Elevator and Escalator Market

Report Overview

Elevator and Escalator Market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 6.9% during the forecast span from 2024 to 2034. In 2023, the market size  was assessed at USD 103.5 billion and is projected to reach USD 215.8 billion by the completion of 2034.

Product Overview

Elevators are vertical transport systems which are used to move people or goods between different floors within buildings. They consist of a cab or platform that travels along a track within a shaft, that is typically powered by a motor-driven pulley system. It provide convenience, accessibility, and space optimization in multi-story structures. On the other hand, escalators are inclined moving stairs which are designed to transport individuals between different levels of a building. They operate on a looped track system, with steps moving at a constant speed and are powered by motors or gears. Escalators offers continuous circulation of passengers in high-traffic areas and enhance pedestrian flow in locations like shopping malls, airports, and train stations. Consequently, both elevators and escalators play significant roles in modern infrastructure, combined with improving mobility and accessibility within built environments while ensuring efficient movement of people.

Market Highlights

Elevator and Escalator Market is expected to grow at a compound annual growth rate (CAGR) of 6.9% from 2024 to 2034

Elevator and Escalator Market is projected to reach USD 215.8 billion over the forecast period, owing to factors including swift urbanization and the construction of high-rise buildings across the world. Emerging economies are playing a major role in this growth due to their urban development and infrastructure projects. Additionally, improvements in technology, such as smart elevators and escalators that are equipped with better safety features, are gaining traction across different regions. There is a noticeable shift towards sustainable practices within the industry due to the growing focus on energy efficiency and eco-friendly solutions. Moreover, major industry players are heavily investing in research and development to introduce innovative products that address the evolving customer demands and regulatory standards. Therefore, the elevators and escalators market will likely witness sustained growth as urban populations will continue to rise, which will drive the need for efficient vertical transportation solutions across the world.

Source: Fatpos Global

Elevator and Escalator Market Segmentation

New Installation Service segment will dominate owing to rising demand for high rise infrastructures

By Service, the Elevator and Escalator Market is divided into New Installation and Maintenance & Repair. The new installation segment is expected to dominate the elevators & escalators market due to the rising demand for high-rise buildings, such as offices, malls, among others, which reflect economic growth and development. Additionally, elevators and escalators play essential roles in ensuring effective movement within these structures and provide access to various destinations. These vertical transportation systems come in different types, such as passenger, freight, hospital, and observation elevators, that cater to diverse needs and specifications. Furthermore, with continuous urbanization and expansion of infrastructure projects, the requirement for vertical transportation solutions in newly constructed buildings remains high. Thus, new installation segment will maintain its prominence as it serves as an essential component of modern construction and urban development initiatives across the world.

Escalators segment will lead the market as it provides smooth movement of within infrastructures

Based on Type, the Elevator and Escalator Market is segmented into Elevators, Escalators, and Moving Walkways. The escalator segment is anticipated to dominate the market due to the substantial demand for commercial infrastructure in retail parks and malls, where these escalators are crucial for providing efficient customer movement between floors. Escalators, along with moving walkaways are becoming increasingly necessary to improve convenience and simplify passenger flow due to the construction of aviation infrastructure, such as airports. Moreover, with increasing urbanization and economic development, there is a growing need for efficient vertical transportation solutions in commercial and public spaces. Thus, the dominance of the escalator segment is expected to persist due to the continuous growth of commercial infrastructure and the modernization of transportation centers. This development will contribute to the growth and evolution of the escalators market, which establish it as a significant player in the realm of vertical transportation solutions.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Infrastructure Development and Urbanization will Create Growth Opportunities

Urbanization across the world has led to a substantial increase in high-rise constructions and large-scale infrastructure projects within cities. Elevators and escalators serve as crucial components in offering vertical transportation within these structures, which effectively improve the accessibility and operational efficiency. This growth in urban development has been particularly seen in emerging economies, where urbanization rates are high and extensive infrastructure projects are underway. Furthermore, as urban populations continue to grow and the demand for modern living and working spaces increases, the need for elevators and escalators will become increasingly imperative. Thus, the industry for these vertical transportation solutions will witness constant expansion as infrastructure development remains a key priority on the global agenda.

