Rapid Urbanization in Developing Countries to Drive Growth in the World Elevators and Escalators Market, According to New Report by Global Industry Analysts, Inc.

Share Article

GIA announces the release of a comprehensive global report on Elevators and Escalators markets. Global Elevators and Escalators market is projected to reach 782 thousand units by the year 2018, driven primarily by rapid urbanization in developing countries. Government legislations mandating construction companies to provide safer passage for people in their facilities and the need to ensure faster and comfortable movement in high-rise buildings also augurs well for the future of this market.

Elevators and Escalators: A Global Strategic Business Report

Follow us on LinkedIn – As ubiquitous machines installed in modern day buildings that are erected hundreds of feet above the ground, elevators and escalators have made living and working in such buildings practical. These convenience driven machines have long become a vital requirement in residential, industrial and commercial buildings. The increasing population density will increase the pressure on availability of living space, which in turn will continue to fuel the need to design flexible and efficient living space within the confines of tight ground space. The pressure to build even taller buildings is therefore expected to intensify and the scenario will generate substantial demand for new installations, particularly in the high-rise elevator segment. Rise in number of aging individuals also drives the need for adoption of more comfortable movement management systems such as elevators and escalators.

As a market that closely follows the general economy and developments in construction activity, growth in the global Elevators and Escalators (E&E) market is projected to be driven by developing nations. Urbanization in these countries represents the prime growth triggerent largely because strong urban concentration will trigger increases in infrastructure expenditures, and urban planning. The creation of large megacities involves the construction of high-rise buildings and skyscrapers which in turn provides a fertile environment for the growth in demand for E&E. The urban drift and the ensuing growth in urban areas and reclassification of city boundaries is largely triggered by concentration of economic/employment opportunities in urban areas, continuous shifting of opportunities from agricultural to industrial/tertiary sectors (which in turn fuels rural-urban migration) and superior healthcare and public infrastructure as compared to the rural areas. The growing need to develop sustainable cities for the future translates into ample opportunities for the E&E market.

BRIC economies represent the market engine capable of driving growth in the short-to-medium term period, especially against a backdrop of the strain of the prolonged Euro zone crisis and the weak anemic recovery of the US economy ripping the very fabric of the developed economies. Western economies in general are beginning to collapse under the weight of all their debt and widening fiscal deficits. Also, unlike the rapid V-shaped recovery, which is the typical resurgence pattern from periods of recession, the US economy even today continues to remain challenged by high unemployment and mired with weak and anemic recovery, reflecting a fundamental shift underway in the world economy. BRIC countries stands out as the fastest growing region for Elevators and Escalators in terms of new unit sales and continues to remain a key growth area for the market in the short-to-medium term period. However, despite their potential, these countries, which emerged with strong economic might during the turn of the millennium, are now becoming increasingly interdependent with the developed economies. These countries are becoming more interconnected by trade to the developed economies and thus tend to mirror the slowdown effects of the developed economies. For instance, China represents Europe’s largest trading partner. Also, vigorous ferreting of opportunities in these markets have diminished the potential for manufacturers to achieve first mover advantages.

A new group of countries are emerging over the horizon dubbed the CIVETS, comprising Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa, These countries are being touted as the next generation of tiger economies characterized by rapidly growing domestic consumption, rising middle class, cheap labor (cheaper than China & India) favorable demographics such as, large base of young, affluent and employed population, unlike the aging, retiring baby boomers in the developed countries. Given the subtle shift in geopolitical power and standard of living from west to east, there exist ample opportunities in the CIVETS region in the future. As economic advancement and development spreads to this second tier of lucrative markets, the region will emerge into a perfect haven for manufacturers seeking international expansion in the long-term.

While the E&E market in most regions continues to recover from the 2007-2009 recession, the market in Europe is running into fresh set of challenges. The downward spiral of the Euro crisis has triggered volatility in the housing and construction markets in the region primarily because of the high public debt held by most regional governments and the implementation of austerity measures that limit public expenditure and financing for infrastructure projects. Weakened banks and the attempts to deleverage them to shore up banking confidence is resulting in prohibitively high interest rates which in effect limits access to capital in both the commercial and residential construction sectors. Against this backdrop, construction activity declined sharply especially in worst affected nations like Spain, Italy, France, Greece, Ireland etc, while Germany, Switzerland, Poland and other Nordic counties, continued to encouragingly plough on. Despite the mixed growth prospects being witnessed, largely referred to as the North-South divide, the aggregate impact on the European construction industry is nevertheless depressing with recovery being expected only after the year 2014.

As stated by the new market research report on Elevators and Escalators, Asia-Pacific is the largest regional market in terms of new unit sales and continues to remain a key growth area for the world market, displaying a robust CAGR of about 8.8% over the analysis period. By product, Elevators represent the largest and the fastest growing market with new installations in this sector projected to wax at a CAGR of 7.0% over the analysis period.

Leading global players in the marketplace include Fujitec Co. Ltd., Hitachi Ltd., Hyundai Elevators Co. Ltd., Kone Corporation, Mitsubishi Electric Corporation, Otis Elevator Company, Schindler Group, ThyssenKrupp Elevator AG, and Toshiba Elevator and Building Systems Corporation, among others.

The research report titled “Elevators and Escalators: A Global Strategic Business Report”, announced by Global Industry Analysts, Inc., provides a comprehensive review of trends, product developments, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (China and Rest of Asia-Pacific), Middle East & Africa, and Latin America. Product segments analyzed include Elevators (Gearless Elevators, Geared Elevators, and Hydraulic Elevators) and Escalators (Moving Stairways (Heavy-Duty Transit and Standard-Commercial) and Moving Walkways).

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

Follow us on LinkedIn

Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/


Share article on social media or email:

View article via:

Pdf Print

Contact Author

Public Relations
Visit website