Global Elevator & Escalator Market: Industry Analysis & Outlook

Global E&E Market Overview

Global Elevator & Escalator 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.