Monday, December 11, 2017

Industry Focus- Escalators & Elevators

Towers Levitate Demand


A rapidly rising tall building population fuelled by unprecedented urbanisation, growth of commercial real estate, and modernizing urban India’s transport infrastructure, is fuelling unprecedented demand for elevators and escalators in India. But Aftermarket services will differentiate OEMs, who are showcasing their latest cutting edge technology in the Indian market. Satish P Chavan reports.

Two thousand three hundred registrations, two offline events, 33 days, 350 ideas, 14 shortlisted teams, 11 jury members, one grand finale, three winning teams. These are the key figures for the first elevator and escalator industry hackathon organised this April by KONE India, which welcomed young talent to come up with creative ideas for smart elevator solutions. “The focus of this hackathon was to bring two worlds together: KONE’s long history of innovation and expertise, and fresh ideas from the outside,” says Visa Friström, who heads KONE’s partnership development and was one of the 11 jury members for the event organized by KONE in collaboration with IBM. He adds, “The passion, excitement and hard work made this event really special. Teams were well prepared, both from the pitching point of view and the point of view of how the demos were working – there were no issues.” This fact underlines the importance of the Indian market for Elevators & Escalators (E&E), for E&E manufacturers. Globally India ranks 17th in the world by number of completed tall buildings projects.
According to data available with the Council for Tall Building Urban Habitat (CTBUH) India, currently the population of tall buildings (150m+) in India is, 35 completed, and 63 Under Construction. Add to this the mid-size and small size segments of tall buildings and it translates into a huge amount of elevator banks, and demand for escalators' will also escalate on the back of urban infra and commercial real estate. But safety and construction issues remain to be addressed completely by government policies and Regulations.
India is the second largest market in the world for elevators and escalators (E&E), and growing rapidly. By 2035, nearly 50 per cent of the country's population will reside in urban areas, and the E&E industry will be one of the major beneficiaries of this. The sector forecasts indicate growth at a CAGR of 14.3 per cent, touching 103,000 units by 2018, while the escalator market is estimated at about 1,800 units per annum, according to Messe Frankfurt Trade Fairs India Pvt Ltd., which hosts the International Elevator and Escalator (IEE) Expo, held annually in India.

 

DEMAND DYNAMICS
With government and private players investing in urban transport infrastructure projects in Tier II and Tier III cities towards developing basic infrastructure, satellite towns outside the metros are seeing same level of growth in the residential segment which has driven developers in the outskirts of metros to move towards affordable housing, a segment projected to generate substantial demand for high speed elevators. India’s metros (Mumbai, Delhi-NCR, Bangalore, and Chennai) are strongholds in terms of elevator units sold, and demand in smaller cities is also rising. With rapid increase in the number of towers and many commercial building projects lined up in different cities, the demand for high speed elevators is expected to witness a steady growth. Population in urban India is expected to reach 590 million by 2030, when 68 cities in India will have a population of over one million, 13 cities with over 4 million, and 6 mega cities with populations of 10 million or more. Also FDI via automatic route in real estate has opened the gates for global players. Vision India Real Estate, UK-based construction major: Laing O'Rourke (LOR), DB Real Estate, Vancouver-based: Royal Indian Raj International Corporation (RIRIC), Siputra Selim Group have directly forayed or tied up with the local developers, and are expected to set a benchmark for global quality standards which include high speed lifts. This translates into huge demand for E&E across the real estate spectrum.
According to the report ‘Elevator and Escalator Market – India,’ published by Consultancy Netscribes, the Indian elevator market is expected to grow at a CAGR of 16 per cent through FY 2013 to FY 2018, to reach 89,300 units in FY 2018. Major demand driver will be residential segment with preference opting for safer and energy efficient auto-door elevators. The Indian escalator market is expected to grow at a CAGR of 11.7 per cent through FY 2013 to FY 2018 to reach 2,700 units in FY 2018. Demand for escalators will be fuelled by upcoming shopping malls, hotels, airports and metro rail infrastructure projects. Lower inflation rates and decrease in credit rates will boost construction projects, thereby directly helping the E&E market to grow in the coming years.
Entrenched players in the Indian market include Kone, Schindler, Mitsubishi Elevator, Kinetic Hyundai Elevator, Hitachi Lift, etc. Home grown companies include Leoelevators, Johnson Lifts (which has tied up with Toshiba), Express Lifts, Fotis Elevators, etc. Several Indian players of various sizes - Eskay, Easa, City Lifts, Acme, Eros, Hindustan Engineers, etc, are active regionally. Over 50 per cent market is controlled by top 6 majors and 25 per cent is accounted for by the unorganized sector.

