The elevator and escalator size in India is forecast to increase by US$784.24m from 2022 to 2027, at a compound annual growth rate (CAGR) of 8.9%, according to the recent market study by Technavio. The report recognises this market as part of the global industrial machinery market and extensively covers market segmentation by product (elevator and escalator), as well as end-user (residential and non-residential).
The growth of this particular market will be driven mostly by the growing number of high-speed metro projects in the country, causing a rise in disposable income and economic growth, and the increasing number of office spaces and commercial establishments.
Technavio, a leading global technology research and advisory company, has conducted analysis of 15 major vendors in India. The company’s research and analysis often focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop strategies to optimise market positions.
One of the key factors driving growth in India’s elevator and escalator market, according to the company’s recent report, is the growing number of high-speed metro projects. According to the report, India has been witnessing a rapid increase in investments both by government and private entities on large-scale metro projects to provide a more effective transport system to consumers.
This is in part due to a rapid rise in urbanisation, causing more people to move to urban areas for work.
The continuous growth in the construction of new metro stations to facilitate this population growth has not only equipped the economy with advanced infrastructure, but also increased the demand for elevators and escalators.
The major elevator and escalator market vendors in India are implementing various strategies, such as strategic alliances, partnerships, and mergers to enhance their presence in the market. These include Beacon Elevator Co. Pvt. Ltd. who offer elevator and escalator solutions such as Dam Elevators, and Blue Star Elevators India Ltd. who offer elevator and escalator solutions such as BSE8000.
The report surmises that the amount of housing has increased in India as a result of the country's expanding population.
According to The Financial Times, more than half of India’s population is aged under 30, with the average first-time homebuyer aged between 37-38. It has been forecast that India’s ‘youth bulge’ will subsequently propel demand for housing, as rising incomes in the nation have made homes more affordable than before.
Skyscrapers are in need of elevators to make the movement of people and goods easier between floors. One challenge that Technavio forecasts is that the high cost of repair and maintenance will be a major challenge for the Indian elevator and escalator market between 2023 and 2027.
Although new installations of elevators and escalators have an average lifespan of 20-30 years, Technavio suggests that there are operational challenges that require continuous maintenance and monitoring of elevators and escalators.
These issues will require continuous maintenance and monitoring of elevators and escalators and often require several component replacements. Due to high repair, replacement, and maintenance costs, Technavio concludes in its report that property owners may be reluctant to modernise their lifts and escalators, which would consequently limit the growth of the market during the forecast period.
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