19 October 2018

Table of Contents for Escalators & Elevators

Escalators & Elevators



Rapid pace of urbanisation, demographic changes and the growing concern towards safety have been fueling the growth of the global elevators and escalators market. Additionally, the booming construction industry is offering tremendous growth opportunities. With India gaining steam in the construction and infrastructure space, the prospects for elevators & escalators are just skyrocketing. By bringing in the best in class technology, they can reap the benefits of the burgeoning opportunities reports Prerna Sharma.



In India, continuous construction of high rise buildings and growing government expenditure on infrastructure development have spurred wide installation of elevators & escalators. The segment has captured major share in overall elevators & escalators market, where majority of the market installations are witnessed in areas such as residential, retail, transportation and hospitality sectors. According to 6Wresearch, India Elevator & Escalator Market is expected to grow at a CAGR of 8.1 per cent during 2017-23.Talking about the category, gearless & machine room less type of technology elevator is growing at a faster rate than geared type of elevator and is expected to hold the major share in coming years. In escalator segment, moving stairs escalator has led the market, however moving walkway sub-segment is gaining popularity with the installation at airports and shopping centers. In 2016, amongst all the applications, commercial application captured the largest share in overall elevator & escalator market.


The demand for elevators and escalators is increasing significantly in the developing countries, such as China and India. China held 69 per cent market share in 2014, which has also encouraged the international manufacturers to install their production base in the country. The demand for elevators and escalators is also expected to upsurge in the Middle-East in the future. The market for maintenance and modernisation of elevators and escalators in the developed countries is expected to surge, due to their ageing infrastructure and requirement for upgradation. Several European countries have adopted strict safety and modernisation standard, which is expected to boost the market for maintenance and modernisation of elevators and escalators.


The upsurge in urbanisation is leading to increasing numbers of modern retail and metro train stations, which is expected to significantly boost the market growth of elevators and escalators. The increased buying power of middle class population is promoting the demand for more spacious and better-equipped apartments globally. The global middle-class population is estimated to grow approximately by 2.7 billion till 2030; which is also expected to lay its positive impact on the growth of the elevators and escalators market. The increasing ageing global population is also necessitating the need for escalators and elevators in buildings.



Factors fueling global growth


Growth of the global elevators and escalators market is mainly bound by various macro-economic and micro-economic factors. As children, old aged people and arthritis patients experience pain and discomfort while climbing the long range of stairs, constructors are increasingly integrating enhanced solutions to travel through the building. Increasing demand for convenient and speedy mode of navigating through various levels of buildings will continue to boost installation of elevators and escalators globally. Installation of elevators and escalators also offers the differently-abled and physically disabled customers convenience in travelling through different floors. Elevators and escalators are commonly installed in the underground train stations, airports and shopping malls. These factors are projected to impact the global market growth of elevators and escalators positively during the forecast period.


Attributed to rapid navigation through the multi-story buildings, installation of elevators and escalators will continue to increase. Growing need for fast progress and operations in various government agencies and banking institutions is further expected to rev up demand for elevators and escalators globally. As travelling through the elevators and escalators is a comparatively faster option, the employees can conveniently speed up the process and operations by navigating comparatively fast. A recent trend observed in the construction industry is that various commercial and residential buildings are increasingly installed with weatherproof elevators outside the building. Moreover, due to less space within, constructors are installing weatherproof elevators outside the building. These factors are expected to contribute towards the global market growth of elevators and escalators throughout the forecast period.


Elevators and Escalators are also witnessing increasing adoption in the aviation industry. While top to bottom escalators are installed for the passengers to travel to various levels of the building, constructors are also equipping the airports with flat escalators or the travolators. Installation of travolators enable the passengers to travel to their platform along with the heavy set of luggage. In addition, the inclined and moving travolators are also used for transporting the baggage to ships and aircrafts. As the requirement for speedy transportation of raw materials within a manufacturing industry increases, adoption of the travolators continue to witness significant demand in the factories. Growing need for transporting luggage and large number of people is projected to impact the global market growth of elevators and escalators positively.



Demand drivers


Factors such as increasing demand in Asia-Pacific and the growing demand from the end-use industries such as residential, commercial, institutional, infrastructure, industrial and marine are the drivers for the growth of the elevators & escalators market. The residential segment dominated the market in 2015 and is projected to be the fastest-growing end-use industry in the next five years, as a result of the rising demand for elevators by the residential property developers in the their technologically advanced high-rise buildings. Furthermore, the commercial segment is projected to be the second fastest-growing end-use industry due to the increasing number of business spaces and shopping malls, among others in cities across the world which demand equipment such as elevators, escalators and moving walkways for the comfortable transportation of people and goods.New installation as a service will witness the highest growth in the elevators & escalators market.