The market for spares parts, servicing and maintenance, is also very lucrative. Although most OEMs have their own division for these aftermarket services there are plenty of vendors in this segment including EMCO and APEX Elevators, among others. An important emerging trend In India is that unlike any other developing markets, MRO revenues are growing faster than product sales.
The global E&E market is expected to grow at a CAGR of 6.5 per ent through 2013 to 2018, to reach Rs 7,311 billion in 2018. The market is primarily composed of two segments – new equipment installations and maintenance and modernization segments of already installed equipment. Emerging markets such as China, India, and Brazil, are driving the new equipment installation market while the maintenance and modernisation segment is recording stable growth in Europe and in few countries in North and South America. Major players OTIS, Schindler, ThyssenKrupp, and KONE, account for a market share of around 65 per cent in the said period, globally.
Another report by Global Industry Analysts, Inc. (GIA), has projected the global market for Smart Elevators to reach $ 25 billion by 2020, the United States represents the largest market worldwide, followed by Europe. Stringent energy efficiency regulations, rising security concerns, and increasing demand for convenient and advanced vertical transportation systems represent key growth drivers in developed markets. Asia-Pacific ranks as the fastest growing market worldwide with a projected CAGR of 21.7 per cent over the analysis period, driven by rapid urbanisation, and the growing popularity of high-rise buildings in densely populated countries such as China and India.
China alone accounts for over 50 per cent of the global upcoming high-rise building projects. Other key growth drivers include expanding manufacturing base, growing middle class population, and government focus on infrastructure development and energy self-sufficiency.
As in many other sectors, India has the potential to emerge a global manufacturing hub for E&E products. Some of the global OEMs like thyssenkrupp and Kone have world class manufacturing facilities in India and are already exporting to neighboring countries and other emerging markets.

 

 

REGULATORY COMPLIANCES
The Indian Standard (IS) for elevators was adopted by the Bureau of Indian Standards (BIS), after the draft finalized by the Lifts and Escalators Sectional Committee was approved by
the Electrotechnical Division Council in 1966. A new series of codes and standards has been drafted, which reflects the latest trends in lift industry at national and international level, to be complied by all elevator and escalator companies. It is the key guideline that covers essential requirements for installation, operation, maintenance, and also inspection of E&E to ensure safe and satisfactory performance. There are other IS that cover design, installation, maintenance, and inspection, of lifts and escalators.
For any imported equipment, it must adhere to European norms (EN81/EN 115), Japanese Industrial Standards (JIS 4301/4302), etc. Apparently, there is a confusion of Standards among OEM suppliers, in which case BIS establishes the Standards. The Public Works Department (PWD) is responsible for regular inspection of installed lifts. Latest trend is State Governments outsourcing lift inspection work for efficient completion of inspection job. Surprisingly, in most case of accidents, the manufacturer takes an investigator’s role alongside the government agencies. However, many states do not have a requisite legislation in place for this. A PWD license renewal is mandatory.

 

 

Indian mobility solutions market is registering steady growth. There is a growing demand for high-speed, high-capacity, elevators that can carry many passengers at once, safely and comfortably, particularly in high-rise office buildings, commercial complexes, and other large-scale facilities.
Having said that, India’s urban population is projected at about 600 million in 2030. We currently have 53 cities with a one million population, and it is set to increase to 68 cities by 2030. Further, India is expected to have 25 Mega Cities with a population of over 8 million and four Mega Regions, each with a population of over 15 million by 2025. Density of a city is directly proportional to the height of the buildings and this leads to overall infrastructure development.
Bharat Vishnani, Managing Director, thyssenkrupp Elevator (India)

 

 

“Over the last decade, Indian elevator industry has experienced an exponential shift in terms of value proposition that the clients look forward to. Our target has always been the premium and upper middle segment. We specialise in designing bespoke elevator solutions in terms of both, technology as well as aesthetics, engage ourselves at a very early stage of the project, and have dedicated project management approach to execute it on time. One such successful example is the prestigious ‘Godrej BKC’ wherein we have supplied 22 elevators packed with all modern technological features and an unmatchable customised aesthetic appeal. Some of the exclusive features that our premium series elevators offer are; the product is Lead free, uses active roller guides instead of guide shoes which eliminates the use of lubrication oil and is 100 per cent RoHS compliant.
Junichi Kyushima, MD, Toshiba Johnson Elevators India

