|
Forecast
Period
|
2024-2028
|
|
Market
Size (2022)
|
USD
1,048.84 Million
|
|
CAGR
(2023-2028)
|
9.26%
|
|
Fastest
Growing Segment
|
Elevator
|
|
Largest
Market
|
Riyadh
|
Market Overview
Saudi
Arabia Elevator & Escalator Market has valued at USD 1,048.84 Million in
2022 and is anticipated to project robust growth in the forecast period with a
CAGR of 9.26% through 2028. The Saudi Arabia Elevator & Escalator Market
has witnessed remarkable growth and development in recent years, reflecting the
rapid urbanization and infrastructure expansion taking place across the
Kingdom. With cities like Riyadh, Jeddah, and Mecca experiencing significant
vertical growth, the demand for elevators and escalators has surged. The
vertical urban development, driven by population growth and economic activity,
has made these vertical transportation solutions an integral part of modern
building design. Commercial and residential spaces increasingly rely on
elevators for efficient vertical mobility, making them essential in high-rise
structures.
Technological
advancements in the industry have further enriched user experiences and
enhanced energy efficiency. Innovations such as destination control systems,
touchless interfaces, and energy-efficient designs have become key drivers.
Moreover, the importance of sustainability and adherence to strict regulatory
compliance and safety standards have paved the way for eco-friendly materials
and energy-efficient solutions in elevator and escalator systems.
Maintenance
and repair services play a pivotal role, ensuring the safety and reliability of
these systems. Preventive maintenance contracts, retrofitting, and
modernization services have gained popularity as building owners seek to
optimize performance and extend the lifespan of their equipment.
As
Saudi Arabia continues its journey towards smart city development and
sustainable urbanization, elevators and escalators will remain integral
components, aligning with the Kingdom's commitment to modernize urban
infrastructure and enhance accessibility. The industry's future growth is
poised to mirror the Kingdom's urban expansion, technological innovation, and
ongoing commitment to safety and sustainability.
Key Market Drivers
Urbanization and
Infrastructure Development
One
of the primary drivers of the Saudi Arabia Elevator & Escalator Market is
the ongoing urbanization and infrastructure development within the kingdom.
Saudi Arabia is witnessing unprecedented growth in its urban centers, with a
particular emphasis on the development of smart cities and modern urban
landscapes. As cities expand vertically, there is an increased demand for
efficient and reliable vertical transportation solutions. Elevators and
escalators play a pivotal role in providing accessibility, convenience, and
mobility within tall buildings, commercial centers, and residential complexes.
The
rapid urbanization in Saudi Arabia has been accompanied by a surge in
construction activities, including the development of high-rise buildings,
shopping malls, and expansive transportation hubs. These infrastructure
projects drive the need for elevators and escalators, as they enhance the
overall quality of life for residents and visitors while facilitating the
efficient movement of people within these urban spaces.
Technological Advancements
Technological
advancements in the elevator and escalator industry are a significant driver in
the Saudi Arabian market. These advancements encompass a wide range of
innovations designed to improve safety, efficiency, and user experience.
Destination control systems, touchless interfaces, energy-efficient designs,
and IoT integration are some of the key technological trends that are shaping
the industry.
One
notable advancement is the implementation of destination control systems. These
systems optimize elevator movements by assigning passengers to specific
elevators based on their destinations, reducing waiting times and energy
consumption. Furthermore, touchless interfaces have become increasingly
relevant in the context of hygiene and infection control, especially in the
post-COVID-19 era. These interfaces allow passengers to interact with elevator
controls without physical contact.
Energy
efficiency is another crucial technological driver in the market. Elevator and
escalator manufacturers are incorporating regenerative drives, LED lighting,
and eco-friendly materials to reduce power consumption and minimize their
environmental footprint. These energy-efficient solutions align with both
environmental sustainability goals and cost-saving objectives, making them
highly appealing to building owners and operators.
