The Global Elevator Modernization and New Installation Market is estimated to reach $104.8 billion by 2025, growing at a CAGR of 5.7% from 2020 to 2025. Elevator modernization is the process of upgrading the critical parts of the elevators or replacing the critical parts of the elevator completely according to the new technology for better performance, speed and safety of the elevators. Deployment of lifts or elevators in the residential, commercial, healthcare and other buildings is the process of elevators new installation. The operational reliability along with ride quality is improved owing to the elevator modernization and increase in residential, commercial and other buildings are driving the growth of new installation processes.
Enhanced safety, cost-effective installation, updation of system and equipment for enhanced performance of the elevators has driven the growth of the market. Furthermore, rise in residential, commercial, industrial buildings along with the rising construction of elevators for ease of people are projected to propel the significant growth of the market.
• Rise in urbanization, industrialization has resulted in more use of new elevators along with the replacement of old elevators with new technology thereby driving the growth of the market.
• Full replacement technique is dominating the market owing to the new technology implementation that reduces power consumption and increases efficiency along with more passenger safety precisions.
• APACs expected to dominate the global Elevator Modernization and New Installation Market in the forecast period 2020-2025 owing to the aged elevators in most of the end use segments and increased investments to replace the aged elevators withnew technology elevators. Furthermore, high construction sector growth is another big factor driving the growth of the market.
By Modernization- Segment Analysis
By modernization the market is segmented into full modernization and partial modernization and component upgrade. Full modernization is dominating over the other modernization techniques. Full modernization replaces the components of the elevators and makes the aged elevators to perform more efficiently.. The new technology full modernization process uses the latest microprocessor technology owing to which the performance of the ageing equipments is well improved by new technology elevator systems. In addition, the full modernization technology delivers significantlybetter performance along with energy savings. This also provides substantial energy savings, reliability and ride comfort, leveling precision and improved elevator performance owing to the latest technologies (asynchronous permanent magnet motors) available in full modernization technique which are positively driving the growth of the market.
By End Users – Segment Analysis
By End UsersElevator Modernization and New Installation Marketis segmented intoresidential, commercial, institutional, construction and others. Commercial sectoris witnessing significant growth in the market. The rise in infrastructural activities along with government & non-government offices, hotels and others are fueling the growth of the market. In commercial sector the construction of new buildings are installing new technology elevators for to transport stock around different levels of building. These new installation are basically providing long term reliability along with diverse products in elevators thereby driving the growth of the market.
Geography – Segment Analysis
Global Elevator Modernization and New InstallationMarket is dominated by APAC region by market share37% in 2019. APAC dominated the market owing to the high construction sector growth. In APAC region the emerging countries which are developed and developing like India, China, Indonesia, Malaysia and other countries are looking for highly productive, efficient and eco-friendly lifting technologies. China is accounting for the largest growth in infrastructure projects by the government. After China, Indonesia is growing in the construction of both the residential and non-residential sectors influencing the growth of the market.
In Europe most of the elevators used in the commercial, residential, institutional and others are very old and demand for modernization with new technologies are rising in these sectors. Furthermore, growth in these sectors is also influencing the growth of the market as more elevators are required by new infrastructural activities. According to the Schindler Group,in Europe 50% of elevators and escalators are older than 20 years. The elevators in Europe are oldest among others in the world. Owing to this the demand for modernization and new installation is increasing in this region.
Drivers – Elevator Modernization and New Installation Market
• Rise in Infrastructural activities increasing the rise in elevator modernization :
Rise in infrastructural activities are accounting for rise in growth of the market. There is increased spending on the commercial sector for infrastructural development purposes includinghotels, office buildings, data centers and warehouses. According to Office for National Statistics, the construction firms operating in construction industries are reaching its highest level on record with 325,736 registered firms in 2018, operating in Britain. There is an increase in construction firms with 3.5% since 2017 in 2018. Furthermore, the growth is driven by construction works increased by 10.8% since 2010 in 2018..Furthermore, growth of mall-culture and investments in public spaces like railways stations, airports, subways sectorshas created demand for elevators aiding the growth of the market.
• Rise in rise in new technology for modernization and new installation:
The rising urbanization and industrialization are driving the growth of the market. The development of smart cities and growth in the industrial sectors are driving the demand for elevators with rising deployment of new technology related to power consumption reduction and increased passengers safety. New technology elevators can run by harnessing solar power along with harnessing power from grid. Rooftop Solar panels are used for running elevators which store the sunlight in form of electricity in the batteries and run the elevators thereby reducing and saving energy. These factors are boosting the growth of the market. Furthermore, Machine room less technology incorporates smaller, gearless and highly efficiently geared machines with variable speed and variable frequency with latest digital technology driving the growth of the market.
Along with the modernization there are innovations in trends and technologies of the elevators newly installed in the construction buildings. Smart elevators are designed for new installation purposes with a vision of efficiency and energy saving. Many elevators are installed by use of internet in the new buildings. These elevators have sensors in them which gather data about usage and others. The information is retained in a cloud based platform that predicts future problems and helps technicians to repair and maintain it before breakdown.
Challenges – Elevator Modernization and New Installation Market:
Rising operational costs:
New installation with smart technologies of elevators in the construction buildings is high resulting to hinder the growth of the market.. In addition, the elevator maintenance requires repair of different parts like motor replacement, piston grip installation, cab wiring, cab operation panel and others which drives thehigh cost of repair.Furthermore, full replacement cost depending on the age of elevator maintenance get more expensive. The hydraulic elevators maintenance is more expensive as compared to the vacuum or pneumatic elevators. These operational and maintenance costs are hindering the growth of the market.
Launches, acquisitions, and R&D activities are key strategies adopted by players in the Elevator Modernization and New Installation Market are given in this report. Elevator Modernization and New Installation Market is dominated by major companies such as Otis Elevator Company, Schindler Group, Kone Corporation, Toshiba Johnson Elevators Pvt.ltd., AOSCAR Elevators, Mitsubishi Electric, Sigma Elevator Company, Dover Elevators, Hitachi Ltdand Fujitec Co. Ltd. among others.
• December 6, 2018- Otis launched Gen2 MOD package for Indian elevator market based on technology of its flagship product. Gen2 MOD. This has features like flat-bet technology, steel coated, compact gearless machine and others for energy efficient operation of the elevators.
• November 8, 2018- ThyssenKrupp Elevators launched two new elevator products for commercial, residential and infrastructural applications. The product lines named Synergy and Evolution which include three models 100/200/300. They offer comfortable and safe transportation in low-rise and mid-rise buildings.