Elevators & Escalators

Demand to exceed $15 billion in 2007

Following a period of sluggish growth during the early 2000s recession that featured a particularly weak nonresidential construction spending climate, aggregate US demand for elevator and escalator products and services is projected to recover and increase 6.5 percent per year through 2007 to over $15 billion. This is basically consistent with the market�fs long term historical trendline rate.

Nonresidential market to fuel gains

Fueling gains will be significant improvement in new system installations, accompanying expected recovery in nonresidential building construction activity. This will help to offset some slowing in residential building construction, which has been one of the healthiest components of the US economy during the early 2000s.

In addition, there are a number of market segments with above-average growth potential, including stair lifts and other specially-designed elevators for the disabled, and moving walkways at large public facilities.

Demand for services to see healthy growth

Still, markets for most elevator/escalator products are highly mature, especially passenger/freight elevators, escalators and aerial work platforms, and this will place a ceiling on the amount of growth that can be achieved going forward. Maturity in US markets has also prompted leading elevator/ escalator vendors to target high-growth markets in the Pacific Rim and other developing areas that hold the greatest potential for incremental increases in new installations going forward.

But the virtual saturation of the US market also implies significant opportunities for elevator/escalator repair/ modernization services, demand for which is expected to rise at a relatively healthy clip through the latter part of the present decade and beyond.

Industry structure

Despite the extensive degree of consolidation that has occurred in the US elevator/ escalator industry over the past decade or so, there is potential for further restructuring, given the preeminence of such competitive variables as vendor reputation in the marketplace, technological capabilities and a high degree of capital intensity -- factors that favor dominance by large firms.

Study coverage

Elevators & Escalators, a new Freedonia study, assesses details on these and other key findings. This study analyzes US markets for elevators, escalators and related products, with an emphasis on construction spending trends, industry consolidation and technology.

Historical data through 2002 plus forecasts to 2007 and 2012 are provided in current US dollars for elevator and escalator demand by product and application/setting. The study also assesses markets for installation and repair/ modernization services. In addition, it evaluates market shares and profiles leading players in the US industry.