Elevator Market Size By Product (Hydraulic & Pneumatic, Machine Room [MR] Traction, Machine Room-Less [MRL] Traction), By Industry (Building & Construction [Residential, Institutional, Commercial], Industrial), Industry Analysis Report, Regional Outlook, Application Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 - 2026
Elevator Market is expected to exceed USD 135 billion by 2025. Booming construction activities in the developing countries are driving the market growth.
Some major findings of the elevator market report include:
- Developments in the Asia Pacific and Middle East building & construction industry is the chief factor driving the market growth
- MRL traction elevators will have largest market share owing to increasing construction of mid- and high-rise buildings
- Building and construction industry will dominate the market due to increasing expenditure on residential and non-residential constructions
- Major players operating in the elevator market are Otis, Kone, Mitsubishi Electric Company, Schindler, Fujitech Co. Ltd., Thyssenkrupp AG, and Hitachi Ltd.
- Companies are engaged in acquisitions and partnerships for expanding their business operations and gain competitive advantage
One of the major factors propelling the growth of global elevator market is booming construction industry in Middle East region. It can be ascribed to increasing construction spending in the region. In 2018, the region awarded construction projects of more than USD 40 billion. Additionally, it is anticipated that the region has pipelined construction projects accounting for more than USD 1 trillion over the next decade, which is a part of the regional economic diversification plan. Moreover, recent developments in the regional construction sector have also boosted tourism in the region. The major factors behind developments in regional construction sector are economic growth, growing urbanization, upsurge in young workforce, rise in population, and regulatory reforms such as Saudi Vision 2030 and UAE vision 2021. Construction activities in the region is expected to escalate in the coming years with so many ongoing projects and will prosper the elevator demand during the forecast timespan.
Hydraulic & pneumatic elevator type will account for approximately USD 25 billion in 2026, growing with a CAGR of over 3%. Hydraulic elevators generate movement through fluid compression. The lift cab is elevated with the help of an electric motor that drives oil into piston and enables the movement of the piston. These lifts also use electrical valves in order to control the release of oil. This product category finds application in low- and medium-rise structures with 2 to 8 stories. It can travel at a maximum speed of 200 feet or 61 meters per minute. These lifts have lesser initial and maintenance costs than traction product types, are easy to install, and occupy less space. However, higher energy consumption, lesser travel speed, more power requirements and higher noise levels associated with hydraulic elevators as compared to other lifts might hinder the growth of this product category in coming years.
Application of elevators in industrial segment is primarily confined to transfer of goods or operators within different vertical levels of the plant. Industrial segment will witness a growth at CAGR over 3% during the forecast timespan. Driven by their lower cost and better weight carrying capacities, hydraulic & pneumatic elevators are preferred in this segment. Rising industrialization in developing countries, coupled with increasing industrial output and production India and China is likely to propel the growth of industrial segment in coming years.
Prominent industry participants in the elevator market includes Thyssenkrupp AG, Schindler, Kone, Otis, Express Lifts Limited, Mitsubishi Electric Company, Escon Elevators Pvt Ltd., Fujitech Co. Ltd., Toshiba, Hitachi Ltd., Eita Elevator Sdn Bhd, Hyundai, Orona SC, Glarie, etc. Mergers, acquisitions, and investment in R&D are key strategies adopted by elevator manufactures to enhance their market share in the industry.