According to Elevator modernization market research the gratifying concerns regarding the safety inside elevators have been driving demands for modernization of elevators in the ageing buildings
The Elevator modernization Market was estimated to be US$ 10.64 billion in 2017 and is estimated to reach US$ 14.39 billion by 2025. Advancing technologies and advancements in the field of electronics as well as semiconductors has led to a whirlwind of changes in the electronic and semiconductor based products. Also, there has been considerable rise in the number of skyscrapers, high-rise buildings, and commercial infrastructures in the developed as well as developing nations as a result of industrialization. Although in these buildings the elevators were constructed to last for a period of around two decades, the advancements of technology has created quick demands for modernization of the existing elevator infrastructures. .
Over the years of operation, these elevators suffer performance issues and get outdated in terms of technology. As the lift gets older, the owners of buildings have to face various issues such as downtime of lift due to it being out of service, degradation in performance of lifts, increased travel time between floors and prone to high risks for passengers. The market for elevator modernization is moderately fragmented market with the top ten companies accounting for approximately 50% of the market share. The elevator modernization market is anticipated to grow at a CAGR of 3.8% between 2018 and 2025.
Business experts all over the globe perceive that developing economies project the best investment opportunities for the infrastructure development, as their economic conditions are improving, these countries are tend to invest massive amount of capital for the development of their overall infrastructure. As the capability of these developing nations enhances in terms of technological development, the market for Elevator Modernization systems is anticipated to witness remarkable growth, owing to rising concern of these regions regarding the security and surveillance of these properties. Modernization of elevators or replacement of the old elevators improves the user safety and comfort, also results in uptime of the lift and reduces the unplanned repair costs for the owners. In the high rise buildings, vertical transportation systems such as elevators become the primary and only mode of transport for the passengers. 15 year older elevators are highly prone to safety risks and refrain the passengers from using such systems. Thus, the concerns around the safety have led to implementations of more sophisticated and up to date elevator systems equipped with latest technologies.
Geographically the market is presently dominated by developed regions like North America and Europe, however the market is expected to be in favor of Asia Pacific, as the region is anticipated to witness tremendous development in infrastructure renovation and smart city concept over the coming years. China and India being some of the key countries contributing to the APAC market growth. The companies are taking initiatives product development, new technologies, or introduction of new services in a portfolio to enhance productivity in terms of revenue, technology, products and to attract new customer base. Many other companies put their focus on funding and investment which can be used for product development, expansion, acquisition or for other goals. These investment from high profile investing companies help the players to further increase its market share and brand image in the market. Some of the major players influencing elevator modernization market are United Technologies Corporation, KONE Corporation, Schindler Holding Ltd., Thyssenkrupp AG, and Fujitec Co. Ltd. Also Hitachi Ltd., Electra Elevators, Hyundai Elevator Co., Ltd., Mitsubishi Electric Corporation, Toshiba International Corporation are other key companies in the elevator modernization market.
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