Elevator and Escalator Market Assessment, By Type [Elevators, Escalators, Moving Walkways], By Working Mechanism [Hydraulic, Traction, Others], By Solution [New Installation, Maintenance, Modernization], By Application [Residential, Commercial, Industrial

Elevator and Escalator Market Assessment, By Type [Elevators, Escalators, Moving Walkways], By Working Mechanism [Hydraulic, Traction, Others], By Solution [New Installation, Maintenance, Modernization], By Application [Residential, Commercial, Industrial, Others], By Sales Channel [Direct, Channel], By Region, Opportunities and Forecast, 2016-2030

Global elevator and escalator market is expected to reach USD 147.5 billion by 2030, from USD 88.2 billion in 2022, due to rapid urbanization and industrialization. The growing demand for high-rise buildings, including residential and commercial structures, is driven by increased urban migration, leading to a greater adoption of elevators and escalators. Additionally, the aging population and rising mobility challenges have created a need for easier building access, further boosting the demand for these systems. Government investments in infrastructure development are significant to improve accessibility for individuals with disabilities. They are expected to drive the global elevator and escalator market to grow at a 6.64% CAGR by 2030.

The market is benefiting from the increasing demand for energy-efficient elevators and escalators, reflecting the global trend toward sustainability and efficiency. Furthermore, these facilities are in greater demand in healthcare and hospitality. Additionally, the need for efficient transportation solutions in airports, metros, and other public spaces is contributing to market expansion. The growing demand for elevators and escalators in shopping malls, theaters, cafes, restaurants, and other retail spaces further drives the market growth. Technological advances, such as destination management systems and smart elevators, are expected to continue to fuel development in the coming years.

Multifamily Construction Projects are Driving the Demand

The increase in multifamily construction projects is driven by millennials and the new generation seeking apartments in high-rise residential buildings. This trend is primarily due to the growing demand for affordable and convenient housing in regions like Asia and North America. The multifamily market presents a highly lucrative opportunity in India, where there are over 400 million millennials, accounting for a considerable portion of the population and possessing substantial spending power of nearly USD 330 billion.

A 2023 study by CBRE found that 44% of young Indians plan to purchase multifamily homes in the next couple of years, and millennials account for 54% of the homes bought in India in 2022. Similarly, a 2017 study conducted by HSBC in China revealed that almost 70% of home ownership in the country was led by millennials. As a result of the increasing demand for high-rise residential buildings, the demand for elevators and escalators is on the rise and is expected to continue growing in the coming years.

Infrastructure Development is Fueling the Market Growth

The elevator and escalator market's growth are significantly driven by infrastructure expansion. As cities worldwide experience increasing population density, there is a growing demand for efficient vertical transportation systems. The global trend of urbanization is a primary factor fueling the expansion. Cities are expanding, and buildings are becoming taller and more complex, necessitating elevators and escalators.

Moreover, these systems have been integrated into building management systems, resulting in heightened efficiency, safety, and security. This has created a demand for modern, technologically advanced systems with improved safety features, user convenience, and lower maintenance costs. For instance, the Chinese government allocated USD 30.4 billion for investments in smart cities in 2018, with expectations of this investment increasing to USD 59.9 billion by 2023. The construction of tall skyscrapers in advanced and emerging economies is another significant driver of market expansion. For example, the construction of the 644-meter-tall Merdeka PNB 118 skyscraper in Malaysia, set to become the tallest building in Southeast Asia, illustrates this trend, further stimulating market growth.

Technological Advancements to Drive the Market Expansion

Numerous technological advancements are poised to drive significant growth in the global elevator and escalator market in the forecast years. Among these advancements, integrating smart technology, including sensors and artificial intelligence (AI), is expected to play a pivotal role. These technologies enable elevators and escalators to respond to user needs in real time while enhancing safety features. Another groundbreaking innovation is the introduction of cable-free elevators, which leverage magnetic levitation technology to transform how elevators move within buildings. A notable example is ThyssenKrupp's Multi elevator system, which utilizes high-speed magnetically propelled trains for vertical movement within elevator shafts.

Additionally, adopting green technologies, such as regenerative drives and energy-efficient motors, is helping to reduce the environmental impact of elevator and escalator systems. These advancements collectively position the elevator and escalator industry for sustained growth and progress, aligning with the growing demand for safer, more efficient, and environmentally friendly vertical transportation solutions.

Impact of COVID-19

The global elevator and escalator market has witnessed substantial effects from the COVID-19 pandemic. It experienced a downturn due to reduced construction activities, decreased demand for new installations, and temporary closures of commercial and industrial facilities like malls, theaters, public transit systems, and schools. However, the pandemic's emphasis on cleanliness and safety has driven the market's growth, especially in sectors such as hospitals and residential areas, where touchless controls and safety measures are increasingly demanded. As vaccination rates increase and the pandemic's impact subsides, the industry is expected to recover in the forecast years. Opportunities for expansion into new regions and retrofitting older structures are anticipated to arise, contributing to the market's resurgence and growth.

Impact of Russia-Ukraine War

The ongoing Russia-Ukraine crisis has a detrimental impact on the global elevator and escalator market, given Russia and Ukraine's significant roles in the sector. The crisis has disrupted supply chains, leading to delayed delivery and installation of elevators and escalators. Additionally, economic sanctions imposed by various countries have further impacted the industry by limiting access to essential components and technology. The market will likely face increased uncertainty and volatility as the conflict continues. The situation is expected to affect both manufacturers and users of elevator and escalator equipment, leading to challenges in planning, production, and project execution. The industry will need to adapt to these evolving geopolitical circumstances while seeking alternative solutions to mitigate disruptions in the supply chain.

Key Players Landscape and Outlook

Prominent players in the elevator and escalator market increasingly prioritize sustainability as a central element of their corporate strategies. These companies are incorporating smart building technologies into their elevator and escalator systems. By integrating their products with building management systems and Internet of Things (IoT) platforms, they enable more efficient utilization of elevators and escalators. It results in reduced energy consumption and enhanced user experiences.

For example, in 2022, KONE introduced a standardized version of KONE JumpLift for machine-room-less elevators. The innovation can revolutionize construction flexibility and potentially reduce construction timelines by several months for distinct types of buildings. KONE also offers elevators fully compatible with wooden buildings and shafts constructed from timber products. This presents a sustainable and environmentally friendly construction solution, aligning with the growing interest in using wood as a construction material.

In April 2022, Mitsubishi Electric Corporation formally announced its complete acquisition of Motum AB, a Sweden-based company primarily engaged in the elevator and automatic door sector. This strategic move by Mitsubishi Electric was geared towards enhancing its ability to provide maintenance and modernization services for elevators and escalators in Sweden and various other regions, including Europe.