Increased establishment of mall culture, airports, modernization of railways, proposed metro projects across the country to stimulate demand for elevators and escalators in India
India has surfaced amongst the most potential markets for elevators in the entire Asian region. Triggered by the fast economic growth and urbanization, the Indian elevator market has been on a growing trajectory over the past several years.
India elevator and escalator industry is presently the second largest in the world. In FY’2013, India accounted for about 6.8% of the total elevator and escalator installations in the world, as compared to China which ranked first commanding around 65% of the global market share with a total of 440,000 units installed during the period. The elevator and escalator market in India has showcased the healthy growth at a CAGR of 10.3% in terms of new equipments installed relative to the global market CAGR of 5.2% from FY’2007-FY’2013. The market for vertical transit in the country has been massively dominated by the elevator segment contributing nearly 95% of the overall market. Although, escalator contribution has been lower the same has been gaining traction owing to the increased establishment of mall culture, airports, modernization of railways, proposed metro projects across the country and others.
Robust economic growth coupled with the continual migration of people from rural to urban areas has acted as a catalyst towards accelerating the demand for housing and commercial space in the metro areas over the years. This strong demand has in turn led to the shortage of land base in major metropolitan cities of the country such as Delhi, Mumbai, Bangalore, and others, leading to an increase in the price of land in these cities. In order to settle this space restriction, the vertical construction of the buildings in these cities has become imperative to accommodate more people This has in turn provided an impetus to the growth of multi-storied apartments, townships, quality office buildings, shopping malls and industrial parks, not just in the major metro cities but also in number of tier 2 and tier 3 cities across the country, thereby stimulating the demand for elevators and escalators. High disposable income, young working population along with a huge base of middle class households has necessitated the development of the residential sector in the country over the years, which accounted for nearly 65% of the total demand for elevators in India.
A significant portion of the elevator and escalator demand has been further contributed by the growing mall culture in the country which has picked up a considerable momentum over the past decade. Although the growth of the malls has in India has slowed since FY’2009 owing to the advent of global recession, the same has been now gaining traction owing to the better economic prospects. Other important factors fuelling growth in the demand for vertical transit in the country included the hospitality sector, commercial complexes, multiplexes and others.
Additionally, many cities have planned metro rail schemes and railway modernization projects in order to simplify the public traffic in their regions. Thus showcasing the bright prospects for the escalator market in the country in the future.
According to the research report “India Elevator and Escalator Industry Outlook to FY’2018 –Government Spending on Infrastructure to Steer Growth” by Ken Research, the Indian Elevator and Escalator market is expected to witness a surge in its consumption owing to factors such as growing urbanization, an increase in the ageing population, real estate developments, GDP growth and surging government expenditure on public infrastrcuture. Additionally, the expansion of moving walkways is also expected to drive the industry growth in the near future.
“Several factors including affordable housing, growth in public infrastructure projects, incline in the residential real estate sector, growing mall culture and others are some of the factors expected to drive the industry’s growth in the future” according to the Research Analyst, Ken Research.
The report provides detailed overview on the elevator and escalator market in India and helps the readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, elevator and escalator companies, suppliers, market consultants and other stakeholders align their market centric strategies according to ongoing and expected trends in the future.
For more information on the industry research report please refer to the below mentioned link: