Elevator and Escalator Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | > 5.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Elevator and Escalator Market Analysis
The elevator and escalator market is estimated at USD 85.23 billion in 2023 and is expected to reach USD 110.55 billion by 2028, registering a CAGR of 5.5% during the forecast period (2023-2028).
- Over the long term, factors such as massive investments in large infrastructure projects such as airports, residential communities, skyscrapers, and other superstructures are expected to drive the market during the forecast period.
- On the other hand, the lack of a proficient workforce for post-sales maintenance will likely impede the market's growth during the forecast period.
- Nevertheless, technological advancements in reducing energy consumption and emissions in elevator and escalator technology are expected to create lucrative growth opportunities for the market during the forecast period.
- Asia-Pacific is the fastest-growing market during the forecast period due to the increasing investments in residential, commercial, and public infrastructure projects, coupled with supportive government policies across the region.
Elevator and Escalator Market Trends
Rising Investments in Public Infrastructure Projects to Drive the Market
- Globally, rising investments in infrastructure projects to cater to the demands of growing populations and living standards are expected to be one of the most significant drivers for market growth during the forecast period.
- The ongoing trend of urbanization is leading to the rapid growth of cities worldwide. As cities expand vertically with more high-rise buildings, the demand for efficient vertical transportation solutions, such as elevators and escalators, becomes crucial to ensure seamless floor mobility. These transportation systems are pivotal in addressing congestion and optimizing space utilization.
- Governments worldwide prioritize developing robust public infrastructure to support economic growth and cater to the needs of a growing population. Investments are being made in various projects, including transportation hubs, commercial complexes, airports, and railway stations. As a result, the demand for elevators and escalators in these large-scale logistical and commercial hubs is steadily rising, as these mobility solutions are essential components facilitating the easy movement of people and goods.
- As concerns about greenhouse emissions have intensified globally, the demand for sustainable infrastructure has grown. To reach the sustainable development goals by 2030 and achieve net zero emissions by 2050, substantial funding must be directed toward sustainable and resilient infrastructure. According to the Organisation for Economic Co-operation and Development (OECD), an estimated USD 6.9 trillion annually is required until 2050 to invest in infrastructure, enabling the fulfillment of development objectives and the creation of a low-carbon, climate-resilient future.
- According to the Global Infrastructure Hub, as of 2023, a considerable gap exists in required investments, amounting to trillions of dollars. As concerns about emissions grow and investments are made in developing new sustainable infrastructure, this is expected to create a rapid demand for elevators and escalators during the forecast period.
- Hence, investments in new sustainable infrastructure are expected to drive the growth of the market during the forecast period.
Asia-Pacific to be the Fastest-growing Market Segment
- The Asia-Pacific region is witnessing rapid urbanization, population growth, and increased infrastructural development, leading to a surge in the demand for elevators and escalators. The Asia-Pacific region has been experiencing significant urbanization as rural populations migrate to cities for better economic opportunities and improved living standards. The concentration of populations in urban centers has resulted in the construction of high-rise buildings and commercial spaces, thereby amplifying the need for vertical transportation solutions.
- Several countries in the Asia-Pacific region are investing heavily in infrastructural development to boost economic growth and address urban challenges. Governments are undertaking ambitious mega projects, such as new airports, railway networks, and smart cities, which invariably require vertical transportation solutions.
- China, India, and Japan, particularly, are witnessing substantial infrastructural investments. China has been the largest market for elevators and escalators globally, owing to its massive urbanization initiatives and high-rise building constructions. India's rapid urbanization and infrastructure projects have also led to significant demand for elevators and escalators, especially in metropolitan cities.
- In India, during Budget 2023-24, the capital investment outlay for infrastructure is increasing by 33%, reaching INR 10 lakh crore (USD 122 billion), accounting for 3.3% of GDP. The Union Budget 2023-24 has allocated a record-breaking capital outlay of INR 2.40 lakh crore (USD 29 billion) for the Railways, representing a ninefold increase compared to the outlay in 2013-14.
- According to news reports, the National Infrastructure Pipeline (NIP) project count has expanded from 6,835 to 9,142, encompassing 34 sub-sectors. Within the initiative, 2,476 projects are currently in development, with an estimated investment of USD 1.9 trillion. Nearly half of the under-development projects are concentrated in the transportation sector, while 3,906 are in the roads and bridges sub-sector.
- For FY24, the Indian Railways anticipates achieving a total revenue from traffic amounting to INR 2,64,600 crore (USD 32.17 billion).
- In December 2022, the Airport Authority of India (AAI) and other Airport Developers set a target capital outlay of approximately INR 98,000 crore (USD 11.8 billion) for the airport sector over the next five years. This investment will be utilized to expand and modify existing terminals, construct new terminals, and strengthen runways, among other development activities.
- Hence, due to the rapid rise in urbanization and such significant infrastructure investments, especially in China and India, the Asia-Pacific region is expected to be the fastest-growing region in the market during the forecast period.
Elevator and Escalator Industry Overview
The elevators and escalators market is consolidated. Some of the major players in the market (in no particular order) include Schindler Group, Otis Worldwide Corporation, ThyssenKrupp AG, Kone Oyj, and Hitachi Limited.