The
integration of Internet of Things (IoT) technology is transforming the way
elevators and escalators are monitored and maintained. IoT allows for
predictive maintenance, where sensors collect real-time data and provide
insights into the health and performance of these systems. By detecting
potential issues before they lead to breakdowns, predictive maintenance ensures
uninterrupted service and minimizes downtime.
Sustainability and Energy
Efficiency
Sustainability
and energy efficiency have become central drivers in the Saudi Arabia Elevator
& Escalator Market. The Kingdom is increasingly focused on environmental
conservation, and these vertical transportation solutions are aligning with
this commitment.
Elevators
and escalators are significant consumers of energy, and reducing their
environmental impact has become a priority. Regenerative drives, for example,
capture and store excess energy during descent, which can be reused during
ascent, resulting in reduced power consumption. Additionally, the integration
of LED lighting within elevator cabins reduces energy consumption while
enhancing aesthetics.
The
use of eco-friendly materials in the manufacturing of elevators and escalators
is another sustainability trend. Companies are transitioning towards materials
that have a lower environmental footprint and can be recycled at the end of
their life cycle. By adopting green materials, the industry is contributing to
resource conservation and reduced waste.
Furthermore,
the Saudi government's efforts to enforce stricter environmental standards and
energy efficiency regulations are encouraging the adoption of green solutions
in the industry. Building owners and developers are increasingly inclined to
invest in eco-friendly elevators and escalators to align with these regulations
and support sustainable practices.
Government Regulations and
Safety Standards
Government
regulations and safety standards are significant drivers in the Saudi Arabia
Elevator & Escalator Market. The Saudi government has been actively
enforcing stricter regulations to enhance safety, reliability, and
environmental standards for elevators and escalators. These regulations are
designed to ensure that the equipment installed meets high safety standards and
operates efficiently.
Safety
standards are paramount in the elevator and escalator industry due to the
potential risks associated with their operation. Compliance with safety
standards is critical for manufacturers, installers, and service providers to
ensure the safety of passengers and personnel. The government is committed to
enforcing these standards and holding companies accountable for compliance.
In
addition to safety regulations, the Saudi government is also implementing
environmental standards aimed at reducing the environmental impact of elevator
and escalator operations. These standards include energy efficiency
requirements and environmentally friendly materials usage. Compliance with
these standards is essential for ensuring that the equipment contributes to
environmental sustainability.
Government
support in enforcing these regulations and standards is a significant driver in
the market, as it fosters trust among building owners, developers, and the
general public regarding the safety and quality of elevators and escalators in
Saudi Arabia.
Maintenance and Service
Contracts
Maintenance
and service contracts have emerged as a critical driver in the Saudi Arabia
Elevator & Escalator Market. These contracts encompass a wide range of
services, including regular maintenance, inspections, repairs, and
modernization. Building owners and operators recognize the importance of
maintaining these systems to ensure their long-term reliability and
performance.
Preventive
maintenance contracts have gained prominence in the market. These contracts
involve regular inspections and servicing to identify and address issues before
they lead to major breakdowns. Preventive maintenance minimizes downtime,
reduces operational disruptions, and prolongs the life of elevators and
escalators.
Remote
monitoring is another service that has become essential in the market. It
involves the use of IoT technology to collect real-time data on elevator and
escalator performance. Service providers can remotely monitor the systems,
detect issues, and initiate timely repairs. Remote monitoring ensures that any
potential problems are addressed proactively, further enhancing the reliability
of these systems.
Quick
response times for repairs are crucial for minimizing downtime and operational
disruptions. Elevator and escalator service providers are increasingly focused
on ensuring that their teams can respond rapidly to service calls, guaranteeing
a high level of service availability.
Moreover,
modernization services are in demand to upgrade older systems with the latest
technology, ensuring they meet current safety and efficiency standards.
Building owners are keen on modernizing their existing elevators and escalators
to enhance performance and safety.
