According to a new market research report from Global Market Insights, Inc, the global elevator market share size is likely to surpass USD 130 billion by 2025, at a CAGR of 4%. These include elevators for different types of commercial and residential settings, including low- and mid-rise buildings.
The report highlights the key industry trends across the product, end-user, and regional landscape. Factors that will favorably impact elevator market growth in the coming years include mounting expenditure on construction and refurbishment projects and product maintenance and service activities. The key factors driving the demand for elevators include:
- The boom in the Middle East construction industry since the last two decades due to rising GDP, improving living standards, and urbanization
- Building refurbishment and renovation in North America
The elevator market report also notes that the construction sector in the Middle East and North Africa region was valued at more than USD 220 billion in 2016 and is likely to exceed USD 320 billion by 2020 with a net growth of around 40 percent.
Rapidly increasing building and construction activities in the Middle East will augment the elevator market during the study period as the product is extensively used for vertical transportation of goods and people in buildings, apartments, and high-rises. Similarly, product maintenance and service activities will also be an important factor augmenting the elevator market in the coming years.
Along with rising building and construction activities, the global elevator market is also likely to be projected by the increasing construction of skyscrapers in Middle Eastern countries. The rapid infrastructural development which is soon to be witnessed with upcoming mega-events in Middle East countries that includes the FIFA World Cup, 2022 will in turn drive lift market growth till 2024. Iran, Saudi Arabia, UAE, and Qatar will be the key countries in this region that will drive the construction sector growth.
Similarly, North America is another key market for elevators which is likely to grow with more than 3% CAGR during the study period. However, in North America, new building and construction activities are not very widespread, and the major driver for elevator market growth would be building refurbishment and renovation. Frequent maintenance and repair activities for lifts are expected to propel the product industry development during the study period due to the strict building and safety codes in the U.S.
Additionally, the report also discusses the factors that will restrain the growth of the elevator market growth. These include the high installation and maintenance costs associated with the product. Product end-users need to design and construct buildings in such a way that elevator installation is feasible and easy. This may restrain the growth in the study period as potential end-users with limited requirements will refrain from using the product for vertical transit purposes, says the report. The scope of the elevator market research report includes:
- Product landscape:
- Machine Room [MR] Traction,
- Hydraulic & Pneumatic,
- Machine Room-Less [MRL] Traction,
- End-user landscape:
- Building & Construction: Residential, Commercial, Institutional
- Product landscape:
The regional landscape includes Canada, Italy, the UK, Germany, France, Spain, Russia, Japan, India, China, Australia, Indonesia, South Korea, Malaysia, Mexico, Brazil, UAE, Saudi Arabia, Kuwait, South Africa.
The hydraulic & pneumatic product segment held around one-fifth of the overall elevator market size in 2017 and is likely to grow with a CAGR above 3% during the study period, says the report. This is mainly because these products involve lesser maintenance and installation costs, and are suitable for low-rise applications.
The key players profiled in the elevator market report include the presence of several large-scale, medium-scale, and small-scale manufacturers. The smaller-scale players cater to the demands of local customers and their sales networks are limited to their respective geographical areas.