Growth Factors Elevator and Escalator Market



According to independent analysts, India is currently the second largest market for elevators and escalators in the world, after China, and growing rapidly. The elevator and escalator market in India is poised to grow by $522.84 mn during 2021-2025, progressing at a CAGR of 9%. India continues to remain one of the most promising markets for elevators and escalators.


The main objective for the use of elevators and escalators is their efficiency in vertical transport. Elevators are used to transport people or goods between different floors of a residential or commercial buildings and escalator is a moving staircase, consisting of a circulating belt of steps which facilitate the commute between floors in commercial and other infrastructure like shopping malls, hospitals, railway stations, and airports. It has more capacity to move a large number of people as compared to the elevators.


Factors like increasing number of high-rise residential and commercial buildings across the country due to rapid urbanization, government initiatives such as Smart Cities Mission and Pradhan Mantri Awas Yojana, increasing investments by the government and private sectors for the construction of public infrastructure and growing adoption of smart, fast and environment friendly elevators are expected to aid the growth of the elevator and escalator industry in India.


Urbanization

Population in urban India is expected to reach 590 million by 2030, when 68 cities in India will have a population of over one million, 13 cities with over 4 million, and 6 mega cities with populations of 10 million or more. Elevators and escalators industry will be one of the major beneficiaries of this.


The growth of elevators and escalators industry can be attributed to the increase in number of high-rise constructions in the country. India is witnessing very high rate of urbanization, like other developing countries in the world, which is creating a shortage of land in the cities across the country. The most popular solution for this has been utilizing the vertical space more efficiently to meet the needs of growing urban population. Governments and construction companies across the country are focusing on vertical growth, which refers to the construction of more numbers of high-rise residential and commercial buildings.


Development of public infrastructure

Another factor driving elevator and escalator industry is investments in infrastructure and commercial projects. The government of India and private organizations are increasingly making investments to provide an effective transport system to consumers. Public infrastructure projects such as airports, railway stations, and rapid transit systems are being undertaken to accommodate the ever-increasing demand. In order to provide smooth and efficient passage for the movement of passengers, effective deployment of elevator and escalator is a must. Hence, the growth in the infrastructure construction sector is boosting the demand for elevators and escalators.


The construction of new metro stations in cities is leading to an increase in the demand for elevators and escalators. Thus, the growing number of metro rail projects is expected to drive market growth of E&E. Elevators and Escalators are also witnessing increasing adoption in the aviation industry. While top to bottom escalators are installed for the passengers to travel to various levels of the building, constructors are also equipping the airports with flat escalators or the travelators. Installations of travelators enable the passengers to travel to their platform along with the heavy set of luggage. In addition, the inclined and moving travelators are also used for transporting the baggage to aircrafts.


Some major government initiatives like “Housing for All by 2022”, Smart Cities Mission are also a big hope for the elevator and escalator industry. In addition, there is a strong focus on sectors like healthcare, sports, logistics etc.



Sustainability

Rising government initiatives to save energy will favor growth of energy efficient elevators and escalators. Globally cities stand for 75% of energy consumption and 80% of manmade greenhouse gas emissions. Requirements for smart and energy-efficient solutions, healthy and sustainable materials and overall, green and sustainable buildings are increasing. Sustainable building and circular practices became more main stream in new construction and refurbishment.


Approximately 40 per cent of the global energy is consumed by buildings. Out of the total energy present in a building, elevators consume around 2% to 7%. Hence, manufacturers are striving persistently to develop energy efficient elevators that would be sustainable. To do so, they are equipping the new elevators with state-of-the-art controls and hardware.


Technology

On the basis of elevator technology, the market has been divided into geared & gearless elevators, hydraulic elevators, and Machine Room Less elevators (MRLs). Gearless & machine room less type of elevator technology is growing at a faster rate than geared type of elevator and is expected to hold the major share in coming years. The machine room less technology is projected to grow at the highest rate mainly due to efficiency and its ability to provide a smooth commute to its passengers. Currently, MRLS are more preferred over the conventional geared elevators as they are technologically advanced, save space and consume less energy.


In the Indian scenario, high-speed elevators are observing maximum demand owing to boom in the construction of high-rise buildings to avert the urban sprawl. Till few years back people were adopting technologies the way they were. But now the demand pattern is changing. With the vertical space rising, the need for high-speed elevators and escalators that reduce travel time is what people are looking at. Similarly, at public infrastructure areas like airports, railway stations, metros, people are again looking for convenience. The escalator and elevator luxury is now becoming a necessity. Similarly, luxury is now translating into sophistication and IoT.


Elevator market key players have taken the innovation up a notch, and introduced smart elevators in the industry. These elevators are equipped with energy-efficient solutions, and use advanced technologies like biometrics, touch screens, and access control systems. Modern buildings use smart elevator systems for enhanced accessibility provision to their consumer base. Smart elevators will define the market in the upcoming years when people will get to witness its impact on airports, hospitals and similar public places.