The new installation segment is projected to grow at the fastest CAGR due to the growing demand from emerging countries such as China and India, which are ranked first and second, respectively, in the global elevators & escalators market. The second fastest growing sector is maintenance and repair, the reason being, all new and existing structures that are installed require periodical maintenance & repair for their smooth functioning. This makes the maintenance & repair market very lucrative and fast growing. In addition, increasing demand for speedy transportation of luggage in the aircrafts and airplanes is projected to impact the global market growth of elevators and escalators positively. TMR states that the global elevators and escalators market is projected to reflect a CAGR of 7.4 per cent over the forecast period, 2017-2026. Additionally, a significant number of elevators and escalators with the age of 20 years and above in developed economies coupled with changing regulations & safety codes and growing preference for energy efficient elevators are anticipated to impel the elevators & escalators market particularly in modernisation segment.



Companies bringing best in class innovation


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 `430 cr towards setting up a factory and R&D centre that boasts a 71 meter tall tower with 8 shafts where each and every component of theelevator undergoes strenuous testing. Schindler India’s `170 cr investment is part of the total `600 cr outlay overa 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 thenew 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 andNagpur, metros.


Recently during an event in Hong Kong, Otis illustrated innovative building solutions to meet the unique needs from installation to modernization. Skybuild self-climbing construction elevator that enables builders to complete high-rise projects faster while reducing costs; the Skyrise high-speed elevator system that enables 50 percent less energy compared to traditional machines and with 40 per cent smaller machines that save space; The CompassPlus system that can be installed before or during an elevator modernisation project, providing increased passenger efficiency, seamless security integration and a new customisable, contemporary design.


Mitsubishi Electric has recently launched the NexWay-S Package R, a new lineup of NexWay-S series elevators targeting high-rise residential buildings, particularly in the ASEAN and the Middle East regions. The new models travel extra fast and extra far to meet the growing global demand from increasingly high residential buildings. Product competitiveness will be strengthened by manufacturing the models at Mitsubishi Elevator Asia Co., Ltd. (AMEC) in Thailand, where provides good access to demanded markets in the ASEAN and Middle East regions. High-speed elevators for high-rise residential buildingsspeeds up to 3.5m/sec (210m/min) or 4.0m/sec (240m/min) and travel up to 180m (3.0m/sec and 150m with existing NexWay-S) for increasingly high residential buildings.


Approximately 40 per cent of the global energy is consumed by buildings. The energy consumption by elevators and escalators in a building varies between 2 per cent – 10 per cent , which necessitates the need of an efficient mobility solution between floors. The industry is therefore incorporating power efficient solutions, which are being installed in green buildings worldwide. The key restraints in the growth of the global market include high price, lack of skilled workforce and safety issues. However, with the growing need of urbanisation for modern buildings, the price barrier for the industry is expected to mitigate in the future.


In order to serve the growing demand, Johnson Lifts last year opened a heavy duty escalator manufacturing facility at Oragadam near Chennai with an investment of `100 crore. John K John, Chairman & MD, Johnson Lifts, said, “Public infrastructure segment will be the key driver of growth for heavy duty escalators. Having an own facility will provide the advantages of quick delivery and better servicing capabilities.” The heavy duty escalator facility has been set up with technology know-how from the Chinese company SJEC, which helped Johnson to make light duty commercial escalators, meant for malls and large shops, in 2009. The company has added 60-70 new jobs with the new unit. The company has achieved 80 per cent localisation for its escalators and has developed its own supply chain industry.


“Over the next 3-4 years, there will be requirement for 4,000 escalators in the public infrastructure segment like railway stations. Also, cities with population of about 20 lakh are expected to build metro projects in future. So, both railway stations and metro projects will drive strong demand for escalators,” said V Jagannathan, ED, Johnson Lifts.



Tech support


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. Utilising 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. MAX is the second pillar of our revolution and comes after the introduction of absolute break through 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.


On such a tech innovation, Vernon Turner, Senior Vice President of Enterprise Systems and IDC Fellow for The Internet of Things‚ said, “thyssenkrupp is a prime example where telemetry data from the worldwide installed base of thyssenkrupp elevatorscould be analysed 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 visualise 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.


