PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1359828
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1359828
India elevator and escalator market is expected to grow from USD 3.19 billion in FY2023, to an estimated USD 6.9 billion in FY2031, with a projected CAGR of 10.12% during the forecast period spanning from FY2024 to FY2031. India's rapid urbanization and development, including the construction of larger buildings, airports, railway stations, and upscale lifestyles, are driving substantial growth in the India elevator and escalator market. As disposable incomes rise and lifestyles evolve, there is an increasing demand for comfort and luxury in residential and commercial spaces, further fueling the market's growth.
Vertical expansion in major metropolitan areas drives India's market growth, resulting in rapid urbanization, congestion, and limited land availability. Many cities have adopted a high-density vertical development model to address land scarcity and accommodate the growing population, including central business districts and residential zones. It maximizes land utilization and frees up land for infrastructure projects like road development and civic amenities. The construction of high-rise buildings has significantly contributed to the demand for elevators and escalators in India, mirroring global urbanization patterns.
For instance, statistics from Anarock reveal that in 2019, the Mumbai Metropolitan Region (MMR) accounted for more than 75% of new property launches categorized as high-rise, followed by the National Capital Region (NCR) at 70% and Bengaluru at 45%. A substantial portion of these developments consists of buildings with 20 floors or more, underscoring the growing importance of vertical expansion as a viable solution to India's urban challenges.
The rise in multifamily construction projects in India has significantly impacted elevator and escalator demand, primarily due to the preferences of millennials and the newer generation, who seek affordable and convenient housing in high-rise residential complexes.
With its demographic landscape, India provides a compelling backdrop for this trend. The country boasts a population of over 400 million millennials, a significant segment of the total population, wielding substantial spending power amounting to nearly USD 330 billion. This demographic phenomenon underscores the immense potential and allure of multifamily housing projects.
An illustrative study conducted by CBRE in 2023 underscores this trend. It reveals that 44% of young Indians have plans to invest in multifamily homes over the next couple of years. Furthermore, the study highlights that millennials accounted for 54% of the homes purchased in India in 2022. Consequently, propelled by the growing demand for high-rise residential buildings, the requirement for elevators and escalators in India is experiencing an upswing, and this upward trajectory is expected to persist in the years ahead.
In India, the rising tide of urbanization and population growth fuels demand for vertical transportation solutions such as elevators and escalators. As more individuals migrate to urban centers and buildings reach greater heights, the necessity for efficient and dependable vertical transit systems becomes increasingly pronounced. Projections indicate that by 2030, Indian cities will be home to a staggering 590 million people, constituting approximately 40% of the nation's population. Consequently, the Indian government's commitment to constructing 100 new smart cities underscores its recognition of this monumental trend.
Furthermore, the rapid urbanization trend has led to a significant increase in demand for commercial and retail spaces, including shopping malls and office complexes. As an illustration, data from Anarock reveals that in 2021, approximately 5.76 million square feet of new retail real estate supply was introduced in the country, followed by a larger figure of approximately 10.15 million square feet in 2022. This substantial surge in the construction of retail spaces is expected to drive the demand for elevators and escalators in the years ahead, thus stimulating market growth.
In recent years, the Indian government has undertaken several initiatives to bolster the nation's elevator and escalator industry. The government's emphasis on infrastructure development, smart city initiatives, and urbanization has generated significant demand for elevators and escalators in the country. One notable effort is the "Make in India" program, which has provided impetus to the domestic elevator and escalator market, to promote manufacturing in India, and attract foreign investment.
Furthermore, the government's National Infrastructure Plan, from 2019 to 2025, has endorsed more than 9,000 projects with a total project cost exceeding USD 1,949 billion. The National Infrastructure Pipeline is a comprehensive repository of infrastructure projects, presenting attractive investment opportunities in ventures valued at over USD 12 million. These projects span various sectors, including transportation, social, and commercial infrastructure. Consequently, numerous elevator and escalator manufacturers have established production facilities in India, leading to increased production capacity and cost reduction.
During the pandemic, the market experienced decreased demand due to national lockdowns and the closure of non-essential businesses, reducing new installations and maintenance services. Nevertheless, as the economy gradually rebounded and people returned to work and public spaces, the market showed an expected increased demand for elevators and escalators. Moreover, the market is being driven by the increasing need for secure and efficient vertical transportation systems in hospitals, residential complexes, commercial establishments, etc. combining the past experiences and future approach, the manufacturers are introducing advanced technologies like touchless controls to address concerns like virus transmission.
Prominent elevator companies in India increasingly adopt IoT (Internet of Things) solutions for several compelling reasons. IoT technology enables elevators to operate more efficiently by continuously monitoring real-time usage patterns, traffic flow, and mechanical performance. It results in reduced passenger wait times and overall enhancement in system efficiency. Moreover, elevators equipped with IoT capabilities can proactively detect and report issues before they escalate into breakdowns, enabling predictive maintenance that minimizes downtime and increases elevator availability.
Additionally, elevator companies can gain a competitive edge by offering advanced and reliable IoT-integrated systems, aligning with India's growing focus on sustainability and energy efficiency. Ultimately, incorporating IoT enhances the passenger experience through features like touchless controls, real-time information displays, and personalized services, making it a valuable enhancement for elevator systems in India's expanding urban landscape.
For example, Otis is in the process of developing a groundbreaking elevator technology known as Otis ONE. Otis ONE is a ropeless elevator that uses magnets instead of traditional cables for movement. This innovation allows greater flexibility in design and construction and significantly improves energy and efficiency.
Similarly, Schindler is developing a new elevator control system, PORT Technology. The PORT Technology leverages AI to optimize elevator traffic flow, reducing wait times. Furthermore, it can seamlessly integrate elevators with other building systems, such as security and access control, offering a holistic solution for modern buildings.
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work