Elevator Modernization Market Overview:
Modernization styles elevators safer, more attractive, and efficient, which further results in change in the buildings image and performance. Rapid urbanization, awareness about safety, demographic changes, and development in commercial, residential as well as industrial sector has driven the growth in elevator modernization market. However, unsuitable designs of elevators and environmental hazards from elevators restraint the market growth. Yet, adoption of machine room-less elevators, green elevators, and other eco-friendly designs of elevators have provided huge opportunities for growth in elevator modernization market. Furthermore, rise in investments in commercial sectors such as IT & BFSI buildings, malls & hospitality, hospitals, airports, transportation, and other commercial buildings, rapid urbanization and industrialization, and significant GDP growth will enable elevator modernization market to bloom in the near future.
Top Winning Strategies
Top Winning Strategies, 2013-2016 (%)
Source: Primary & Secondary Research and AMR Analysis
The above pie chart depicts the percentage share of strategies adopted by various players in elevator modernization industry. Key market players use strategies such as product launches, geographical expansion, strategic alliances, and acquisitions to strengthen their market presence. Product launch of novel solutions to provide enhanced features was the most adopted strategy among prominent players from 2014 to 2016, accounting for 32% of the total strategy adoption, followed by strategic alliances, contributing 24%. Product launch assists market players to widen their product portfolio and increase their customer base as well as geographical presence.
September, 2016: ThyssenKrupp AG implanted Microsoft HoloLens technology in its elevator services operations worldwide. This reality device was adopted for the safety of companys technicians which will enable the employees to identify and visualize the problem with minimum efforts and time.
November, 2016: Otis Elevator Company introduced New Otis Gen2 that is equipped with innovative features including new interior, smart & connected functionality, fashionable outlook, and higher functionality. The New Gen2 was manufactured in Europe with manufacturing facilities at Spain, Madrid, France, and Greece.
Market By Elevator Type
Traction elevator uses elevator cars which are pulled up by rolling steel ropes over sheaves (a deeply grooved pulley). These types of elevators are driven by AC or DC electric motors and are often found in two types, namely, geared and gearless. Geared traction elevators use worm gears to control physical movement of elevator cars by steel ropes over a drive sheave which is connected to a high-speed motor-driven gear box. Gearless traction elevators are low-speed and are powered by high-torque electric motors.
Gearless traction elevators can operate at a speed greater than 500 feet/minute. In gearless traction type, elevators with speed greater than 2.5 m/s or above are called compensation. Gearless traction system was first introduced in the market by Otis Elevator Company in 1913, and since has been widely accepted in the market. This type of system could be installed in buildings of any height and can be powered to much high speed that steam-powered elevators. Geared traction elevators typically operate at the speed up to 152 m/minute and can carry loads of up to 30,000 lbs. Geared traction elevators require less power to turn the sheave and are cost-effective as compared to gearless elevators. Among geared traction elevators Motor Generator (MG)-based installations are modernized in older buildings on account of their poor energy efficiency.
Market by End User
World elevator modernization market is analyzed across three major end users including commercial sector, residential sector and transportation sector.
It includes hospitals, hospitality, retail, airports, commercial complexes, malls & multiplexes, and transportation modes. In commercial buildings, major concern is environmental hazards and energy consumption by elevators, for which various eco-friendly and energy-efficient products are provided in the market. KONE Corporation provides machine room-less elevators which consume 70% less energy and space, MonoSpace elevator series, which also helps to save the energy to the optimum. In modernization, advanced products provided by the company include facia plate, door pressure limiter, door overspeed control, landing door mechanical locking, pit switches, and other safety features which have provided various growth opportunities for elevator modernization in commercial sector. As per AMR analysis, commercial sector elevator modernization market is estimated to reach $5,662 million by 2022 at the fastest CAGR.
Market By Geography
In 2014, Europe region contributed around 37% of total elevator modernization market size; followed by Asia-Pacific region which accounted for 33% of overall elevator modernization market share.
Source: Primary & Secondary Research and AMR analysis
North American elevator modernization market was accounted for $1,255 million in 2014, and will continue to grow at a significant growth rate. Major factors contributing to growth in this region include development of commercial sector, steady recovery in housing market, increase in investments in existing building upgrades, airports and transit facilities to upgrade ageing infrastructure. For elevator modernization market, commercial sector including high-rise buildings provided huge opportunities in past few years. Various key vendors are active in North American markets such as North American Elevator Incorporated, Fujitek America Inc., Schneider Group, and others, which are in continuous attempt to introduce latest technology in American market as per industry standards and need. Fujitek America, Inc. provides HSA-APEX-an advanced technology for elevator door openings and closures, machine room-less elevators, destination floor guidance systems (DFGS) and elegant fixtures especially for American market.
- An in-depth analysis of the global elevator modernization market is provided along with the market dynamics that is projected to prove crucial in understanding the market.
- Quantitative analysis of the current market and future estimations from 2014 to 2022 is projected to assist strategists to design business strategies to capitalize on the prevailing market opportunities.
- Porters Five Forces analysis examines the competitive structure of the elevator modernization industry and provides a clear understanding of the factors that influence the market entry and market expansion.
- A detailed analysis of geographical segments provides identification of most profitable segments to capitalize on.
- A comprehensive analysis of market trends, sub-segments, and key revenue pockets is provided.
- Analysis of the key leaders and their business strategies is anticipated to assist stakeholders to make more informed business decisions.
- A detailed company profile analysis is provided, that highlights major developments such as mergers and acquisitions, expansions, and new product launch.
Elevator Modernization Market Key Segments
By Elevator Type
- Traction Elevator
- Hydraulic Elevator
- Door Equipment
- Cabin Enclosures
- Signaling Fixtures
- Power Units
- Others (overspeed governor, guide rails)
By End User
- Residential Sector
- Commercial Sector
- Industrial Sector
- Market by geography
- North America
Key Players Profiled in the Report
- Otis Elevator Company
- KONE Corporation
- ThyssenKrupp AG
- Mitsubishi Electric Corporation
- Fujitec Corporation
- Hitachi, Ltd
- Hyundai Elevator Co., Ltd.
- Toshiba Elevator and Building Systems Corporation
- ShenYang Yuanda Intellectual Industry Group Co., Ltd.
Other companies mentioned in the report include DLF Limited, Prime Deco Engineering Co., Ltd., Siam-Hitachi Elevator Co., Ltd., Mitsubishi Electric Shanghai Electric Elevator Co., Ltd. (MESE), Volkslift Elevator (China) Co. Ltd, German FB Group, GE (General Electric), Huawei Technologies Co. Ltd, Valley Elevator, Inc, Hontz Elevator Company, Westinghouse Electric Corporation, Haughton Elevator, Armor Elevator Canada, Nippon Elevator Industry Co. Ltd, Westinghouse Elevator Division, Marohn Elevator Co., Ltd., Manutenzione Installazione Ascensori SpA (MIA), Express Elevators Ltd (Express), Janzhoff Aufzge GmbH, Capital Elevator Services, AT&T Inc., Gemdale Corporation, Leading-Group Real Estate Co. Ltd., Orana, North American Elevator Incorporated, Stager Elevators, Custom Industrial Products, Inc., Gruppo Millepiani S.p.a. and others.