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Key Market Challenges
Supply Chain Disruptions
One
of the significant challenges facing the Saudi Arabia Elevator & Escalator
Market is the disruption in the global supply chain, particularly in the wake
of the COVID-19 pandemic. Elevators and escalators involve the import of
critical components and materials, and any disruption in the supply chain can
lead to delays in manufacturing, installation, and maintenance. The pandemic
highlighted the vulnerability of supply chains, and measures to mitigate future
disruptions are critical. Companies in the Saudi market are actively
diversifying their sources and working on localizing production to minimize the
impact of global supply chain disruptions.
Competitive Market Landscape
The
Saudi Arabian Elevator & Escalator Market is highly competitive, with
numerous local and international players vying for market share. Competition
has intensified with the growing demand for these vertical transportation
solutions. This presents challenges to both established and new entrants, as
they must differentiate themselves through technological innovations, quality,
and competitive pricing. As customers become more discerning, companies must
continually adapt and improve their products and services to stay ahead in the
market. This competitive landscape makes it essential for companies to focus on
customer satisfaction, service quality, and after-sales support to gain a
competitive edge.
Regulatory Compliance and
Safety Standards
Meeting
the evolving regulatory requirements and safety standards in the Saudi Arabia
Elevator & Escalator Market is a substantial challenge. The government has
been implementing stricter regulations to enhance safety, reliability, and
environmental standards for these systems. Ensuring compliance with these
standards demands continuous adaptation and investment in research and
development. For companies, this means rigorous testing, quality control, and
ensuring that existing installations meet updated standards. Navigating the
regulatory landscape requires a deep understanding of local regulations and
close collaboration with government agencies to maintain compliance.
Skilled Workforce and Training
The
installation, maintenance, and servicing of elevators and escalators require a
highly skilled workforce. A challenge in the Saudi market is the availability
of qualified technicians and engineers with the knowledge and expertise to
handle the complex systems involved. Companies are tasked with recruiting and
retaining skilled professionals, investing in continuous training, and ensuring
safety certifications are up to date. The demand for these skilled workers is
high, and companies are competing to attract and retain top talent.
Additionally, there is a need to develop local talent through educational and
vocational programs to meet the industry's growing requirements.
Economic Uncertainty and
Budget Constraints
Economic
uncertainty and budget constraints can pose challenges in the Saudi Arabia
Elevator & Escalator Market. Economic fluctuations and budget constraints
can affect the timing and funding of construction projects that require
elevators and escalators. Delays in project approvals and funding allocation
can impact the demand for these systems. The economic environment can also
affect the decision-making process of building owners and developers, leading
to postponements or scale-downs of projects. Adapting to these fluctuations
requires agility and a robust financial strategy to navigate periods of
uncertainty.
Key Market Trends
Urbanization and
Infrastructure Development:
The
rapid urbanization and infrastructure development in Saudi Arabia are driving
the demand for elevators and escalators. As the country's cities expand,
skyscrapers, commercial centers, and residential complexes are on the rise.
This surge in construction necessitates efficient vertical transportation
solutions. Elevators and escalators are indispensable for enhancing mobility
and accessibility in tall buildings and sprawling urban developments.
Technological Advancements:
The
Saudi Arabian Elevator & Escalator Market is witnessing a significant shift
towards technologically advanced and smart solutions. Innovations include
destination control systems, touchless interfaces, energy-efficient designs,
and IoT integration for predictive maintenance. These technologies improve user
experience, energy efficiency, and maintenance, aligning with global trends in
smart building solutions.
Sustainability and Energy
Efficiency:
There
is a growing emphasis on sustainability and energy efficiency in the Saudi
Arabian market. As concerns about environmental impact and energy consumption
mount, elevators and escalators are being designed to meet stringent energy
efficiency standards. Regenerative drives, LED lighting, and eco-friendly
materials are being incorporated to reduce power consumption and environmental
footprint.
