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July 01, 2007
Elevators and Escalators to Cross 490 Thousand Units by 2010, According to New Report
Global Elevators and Escalators market is being driven by the construction boom in emerging Asian economies, including China and India. The demand for new elevators and escalators is typically tied to building activity. In the matured markets such as North America and Western Europe, demand depends to a large extent on the Replacement cycle for growth.
San Jose, CA (PRWEB) June 29, 2007 -- Demand for new installations in the Elevators and Escalators market is primarily driven by trends in the construction industry. Relatively high vacancy rates in the western world, particularly in the United States and West European nations have forced elevators and escalators majors to focus on emerging regional markets in Asia-Pacific. Advances in industrialization, along with a general increase in average income of people in this region have jumpstarted construction boom, particularly in regional powerhouses such as China and India.
"Elevators and Escalators: A Global Strategic Business Report" from Global Industry Analysts, Inc., provides a comprehensive review of market trends, drivers, challenges, product overviews, players and competition in the global Elevators and Escalators market. Emphasis is placed on building activity, replacement demand, emerging technologies, and product positioning strategies, among others. The report also offers detailed company profiles and enumerates recent developments, mergers, acquisitions, supply contracts and other strategic industry activities. Analysis is presented for established/emerging geographic markets such as United States, Japan, France, Germany, U.K., Italy, Spain, Asia, Latin America and Middle East & Africa.
Asia-Pacific is the largest and fastest growing market for elevators and escalators in the world. The region accounts for an estimated 190 thousand new installations of elevators and escalators, followed by Europe, Japan, and the United States. While demand is dependent on building activity in emerging markets, positive economic factors tend to increase replacement sales in developed markets. Regulations drive growth in replacement and/or modernization market. Demographic factors such as increasing number of aged people is driving the growth in niche segments such as in-home elevators market. Elevator and escalator companies tend to install equipment at a discount as the installing company generally bags the maintenance contract, which offer long-term cash flow, and repeat business for the company. Elevator companies derive about 50-55% revenues from maintenance contracts, and as such revenues in the industry are relatively safe from cycles in construction activity.
In Elevators market, geared elevators market offer the highest growth opportunity with a CAGR of about 10 percent, followed by gearless elevators market. In Escalators market, moving walkways market offer the highest growth potential among escalators market with a CAGR of about 6.9 percent, followed by moving stairways market.
The global market for elevators and escalators is dominated by a handful of companies, equally distributed between the west and the east. M&A activity has been a tried and tested strategy of growth, particularly in the intensely competitive regional markets. All the global majors have successfully aligned acquired operations into their mainstream, gaining market share while banking on increased efficiency in operation. Driven by regulations as well as competitive pressures, all the global majors are investing heavily in R&D. As such new technologies and trends are evolving in the global market. Some of the key target areas for elevator and escalator companies include eco-efficiency, modularity, customization, and safety. Some of the latest technological innovations include destination management systems, machine room-less elevators, remote electronic monitoring, twin elevator system, and synthetic elevator rope.
The market is characterized by the presence of eight global leading groups and numerous local players. While OTIS dominates the global market for elevators, Schindler leads the market for escalators. Key players in the marketplace include Fujitec Co., Ltd., Hitachi Ltd., Hyundai Elevators Company Ltd., Kone Corporation, Mitsubishi Electric Corporation, Otis Elevator Company, Schindler Holding Ltd., ThyssenKrupp Elevator AG, and Toshiba Elevator and Building Systems Corporation. Regional players discussed in the study include Nippon OTIS Elevator, Zardoya Otis, KONE Italia SpA, and Karacharovo Mechanical Factory (KMZ).
For more details about this research program, please visit www.strategyr.com/MCP-2556.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world's largest market research publishers. The company employs over 700 people worldwide and publishes more than 880 full-scale research reports each year. Additionally, the company also offers a range of over 60,000 smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
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Posted by Industrial-Manufacturing at July 1, 2007 10:42 PM