Report Overview

Saudi Arabia Elevators and Escalators Market is flourishing owing to urbanization, rapid deployment of innovative technologies, rising demand for smart elevators, and a growing shift toward eco-efficiency, flexible design, and safety.

Saudi Arabia Elevators and Escalators Market - Industry Trends & Forecast Report 2028

Saudi Arabia Elevators and Escalators Market is expected to grow at a CAGR of 7.8% during the forecast period (2022-2028). The rapid expansion of the market is predominantly due to the increased employment and educational opportunities in metropolitan areas, and the rate of urbanization has increased significantly over the country. Moreover, the need for commercial and institutional buildings has increased as a result of the growth in the metropolitan population. To accommodate more people, commercial buildings have become larger in terms of square footage. Because of this, vertical transit networks are now even more crucial to the efficient operation of buildings. Since escalators make it possible for people to travel continuously from one floor to another, these considerations have had a favorable impact on the escalator market. Additionally, to combat issues with traffic congestion, several governments throughout the country are concentrating on the building of effective metro rail systems, which is driving up demand for the industry. Furthermore, the number of shopping malls has also greatly expanded as a result of the growing spending power of the general populace in developing nations. Escalators have lower levels of noise and vibration and can be positioned in the same area as stairs. These technical benefits help to grow the market for escalators.

Elevators and Escalators – Overview

A lift that can handle several people at once is called an elevator. It is used to transport people up and down different floors of a structure. In contrast, escalators, which transport people between floors of a building, are like moving stairs. Elevators come in four basic varieties: hydraulic, traction, machine-room-free, and vacuum. Over 10,000 passengers may be transported every hour on an escalator that travels an average of 44 meters (145 feet) per minute, which is significantly more capacity than a typical lift system. Moreover, moving sidewalks move people horizontally or at a little slope, elevators or lifts take people and cargo up and down, and escalators are moving staircases from one store of a building to another.

Saudi Arabia Elevators and Escalators Market Forecast and Trends

Growth Drivers

Growing Demand to Reduce Energy Use in Buildings

In Saudi Arabia, a large amount of energy is utilized as a result of rising industrialization and urbanization. According to the research, commercial buildings consumed 20% of total energy usage. Furthermore, cities nationwide account for 75% of CO2 (carbon dioxide) emissions and consume three-quarters of natural resources. Because of these factors, several governments across the country have enforced effective and smart energy consumption. Moreover, smart elevators would lessen this dependence and consumption rate. Elevator manufacturers are creating energy-efficient elevators for mid- and high-rise structures, including smart controls, hardware, and other low-energy systems.

Using Energy-Efficient Items and Green Building Standards

The demand for green, environmentally friendly products has surged as a result of growing environmental concerns. Premium green construction materials for escalators, elevators and moving walkways are constantly becoming more and more in demand from consumers as value-added products. Utilizing green building materials can drastically reduce emissions. They contribute to energy conservation. realizing sustainability while cutting emissions and protecting the environment. All these factors boost the growth of the Saudi Arabia Elevators and Escalators Market during the forecast period (2022-2028).

Increasing Use of Contemporary Safety Features in Escalators and Elevators

Elevator and escalator market growth is being aided by several safety features, such as emergency evacuation features, safety brakes, door closing devices, door sensors, door restraints, pit buffers, and others, which have led to the more advanced elevator and escalator services. Moreover, modern safety features for escalators are being added by the commercial and industrial sectors as a result of technological advancements. These features include skirt brushes to keep objects from getting caught in the escalators, step level monitors, missing step monitors, motion detectors for the handrails, sensors to initiate an automatic shutdown in an emergency, and others. Furthermore, the industry is expanding significantly as new safety solutions make escalators and elevators more dependable and effective in addressing emergencies.

