San Jose, CA (Vocus) September 29, 2010
GIA announces the release of a comprehensive global report on Elevators and Escalators market. Despite the current erosion in volume sales, primarily due to the slump in construction activity amid the recessionary climate in the world economy, the global market for Elevators and Escalators is expected to recover poise and register 647 thousand units in sales by 2015. Primary factors fingered to drive this growth include the need for more comfortable movement management systems, legislations mandating builders to provide safer passage within their facilities, and post recession resurgence in growth fundamentals such as improvement in infrastructure spends, softening of interest rates, and recovery in residential & non-residential construction. Sturdy demand patterns in Asia-Pacific also augurs well for the market.
Elevators and escalators are today ubiquitous machines installed in most constructions ranging from residential, commercial, industrial to hospital buildings. With modern architectural technologies enabling the widespread construction of skyscrapers erected hundreds of feet above the ground, elevators and escalators designed to transport people from floor to floor, have become crucial elements that make living and working in these buildings practical. In addition to making life convenient and easier, technology/engineering developments in operation and safety have helped these conveyance machines contribute significantly to the development of high-tech cityscapes of modern society. As the most efficient mass transit system in the world, elevators, and escalators form an integral part of the daily lives of millions of people around the world, helping them reach offices, apartments, super markets, public offices etc.
Given the high-strung sensitivity of Elevators and Escalators (E&E), which are building-integrated systems, to the overall health of the construction industry, the ongoing recession has not surprisingly thrown demand off-track with financial constraints and budgetary cuts, faced by builders, resulting in decline of orders for new installations. Unlike preventive maintenance, repairs and modernization business, which provides buffer by offering a relatively secure revenue source, new installation business is especially vulnerable to the recession.
Cancellation, postponement, and general weakness in new office, commercial and residential building projects as a result of lack of credit, rising vacancy rates, sharp falls in the number of applications for new building permits and cost cutting among commercial establishments, have played instrumental roles in negatively impacting new equipment order influx rates. Construction delays additionally result in hampering the commissioning and hand-over of the elevator thus impacting sales and revenues. Private construction and remodeling work has also been mauled down due to weak residential spending. Depreciation in home values, decline in new housing starts, crumbling consumer confidence, rising levels of unemployment, and reduction in household wealth, among others, resulted in adversely impacting residential building construction spends. Volatile price movements of raw materials coupled with recession induced price sensitivity among customers and intense price competition, which largely restricts pricing flexibility, have exerted extreme downward pressure on corporate bottomlines. Replacement of elevators in aging buildings has also been impacted with building modernization plans slowing down.
However, as the year 2010 limps out on a broken economy, improvement in the business environment and recovery in growth is forecast to be on cards in-sync with the expected recovery in residential and non-residential construction. Resurgence in infrastructure spends, improvement in liquidity situation, softening of interest rates, continued urbanization, favorable demographics, such as, growing number of senior citizens, will all help drive growth back into fore. In developed countries, ageing population is expected to drive demand for elevators in most residential facilities. Growth in the market, post recession, will also be driven by high population density, which will increase the pressure on the availability of living space and will therefore fuel the need to design flexible and efficient living space within the confines of tight ground space. The pressure to build even taller buildings is therefore expected to intensify and the scenario will generate substantial demand for new installations, particularly in the high-rise elevator segment.
As stated by the new market research report, Asia-Pacific is the largest regional market for Elevators and Escalators in terms of new unit sales, and continues to remain a key growth area for the world market, displaying a robust CAGR of about 7% over the analysis period. Economic growth, rapid industrialization, increased spending power, and rise in demand for residential & commercial property, particularly in regional powerhouses such as China and India, have led to increased construction activity in Asia-Pacific, over the recent years, which in turn has generated and continues to generate substantial market opportunities for elevators and escalators in the region. By product, elevators market is the largest segment. Growth in the elevators segment will be especially driven by geared elevators market.
Major market participants include Fujitec Co. Ltd., Hitachi Ltd., Hyundai Elevators Co. Ltd., Kone Corporation, Mitsubishi Electric Corporation, Otis Elevator Company, Schindler Group, ThyssenKrupp Elevator AG, and Toshiba Elevator and Building Systems Corporation, among others.
The research report titled “Elevators and Escalators: A Global Strategic Business Report”, announced by Global Industry Analysts, Inc., provides a comprehensive review of trends, product developments, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections for the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific, Middle East and Latin America. Product segments analyzed include Elevators (Gearless Elevators, Geared Elevators, and Hydraulic Elevators) and Escalators (Moving Stairways (Heavy-Duty Transit and Standard-Commercial) and Moving Walkways).
For more details about this comprehensive market research report, please visit – http://www.strategyr.com/Elevators_and_Escalators_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
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