 

 

 

“The next developments in elevator technology leverage digitalization. Existing Otis technologies such as the CompassPlus™ Destination Management System, which constantly evaluates real-time passenger traffic to improve flow and travel time in busy mid- and high-rise buildings, are the start of this trend.”
Sebi Joseph, Managing Director, Otis Elevator Company India

 

 

 

 

“Future growth will be driven by surging popularity of smart intelligent elevators that are equipped with smart access control, advanced and sophisticated security systems, and superior elevator hardware and software technologies. Our focus will also be on modernizing older elevators in existing buildings with modern gearless machines and control systems in order to make them more energy-efficient and increase their passenger handling capacity. Gearless elevators consume 30 per cent less energy compared to its geared counterpart.”
Amit Gossain, MD, Kone Elevators India

 

 

 

 

KONE’S HACKATHON
In March, hackers from across India flocked to the India Technology and Engineering Center (ITEC), their minds set on winning the top title in the ‘KONE India Hackathon,’ where 14 shortlisted teams presented their final ideas to the jury.
The groundbreaking ideas showcased by the teams were based on four themes: smart elevators, user security, utility tools, and open theme. The jury saw ideas for new technology, including prototypes and demos on how to enhance people flow, and at the end of the day, they had the difficult task of picking the best of the best. The jury included representatives from IBM, ITC Infotech, Persistent Systems and Kone.

 

Winning ideas
The Alnstein team bagged the top prize for their creative way of using unexpected occurrences in datasets to predict breakdowns before they happen. The team of three second-year university students took home a cash prize of Rs.400,000 (€ 5,600). They will also work with our global R&D development team in Finland to further develop their idea and implement it in real time.
“The winning team demonstrated the usage of a rich set of data available from our equipment and add-on sensors, identified what components could fail and how to take action before the failure creates disruption,” says Teppo Voutilainen, who heads KONE’s New Services and Solutions team. “They managed to turn complexity into a logical architecture very quickly and showed great dedication in testing parameters and improving the reliability of code over time.”

 

 

 

SCHINDLER POISED FOR EXPANSION IN INDIA
Global E&E major Schindler Group is planning to invest Rs.170 cr in India’s first Escalator manufacturing line and towards improving its R&D facilities at its plant near Chakan in Pune. These investments will give Schindler India a unique edge to further strengthen the market leadership position in the elevators and escalators industry in India.
“The elevator and escalator market is expected to grow at 8 per cent in the current fiscal and at Schindler India it is our aim to grow faster than market. In the last 10 years our turnover has grown from Rs.300 cr to Rs.1600 cr. With the Rs.170 cr investment we aim to further the quality of our services and work towards becoming a preferred vendor to our customers,” says, Uday Kulkarni, President, Schindler India and South East Asia said,
Schindler India is committed to growing the elevators business in India and plans to expand its elevator line to produce a capacity of around 17500 units and its escalator line to 1200 units per annum by 2019. Under the government’s ‘Make in India’ initiative, Schindler has already made an investment of Rs.430 cr towards setting up a factory, d an R&D centre that boasts a 71 meter tall tower with 8 shafts where each and every component of the elevator undergoes strenuous testing. Schindler India’s Rs.170 cr investment is part of the total Rs.600 cr outlay over a period of six years, which employs over 1000 people at any point of time in Maharashtra.
Today Schindler India is a trusted name in the elevator industry and is the preferred supplier to several leading builders and developers across India. They have partnered several prestigious infrastructure projects in India, like the new Mumbai International Airport, Terminal-2, the Chennai International Airport, the Delhi Metro, the Delhi Airport Metro, the Mumbai Monorail, the Kolkata International Airport, as well as the Mumbai, Bengaluru, Greater Noida, and Nagpur, metros.

 

 

