Originally Published on Technavio | Elevator and Escalator Market by Product, Application and Geography - Forecast and Analysis 2023-2027

The Elevator and Escalator Market is poised for substantial growth, with an estimated Compound Annual Growth Rate (CAGR) of 8.92% between 2022 and 2027, and an anticipated market size increase of USD 60.75 billion. The market's expansion hinges on several key factors, including the surging demand for smart elevators, a growing number of construction projects, and increased investments in smart cities.

**Market Dynamics**:

Our research team conducted a comprehensive study, using 2022 as the base year and estimating trends for 2023. We present the pivotal drivers, trends, and challenges influencing the elevator and escalator market. Despite the market experiencing disruptions during the COVID-19 pandemic, a thorough analysis of these factors will aid companies in refining their marketing strategies for a competitive edge.

**Driver: Growing Investment in Smart Cities**:

As rural-to-urban migration continues to rise globally, the accommodation of these urban dwellers becomes increasingly critical. The concept of smart cities, characterized by advanced infrastructure, communication, sustainable real estate, and market viability, is gaining traction worldwide. These smart cities leverage information technology to provide essential services to residents.

Numerous smart city initiatives are underway across the world, aiming to deliver innovative solutions for managing urban population growth efficiently. This includes addressing issues like traffic congestion through energy-efficient road networks and efficient public transport systems. Consequently, the burgeoning development of smart cities and substantial investments in them are expected to propel the growth of the global elevator and escalator market in the forecast period.

**Trends: Regenerative Drives in Elevators and Escalators**:

Regenerative drives have emerged as a significant innovation in modern elevator technology, designed to enhance energy efficiency in in-building transport systems. Conventional elevators often generate excess power when ascending with light loads or descending with heavy ones, which is typically wasted as heat. Regenerative drives change this by converting mechanical power into electrical power during low load conditions and sending it back to the electrical grid for reuse. The adoption of regenerative drives minimizes energy wastage, and their effectiveness depends on factors like building height, elevator usage frequency, and weight. This leads to the increased use of regenerative drives, fostering the growth of the global elevator and escalator market.

**Challenge: Reluctance to Modernize Elevators and Reduce Energy Consumption**:

Despite available solutions for optimizing elevator energy consumption, such as using more efficient AC motors and regenerators, they have not gained widespread popularity. In many cases, property managers prioritize energy conservation in areas like lighting and heating/cooling systems first, as these are responsible for over 50% of energy consumption in commercial buildings, according to the US Department of Energy. Companies like Schindler offer elevator lighting systems as part of energy-saving solutions. This reluctance to modernize elevators and reduce their energy usage can hinder the growth of the global elevator and escalator market during the forecast period.

**Market Segmentation**:

**Product Segment Analysis**:

- The elevator segment is expected to dominate market growth during the forecast period. Elevators, also known as lifts in many regions, are vertical transport systems facilitating the movement of people or goods across various floors in buildings or structures. The segment's value reached USD 80.00 billion in 2017 and continued to grow until 2021.

**Application Segment Analysis**:

- The commercial sector is projected to hold the largest share in this segment. Various commercial buildings, including offices, hospitals, educational institutions, retail stores, and malls, employ elevators and escalators due to high footfall and convenience they offer to consumers. The increase in commercial building construction in developing countries, such as China and India, has driven the widespread adoption of elevators and escalators. The rise of urbanization has contributed to the need for commercial and public infrastructure.

 - The residential sector is anticipated to grow due to urbanization, migration, and increased awareness about accessibility for differently-abled individuals. The rising demand for housing, particularly in developing countries, due to rural-to-urban migration, fuels the adoption of elevators and escalators in residential buildings. This trend results in the vertical growth of cities, further driving demand.

**Regional Analysis**:

- The Asia-Pacific (APAC) region is estimated to contribute 75% to the market's growth by 2027. China, India, Japan, Singapore, and Malaysia are investing significantly in urban infrastructure projects. Moreover, China and India are focusing on developing smart cities to cater to their expanding urban populations. This has resulted in increased demand for power, transport, housing, and other infrastructure projects. Increased construction and expansion of public facilities, such as malls, airports, and metros, play a vital role in the market's growth in APAC.

**COVID Recovery Analysis**:

- In 2020, the APAC market faced challenges due to the COVID-19 outbreak. Large-scale vaccination drives in 2021 helped stabilize the situation, leading to the resumption of operations in the industrial and construction sector. The rise in the construction industry and the adoption of high-rise and mid-rise buildings have boosted the demand for elevators and escalators, further stimulating regional market growth.

**Major Companies**:

Leading elevator and escalator companies are employing diverse strategies, such as alliances, partnerships, mergers, acquisitions, expansions, and product launches, to strengthen their market presence. For instance:

- Braun Elevator offers elevators and escalators, including passenger, goods, and car elevators.

**Segment Overview**:

The report on the elevator and escalator market forecasts revenue-based market growth at global, regional, and country levels. It provides an analysis of the latest trends and growth opportunities from 2017 to 2027, with a focus on product outlook (elevators and escalators), application outlook (commercial, residential, and industrial), and regional outlook (North America, Europe, APAC, Middle East & Africa, and South America).

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