Innovations in Technology will Cause Market Expansion

Improvements in elevator and escalator technology are essential growth drivers of the market. Smart elevator systems with integrated destination control algorithms helps in managing passenger traffic flow more efficiently, which reduces wait times and conserve energy. Similarly, energy-efficient escalators with advanced safety features have a higher appeal among customers that value sustainability and safety in transportation solutions. Thus, with improvements in technology, elevators & escalators are becoming dependable and cost-effective, which results in high demand and expansion of the industry. This persistent innovation displays the dedication of the industry to improve user experience and safety. Therefore, elevators and escalators will play an increasingly important part in modern infrastructure as they address different needs of urban environments while accelerating growth in the market.

Restraints

Astronomical Initial Expenses may Prevent the Industry's Growth

Installation of elevators & escalators requires high initial investments, which includes procurement of equipment, installation, and integration into building infrastructure. These costs presents challenges for smaller businesses or projects operating within limited budgets. The substantial initial expenditures may also dissuade building owners from retrofitting existing structures with elevators or escalators, which significantly constrain the market growth within the retrofitting segment. These cost challenges highlights the importance of implementing strategies to address affordability issues and improve cost-effectiveness in elevator and escalator installations. Therefore, finding innovative solutions to reduce initial investment requirements could unlock fresh market opportunities, which can enable wider adoption of vertical transportation solutions across building projects and sectors.

Recent Developments

• In August 2023, Otis Elevator Company launched Gen2 NXT elevator with improved efficiency and connectivity features. The company also partnered with Microsoft to explore digital and IoT solutions for elevators.
• Schindler Group launched PORT Technology, a digital platform for elevator monitoring and maintenance in June 2023. They additionally acquired Malaysian elevator company, Edgenta Vertical Access.
• KONE Corporation unveiled DX Class elevators with AI-powered features for predictive maintenance in April 2023. They established a joint venture with CRRC to expand its presence in China.

• Mitsubishi Electric Corporation introduced AI-powered elevator system for improved passenger flow management in September 2023. They also partnered with Hitachi to develop next-generation elevator technologies.

• Thyssenkrupp Elevator AG announced plans to divest its elevator business as part of a strategic portfolio shift in January 2024. The company also launched MULTI, a modular elevator system with flexible configurations.

Elevator and Escalator Market

Key Players:

• Schindler Group
• Otis Elevator Company
• KONE Corporation
• Mitsubishi Electric Corporation
• Fujitec Co., Ltd.
• Thyssenkrupp Elevator AG
• Hitachi, Ltd.
• Toshiba Elevator and Building Systems Corporation
• Hyundai Elevator Co., Ltd.
• Sigma Elevator Company
• Canny Elevator Co., Ltd.
• SJEC Corporation
• Wittur Group
• Zhejiang Meilun Elevator Co., Ltd.
• Yungtay Engineering Co., Ltd.
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Elevator and Escalator Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. The Asia Pacific region is projected to dominate the elevators and escalators market as the region's construction industry is witnessing significant developments and improvements, which leads to a rise in demand for vertical transportation solutions. Additionally, Asia Pacific serves as an important manufacturing hub for elevators and escalators, which further solidify its market leadership. Furthermore, the proliferation of high-rise building infrastructure and the constant development of smart cities in this region substantially contribute to sustained growth of the Asia Pacific market.

Meanwhile, Europe is emerging as a notable competitor in the elevators and escalators market, owing to the adoption of IoT (Internet of Things) technologies. European vendors are actively integrating IoT into elevator and escalator systems, which results in major reductions in operating costs and improvements in service efficiency. This strategic adoption of IoT is anticipated to drive the growth, as it enhances the performance and reliability of vertical transportation solutions. Therefore, Europe is set to claim a significant revenue share in the elevators and escalators market throughout the forecast period.

Source: Fatpos Global

Impact of Covid-19 on Elevator and Escalator Market

COVID-19 pandemic has profoundly impacted the elevators and escalators market worldwide. Construction projects experienced major disruptions due to lockdowns, labor shortages, and supply chain interruptions, which led to delays in new installations and retrofitting projects. Additionally, hygiene issues and social distancing norms demanded operational adjustments, such as capacity limits and cleaning protocols, which affected the usage patterns of elevators and escalators. However, despite these challenges, the pandemic accelerated the adoption of contactless technologies in vertical transportation systems, that emphasized safety and hygiene. Furthermore, innovations such as hands-free elevators and antimicrobial materials gained significance to reduce virus transmission risks.

Elevator and Escalator Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Elevator and Escalator Market Scope and Segments:

Frequently Asked Questions (FAQ):