Global Elevator Demand to Reach $90 Billion in 2015

Global demand for elevator equipment (including escalators) and services is projected to rise 6.4 percent per year through 2015 to $90 billion. Gains will benefit from continuing strong growth in developing regions and recoveries in many developed countries from recessionary conditions.  Even stronger advances will be prevented by a deceleration in average elevator price growth.  Unit sales of passenger and freight elevators are projected to expand 7.5 percent annually to 920,000 in 2015. These and other trends, including market share and product segmentation, are presented in World Elevators, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.  

China will solidify its position as the world’s largest national elevator market, with domestic demand growing over twelve percent per year.  The country will add over 90 million new urban residents by 2015, and elevator demand tends to be heavily concentrated in urban centers.  India will also see strong growth, with its urban population expected to increase by 45 million people by 2015.

China will also maintain its position as the world’s largest escalator market.  The country is expected to continue to see major expansion in its public transportation infrastructure, with government plans to build well over 50 new airports by 2015, and significantly expand the country’s burgeoning high-speed railway network.

Growth in US demand for elevator equipment and services will outpace most developed countries through 2015, but gains will be coming off a very weak base due to the country’s 2009 recession and weak recovery in 2010.  Demand growth in Japan and Western Europe will lag the world average through 2015, although the Japanese equipment market will post significant recovery in comparison to the performance of the 2005 to 2010 period.

Sales of global elevator services generally exceeds global elevator equipment demand due to the large base level of installed elevators in the developed world.  Western Europe accounted for 46 percent of global elevator services demand in 2010, since a large installed base level of elevators in the region and stringent safety codes bolster the service sector significantly.  In the developing world, most elevator demand comes from the equipment sector in the form of new installations.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.