The global elevator market has been forecast to increase at a compound annual growth rate (CAGR) of 6.4% over the next three years, to reach a market value of $90 billion by 2016.
The global elevator market comprises of three major segments namely new installations, maintenance and modernisation. After witnessing slowdown in 2009, the market recorded strong growth during 2010-2011 driven by the increase in the construction activities, urbanisation and the improving worldwide economy.
In volumetric terms, the sales of elevators were much higher as compared to the sales of escalators as the usage of elevators is not restricted to only commercial segment and elevators are often used in residential construction as well.
As far as elevator new installations are concerned, growth is majorly driven by emerging markets such as China and India, where rapid construction activities are taking place. However, Europe, the largest market for elevators, recorded marginal growth in terms new installations. Therefore, the growth of the sector in the developed markets like Europe and the US has become increasingly dependent on the elevator service market.
In unit terms, demand for passenger and freight elevators will advance 5.2% annually to 535,000 units in 2011, which will swell the global installed base to over ten million units. Fully one-third of will be situated in China; India, Russia and the Gulf region also hold especially favourable intermediate-term prospects.
Otis led the global elevator market in 2011 followed by KONE, Schindler, and Thyssenkrupp. The competitive landscape of the market was highly consolidated, as the top 4 players accounted for more than half of global sales in 2011.
Otis Elevator Company is the world's leading manufacturer, installer and maintainer of elevators, escalators and moving walkways -- a constant, reliable name for more than 150 years. The company generated US $12.4 billion in 2011, of which 83% was made outside the United States.
Manufacturers are increasingly being conscious about improving their product offerings in terms of energy efficiency and maintenance cost in order to utilise the growth opportunity present in the market.
However, future growth of the market will depend widely on developers' efficiency to answer challenges like the growing safety concerns and slowdown in the growth of new installations in major developed markets.
For more information on the global elevator market, see the latest research: Global Elevator Market
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