The global residential elevator market is experiencing significant growth and is expected to grow considerably in the next few years. Elevator is a vital component of a building, as it provides quick and effortless transportation of people between the floors. A residential elevator is an ordinary elevator that is found in high rise buildings. But the difference is that, residential elevators are installed in either personal homes having more than two floors or in low rise buildings. Unlike high-end elevators, residential elevators are small and less complex and not as advanced. The user interface inside the residential elevator car is also very rudimentary, that has only important buttons and controls. This basic nature of these elevators makes them energy friendly and they require less maintenance. Such features that makes them cheaper to operate are driving their demand. Moreover, residential elevators are advanced machinery and major players in the residential elevator industry adopt advanced technologies to increase the efficiency and lifting capacity of the products to sustain the competition in the residential elevator market.
Market Scope and Structure Analysis
Description
Residential elevators are especially designed to be less complicated elevators to meet the needs of buildings having no more than 3-5 floors. These elevators, being small in size, are only suitable for carrying 2–5 people at a time. Furthermore, just like any elevator system, residential elevators are characterized on the basis of the technology that is being used to move them. These are hydraulic elevators, machine-room less elevators, machine-room, and traction elevators.
COVID-19 Impact Analysis
- The COVID-19 pandemic ceased the production of various products in the residential elevator industry, which is attributed to the global lockdown. This has hampered the growth of residential elevator market in the year and a similar trend is expected to be seen in the first half of 2022.
- The major demand for residential elevator was previously noticed from giant developed and developing countries, including the U.S., Germany, Italy, UK, India and China, which are negatively affected by the spread of the coronavirus, thereby declining the demand for residential elevator.
- Further, long-term impact of the lockdown is currently vague and financial recovery of companies is totally based on their cash reserves. Residential elevator manufacturers can afford a full lockdown only for a few months, after which the players have to modify their investment plans. For instance, various players in the market halted their production activities for several weeks to reduce their expenses. On the contrary, few players adopted employee lay-offs to sustain themselves during the COVID-19 health crisis.
- Residential elevator manufacturers are expected to focus on protecting their workforce, operations, and supply chains to respond to immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distancing, as well as ensuring the vaccination of every employee in the company can assist in promoting the health & safety of the workforce.
Top Impacting Factors
Rapid urbanization, especially in developing countries, is leading to the growth in the number of low-and high-rise buildings, large retail stores, and other structures. This is anticipated to increase demand in the residential elevator market. The addition of an elevator in small buildings or in personal homes adds value to them and can increase their prices a lot. Hence, builders are keen on installing residential elevators in the buildings, thereby surging demand in the residential elevator market. Further, in 2020 the elderly population was 1.4 billion and this is expected to be 2.1 billion by 2050. This trend is anticipated to increase the demand for residential elevators to a greater extent. Moreover, residential elevators add to the aesthetic appeal of the house and offer greater functionality at the same time. However, the residential elevator takes up valuable space in the house, which is one of the restraining factors hindering the growth of the residential elevator market. On the contrary, technological developments in mobile residential elevator products such as adoption of touchless operation, use of the internet of things (IoT) and artificial intelligence (AI) that enhance the interaction between the user and elevator boost the efficiency of the equipment as well as result in a better user experience. This is expected to create lucrative opportunities for the residential elevator market globally during the forecast period.
Market Trends
- New products that contain improved capabilities are launched by leading market players. They take necessary steps to improve overall functionality of the product. For instance, in March 2021, the Kone Corporation launched ‘MonoSpace 300’ an optimized elevator system made for 2-4 stories high buildings, which can be used for new construction or modernization projects in low rise residential or commercial buildings.
- Similarly, competitors in the residential elevator market adopted acquisition as their key developmental strategy to expand their geographical foothold and upgrade their product technologies. For instance, in August 2020, OTIS Elevator acquired the U.S.-based Bay State Elevator, including its service portfolio and operations in Northeastern Region of U.S. This move will help OTIS to make a strong foothold in the region for elevator installation and maintenance.
- Moreover, business expansion strategies assist in enhancing the geographic footprint of the company and help in gaining significant market share for mobile residential elevator products. For instance, in February 2020, Thyssenkrupp Elevator a Germany-based global elevator manufacturer opened its first spare parts warehouse in Madrid, this will help the company to further improve the service for customers in Spain, Portugal and Italy.
Key Benefits of the Report
- This study presents the analytical depiction of the residential elevator industry along with the current trends and future estimations to determine the future investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the residential elevator market share.
- The current market is quantitatively analyzed to highlight the residential elevator market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed residential elevator market analysis based on competitive intensity and how the competition will take shape in coming years.
Residential Elevator Market Report Highlights
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