Greece Elevator and Escalator - Market Size and Growth Forecast 2022-2028
The Greece elevator and escalator market is expected to grow at a CAGR of 2.96% during 2022-2028.
The increasing government investment in public and private infrastructure and housing projects is boosting the Greece elevator and escalator market. Greece expects various hotel openings across the nation, mainly in Athens and the Greek islands. During 2021-22 there are about 50 new hotels that are set to open with an estimated investment of approximately USD 102.6 million, which will involve buying properties, renovation or leasing, and redevelopment of older buildings into hotels.
The Greece elevators market by the installed base is expected to reach 455,259 units by 2028. The Greece escalators market used in the commercial sector accounted for the largest share of around 35.7% in 2021, about urban development projects in the pipeline.
GREECE ELEVATOR AND ESCALATOR MARKET: KEY HIGHLIGHTS
1. Digital transformation initiatives by the Ministry of digital governance to be a long-term driver in the Greece elevator and escalator market.
2. In July 2022, the Ministry of Digital Governance launched the second phase of Greece’s Smart cities program. This program is open to 315 municipalities across the nation. The program's second phase is funded by the European regional development fund, which was financed around USD 233 million. The municipalities are eligible if they have a population above 100,000 and are funded accordingly. Projects in smaller cities will be assisted with funds from the National Strategic Reference Framework (ESPA).
3. Greece has accelerated the digital transformation pace by implementing several digital initiatives to solve the difficulties and hurdles brought on by the COVID-19 epidemic. The Greek Ministry of Digital Governance offers businesses and citizens digital services based on improved management and administration. In addition, it is in a position to ensure process consistency with all other ministries and government organizations. The goal is for Greece to become digital by default by 2023. In Greece, the percentage of construction companies utilizing 3-D printing and the Internet of Things was 14% and 34%, respectively, in 2020.
4. In late 2020, the Onassis Foundation donated the elevator to the Greek government. The lift in Acropolis takes 32 seconds to transport passengers over 40 meters at an incline ranging from 38 to 78 degrees from Peripatos to Erechtheum. The elevator can carry up to 16 people with a 1,250 kg capacity(or two wheelchairs with accompanying persons). The elevator was designed so an ambulance stretcher with an accompanying person could travel during an emergency.
5. The second Ascen.tec - Elevator Technologies Trade Fair, held at the MEC Exhibition Center from June 3 to June 5, 2022, was attended by experts in the building, importing, maintaining, and installing elevators. Following the success of the second international exhibition Ascen.tec, participants and visitors agreed to reunite in 2024, creating more market opportunities.
Expanding Infrastructure & Commercial Construction to Hike Escalator Demand
a) Ionian hotels started redevelopment of Hilton in 2020, which was completely closed in January 2022. The hotel will be opened in 2024 under Conrad, a luxury brand under Hilton. This project will offer 280 suites and 50 luxury apartments under the brands Conard residences and Waldorf Astoria residences.
b) E-commerce is already in place for most merchants who have adopted an omnichannel strategy. Most markets witnessed consistent rental values for the first three months of 2022. New openings include launching a new Calvin Klein store in Patras and opening a new Sephora store in Matogiannia, Myconos. The newly launched Molton Brown outlet in Kifisia will be witnessed in the first quarter of 2022.
c) Lamda Development announced the project Hellinikon Commercial Hub. The Hellinikon Project's construction is scheduled to begin in February 2022. There will be almost 2 million square feet in the Commercial Hub. It will include the biggest mall in Greece, a retail park with large corporations, and office spaces. A prominent mixed-use tower with a hotel, offices, and flats will be built next to it, significantly boosting the Greece elevator and escalator market.
Public Private Partnership (PPP) Projects in Greece to Boost Demand for New Installations
a) The National Recovery and Resilience Plan (NRRP) of Greece, which aims to use funds totaling USD 31 billion in grants and loans, includes investment projects for urban regeneration and restoration programs to improve the energy efficiency of residential structures.
b) The PPP (Public Private Partnership) contract calls for the renovation of 25 buildings, the construction of four new buildings, two underground parking garages, the underground connection to the Metro, the demolition of aging buildings in the industrial complex, the urban regeneration of the entire 116,000 m2 plot, and the creation of a sizable urban park.
c) USD 13.1 billion budget by the Ministry of Infrastructure and Transport is anticipated for 2021, which includes a variety of initiatives, such as upgrading the nation's railroads and urban transit systems, as well as completing the nation's high-speed highway network. The master plan calls for transforming new road, rail, sky, and marine links while leveraging on EU(European Union) and EU-mobilized funding.
d) Ministry of Infrastructure and Transport is funding around USD 13.3 billion, covering various projects, including the country’s highspeed motorway network, railway modernization, and urban transit systems.
Greece’s Reduction of the Single Property Tax to Boost Elevator Demand
a) The Greek property market's primary driver, foreign demand, has also declined. Due to this, the percentage of the real estate market in Greece's overall foreign direct investments (FDI) decreased from 32.3% in 2019 to 25.3% in 2020. The government implemented the Single Property Tax (ENFIA) initiative to reduce the tax burden to boost the housing market and the building industry.
b) All property owners will get an additional reduction of 10.0% on average starting in 2020. These actions led to a considerable increase in building permits, which led to thriving construction industry in 2020. Over the five years from 2015 to 2020, the building permits index, specifically for residential buildings, increased by 178%. For One-dwelling structures and Two and more dwelling buildings, the construction permits index rose by 39% and 265%, respectively, over the same period.
c) The European Bank for Reconstruction and Development (EBRD) invested USD 20.3 million of the USD 233.6 million total offering in a green bond issued by Lamda Development in Greece. The Bank contributed USD 23 million in 2019 to Lamda's equity offering to assist the construction of The Ellinikon.
Elevators over Their Average Life Expectancy Create Demand for Maintenance and Upgradation of Components in Greece.
a) Approximately 75% of elevators in Greece are over 30 years old and need partial or complete repair. Due to aging and the need to modernize existing elevators, daily reality demonstrates adequate mobility in terms of repair and maintenance services.
b) Maintenance and Modernization accounted for 87.7% and 12.3%, respectively, for 2021.
Elevator Market Segmentation by
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