DUBLIN–(BUSINESS WIRE)–The “U.S. Elevator and Escalator – Market Size & Growth Forecast 2023-2029” report has been added to ResearchAndMarkets.com’s offering.
The U.S. elevator and escalator market is expected to grow at a CAGR of 2.62% during 2023-2029
The increasing demand for high-rise structures and the government’s focus on infrastructure has propelled the elevator and escalator market to new heights.
The U.S. elevator market by the installed base is expected to reach 1,362.7 units in thousands by 2029. By 2022, the U.S. construction market is anticipated to grow by 7%, primarily due to increased demand for new homes and residential renovations. By 2025, the residential building is anticipated to contribute more than USD 1 trillion to the economy. Population expansion is pushing a greater need for cheap housing.
Changing lifestyles result in more individuals living alone or with smaller families, driving the rise of the residential building business. Hence, the increasing number of residential and commercial building permits is becoming a significant factor in the U.S. elevator and escalator market growth.
The U.S. Federal Railroad Administration(FRA) funds were approved under Consolidated Rail Infrastructure and Safety Improvements (CRISI), granting ~USD 368 million for 46 rail projects in 32 states and the District of Columbia. These funds will help modernize rail infrastructure, strengthening the nation’s supply chain.
The longest-stretched 119-mile high-speed rail project was the country’s first long-distance rail project in California from San Francisco to Los Angeles, with around 35 construction sites across the stretch. The High-Speed Rail Authority for the State of California suggests deploying bullet trains capable of up to 200 miles per hour.
If expansions are developed to Sacramento and San Diego, the system’s range would increase by up to 800 miles and include up to 24 stations. It is expected that the Central Valley segment will cost USD 13.1 billion. The first segment will travel between Merced, California, and Bakersfield, California, according to the rail authority’s 2020 business plan. These services are anticipated to start in December 2029.
Modular construction is used for building permanent and temporary buildings such as schools, construction of camps, civil facilities, and military & industrial facilities. The increasing need for modular construction in rural and remote areas will likely drive the U.S. elevator and escalator market. This modular construction technology is gaining steam in the region and will be opted for more frequently than traditional methods in the future.
The Growth Rate Of Digitalization And Increasing Developments In Buildings To Drive The U.S. Elevator And Escalator Market
- The construction industry in the US is a significant contributor to the region’s economy as it constructs approximately USD 1.4 trillion worth of buildings each year. For instance, the construction of Ohio State’s Wexner Medical Center is scheduled to open by 2026 with a 1.9 million-square-foot inpatient hospital and up to 820 beds in private-room settings to uplift patient-centered care, training, and safety for the next generation of healthcare providers.
- According to the Department of Housing and Urban Development and the US Census Bureau, sales of new single-family homes were at a seasonally adjusted annual rate of 745,000 in October 2021, increasing up 0.4% from September 2021. Therefore, rising demand for single-family homes is likely to drive the growth.
- Intelligent co-bots augment human experts and reduce the workload. Other systems for on-site professional assistance include Virtual reality (VR) and Augmented Reality (AR) professional glasses. VR and AR ensure a seamless and error-free installation, and each module occupies the proper position in the automatic recording and confirmation by the BIM design.
- A 26-story, 168-room Marriott hotel in Manhattan is constructed using modular technology. The AC Hotel NoMad will be the biggest modular hotel in the world when it is inaugurated in 2021.
Governments Efforts To Expand Infrastructure Across The Nation To Increase Demand For The New Installations
- Through funding from the IIJA(Infrastructure Investment and Jobs Act), the PIDP(Port Infrastructure Development Program) will increase the sum to USD 450 million in annual grants for the following five years, totaling USD 2.25 billion for the financial years 2022 through 2026.
- In November 2021, the Government of the US signed a USD 1.2 trillion infrastructure plan into law, of which USD 550 billion will be spent on broadband, utilities, and broadband. In addition, the legislation will spend USD 110 billion on bridges, roads, and other major projects, such as an investment of USD 66 billion in passenger and freight rail, including potential upgrades to Amtrak. Such factors are likely to contribute to the U.S. elevator and escalator market.
- The Los Angeles International Airport is undergoing a modernization plan. It is one of the most extensive public works programs with a cost of USD 14 billion, projected to complete by 2023.
- Intel revealed plans to invest an initial USD 20 billion in developing two brand-new cutting-edge chip facilities in Ohio. As part of the company’s IDM(Integrated Device Manufacturer) 2.0 strategy, the investment will assist increase production to keep up with the soaring demand for advanced semiconductors, powering a new wave of cutting-edge products from Intel and meeting the demand from customers. Manufacturing is expected to begin in 2025.
Regulations For Maintenance Of Elevators And Escalators To Create Demand In The US
- The maintenance and modernization in the U.S. elevator and escalator market accounted for 75.2% and 24.8%, respectively, for 2022.
- The model Safety Code for Elevators and Escalators, ASME A17.1/CSA B44, establishes the minimum standards for elevator and escalator maintenance and inspection, which local laws or regulations may supplement.
- The top 4 prominent vendors, including Otis, TK Elevator, Schindler, and KONE, account for 55% of the U.S. elevator and escalator market share.
- The key players in the U.S. elevator and escalator market are Otis, TK Elevator, Schindler, KONE, Fujitec, Mitsubishi, Hyundai Elevator, and Hitachi elevator.
- In August 2020, the Otis Integrated Dispatch solution was developed for integrating service robots within buildings using cloud-based API solutions that are easier to install than traditional integrations that enhance connectivity and automated monitoring prioritize cybersecurity.
- TK Elevator’s key strategy focuses on research and development (R&D) for the digital transformation of industry, modern mobility concepts, and energy transition as a part of its science-based emission targets across its entire value chain by signing up for “Race to Zero.”
- KONE announced a partnership with Amazon Web Services (AWS) during the fourth quarter of 2021. KONE will receive global cloud capabilities from AWS, including analytics and the Internet of Things.
- TK Elevator
- Hyundai Elevator
- Mitsubishi Electric
Other Prominent Vendors
- AVT Beckett
- Colley Elevator
- Cambridge Elevating
- Waupaca Elevator Company
- Advanced Elevator
Elevator Market Segmentation
- Hydraulic and Pneumatic
- Machine Room Traction
- Machine Room Less Traction
- Industrial Elevators
- 2-15 Persons
- 16-24 Persons
- 25-33 Persons
- 34 Persons and Above
- Public Transit
Escalator Market Segmentation
- Multi Parallel
- Public Transit
- Institutional Sector
For more information about this report visit https://www.researchandmarkets.com/r/ojlhy9
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