Recent elevator industry reports consistently forecast the significant growth of the industry over the next few years. For instance, Research and Markets expects the compound annual growth rate (CAGR) of the global market to increase by 3% between 2020 and 2024. And Fortune Business Insights expects the CAGR in the US to reach 6% by 2026, bringing market value to USD 114.65 billion. No matter where you look, the figures look promising.
The predicted increase in value of the market is indicative of the expected increase in demand for elevator devices and services. Generally speaking, more demand means more opportunity to supply, which is great news for elevator service companies. On the flip side, it’s important to acknowledge that your competitors will also seize the opportunity.
To leverage the predicted increased demand, elevator service companies must understand where the opportunity lies. In this blog, ESS summarizes some of the biggest trends shaping the elevator industry to help these companies identify areas to focus on and optimize their future growth.
Buildings are the biggest energy consumers in cities, and elevator devices are responsible for anything up to around 10% of a building’s energy consumption. Recently, reducing the environmental impact of elevator devices has become a priority. For example, many governments encourage energy-saving initiatives and consumers are looking for more sustainable alternatives. Developers, for instance, increasingly require green label elevators for green development projects. Green elevator products are gaining recognition.
In response to increasing demand for sustainable mobility solutions, elevator device manufacturers are increasingly focusing on producing more eco-friendly elevator devices and equipment. For example, elevators that require less energy to function, or produce less waste. These include MRL elevators (machine-room-less), which can often reduce energy consumption by at least half, elevators equipped with gearless motor drives, painted with biodegradable paint, and regenerative drives.
Fortune predicts that elevator device-related injuries and fatalities may impact growth of the market. This means that all market players must adopt a safety-first approach to reduce these accidents. Elevator device manufacturers will need to focus on developing elevator products that conform to safety measures and regulation, which are expected to tighten in coming years. Elevator device service companies must ensure that technicians stay up-to-date with safety training to protect themselves on the job as well as elevator users.
Maintenance and installations
The elevator device maintenance segment has performed particularly well in recent years. GM Insights predict that the demand for maintenance and modernizations will continue to rise as legacy elevators are starting to show their age. However, teams will also need to be trained on servicing newer models.
Fortune also predicts that the new equipment segment will take over other segments in the coming years as rapid urbanization takes hold and the number of construction projects increase. This means that there will be a greater need for technicians to carry out installations.
Foresight and agility
Thanks to the continued urbanization of cities and the increasing need for safer and more eco-friendly elevator devices, plenty of opportunities lie ahead for the elevator industry. For elevator service companies, understanding where the market is heading is crucial to ensuring future growth. The most successful companies create growth strategies based on market trends and predictions, while remaining adaptable to change. While these tools are very useful indeed, the future is never certain.