Government Regulations and
Safety Standards:
Saudi
Arabia has implemented stricter regulations and safety standards for elevators
and escalators to enhance public safety and reliability. Compliance with these
standards is essential for manufacturers and service providers. The
government's commitment to enforcing safety measures is a significant trend,
fostering trust among building owners and passengers.
Maintenance and Service
Contracts:
Maintenance
and service contracts are becoming increasingly important in the Saudi Arabian
market. Building owners and operators are recognizing the significance of
regular maintenance to ensure the reliability and longevity of elevator and
escalator systems. Preventive maintenance contracts, remote monitoring, and
quick response times for repairs are becoming common offerings, ensuring smooth
and uninterrupted operation.
Segmental Insights
Type Insights
The
Elevator segment accounted for the largest share of 86.85% in the Saudi Arabia Elevator
& Escalator market in 2022. Saudi Arabia is witnessing a remarkable surge
in vertical urban development, characterized by the construction of high-rise
buildings and skyscrapers in cities like Riyadh, Jeddah, and Mecca. With the
limited space available for horizontal expansion, vertical development has
become a necessity. Elevators are essential in these tall structures, providing
a means for people to access various floors efficiently.
The
Kingdom's population continues to grow, leading to increased population
density, especially in urban areas. As more people live and work in high-rise
buildings and densely populated urban centers, elevators are indispensable for
vertical mobility. They are vital for transporting residents, employees, and
visitors within these buildings, reducing congestion and enhancing
accessibility.
Elevators
find extensive applications in both commercial and residential settings. In
commercial complexes, office buildings, and shopping malls, elevators
facilitate the movement of large numbers of people efficiently. In the
residential sector, high-rise apartment buildings and condominiums rely on
elevators to provide convenience and accessibility to residents, particularly
in cities like Riyadh and Jeddah.
Elevator
technology has advanced significantly, making elevators safer, more
energy-efficient, and convenient. Innovations such as destination control
systems, regenerative drives, and touchless interfaces have enhanced user
experience and energy conservation. These advancements have made elevators the
preferred choice for vertical transportation in modern and smart buildings.
Safety
is a paramount concern in the construction and operation of buildings in Saudi
Arabia. Elevators are highly regulated and subject to stringent safety
standards to ensure the well-being of passengers. These standards encompass
aspects such as emergency evacuation procedures, fire safety features, and regular
maintenance. Building owners and developers prioritize elevators to comply with
these safety standards and provide peace of mind to occupants.
Service Insights
The
Maintenance & Repair segment accounted for the largest share of 46.33% in
the Saudi Arabia Elevator & Escalator market in 2022. Elevators and escalators are subject to strict
safety regulations and standards in Saudi Arabia. Compliance with these
regulations is crucial to ensure the safety and reliability of these vertical
transportation systems. Maintenance and repair services play a pivotal role in
ensuring that elevators and escalators meet these standards. Regular
inspections, upkeep, and servicing are necessary to identify and address
potential safety concerns, making the Maintenance & Repair segment an
indispensable part of the industry.
Elevators
and escalators are significant investments for building owners and operators.
Maximizing the lifespan and performance of these systems is a primary concern.
Routine maintenance and repair services are essential for preventing system
breakdowns and addressing wear and tear. By conducting preventive maintenance
and timely repairs, building owners can extend the operational life of their
elevators and escalators, reducing the need for costly replacements.
Downtime
in elevators and escalators can disrupt the operation of buildings, causing
inconvenience and potentially affecting safety. Maintenance and repair services
are essential for minimizing downtime and ensuring the continuous availability
of these systems. Quick response times for service calls, coupled with
efficient repair processes, are vital for keeping elevators and escalators
operational and minimizing disruptions.
As
technological advancements in the industry continue, older elevator and
escalator systems may become outdated or less energy-efficient. Maintenance and
repair providers offer modernization and retrofit services to upgrade existing
systems, making them more efficient and compliant with the latest safety
standards. Building owners often prefer investing in modernization rather than
full replacements, which has further bolstered the importance of the
Maintenance & Repair segment.
