2. Hydraulic- Market Size & Forecast 2019-2030, (Thousand Tons)
        3. Machine Room Less- Market Size & Forecast 2019-2030, (Thousand Tons)
      2. By Service- Market Size & Forecast 2019-2030, (Thousand Tons)
      3. By Speed- Market Size & Forecast 2019-2030, (Thousand Tons)
      4. By End User- Market Size & Forecast 2019-2030, (Thousand Tons)
  13. Saudi Arabia Escalator Market Analysis, 2019-2030F
    1. Market Size & Analysis
      1. By Revenue (USD Million)
      2. By Units Sold (Thousands)
    2. Market Share & Analysis
      1. By Type
        1. Moving Walkway- Market Size & Forecast 2019-2030, (Thousand Tons)
        2. Moving Stairs- Market Size & Forecast 2019-2030, (Thousand Tons)
      2. By Service- Market Size & Forecast 2019-2030, (Thousand Tons)
      3. By End User- Market Size & Forecast 2019-2030, (Thousand Tons)
  14. Competitive Benchmarking
    1. Company Profiles
      1. Thyssenkrupp Elevator Saudi Arabia
        1. Business Description
        2. Product Segments
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      2. Otis Elevator Company Saudi Arabia Limited
        1. Business Description
        2. Product Segments
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      3. Hyundai Elevator
        1. Business Description
        2. Product Segments
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      4. Toshiba Elevator and Building Systems Corporation
        1. Business Description
        2. Product Segments
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      5. Hitachi Elevator
        1. Business Description
        2. Product Segments
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      6. Kone Middle East LLC
        1. Business Description
        2. Product Segments
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      7. Fujitec Saudi Arabia Co. Ltd.
        1. Business Description
        2. Product Segments
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      8. Schindler Olayan Elevator Co. Ltd.
        1. Business Description
        2. Product Segments
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      9. Mitsubishi Electric Saudi Ltd.
        1. Business Description
        2. Product Segments
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      10. Gulf Elevators and Escalators Co.
        1. Business Description
        2. Product Segments
        3. Strategic Alliances or Partnerships
        4. Recent Developments
        5. Financial Details
        6. Others
      11. Others
  15. Disclaimer


Saudi Arabia Elevator and Escalator Market Segmentation