Elevator market growth stands as a major beneficiary of the rapid advancements in the mobility solutions vertical globally. The rising demand for elevators is directly linked to and driven by the rapid expansion of the construction industry which is, as per reliable estimates, projected to reach the $12.5 trillion mark by the year 2020. Globally renowned elevator manufacturers like Otis Elevator and Schindler claim to move around a combined 3 billion individuals daily and have garnered billions of dollars in terms of total sales revenue in 2017. The figures go on to demonstrate the presence of huge opportunities for the firms operating in the overall elevator market.
U.S. Elevator Market Size, By End-user, 2014 – 2025 (USD Million)
It is imperative to mention that the infrastructure upgradation and maintenance programs in developed and emerging nations have proved to be instrumental in boosting the elevator industry share. Predominantly, the Asia Pacific region has established itself as the most opportunistic terrain for the expansion of elevator market followed closely by Europe.
A succinct outline of the elevator industry through regional viewpoint:
The APAC elevator market share expansion can be majorly attributed to the growing industrial development in the rapidly expanding Chinese and Indian economies. China alone is projected to apportion about 19% share of the $12.5 trillion global construction industry by 2020. The Chinese government’s drive to establish the nation as the world’s economic leader has led to massive investment in the construction sector which is estimated to surpass $2 trillion in remuneration by 2020. These initiatives, in all likelihood, would predominantly impact the nation’s mobility solutions sector i.e. the elevator, escalator and walkway manufacturing market.
India, which is touted as the second largest elevator market is also estimated to provide a substantial push to the overall APAC industry. The construction sector of the nation has been consistently registering commendable growth over the past few years owing to its rapidly developing economic standing in the world. These robust growth figures have attracted the attention of key industry players like Otis elevators which has recently announced to commence manufacturing of its elevators in India from 2019 and has further planned to indigenize its products in the forthcoming years.
Considering the aforementioned instances which aptly depict the rising demand of elevators in the Asian nations, the APAC region would certainly contribute immensely toward the rapid expansion of the global elevator industry in the immediate future. As per a report by Global Market Insights, Inc. APAC elevator market is forecast to record a CAGR of 5% over 2018-2025.
The Europe elevator market is poised to grow massively in the years ahead due to product maintenance and equipment servicing activities being carried out across developed nations like Germany, UK and France. The mobility solutions market in Europe is in stark contrast to the APAC market as it is predominantly driven by infrastructure upgradation and maintenance projects undertaken by respective governments and private firms. The total sales of new elevators and escalator equipment throughout the European continent has been rising at a steady pace over the previous years. The decent growth figures being registered by crucial industry players such as Mitsubishi in this region are testament to the fact that the Europe elevator market share is bound to expand exceptionally in the years ahead. In terms of commercialization, the regional elevator industry is projected to record a CAGR of 4% over 2018-2025.
Apart from these major growth terrains, the Middle East elevator market is also projected to grow exponentially owing to the presence of strong economies like Iran, UAE, Saudi Arabia, and Qatar. The rising construction and infrastructure spending in these countries would positively impact the Middle East elevator market trends. Reportedly, the Middle East & North Africa construction industry is poised to generate revenues worth more than USD 320 billion by 2020. With these huge investment pipelines, the emerging economies are overt to have a major impact on the worldwide elevator industry dynamics. The global lift industry share, as per Global Market Insights, Inc. is slated to surpass USD 130 billion by 2025.