Meanwhile, taking technology ladder ahead, Kone has signed 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 optimize 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 toidentify and predict issues to minimise downtime. KONE will be able to predict and resolve selected technical issues remotely by running tests and making commands over the cloud.



Poised for growth


While the key vendors of elevators and escalators are based in Finland, Switzerland, Germany and the United States, the most prolific markets for elevators and moving stairways include the world’s most populous countries such as China and India. In light of Asia’s stalling construction sector, it remains unsure if these markets will continue to perform well in the future, not only in terms of escalator and elevator installations, but also with respect to maintenance and repair services associated with these conveyances.


In the developed world, it is the increased age and low energy-efficiency of buildings and infrastructure, as well as an ageing population in need of vertical transport that promises growth opportunities for companies in the field of elevators and escalators. Schindler, Kone and Otis, a subsidiary of the United Technologies Corporation, are ranked as the major elevator and escalator manufacturers worldwide.




Reinventing the Elevator

Traveling more than 500m, or 100-odd floors, in a continuous elevator trip is challenging and doesn’t really make sense using conventional technology. At that point, the weight of the several kilometers of rope needed to hoist the elevator becomes an obstacle. More ropes are needed just to lift the weight of the ropes. In a building this tall, the moving masses of a single elevator hoisted with steel ropes can be some 27,000 kilograms. This is equal to fitting ten ­off-road vehicles inside the shaft and shifting them along with the elevator. Using KONE UltraRope® for hoisting in a similar shaft, the moving masses are roughly 13,000 kilograms, or about the weight of four off-road vehicles.


Limits set by ropes are major reason why most very tall buildings have sky lobbies served by shuttle elevators from the ground. Separate elevators take people higher from these lobbies in the sky. In the future, KONE UltraRope will enable elevator travel all the way from ground floor to penthouse in a kilometer-high building in one continuous journey. KONE UltraRope is compatible with all other KONE high-rise solutions so it can be used to replace conventional ropes in old buildings. And with the new technology, the higher you go, the bigger the benefits. For example, the energy savings for a 500-m elevator journey are around 15 per cent versus conventional rope. For an 800-m journey, the savings are over 40 per cent.


Fast Facts
  • Indian Elevator & Escalator Market to grow at a CAGR of 8.1 per cent during 2017-23
  • Global markets to growth at CAGR of 7.4 per cent
  • Green technologies & equipment gaining expanse
  • Promising signs of advancements with the usage of cloud technologies




“thyssenkrupp invests heavily in R&D and we have successfully launched energy efficient elevators and escalators which complements the green rating of a building. We use latest technology in our products to make them more environment friendly. While, the latest products come with green technology, we are looking at installed elevators to upgrade them partially or completely with latest technology and components. In terms of control and automation, we have our latest products using DSC and TWIN which can have two cars running independently in the same shaft.”

Bharat Vishnani, MD, thyssenkrupp Elevator (India)




“Otis is committed to safety as a top priority. In addition to our Bengaluru facility receiving the following quality certifications - IS0 14001:2004 (environment) and ISO 9001:2008 (quality) – Otis also follows its United Technologies Corporation UTC ACE (Achieving Competitive Excellence) operating system, which is designed to ensure world-class quality in our products and processes. ACE focuses on increasing efficiency and reducing waste. It is used successfully at our facilities and workplaces around the world to improve quality and customer satisfaction.”

Sebi Joseph, MD, Otis Elevator Company India




“With our high quality products and services, we have successfully won our customers’ trust which has led to healthy relationships with our customers. In order to sustain continuous relationships with our customers, we will continue to put forth our best efforts to become one of the most trusted companies in the business. After the successful introduction of ELCOSMOTJ, TJEI will continue to work towards bringing more ‘Made for India’ products in sync with the needs of the Indian market.”

Junichi Kyushima, MD, Toshiba Johnson Elevators (India)






“Schindler is the first multinational company to have the elevator & escalator manufacturing facilities in India. Both the manufacturing facilities are aimed at further advancing and establishing Schindler’s technological and manufacturing capabilities to serve the growing Market of India. Inspired by the vision of being the best service provider in the industry for its customers, Schindler will continue in the future to develop highly innovative and user-friendly mobility solutions to move India - Safely & Reliably”

Uday Kulkarni, President, Schindler 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 modernising 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.”

Amit Gossain, MD, Kone Elevator India