The US market for elevator and escalator products and services of all types is projected to increase 6.5 percent per year through 2007 to $15.1 billion Fueling growth going forward will be a significant improvement in new elevator/escalator system installations, accompanying expected recovery in nonresidential building construction activity. This will help to offset some slowing in residential building construction, which has been one of the healthiest components of the US economy during the early 2000s. These and other trends are presented in Elevators & Escalators, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.
There are a number of niche segments with above-average growth potential that will promote growth in the overall market, including stair lifts and other specially-designed elevators for the disabled, and moving walkways at large public facilities. Finally, technological innovations in latter-generation systems -- including microprocessor-based controls and sensors, remote monitoring, automated traffic flow control and enhanced safety features -- will result in improved performance and generate further demand, at both the new installations and modernization/upgrade ends of the business.
Markets for most elevator/escalator products in the US are highly mature, especially conventional passenger/freight elevators, escalators and aerial work platforms, and this will place a ceiling on the amount of growth that can be achieved through the latter part of the decade. At the same time, the extensive installed base of elevator/escalator systems in the US implies significant opportunities for related repair/modernization services, which account for close to 60 percent of total industry revenues, and are expected to continue rising at a healthy clip for the foreseeable future. In particular, the substantial number of new elevator and escalator systems installed during the nonresidential construction boom of the pre-2001 period will create considerable aftermarket business for service contractors as these are repaired and maintained over their useful lives. In addition, retrofits to comply with changing local building codes as well as federal mandates such as the Americans with Disabilities Act will be another source of upgrade/modernization services revenues.
US ELEVATOR & ESCALATOR PRODUCTS DEMAND(million dollars)
| % Annual Growth |
| Item | 1997 | 2002 | 2007 | 02/97 | 07/02 |
| Elevator & Escalator Market | 8068 | 11035 | 15125 | 6.5 | 6.5 |
| Products: | 3509 | 4630 | 6350 | 5.7 | 6.5 |
| Passenger & Freight Elevators | 697 | 980 | 1325 | 7.1 | 6.2 |
| Other Elevating/Lifting Equipment | 1786 | 2265 | 3075 | 4.9 | 6.3 |
| Escalators & Moving Walkways | 249 | 345 | 500 | 6.7 | 7.7 |
| Associated Products | 777 | 1040 | 1450 | 6.0 | 6.9 |
| Services | 4559 | 6405 | 8775 | 7.0 | 6.5 |
©2003 by The Freedonia Group, Inc.
