Global E&E Market Overview
key issues and challenges:
•Large initial Investment
•Regulatory stringent policies
•Global economic improvement
•Industry Consolidation
•Safety issues mainly due to bad maintenance
•Lack of trained manpower mainly in Emerging markets
•In coming years E&E maintenance business in emerging market may face big challenge due to lack of timely service and upgradation •Niche regional players gaining ground especially in smart elevators
•Global E&E market is dominated by Four players till recently.
•As developing market share to global market is increasing players like Mitsubishi, Hitachi & Fujitech are gaining ground mainly in China.
•China E&E market is till significant even after recent slowdown which contributed to worlds 70% of New Installations in 2014.
•As urbanisation is going to drive emerging markets E&E New Installation Market, Services segment will be dominated by Developed markets mainly Europe.
•Industry consolidation plays key for large players to access local base in developing markets.
Global Elevator & Escalator Region Wise Revenue of Key Players
The elevators market is segmented into new equipment sales and installation and maintenance and modernization of existing system
Escalator industry is segmented into transit, commercial and moving walk escalators.
Automatic Door constitutes 90% and Manual door 10% which is dominated by regional players.
America & Europe contribute to Maintenance business while Emerging markets driving New Equipment Business.
| Base | Percentage | |
| Elevators | Residential | 65 |
| Public Transport | 15 | |
| Malls | 10 | |
| Commercial Office | 7-8 | |
| Hotels & others | 3-5 | |
| Escalators | Malls | 50 |
| Public Transports | 30 | |
| Office and Commercial | 10 | |
| Hotels & others | 10 |
Global Elevator & Escalator Growth Drivers:
•Global aging equally drives the E&E market same as population growth.
•Per person Installed elevators in emerging markets particularly India and China are one tenth of Europe.
•Rapid urbanisation and Real estate structural changes are key drives for E&E market, the trend is going to be the same in future is well when it comes to New Installations.
•Services and Modernisation market will be dominated by energy efficient and automation.
•Smart elevators to contribute 30% of global revenue by 2020.
•Growing safety demand and commercial construction activities to support escalator industry.
| Past Trends | Growth Drivers | |
| New Equipment | Market has been growing at somewhat faster rate than GDP Clearly faster in Emerging Markets | Population Growth Urbanisation Changing Lifestyle Smart Technology |
| Modernisation | Post Recession growth | Aging Equipment Aging Population Safety & Govt Laws Environment |
| Maintenance | Market growth | Conversion to Smart Technology Safety and Laws |
Global E&E market to Grow by 5.9% YoY from 2015 to 2020 Manufacturing at market will play vital role in Market share enhancement.
Smart elevators will be 23 Billion Market by 2020.
Growing Urbanisation is developing countries to fuel growth mainly China, India and Brazil. Slowdown in china will affect immediate prospects but India, Brazil and other emerging markets are expected to fill the gap.
By Redwood Syndicate: Research Desk.
Email: info@redwoodsyndicate.com
