India Elevator Market Thriving: Expected to Reach worth USD 330.7 Million in 2026
Published | April 2021
According to BlueWeave Consulting, the India elevator market was worth USD 269.9 million in 2020 and is expected to reach USD 330.7 million by 2026, progressing at a CAGR of 3.71% during the forecast period (2021-2026). The industry's major growth drivers are increasing urbanization, rising demand for high-rise buildings, and government initiatives such as 100 Smart Cities and AMRUT (Atal Mission for Rejuvenation and Urban Transformation) cities. Additionally, the government's emphasis on modernizing airports and railway stations during the forecast period is expected to drive the elevators market in the country.
Implementation of Advanced Technology in the Elevator & Escalator (E&E) Sector
The emerging concepts of smart connected building, along with the implementation of the internet of things (IoT) are expected to favor the elevator market growth in India in the near future. Moreover, the evolution and formulation of quality and safety standards are also responsible for motivating the manufacturers who are consistently exhibiting a strong desire to invest in new technologies to expand their businesses. However, the next-generation development in elevator technology makes use of digitalization and is focused on evaluating the real-time passenger traffic, thus improving the flow and travel time in busy high-rise and mid-rise buildings.
Also, the new generation of connected elevators comes with full support, from installation to service, and is a unique concept based on the theme of connectivity. This will also enable the incorporation of smart and connected technology that will deliver a proactive, quick, and effective diagnostic and repair of an elevator. For instance, in March 2021, KONE Elevator India launched the world’s first, ground-breaking class of digitally connected KONE DX Class Elevators, which will redefine the elevator experience. KONE DX Class delivers an experience that connects at every level, with built-in connectivity for optimized people flow. Such developments are also responsible for propelling the Indian elevator market growth during the next few years
Robust Demand for Energy-Efficient Elevators
Urbanization is the key that unlocks the demand for elevators in India. The rising urbanization also speeds up the demand for smart housing enlaced with efficient and advanced technologies. However, the growing demand for technology with its sustainability also favors the growth of the elevator and escalator market in India. Therefore, environmentally friendly elevators are now accessible in the market, making for considerable energy savings. This is also encouraging the developers, along with building owners to be more environmentally conscious, which in turn is driving them to use green-certified building solutions such as LEED and others.
For instance, let’s consider the availability of Schindler 1000 in India. Schindler 1000 is part of Schindler’s new, modular platform product range for residential and commercial buildings, from low- to mid-rise, and from basic to sophisticated requirements. The Schindler 1000 comes standard with a regenerative motor, LED lighting, and stand-by mode when parking, both of which are built to meet ISO 25745-2's highest energy-efficiency classification class A. Similarly, in 2018, Otis India also introduced green elevators under the Gen2 series. Thus, adding such environmentally responsible features in elevators is also anticipated to enhance the overall market growth over the forecast period.
Residential to hold the Largest Share by End-Use in the Indian Elevator Market
Based on end-use, India elevators market is segmented into residential, commercial, and industrial segments. The residential segment accounted for the largest market share of 62.50% in 2020, with a market value of USD 758.19 million. It is expected to register a CAGR of 3.86% during the forecast period. This growth may be attributed to an increase in residential development. According to the Ministry of Commerce & Industry, Government of India, the Indian real estate sector has witnessed rapid growth in recent years, with increased demand for office as well as residential spaces. In 2019, real estate attracted around USD 6.26 billion investment whereas the retails segment attracted PE (Private Equity) investment of around USD 1 billion in the same year. The high-end investment in the residential sector is driving the market growth of the residential sector.
Impact of COVID-19
The India elevators market has been negatively impacted owing to the lockdowns imposed within the countries due to the outbreak of the COVID-19 pandemic in 2020. Furthermore, in India, companies (except essential services) were not allowed to operate under curfew-like conditions. This hampered the expansion of the adjacent market, the construction industry, resulting in delays due to several disrupted supply chains.
The ongoing coronavirus pandemic is expected to thwart India's elevator industry's rise. This is due to a reduction in overall building volume, followed by trade barriers between countries. Furthermore, as the real estate demand is decreasing, elevator manufacturers are suffering from shrinking margins and project delays. Moreover, real estate sector orders are declining, resulting in intensified business competition. Builder payments for delivered orders are also being postponed, affecting business conditions.
Nevertheless, since, elevator forms an important component of real estate, its demand is likely to increase over the forecast period. The India elevator market may undergo a brief slowdown owing to the pandemic, but once the recovery begins, it should pick up steam. The coronavirus epidemic has accelerated the elevator industry's adoption of technologies at a time when keeping the virus at bay is the most pressing concern. The saving grace is that clients will now be more interested in elevators with high-end security features, which will drive the demand for elevators in India in the post-COVID era.
The leading players in the market are Fujitec Co. Ltd, Kone Corporation, Mitsubishi Electric Corporation, OTIS Elevator, Schindler, Toshiba, Hyundai CO. Ltd, Thyssenkrupp, Otis Elevator, Express Lifts LTD, and other prominent players. The high growth potential of the India elevator industry has attracted a host of new entrants, providing a lucrative prospect. The emergence of new entrants has resulted in healthier competition among long-established service providers. In the present scenario, the growing construction sector in India is one of the key factors for market players’ growth.
For instance, in December 2020, Toshiba Johnson Elevators grabbed the largest residential segment order for design, supply, installation, testing, and commissioning of 161 Toshiba elevators spread across eight residential projects of VTP Group, Pune. The 161 elevators running at 1.75 meters per second would be serving at VTP Group’s revered projects such as Blue Water, Pegasus, HiLife, Solitaire, and Purvanchal. VTP Realty--one of the most celebrated real estate companies with projects spanning across the Pune city, draws upon its philosophy of better design, better build and better care and ensures that its projects are designed to suit customers’ requirements.
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The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the India elevator market size & forecast. The report promises to provide recent technology trends of the elevator market as well as industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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