Albany, NY -- (SBWire) -- 11/09/2016 --According to Transparency Market Research (TMR), the total annual revenue of the global elevators market was US$181.5 bn in 2015. Exhibiting a robust 7.4% CAGR between 2015 and 2023, the market's annual revenue is expected to rise to US$330.4 bn.
Conventional Elevators to Dominate despite Rising Demand for Smart Elevators
Conventional and smart elevators are the leading product segments of the global elevators market. Of these, conventional elevators hold the dominant share due to the recent emergence of smart elevators. However, the convenience and security benefits afforded by smart elevators have resulted in a rising demand, making them a highly lucrative segment of the elevators market. Due to this, several players in the global elevators market are expected to attempt to establish a foothold in the market for smart elevators in the coming years. The smart elevators segment is expected to account for an annual revenue of US$254.6 bn by the end of 2023, representing more than two-thirds of the global smart elevators market.
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Geographically, Asia Pacific is the leading contributor to the global elevators market and is likely to remain the dominant regional market by volume as well as revenue in the coming years. The Asia Pacific elevators market's total volume is expected to reach 291.5 thousand units by the end of 2023. "However, the widespread adoption of technological advancements in developed regions such as North America and Europe has cemented their role as important revenue generators for the global elevators market," said TMR's lead analyst. Despite the North America elevators market's volume being close to a seventh of that of the Asia Pacific market in 2015, the former's revenue was just half of that of the latter, signifying the importance of North America to the global elevators market.
Rapid Urbanization in Developing Regions Leads to Steady Demand
The prime driver for the global elevators market is the booming construction industry in developing regions such as Southeast Asia, the Middle East, and Latin America. The rapid urbanization in these regions has generated a steady demand for amenities such as elevators, which is likely to remain a key driver for the global elevators market in the coming years. The improving standards of life in developing regions have also led to a rise in the geriatric population, which has necessitated widespread adoption of elevators
Another key driver for the global elevators market is the rising awareness about the role elevators could play in the overall energy consumption of a building. This has led to a rising demand for energy-efficient elevators fitted with advanced power management systems. The increasing prominence of eco-friendly construction practices in the global construction industry has thus become a key driver for the global elevators market.
On the other hand, the prime restraint on the global elevators market is the complexity of the regulations set by monitoring agencies. Ensuring safe use of elevators can be a complicated task due to the variety of elevator designs in use and the unique operating conditions in each building. Due to this, the resource-intensive process of testing is likely to remain an influential constraint on the global elevators market in the coming years.
The global elevators market is significantly consolidated, with the top 5 companies accounting for 77.8% of the global market in 2015. The leading players, namely KONE Corporation, ThyssenKrupp AG, Otis Elevator Company, Schindler Holding Ltd., and Fujitec Co. Ltd., operate widespread networks across the world, leading to a relatively steady revenue influx regardless of complications in specific regions. Due to this, regional expansion is likely to remain a popular strategy for players in the elevators market in the coming years.
Consistent technological progression has also been vital for the elevators industry in recent years. Due to the intense competition between the leading players in the global elevators market, technological advances have become a key USP and have allowed the elevators industry to stay aligned with the contemporaneous technological framework.
Elevators Market: Steady Demand Expected Due to Rising Adoption of Smart Elevators
Elevators and escalators, which have become an integral part of the urban landscape, are installed in various public and private places such as retail outlets, hotels, IT parks, mixed-used buildings, residential buildings, commercial buildings and restaurants for the movement of people and good within the premises.