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The Growth of the Elevators and Escalators Market Was Largely Influenced by Contracts & Agreements in the Past Two Years
MarketsandMarkets projects that the elevators & escalators market size will grow from USD 88.78 Billion in 2015 to USD 125.22 Billion by 2021, at a CAGR of 6.01%. The demand for the market is supported by the increasing demand in Asia-Pacific and wide application in diverse end-use industries.
The global market for elevators & escalators is dominated by players such as KONE Corporation (Finland), United Technologies (U.S.), Schindler Holding Ltd. (Switzerland), Mitsubishi Electric Corporation (Japan), thyssenkrupp AG (Germany), FUJITEC CO., LTD. (Japan), Hitachi, Ltd. (Japan), Hyundai Elevator Co., Ltd. (South Korea), Toshiba Corporation (Japan), and Electra Ltd. (Israel). These players have adopted various strategies to expand their global presence and increase their market share. Contracts, agreements, expansions, acquisitions, joint ventures, strategic alliances, new product developments, and innovations are the various strategies adopted by the market players to achieve growth in the market.
The growth of the elevators & escalators market was largely influenced by contracts & agreements in the past two years. A large number of developments such as contracts, agreements, expansions, acquisitions, joint ventures, strategic alliances, new product developments, and innovations were made by top players in the market between January 2015 and July 2016. Contracts & agreements were the key strategies adopted by most of the players in the elevators & escalators market. Companies such as KONE Corporation (Finland), United Technologies (U.S.), Schindler (Switzerland), ThyssenKrupp AG (Germany), Hitachi Ltd. (Japan), and Hyundai Elevator Co., Ltd. (South Korea) adopted this strategy to strengthen their portfolio and to gain a competitive advantage. KONE Corporation (Finland) got into a contract to modernize the elevators of global law firm Clifford Chance at its Canary Wharf offices in London, England. The deal includes the integration of the KONE Polaris elevator destination control system to the 27 elevators in the 33-story building to improve people flow for both tenants and end users. Upgrade work was expected to begin in June 2016, with completion expected by December 2017. Otis Elevator (China) Co., Ltd (Otis China), a local Otis entity secured a contract from Meishan Sunshine for 321 Otis Gen2 elevators for its Sunshine 1519 project, a residential complex in the city of Meishan, China. The Istanbul Grand Airport (IGA) got into a contract with Schindler (Switzerland) as its main supplier for elevators & escalators for the new international airport in Istanbul, Turkey. The contract included the supply of a total of 648 units by Schindler to the world’s biggest airport. The contract consisted of the delivery, installation and maintenance of 306 elevators, 159 escalators and 183 moving walks. ThyssenKrupp AG (Germany) secured a contract to install its first TWIN elevator system in the Western Hemisphere at Atlanta’s Technology Square. The TWIN elevator system would have two cars that would operate independently in one shaft. The elevators would help transport up to 40% more passengers than conventional elevators. The installation work would begin in 2018. The contract included the installation of five TWIN elevators, seven conventional elevators and two escalators.
The year 2016 saw a lot of acquisitions by the key players to increase their geographic presence and expand their portfolio in untapped markets. During this period, KONE Corporation (Finland), United Technologies (U.S.), and Schindler (Switzerland) used this strategy. KONE Corporation (Finland) acquired ThyssenKrupp Hissit Oy, a Finnish subsidiary of ThyssenKrupp AG (Germany). The company specialized in elevator & escalator maintenance services. Nippon Otis Elevator Company (Japan) and Schindler Elevator K.K. (Japan) announced that Nippon Otis acquired the elevator & escalator service business of Schindler in Japan. Schindler (Switzerland) was to acquire the FB group (Germany). The FB group was a privately owned business with a 20 year presence in the German elevator market. FB group engages in the manufacturing, installation, modernization and maintenance of elevators and elevator components. The group has 225 employees and branch offices in Berlin, Dresden and Leipzig. The agreement is subject to approval by the relevant authorities.
Elevators and Escalators Market by Type (Elevators, Escalators & Moving walkways), Service (New installation, Maintenance & Repair & Modernization), Elevator Technology (Traction, Machine room-Less & Hydraulic), & End-use Sector - Global Forecast to 2021
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