Elevator and Escalator Market Leaders
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Schindler Group
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Otis Worldwide Corporation
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ThyssenKrupp AG
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Kone Oyj
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Hitachi Limited
*Disclaimer: Major Players sorted in no particular order
Elevator and Escalator Market News
- July 2023: The Miami-Dade County Board of County Commissioners approved a contract to expedite the Miami International Airport's Modernization in Action (MIA) Plan, under which the airport plans to invest nearly USD 12 million in the upgradation of 372 aged elevators, escalators, and moving walkways at the Florida airport, including 145 units that will receive a complete modernization. Over the contract's next five to 10 years, at least 30 conveyance units at the airport are scheduled to be upgraded or replaced annually.
- March 2023: Sydney Metro West awarded two framework contracts to Schindler and Honeywell for a comprehensive set of systems and equipment to ensure safety, reliability, and efficiency throughout the metro service. The Systems Frameworks package consists of two contracts, under which Schindler and Honeywell will be responsible for supplying and maintaining lifts, escalators, public address systems, CCTV cameras, passenger information displays, fire detection systems, building management control systems, and electronic access control systems. Schindler will design, supply, install, and maintain approximately 60 lifts and 140 escalators for the nine new Sydney Metro West stations between the CBD and Westmead as part of the first contract.
- November 2022: Fujitec Singapore Corporation Ltd secured a significant order for approximately 300 residential elevators from Singapore's Housing & Development Board (HDB). This order is part of the HDB 33rd Term Housing project, which involves the construction of new homes across various public housing estates throughout the island. The project is expected to be completed within four to five years. The order includes a variety of elevators, including high-speed models, to be installed in high-rise residential buildings with 30 floors or more.
Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Rising Investments in Public Infrastructure Projects
4.5.1.2 Growing Demand for Environmental Friendly Products to Increase the Adoption of Green Labeled Products
4.5.2 Restraints
4.5.2.1 Lack of a Proficient Workforce for Post-Sales Maintenance
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitutes Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGEMENTATION
5.1 By Type
5.1.1 Elevators
5.1.2 Escalators
5.1.3 Moving Walkways
5.2 By Service
5.2.1 New Installation
5.2.2 Maintenance and Repair
5.2.3 Modernization
5.3 By End-user
5.3.1 Residential
5.3.2 Commercial
5.3.3 Large-scale
5.4 By Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Mexico
5.4.2 Asia-Pacific
5.4.2.1 China
5.4.2.2 India
5.4.2.3 South Korea
5.4.2.4 Japan
5.4.2.5 Rest of Asia-Pacific
5.4.3 Europe
5.4.3.1 Germany
5.4.3.2 United Kingdom
5.4.3.3 France
5.4.3.4 Italy
5.4.3.5 Rest of Europe
5.4.4 Middle-East and Africa
5.4.4.1 Saudi Arabia
5.4.4.2 United Arab Emirates
5.4.4.3 South Africa
5.4.4.4 Rest of Middle-East and Africa
5.4.5 South America
5.4.5.1 Brazil
5.4.5.2 Argentina
5.4.5.3 Chile
5.4.5.4 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Companies Profiles
6.3.1 Schindler Group
6.3.2 Otis Worldwide Corporation
6.3.3 ThyssenKrupp AG
6.3.4 Kone Oyj
6.3.5 Hitachi Limited
6.3.6 Hyundai Limited
6.3.7 Fujitec Co. Limited
6.3.8 Toshiba Corporation
6.3.9 Mitsubishi Electric Corporation
7. MARKET OPPORTUNITIES and FUTURE TRENDS
7.1 Technological Advancements in Reducing Energy Consumption and Emissions in Elevator and Escalator Technology
Elevator and Escalator Industry Segmentation
An elevator is a vertical transportation device that carries people or goods between different floors or levels in a building. It operates through an electric motor and a system of pulleys or hydraulic pistons, providing convenient and efficient access to various levels within a structure.
An escalator is a moving staircase designed to transport people between different building levels effortlessly. It consists of a continuous loop of steps that continuously move in a diagonal or vertical direction, allowing users to ascend or descend without needing to climb stairs manually.
The elevator and escalator market is segmented into type, service, end-user, and geography. The market is segmented by type into elevators, escalators, and moving walkways. The market is segmented by service into new installation, maintenance and repair, and modernization. By end-user, the market is segmented into residential, commercial, and large-scale. The report also covers the market size and forecasts across major regions. The market sizing and forecasts for each segment are based on revenue in terms of USD billion.
Frequently Asked Questions
What is the current Elevator and Escalator Market size?
The Elevator and Escalator Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)
Who are the key players in Elevator and Escalator Market?
Schindler Group, Otis Worldwide Corporation, ThyssenKrupp AG, Kone Oyj and Hitachi Limited are the major companies operating in the Elevator and Escalator Market.
Which is the fastest growing region in Elevator and Escalator Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Elevator and Escalator Market?
In 2024, the Asia Pacific accounts for the largest market share in Elevator and Escalator Market.
What years does this Elevator and Escalator Market cover?
The report covers the Elevator and Escalator Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Elevator and Escalator Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Elevator and Escalator Industry Report
Statistics for the 2024 Elevator and Escalator market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Elevator and Escalator analysis includes a market forecast outlook to for 2024 to (2024to2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Elevator and Escalator Market Report Snapshots
