Asia Pacific Elevator & Escalator Market Outlook, 2027

Asia Pacific Elevator & Escalator Market Outlook, 2027

The Asia-Pacific elevator and escalator market has witnessed considerable growth over the past few years. Elevators and escalators are widely used to carry heavy items and connect multiple storey, making the movement of people convenient between various floors. In addition, the Asia-Pacific elevator and escalator market is considered the fastest-growing market. Some of the reasons behind the rapid growth rate of the elevator and escalator market in the region are increasing population, improvement of infrastructure, rise in construction activities, the introduction of various development projects, etc. Moreover, the demand for elevators and escalators depends majorly on the construction of high-rise commercial as well as residential buildings, industrialization, and urbanization. Further, the introduction of smart elevators and escalators in the Asia-Pacific region has led to the development of various government policies that encourage the manufacturing of smart elevators and escalators as they are proven to be energy efficient.

According to the report titled Asia-Pacific Elevator & Escalator Market Outlook, 2027 by Bonafide Research, the region is to continue developing at a rapid pace, with economic growth projected to reach an annual average rate of the fastest among all global regions. The market was valued at USD 41 billion in 2021, dominated the global market with nearly half of the share. Even with a high concentration of major companies, the region is expected to show a growth rate of more than 6% during the forecast period. Much of this growth is being driven by investment in new infrastructure, while increasing domestic demand is driving the expansion in the construction of buildings across the residential and commercial sectors. The market is led by residential end users in the year 2021. The increasing shift towards eco-efficiency, flexible design, and safety is driving the commercial segment.

Most of the developing countries in the region are focusing on the improvement of their infrastructure and connectivity, which is to give a huge market scope for the manufacturers to capture their products. The new projects will create a demand for elevators and escalators. Real estate investment in the vicinity of these metro rail stations will also create a demand for the property. The growing passenger traffic at airport terminals will drive the market for the horizontal moving walkway segment. The substantial growth of the construction sector, leading to a significant rise in new development projects and repair and maintenance activities, may create a positive outlook for the industry's expansion. Along with fair usage across the residential sector, specifically in high-rise and mid-rise buildings, elevators are actively employed in industrial and commercial applications as well. These applications may include the transportation of people and goods across different stories of a building, like storage plants, warehouses, production plants, and others.

China has 14 cities with populations of over 5 million, including Shanghai, with 22 million people. It is here that companies debut their most impressive innovations, such as Mitsubishi Electric’s first-in-the-world spiral escalator in the Daimaru department store. Thus, it is no wonder that the country has held a larger market share since 2021 and will continue to do so during the forecast period. The Australian market is expected to exhibit modest growth owing to infrastructural development and major construction projects such as the construction of the University of Tasmania Inveresk Campus (TAS), Oakland Crossing Rail Project (NSW), and the Brisbane Metro. Nearly half of the market in the Asia Pacific is controlled by big international players, like Otis, KONE, Mitsubishi Electric, and Hitachi Elevator. Another 25% comprises other large international and domestic players, such as Canny Elevator, SJEC Corp., and Shenyang Brilliant Elevator Co. Ltd., along with ThyssenKrupp and Schindler. In comparison with other countries' markets, the growth speed of the elevator market in China is the fastest. Total elevator sales on a per unit basis were nearly 900.000 units. Nearly 30 percent of the world’s demand was made up by China. In 2012, 58% of the world’s new elevator units were established in China.

Countries such as India, Singapore, Japan, and China are some of the common manufacturers of elevators and escalators in the Asia-Pacific region. Additionally, various government policies and programs have led to an increase in the production of elevators and escalators. For instance, the government of China has introduced a policy regarding the up-gradation of old elevators and escalators and the installation of new elevators in the newly constructed buildings to improve the standard of living of the people. Furthermore, the elevator and escalator market in India has promising growth prospects as the Indian economy is focusing on strengthening its infrastructure and building smart cities.

Elevators and escalators are highly demanded in India because of the rapid urbanization taking place in the country. Moreover, various government projects, such as an increase in the number of metro lines to improve inter-state connectivity, the construction of international airports, etc., impact the demand for elevators and escalators. In addition, private as well as government investments are heavily being made in the transportation sector in India, which has led to an increase in the production of elevators and escalators. In addition, the construction of high-rise buildings such as hotels, residential complexes, malls, etc., has led to a substantial rise in the demand for elevators and escalators in Japan. Also, the Summer Paralympics Games held in 2021 in Japan led to a surge in the construction and infrastructure sectors and had a positive impact on the elevator and escalator market.

Moreover, Thailand has been experiencing a boom in the elevator and escalator market due to various government policies regarding the development of the economy. The government of Thailand has increased its spending to fund the infrastructure development plan and for the expansion of airports, railways, etc. Further, Hitachi (Japan) bought a significant number of shares in Yungtay Engineering Co. Ltd. (Taiwan) in October 2020, in order to enhance its elevator and escalator market in the Asia Pacific region. Furthermore, in March 2021, KONE India launched its newest product called KONE DX class elevators, a high-tech variant, to create a better experience for consumers.

With the application of Security Norm (SNEL) to Europe’s mostly existing elevators in old and high buildings, it is guessed that Asia-Pacific will be the fastest-rising market. The high increase in the number of residences in this region is the reason for this large market share. Depending on the increase of the middle-class population and the various uses of elevators and escalators, the China and India markets will also be profitable. Although the elevator and escalator markets are performing extremely well in the Asia-Pacific region, a few hurdles make the growth of the market slow and stagnant. Further, rising concerns regarding accidents caused by elevators and escalators; high investments required to install elevators and escalators; lack of technological up-gradation due to huge costs; shortage of skilled personnel; high import duties on the import of raw materials; etc are a few of the restraints on the Asia-Pacific elevator and escalator market.

COVID-19 Impacts
Furthermore, due to the outbreak of the COVID-19 pandemic, the elevator and escalator market in the Asia-Pacific region has suffered immensely. Lockdowns were imposed in every country in the Asia-Pacific region, which led to a pause in all the activities. The manufacturing of elevators and escalators was also temporarily shut down. That led to a significant fall in market revenues. The investors were not ready to provide funds because of the high risk involved in the continuation of manufacturing projects after the pandemic. Additionally, the pandemic has led to the unavailability of human and material resources required in the manufacturing process. Even after the reopening of the economies, the growth in the Asia-Pacific elevator and escalator market was slow due to certain restrictions. The impact of the COVID-19 pandemic was overall negative on the elevator and escalator market. However, the market is off to a fresh start and is expected to grow substantially in the near future.

Major Companies Present In the Market
Fujitec Corporation Limited, Hitachi Group, Hyundai Elevator Corporation Limited, Kleemann Hellas, Kone Corporation, Mitsubishi Electric Corporation, Otis Worldwide Corporation, Schindler Group, Sigma Elevator Company, Stannah Lifts Holdings Limited, Thyssenkrupp AG, Toshiba Elevator And Building System Corporation

Considered In the Report
• Geography: Asia-Pacific
• Historical year: 2016
• Base year: 2021
• Estimated year: 2022
• Forecasted year: 2027

Countries covered:
• China
• Japan
• India
• Australia

Aspects Covered In the Report
• Market Size By Value for the historic time period (2016-2021)
• Market Size By Value for the forecast time period (2022-2027)
• Market Share by Type (Elevator, Escalator & Moving Walkways)
• Market Share by Service (New Installation, Maintenance & Repair, Modernization )
• Market Share by End Users (Residential, Commercial & Others)
• Market Share by Country

The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the elevator and escalator industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.