New Delhi, India (PressExposure) October 28, 2013 -- The economic growth and status of the country's construction sector provides foundation for the operation of the vertical transit market in China. China has successfully maintained its status as the largest elevator and escalator market on the global platform. Of the overall global sales of the new equipments, which was estimated around 670,000 units in 2012, China holds a massive share of around 65.0% of the global elevator and escalator market. In 2012, the contribution of the BRICS economies to the overall market for elevators and escalator in terms of the new installations was around 450,000 units compared to 220,000 equipment installations in the rest of the world. Most of these installations were concentrated in India and China. Around seven out of ten elevators were observed to be sold in the cities including Mumbai, Seoul and Hong Kong triangle while only three for the rest of the world.
China vertical transit industry reported total installations of around 4,35,000 new elevators and escalators in 2012. The industry witnessed a mild slowdown in new equipment sales during the recessionary period of 2008 and 2009. However, a tremendous growth was encountered in the following years on account of effective fiscal measures taken by the Chinese government towards restoring the country's economic prosperity. The elevator and escalator industry in China has witnessed more than twice the growth in its overall revenue generated since 2007, including both new equipment sales and services. The market in China has been further projected to notice a vigorous growth at a CAGR of 20.1% from 2012 to 2017, as the numbers of new installations are projected to reach 1,087,000 units by 2017.
China's fast paced urbanization, propelled by the case of inclining migration of people from rural to the urban areas thereby has led to fall in the land base for carrying out both commercial and residential purposes. This decline in the land base has in turn stimulated the skyline across various cities in the country especially the ones on the country's east coast such as Beijing, Shanghai, Guangzhou, Tianjin, Hong Kong and others. This factor has therefore given a major thrust to the new elevator's new equipment market in China. Additionally, there has been an incline registered in the China commercial retail segment as well over the past years which as further boosted higher equipment sales, resulting in increase in revenue of the industry generated through new installations.
China elevator market has also witnessed significant traction in its revenue on account of the increased demand from tier 1 and tier 2 cities in the country. In 2012, cities such as Hong Kong and Shanghai registered the highest share of the installed base in the entire country. However, in terms of new equipment market, rapidly growing cities such as Shenyang, Chongqing, Beijing, Tianjin, Dalian, Hefei, Wuxi, Fuzhou, Sanya, Foshan and others were formed the major portion of the elevator demand in China.
GiantKONE, Otis, ThyssenKrupp, Schindler, Shanghai Mitsubishi and others are some of the major players operating in the elevator market space in China. While the elevator's new equipment market is majorly organized, the service market for the same is highly fragmented with a number of small scale unorganized players operating in the market.
According to the research report "China Elevator and Escalator Industry Outlook to 2017 - Affordable Housing to Bolster Demand" by Ken Research, given the country's current macro-economic scenario, the outlook of development with respect to elevator and escalator industry is expected to be highly positive. However, issues faced by the elevator companies on account of the China's economic makeover are inevitable. However, these problems can be unraveled over the long run through suitable policy reforms. Therefore, in light of all these developments, the future prospects of China's vertical transport industry composed of elevators and escalators look extremely bright" 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 China 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 and other stakeholders align their market centric strategies according to ongoing and expected trends in the future.
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