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Regional Insights
Riyadh
region accounted for the largest share of 25.84% in Saudi Arabia Elevator &
Escalator market in 2022. Riyadh, as the capital and largest city of Saudi
Arabia, has been a focal point for rapid urbanization and infrastructure
development. The city's skyline is continuously evolving, with the construction
of high-rise buildings, commercial centers, and residential complexes. This
expansion has created a substantial demand for elevators and escalators to
provide efficient vertical transportation within these structures.
Riyadh
is not only the political capital but also a major commercial and economic hub
of the country. The city hosts numerous businesses, corporate offices, and
financial institutions. This concentration of economic activity drives the need
for efficient and reliable vertical transportation systems, such as elevators
and escalators. The demand in commercial and office spaces is a significant
driver for the market.
Riyadh's
population is growing steadily, leading to increased population density in
urban areas. With more people living and working in the city, there is a
pressing need for efficient mobility solutions. Elevators and escalators play a
vital role in enhancing accessibility, reducing congestion, and improving the
overall quality of life for residents and visitors.
Riyadh
has been at the forefront of the Saudi government's initiatives for smart city
development. These initiatives prioritize modernizing urban infrastructure,
enhancing mobility, and promoting sustainable practices. Elevators and
escalators are integral to achieving these objectives, as they improve
accessibility and mobility within smart cities. The government's active support
for these initiatives has further accelerated market growth in Riyadh.
Many
international and local elevator and escalator manufacturers and service
providers have established a strong presence in Riyadh. The city serves as a
strategic location for these companies to supply, install, and maintain their
equipment. The presence of key players and service providers in Riyadh has
facilitated access to the market and ensured swift project execution.
Recent Developments
- 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.
Key Market Players
- Otis Elevator Company Saudi Arabia
Limited
- Schindler Olayan Elevator Co. Ltd
- KONE Areeco Ltd
- Mitsubishi
Electric Saudi Ltd.
- Hyundai Elevator Saudi Arabia
- ThyssenKrupp
Elevator Saudi Arabia Ltd.
- Fujitec
Saudi Arabia Co. Ltd.
- CGC Elevators & Escalators Co.
- Khaled
Juffali Elevator & Escalator Company
- Elegant Innovation Est.
- Jood
Elevators
- Al -Najim Saudi International Co. Ltd.
- Al Barrak Group Company For Trade,
Industry and contracting
- Al Zain Elevators Company
- Gulf
Elevators & Escalators Co.
- Toshiba Elevator Middle East L.L.C
|
By Type
|
By Service
|
By End-User
|
By Region
|
|
|
- New Installation
- Maintenance
& Repair
- Modernization
|
- Residential
- Commercial
- Industrial
- Infrastructure
|
- Riyadh
- Makkah
- Madinah
- Dammam
- Jeddah
- Tabuk
- Eastern Province
- Rest of Saudi Arabia
|
Report Scope:
In this report, the Saudi
Arabia Elevator & Escalator Market has been segmented into the
following categories, in addition to the industry trends which have also been
detailed below:
- Saudi Arabia Elevator &
Escalator Market, By Type:
o Elevator
o Escalator
- Saudi Arabia Elevator &
Escalator Market, By
Service:
o New Installation
o Maintenance & Repair
o Modernization
- Saudi Arabia Elevator &
Escalator Market, By
End-User:
o Residential
o Commercial
o Industrial
o Infrastructure
- Saudi Arabia Elevator &
Escalator Market, By Region:
o Riyadh
o Makkah
o Madinah
o Dammam
o Jeddah
o Tabuk
o Eastern Province
o Rest of Saudi Arabia
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Saudi
Arabia Elevator & Escalator Market.
Available Customizations:
Saudi Arabia Elevator & Escalator Market report
with the given market data, Tech Sci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
Saudi Arabia Elevator
& Escalator Market is an upcoming report to be released soon. If you wish
an early delivery of this report or want to confirm the date of release, please
contact us at [email protected]