Global Elevator, Escalator and Moving Walkways Market Performance and Outlook to 2027-COVID-19 Impact Assessment

Global Elevator, Escalator and Moving Walkways Market Performance and Outlook to 2027-COVID-19 Impact Assessment

Executive Summary

The Global elevator, escalator and moving walkway’s market size in 2020 was USD 77.8 billion, the global impact has been unexpected, with elevators, escalators and moving walkways witnessing a negative demand across all the regions as a result of the pandemic. In 2020 the global market experienced a decline of -1.6% as compared to the average year on year growth. The market is expected to grow from USD 81.5 in 2021 to USD 110.7 in 2027 at CAGR of 5.2% from 2021-27. The massive spike in CAGR is due to increased market demand, and the industry is estimated to increase to pre-pandemic levels in the coming year.

Global Economic Performance: The global economy is expected to grow at a 5.9% annual rate in 2021 and a 4.9% annual rate in 2022. Slower growth will be apparent in most regions, owing primarily to the fading of fiscal support and riled demand tailwinds. However, in some regions, particularly South Asia (including India) and Japan, growth rates in 2022 are expected to exceed those in 2021, owing to delayed recoveries as these economies were more affected by the delta wave in 2021. Global COVID-19 case numbers have reached all-time highs during Jan 2022 due to the Omicron variant

COVID-19 Impact: The virus outbreak had a negative impact on the elevator, escalator, and moving walkways industry due to the implications of global lockdown. Furthermore, the abrupt closure had a significant impact on the labour-intensive and highly volatile construction industry, which lowered new construction and modernization activity, hampered global market sales and development. Reduced cash liquidity and ambiguity among potential investors slowed market growth. On the other hand, several federal governments had enforced a temporary suspension and issued instant directives to halt the transport services of non-essential commodities, resulting in a massive inequity between the procurement of raw materials for products and actual production at production facilities.

Driving Factors

Increasing demand for Customized Elevators: The growing emphasis on holistic user experience to enhance journey quality is resulting in the implementation of novel aesthetic styles to meet the diverse needs of customers. This is a growing trend in a variety of industries, including medical infrastructure and the hospitality industry. Additionally, customized elevators are becoming architectural features in shopping malls, complexes, and airports. Kone introduced the Nmono and Nmini lifts in five distinct themes based on their lighting, materials, and patterns. Furthermore, product sustainability is playing an important role in market development. Therefore, the increasing demand for high sustainability is expected to drive the product penetration

Challenging Factors

High Maintenance Costs: Elevator equipment requires regular adjustments, lubrication, and inspection to ensure safe and dependable operation. Elevators must also be inspected and certified for use by the state on an annual basis. However, due to the high maintenance costs, it is frequently ignored, which is a major challenge.

Segmentation

By Product Type: The elevator segment is expected to be the fastest-growing segment in the market. This is due to high demand from the residential segment, which includes high-rise buildings. Furthermore, rising airports infrastructure development is driving up demand for escalators and moving walkways.

By Application Type: The residential segment has been a key contributor to the rising demand for elevators, and escalators and dominates the market, which reached by USD 15,040 million in 2020 with a market share of 58.27% in 2021. However, in recent years, it has been in fierce competition with the commercial sector. In 2020, Commercial segments market share declined slightly, as construction activities were closed, mainly due to the outbreak of virus but the upcoming commercial buildings like Far Rockaway Library in New York, Taipei Performing Center in Taipei, Aquarela in Quito.

By Service Type: The market is dominated by the new installation segment, which has substantially contributed to the growth of market revenue, and it is anticipated to stay dominant over the period. In addition, maintenance and modernization of existing equipment are expected to grow significantly in the coming years.

By Technology Type: In Global Escalator, Elevator and Moving Walkways Market MR Traction technology is more efficient and provides a smooth ride to its passengers and it is one of the fastest growing technologies. Moreover, the Newly designed permanent magnet motors (PMM) allow manufacturers to pinpoint machines in the hoist way overhead, eradicating the need for a machine room, which is typically located over the hoist way.

Performance by Region

The Asia Pacific region accounts for the largest market share of 47% in global elevator, escalator and moving walkway’s market, with the rising demand from key economies and developing regions such as China, India and Southeast Asia. The region benefits more from the new installation service due to increased demand for better infrastructure. Moreover, in October 2020, Mitsubishi Electric is focused to enhance its claims on a large customer base in the Asia Pacific region, which is currently one of the world's leading markets.

North America holds the least market share for elevators, escalators, and moving walkways, because in this region commercial segment dominates the market. Furthermore, due to the government's large investments in smart infrastructure, North America has intriguing growth prospects in the Elevator and Escalator market. In terms of revenue share, the United States dominates the North American elevator and escalator market.

Europe is the world's second-largest market. Smart cities have been developed around the world and in the region, with many more on their way. Smart solutions in energy, mobility, and governance are increasingly being developed by the regions. Such long-term high-end projects are expected to help the market grow.

Scope of the Study

The following synopsis is based on the report Global Elevator, Escalator and Moving Walkways Market- COVID-19 Impact and Outlook to 2027 published by Makreo Research and Consulting. The report delves deeply into various parameters such as market size, segmentation, value chain analysis, and industry cause and effect analysis. The study includes market dynamics that provide an understanding of industry opportunities, driving forces, major challenges impeding growth, and an analysis of future opportunities that may help market players capitalise on untapped business potential in the specific geography.

The report helps reader to gain information on following areas:

• What is the value and volume outlook for the Global Elevator, Escalator and Moving Walkways Market in the past, present, and future?
• Identification of factors important in changing the market scenario, increase in opportunities,
• Identification of key companies that can influence this market on a global and regional scale are all provided.
• To understand the market's competitive outlook, key players are profiled and their strategies are analysed.