Europe Elevator Market Revenue to Grow $13 Bn by 2027

According to a recent study from market research firm Graphical Research shared with Realty+ the Europe elevator market size is poised to expand at substantial CAGR during the forecast period. The Europe elevator market is projected to witness a profitable

BY Realty Plus
Published - Thursday, 26 Aug, 2021

Europe Elevator Market Revenue to Grow $13 Bn by 2027

According to a recent study from market research firm Graphical Research shared with Realty+ the Europe elevator market size is poised to expand at substantial CAGR during the forecast period. The Europe elevator market is projected to witness a profitable growth spurt over the forthcoming time period owing to the ongoing proliferation of building and construction sector as more and more high-rises are being erected across the continent. On a global scale, Europe accounts for the second-largest share of the overall elevator market. Increasing number of high-rise buildings in the developing economies are greatly up to the regional growth. Countries including Russia, Spain, Italy, UK, and Germany have in fact experienced an unparalleled increase in skyscraper construction projects over the last few years. This growth is majorly ascribed to factors such as rapid urbanization, high per capita income, and increasing construction spending in these countries. Surging modernization and maintenance of ageing structures to fuel Europe elevator market trends. Subsequently, growing demand for elevator maintenance, service, and repair will also stimulate the Europe elevator market growth. Favorable government efforts towards economic development are another of the prominent key parameters for growing number of infrastructure activities. Increasing construction of institutional, commercial, and residential buildings across Europe would also fuel the adoption of elevators. Product Demand With respect to product, the MRL (machine room-less) segment is expected to witness around 2.3% CAGR through the analysis time period. The segmental growth is attributed to the rising demand for industrial facilities. The absence of a dedicated machine room in MRL elevator type is the key factor making them one of the best choices for industrial settings with very limited space availability. In comparison to MR traction elevators, these types of elevators are much more energy efficient. The low cost of maintenance, reliability, and lower space requirement makes them the most sought-after device for mid-rise buildings. In Addition, the design of MRL traction elevators enables them to travel at a speed of up to 500 ft per minute, allowing it to cover up to 250 feet of distance. Building & Construction Segment Highest Demand In terms of application, in 2020, the building & construction segment dominated the overall market with 80% market share. Europe is seen as one of the largest construction industries and the segment is expected to grow at a CAGR of 1.9% through the slated timeframe. In fact, the regional construction sector has witnessed high output in the past few years and reached an overall turnover of €1.6 trillion back in 2016. In 2020, the estimated revenue of Germany alone reached nearly €320.5 billion, providing ample impetus for the industry. The region’s expanding construction sector, rapid urbanization, and rising income level are some of the main factors driving the regional product demand. Countries At The Forefront On a global, Europe elevator market held the accolade of being the second-largest share in the elevator market and will continue to dominate the industry in the following years. The anticipated growth is majorly ascribed to the growing uptick in construction activities across the region’s developing economies such as Ukraine, Romania, Georgia, and Croatia among others. These countries are projected to showcase an increasing demand for novel buildings and infrastructure. This would further fuel the demand for elevators across the region, especially because of favorable government investments, higher customer spending, and rapid urbanization. Developed countries including France, UK, and Germany have a very mature construction market. So, the demand for brand new elevators in these countries is likely to be limited. However, the demand for aftersales, repair, and maintenance services will be very high. Subsequently, rising focus towards sustainability and increasing urban as well as international migration would drive the demand for elevators. Key Manufacturers Orona S.C., Otis Elevator Company, Hyundai Elevator Co. Ltd., Fujitec Co. Ltd., Kone Corporation, Glarie Elevator Co. Ltd., Thyssenkrupp Elevator Technology, Schindler, Mitsubishi Electric Corporation, and Hitachi, Ltd. among others are some of the key manufacturers in Europe elevator market.