As we drive further into exploring the economy of 2019 and its trend towards industrialization and urbanization, it’s key to recognize that with more buildings, skyscrapers, and cityscapes comes the often forgot yet highly significant and important elevator. We’ve got all these magnificently high buildings, but you need to reach the top. Specifically with developing countries seeking to expand on urbanization within major cities to increase GDP numbers, elevators are on the increase. On a global scale, the elevator industry reached $22 billion dollars at the end of 2017. On a fiscal level, that speaks volumes.
A Look at the Growth Rate
As governments across the globe look to urbanize more regions for the economic benefits that follow, construction markets begin to boom, thus pulling the elevator industry alongside with it. Urbanization directly impacts the consumer need for elevators (as well as escalators), and while they don’t grow at equal rates of increase, both markets experience some level of increase simultaneously, as, oftentimes, the construction of multi-level buildings requires the presence of elevators for ease of access by consumers.
Focusing on Location
Two of the largest factors, the increase in high-rises and apartment complexes, providing people with increased access to centralized locations within major cities for work as well as for living, contribute strongly to this shift toward urbanization. This is especially found to be true in the Asia Pacific region as well as Africa and the Mideast regions, in countries currently experiencing significant urban development. Specifically, countries like China, India, and Japan are expected to experience the strongest numbers in growth for the elevator industry market as a whole.
At the very top of this growth stands China, who alone is expected to account for over 50% of the market’s growth rate, making it the country of highest demand within the industry and also one of the fastest when it comes to growth for the elevator industry market. Following China, the growth rate for elevator demands are eventually expected to reach even faster growth rates in India in the coming market years.
Although North America and many parts of Europe have already experienced such extensive urbanization and city development, their markets are not without need. Having been on the increase since 2009 with regards to elevator construction and demand, the need for maintenance and repairs has become crucial, thus signifying the importance of long-term contracts during the construction process to ensure the continued need for the company’s services.
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