Restraints

Risk and Uncertainty in the Economy

The economic crisis and the building sector both have an impact on the market for elevators and escalators. Construction projects, both residential and non-residential, are the main sources of demand for these materials. Despite the COVID-19 pandemic's partial recovery of the national economy, threats and uncertainty continue to be significant. A slowdown in the economy has a direct impact on several macroeconomic variables, including the level of employment, company activity, consumer confidence, disposable income, and interest rates in the nation. This might have a detrimental effect on the amount of investment made in the construction sector, which would then have an effect on the market for elevators and escalators.

Impact of COVID-19 on Saudi Arabia Elevators and Escalators Market

Emergency precautions were put in place in response to the increase in COVID-19 cases, and several operations and facilities were suspended in 2020. The COVID-19 outbreak has negatively impacted the elevator and escalator markets. This is because the majority of the elevator and escalator companies have their headquarters in APAC, European, and North American nations. Due to a disruption in the supply chain caused by COVID-19, there was a shortage of raw materials and labor, which slowed down market expansion. In 2020, the COVID-19 pandemic had a minimal impact on the elevator and escalator business, resulting in a little decline in CAGR. The market has been hit by decreased raw material output and supply chain problems.

Saudi Arabia Elevators and Escalators Market - By Type

Based on the type, the Saudi Arabia Elevators and Escalators Market is segmented into Elevators, Escalators, and Moving Walkways. Among these, escalator accounts for the largest share in the Saudi Arabia Elevators and Escalators Market. The increased demand from commercial infrastructures, such as shopping centers, business parks, and others, is to blame for this. Additionally, the need for escalators and moving walkways is increasing as a result of the expanding aircraft infrastructure development. All these factors propel the growth of the Saudi Arabia Elevators and Escalators Market during a forecast period (2022-2028).

Saudi Arabia Elevators and Escalators Market – By Elevator Technology

Based on elevator technology, the Saudi Arabia Elevators and Escalators Market is segmented into Traction, Hydraulic, and Machine Room-Less. Among these, the machine room-less segment holds the largest market share. As a result of technological development, machine-room-less elevator technology is a relatively new invention. The size of the electric motors utilized with traction equipment has been significantly reduced as a result of this technology. These devices have freshly created permanent magnet motors (PMM). Additionally, they do away with the expense and environmental issues generally related to subterranean hydraulic cylinders filled with hydraulic oil. A gearless traction machine is also used by elevators without a machine room. As a result, performance and ride quality improve.

Saudi Arabia Elevators and Escalators Market - By End-User

Based on end-user, the Saudi Arabia Elevators and Escalators Market is segmented into Commercial, Residential, Industrial, and Others. The residential segment holds the largest market share. The rising sophistication of living standards in emerging economies is driving the nationwide residential market. Emerging economies are seeing tremendous urbanization as their populations migrate to cities in search of work. As a result, the development of high-rise buildings, nearly always equipped with smart elevators, has become quite necessary to accommodate a sizable population in cities. The expansion of the real estate industry in developing regions is also an important indicator of the segment's growth.

Competitive Landscape

The leading market players in the Saudi Arabia Elevators and Escalators Market are KONE, Mitsubishi Electric, TK Elevator, Hitachi, Hyundai Elevator, Fujitec, Schindler, and other prominent players.

The Saudi Arabia Elevators and Escalators Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.

Recent Development

• In December 2021, Mitsubishi Electric launched a new U Series of escalators that enhances passenger comfort and safety and helps achieve significant energy savings compared with the previous models. The targeted annual sales were 500 units in the ASEAN, Latin America, Middle Eastern, and Indian markets.
• In 2020, KONE manufactured 180,000 new escalators and elevators. In 2021, KONE had more than 1.5 million units in its maintenance base, resulting in a major market share.

Scope of the Report

By Type

• Elevator
• Escalator
• Moving Walkways

By Elevator Technology

• Traction
• Hydraulic
• Machine Room-Less

By Service

• Maintenance & Repair
• New Installation
• Modernization

By End-User

• Commercial
• Residential
• Industrial
• Others