According to a recent study from market research firm Graphical Research, the global elevator market size is poised to expand at substantial CAGR during the forecast period. In the aftermath of the COVID-19 pandemic, the global construction industry is expected to see a rising curve, facilitating the development of sky-scrappers and high-rise buildings throughout the world. Robust urbanization is one of the crucial enablers of the elevator industry, with speedy industrialization being another key catalyst.
Elevators are primarily utilized across commercial and industrial facilities as well as across mid-rise and high-rise residential buildings. While in residential buildings, individuals use small home elevators for ascending or descending from floor to floor, elevators play a vital role in industrial units by transporting people and goods vertically across storage plants, production units, and warehouses.
The following six vital factors are certain to have a positive impact on the global elevator industry forecast through 2027:
- Demand for hydraulic and pneumatic elevators in North America
During the forecast timeline, the demand for hydraulic & pneumatic elevators is expected to remain aloft due to their suitability for low-rise applications. These elevators ensure cost efficiency as they require minimal upfront charges. When compared with traction elevators, these equipment demand lower maintenance costs as well.
Due to the ability to transport larger weights, their adoption across industrial facilities and residential complexes has increased considerably over the last few years. The hydraulic & pneumatic elevator market share in North America is estimated to account for more than 30% of the total regional revenue through 2027.
- North America sees consistent deployment of MR traction elevators
America is known to have a construction sector highly focused on and capable of developing skyscrapers and high-rise residential buildings. MR traction elevators are quite suited to these structures owing to their speed and height covered. They perform better than hydraulic and pneumatic elevators across such buildings.
Consistent spending in the private sector to build mid to high rise structures will foster North America MR traction elevators market. Reportedly, the private sector in North America was responsible for nearly $1 trillion in construction spending during 2020.
Otis Elevator Company, Kone Corporation, Toshiba, Hyundai, Schindler Group, Fujitec Co. Ltd., Glarie Elevator Co. Ltd., Thyssen Elevators Co., Ltd., Mitsubishi, and Hitachi Ltd. are some leading elevator manufacturers across the globe.
- Growing residential adoption in Asia Pacific
APAC elevator industry outlook is a thriving landscape, thanks to the presence of a robust construction sector in the region. India, Japan, Indonesia, Malaysia, China, and Singapore are set to contribute considerably toward the overall demand for these products. The growth is most prominent across the residential sector of developing economies, due to the presence of favorable government policies that are focusing on residential infrastructure development.
With several new government projects aiming to provide affordable housing to the regional population, APAC elevator market share is anticipated to jump at a notable pace over the next six years. The market share from residential construction segment is projected to observe a growth of over 3.3.% CAGR through the assessment timeline, supported by the upcoming smart city plans in the region.
- Growing burden of maintenance and repair across Asia
The ageing lifts & elevators entail considerable expenses toward repair jobs and maintenance across the economies in Asia. New Zealand, Japan, Australia, Singapore, and Hong Kong particularly are witnessing a surge in demand for maintenance of old elevators. This is encouraging the commercial and residential sectors to adopt newer, advanced elevators that are efficient and require minimum maintenance.
Although the COVID-19 pandemic acted as a major disruptor for Asia Pacific elevator market forecast, the emergence of new products is likely to generate fresh revenue. The construction sector is exhibiting considerable resilience despite the damaging blow. The region-wide COVID-19 vaccination drives are likely to enable further product manufacturing in Asia.
- Overseas contracted projects across China
China elevator market size was accountable for over 70% of the total regional revenue during 2020 and might continue to retain its lead through 2027. The growing volume of infrastructure investments and the relaxation of real estate regulatory policies is driving the deployment of new lifts & elevators.
Owing to the rising number of overseas contracted projects across the nation, Asia Pacific elevators industry is certain to flourish. As per the records of the Chinese Ministry of Commerce, in 2019, the turnover of the nation’s overseas contracted projects amounted to over 1192.75 billion yuan, increasing by 6.6% than the previous year.
- Aftersales services across developed European nations
By 2027, Europe elevator industry size is estimated to reach $13 billion, triggered by the growing number of high-rise buildings across the region. New construction projects are incorporating new and advanced elevators and escalators across Germany, Russia, France, Spain, and the United Kingdom.
Although the matured construction market might hinder new product installation, the demand for after sales, repair, maintenance is likely to rise across the more developed countries. The large number of migrants coupled with the rising emphasis toward sustainability is driving Europe elevator market trends.
- MRL elevators in European industrial units
The industry share from machine room-less (MRL) traction elevators in Europe is expected to record a 2.3% CAGR through the coming years, fostered by their growing adoption across industrial facilities. Industrial buildings generally face space shortage. As these elevators does not consist of a separate machine room, they acquire considerably lesser space than standard elevators. This renders them an ideal choice for industrial use.
MRL traction elevators can travel at up to 500 feet per minute, covering over 250 feet at a time. These elevators offer higher energy efficiency when compared with MR traction elevators, although their installation and maintenance costs are somewhat similar. Europe elevator market share is expected to gain traction due to the high reliability, low maintenance, lesser space requirements, and improved energy efficiency of MRL elevators.