The factors driving the GCC elevators and escalators market include rapid urbanization, an increase in the adoption of IoT platforms for conducting elevator maintenance, and a rise in the growth of the construction sector in GCC countries. The ongoing and upcoming infrastructure projects such as Dubai World Expo 2020 and Qatar FIFA World Cup 2022 are encouraging the demand for elevators and escalators. Increasing demand from various end-use sectors including commercial, residential, hospitals, among others will increase the demand for elevators and escalators in the GCC countries. In addition, governments are looking to diversify their investments into different sectors such as shipping, logistics, and infrastructure to minimize the dependency on the oil sector, which also acts as the major factor paving the way for the elevator and escalator market in the GCC region. Moreover, the rising construction sector has resulted in the rapid demand for elevators in high rise and mid-rise buildings will further enhance the growth of the GCC elevators and escalators market. For instance, KONE Corporation received an order for delivering 25 elevators to the Address Harbour Point, which is a high-end dual tower development in Dubai, UAE. The company will deliver 14 KONE MiniSpace elevators and 11 KONE 3000S MonoSpace for the safe and smooth flow of guests and residents. However, stringent safety regulations for elevators and escalators may hinder the growth of the GCC elevators and escalators market.
Elevators are sort of upright transport systems that are used to transport people or goods between floors of a building or any structure. Elevators are powered by electric motors and have various types including passenger elevators, freight elevator, among others. The elevators are mostly used in multi stored buildings, including offices, apartments, banks, hospitals, malls, and metro stations. Escalators are the moving stairways, which helps in moving people between floors of a building. Also, escalators help in maintaining effective transportation and powdered by the constant speed alternating current motors.
Based on the elevator technology, Hydraulic elevator technology is expected to grow at a higher CAGR during the forecast period in the GCC elevators and escalators market owing to its high adoption in GCC and its offering of several advantages which includes easy installation & maintenance, low cost, enhanced efficiency along with the requirement of less space.
Based on the type, Elevators type is anticipated to lead the market during the forecast period owing to the rising demand for elevators from the commercial spaces. The escalators market is expected to increase at a higher rate in the market due to the rising development of infrastructure across GCC countries. In addition, increasing demand for elevators driven by the growing number of infrastructure projects, especially in the UAE and Saudi Arabia. The elevator reduces the traveling time from one floor to another on a multi-story building. The power consumption by the elevator is relatively lower than the escalator, which is also one of the key factors paving a way towards the growth of the elevator segment.
Based on the application, Non-Commercial is anticipated to hold the highest share in the market during the forecast period in the GCC elevators and escalators market owing to increasing construction of mid-rise & high-rise residential apartments as a result of rising trend of nuclear families and high disposable income. In addition, increasing elevators installation in the residential building owing to the growth in the geriatric population and patients having arthritis and other disorders related to joint is also a factor supporting the growth of the GCC elevators and escalators market during the forecast period.
Based on the services, Maintenance services are expected to grow at a higher rate during the forecast period in the GCC elevators and escalators market owing to the continuous requirement for the repair and maintenance of the existing & new elevators and escalators for proper functioning installed till date in GCC countries. The new installation services are also expected to grow during the forecast period due to the growing construction activities across the GCC countries. The ongoing projects such as Dubai Expo 2020, Qatar’s FIFA World Cup 2022 and Al Qiddiya, Red Sea and Neom projects in Saudi Arabia (KSA) and the airport expansion project in Dubai, amounting to USD 7.8 billion, is driving the demand for the installation of new elevators and escalators in the region.
Based on the building type, High rise predicted to grow at the fastest rate in the GCC elevators and escalators market over the forecast period due to rising number of high-rise construction projects leading to an increase in installation of escalators and elevators in high-rise buildings coupled with rising need for rapid transit across GCC.
Based on the countries, Saudi Arabia is anticipated to increase at a higher rate over the forecast period due to the rise in the number of projects for the development of high-rise buildings along with boosting infrastructure and construction sectors. Moreover, the increasing requirement for up-gradation as a result of ageing infrastructure and rising inflow of FDI in the retail and construction sectors are also some factors propelling the growth of elevators and escalators market in the upcoming years. The United Arab Emirates is also growing over the forecast period. The UAE government is heavily investing in the development of numerous projects, such as the Dubai Expo 2020 and Dubai Smart City project, to improve the quality of life of its citizens. Also, the government has approved large scale projects like Abu Dhabi Metro, expansion of Al Maktoum International airport in view of implementing UAE Vision 2021, which also acts as the major factor for the growing demand of elevators and escalators in the UAE.
Various notable players operating in the market, include, Kone Corporation, United Technologies, Mitsubishi Electric Corporation, Schindler Holding Ltd., Thyssenkrupp AG, Fujitec Co., Ltd., Hitachi Ltd., Hyundai Elevator Co., Ltd., Toshiba Corporation, Electra Ltd., among others. Prominent players are adopting various strategies such as new product launches, agreements, mergers, collaborations and acquisitions to increase their presence in the GCC elevators and escalators market.
The GCC elevators and escalators market has been segmented on the basis of elevator technology, type, application, services, building type and countries. Based on elevator technology, the market is segmented into traction, hydraulic and machine room-less traction. Based on type, the market is segmented into elevators, escalators and moving walkways. Based on elevators, the market is segmented into passenger elevator, freight elevator and others. Based on passenger elevator, the market is segmented into bed elevator, service elevator, observation elevator and residential elevator. Based on freight elevator, the market is segmented into dumbwaiters and vehicle elevators. Based on application, the market is segmented into commercial and non-commercial. Based on services, the market is segmented into new installation, maintenance and modernization. Based on building type, the market is segmented into low rise, mid rise and high rise. Based on countries, the market is segmented into UAE, Saudi Arabia, Oman, Kuwait, and the Rest of GCC.
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