RIDING ON THE CLOUD


The latest tech trend in the E&E industry is Smart machines which leverage Cloud technology, such as Internet of Things (IoT).
thyssenkrupp, which invented the game changing ropeless elevator, uses Microsoft’s Azure IoT for its MAX installed worldwide, saving time for elevator passengers which could be equivalent to 108 centuries of new availability in each year of operation. Utilizing Azure IoT technology enables MAX to “tell” service technicians its real needs, including real-time identification of repairs, component replacements, and proactive system maintenance. With MAX, data collected in real time from millions of connected ThyssenKrupp elevators is sent to the Azure cloud platform where an algorithm calculates the remaining lifetime of key systems and components in each elevator. Andreas Schierenbeck, CEO of ThyssenKrupp Elevator, comments: “Our mission is to revolutionize and do something nobody else in our field has done before: To transform a century-old industry that has relied on established technology until now. Cities of today need innovations that respond to the challenges of the massive urbanization we are currently witnessing. We are very pleased to work with Microsoft to truly take thyssenkrupp into the digital era and change the way the elevator industry offers maintenance services.” Schierenbeck added, “MAX is the second pillar of our revolution and comes after the introduction of absolute breakthrough mechanical technologies such as the TWIN elevator and the rope-less MULTI technology for future buildings, designed to reduce the elevator footprint and release vital space for additional rent revenues in buildings.”
Kevin Turner, Chief Operating Officer, Microsoft Corporation, adds, “Building on our trusted cloud platform, Microsoft Azure IoT capabilities are connecting millions of systems for ThyssenKrupp, helping them integrate and analyze their data so they can move from reactive to proactive business models. Through intelligent data, ThyssenKrupp is truly transforming their business and the way they engage with building managers.”
Vernon Turner, Senior Vice President of Enterprise Systems and IDC Fellow for The Internet of Things‚ writes “thyssenkrupp is a prime example where telemetry data from the worldwide installed base of thyssenkrupp elevators could be analyzed to reduce the equipment downtime through preemptive maintenance prior to failures.”
Microsoft’s HoloLens is another example of Cloud services helping thyssenkrupp service technicians to visualize and identify problems ahead of a job, and have remote, hands-free access to technical and expert information when doing maintenance onsite. In a world where over 12 million elevators transport over a billion people each day, it is imperative elevator service innovation grows ahead of the pace. Utilizing HoloLens, they found that they could dramatically improve response time, increase efficiency, raise elevator uptimes and speed up service interventions to ensure mobility equipment is always running. With the help of HoloLens, over 24,000 thyssenkrupp elevator service engineers can now do their jobs safer and more efficiently by triaging service requests ahead of the visit and getting hands-free remote guidance when on site. In initial trials, use of HoloLens has reduced the average length of thyssenkrupp’s service calls by four times their previous average. HoloLens serves as a compliment to MAX, by leveraging the predictive maintenance capabilities of Azure IoT. In 2015, thyssenkrupp and Microsoft teamed up with global systems integrator CGI to develop a solution that securely connects thyssenkrupp’s thousands of sensors and systems in its elevators to the Cloud. Several iconic buildings across the globe have elevators that are already cloud-connected through MAX, including One World Trade Center, which has elevators capable of moving from ground floor to 102nd floor in just 60 seconds, and regenerative drives that convert energy produced when elevators decelerate into electricity that can be used to significantly reduce the building’s energy consumption. Now equipped with MAX and HoloLens, the tower is setting new standards for sustainability, reliability, and building efficiency.
Another pioneer Kone has a multiyear agreement with IBM, who will provide cloud-based Internet of Things (IoT) technologies and services to drive innovation in smart buildings. KONE will tap into the IBM Watson IoT Cloud Platform to connect, remotely monitor, and optimise its management of millions of escalators, doors and turnstiles, in buildings and cities worldwide. The system will analyze vast amounts of data from sensors embedded in equipment to identify and predict issues to minimize downtime. KONE will be able to predict and resolve selected technical issues remotely by running tests and making commands over the cloud.
“Our partnership with IBM is exciting and it is an important stepping stone to deliver the best People Flow experience,” says Henrik Ehrnrooth, President & CEO of KONE Corporation. “We operate in a connected world and by working with IBM, new solutions like remote diagnostics and predictability means we will deliver even better services to our customers, and great experiences for the people who use our equipment."
With real-time insight about the operation of its equipment, KONE’s plans to drive further innovation and develop new solutions and services to improve the flow of people in some of the world’s busiest cities and buildings. Using IBM’s open standards-based Watson IoT Cloud platform, KONE plans toallow a vast developer ecosystem via Application Programming Interfaces (API’s) to build new applications to make a smoother, safer and more personalized people flow experience for building users. For instance, community-based systems could help people pre-order elevators during the busiest times of the day or speed up evacuations during emergencies.
“Efficient, people-centric cities and buildings are better for business, societies, and economies. Central to this is how people move around within them, and intelligent systems are poised to make their experience more convenient, intuitive and enjoyable,” says Chris O’Connor, General Manager, Offerings, IBM Watson IoT. “With IBM’s cognitive IoT technologies, KONE is embedding intelligence across its operations and driving a wave of innovation in smarter buildings.”




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