| REPORT ATTRIBUTE |
DETAILS |
| Historical Period |
2019-2022 |
| Base Year |
2023 |
| Forecast Period |
2024-2032 |
| South Africa Elevators and Escalators Market Size 2023 |
USD 629.13 Million |
| South Africa Elevators and Escalators Market, CAGR |
8.43% |
| South Africa Elevators and Escalators Market Size 2032 |
USD 1222.73 Million |
Market Overview:
The South Africa elevators and escalators market, valued at USD 629.13 million in 2023, is poised for substantial growth, with a projected value of USD 1222.73 million by 2032, reflecting an impressive compound annual growth rate (CAGR) of 8.43%. This growth underscores the escalating demand for elevators and escalators across various sectors within South Africa. Market segmentation reveals a diverse landscape, categorized by product types including passenger and freight elevators, escalators, and moving walkways, serving applications in commercial and residential buildings, public infrastructure, and industrial facilities.
Key drivers fueling this growth include rapid urbanization and infrastructure development in major cities like Johannesburg, Cape Town, and Durban, necessitating efficient vertical transportation solutions. Economic growth, albeit modest, coupled with rising disposable incomes, is expected to drive investments in real estate, particularly in high-rise buildings, further stimulating demand for elevators and escalators. Additionally, a growing focus on accessibility and safety, as well as technological advancements such as machine room-less (MRL) technology and smart elevator systems, are enhancing convenience, safety, and energy efficiency, amplifying market appeal and attracting potential customers.
Despite promising growth prospects, the industry faces challenges such as a shortage of skilled technicians, high initial investment costs, and infrastructure deficiencies. However, opportunities abound, with future trends indicating a growing demand for green elevators, smart systems leveraging IoT technologies for enhanced monitoring and maintenance, and increased emphasis on aesthetics and customization. Addressing these challenges while capitalizing on emerging trends will be pivotal in navigating the evolving landscape of the South Africa elevators and escalators market, poised for dynamic expansion in the years ahead.
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Segmentation Analysis:
By Product Type:
The South Africa elevators and escalators market exhibits diverse segments, with passenger elevators anticipated to command the largest market share. This dominance is attributed to rising urbanization and the burgeoning demand for high-rise buildings in both residential and commercial sectors. Additionally, a growing emphasis on accessibility in public buildings further augments demand for passenger elevators. Goods elevators are expected to witness increased adoption, particularly in warehousing and logistics industries, driven by the need for automation and enhanced efficiency in material handling processes. Moreover, escalators and moving walkways are poised for growth, fueled by the expansion of shopping malls, airports, and transportation hubs, as well as their integration into public infrastructure projects to optimize pedestrian flow.
By Application:
Market dominance is projected for the commercial segment, buoyed by the flourishing hospitality sector, including hotels and resorts, which necessitate efficient passenger and goods transportation systems. Moreover, the development of office buildings and commercial complexes, alongside increasing demand for elevators and escalators in retail spaces to elevate customer experience, further bolsters this segment. In the residential sector, the rising prevalence of high-rise apartments and luxury residential projects fuels demand for elevators, particularly those equipped with advanced features. Institutional applications, encompassing public infrastructure projects like airports, railway stations, and government buildings, as well as healthcare facilities requiring specialized elevators for patient transport, constitute another significant segment. Industrial applications, driven by manufacturing facilities and warehousing logistics centers seeking efficient material handling solutions, contribute to market growth.
By Technology:
The traction elevator segment retains preference due to its high speed and efficiency, particularly suitable for high-rise buildings. Hydraulic elevators are favored in low-rise buildings due to their simpler design and installation requirements. Notably, the machine room-less (MRL) elevator segment anticipates significant growth, owing to its space-saving benefits, especially pertinent in buildings with limited space for a dedicated machine room. Additionally, the quiet operation and energy efficiency of MRL elevators drive their adoption in new high-rise constructions, further enhancing their market appeal.
Segmentations:
By Types:
-
- Moving Stairs
- Moving Walks
By Applications:
- Commercial
- Residential
- Industrial
By Services:
- New Installations
- Maintenance
- Modernization
Market Drivers:
Urbanization and Infrastructure Development:
South Africa’s urbanization trajectory is reshaping its landscape with the construction of high-rise buildings, commercial complexes, and transportation hubs. For instance, the city of Johannesburg, one of the most urbanized cities in South Africa, has seen a significant increase in high-rise buildings and commercial complexes. The Gautrain rapid rail link, a state-of-the-art rapid rail network in Gauteng, is an example of major infrastructure development. This surge in urban development necessitates efficient vertical transportation solutions, thereby driving the demand for elevators and escalators. Moreover, government investments in infrastructure projects, such as airports and railway stations, present additional opportunities for elevator and escalator installations, catering to the evolving needs of modern urban environments.
Rising Focus on Accessibility and Safety:
A heightened focus on accessibility and safety standards is fueling the adoption of elevators and escalators equipped with features catering to individuals with disabilities. Government regulations mandating accessibility in public buildings further bolster market growth. For instance, the Gautrain stations are equipped with elevators and escalators that comply with the Lift, Escalator and Passenger Conveyor Regulations, ensuring accessibility for individuals with disabilities. Another example is the Carlton Centre in Johannesburg, which has modern elevator systems with advanced safety features to ensure the safety of its occupants. Additionally, escalating safety concerns prompt building owners to invest in modern elevator and escalator systems embedded with advanced safety features, ensuring compliance with stringent safety regulations and enhancing user confidence.
Economic Growth and Technological Advancements:
South Africa’s economic expansion, particularly in sectors like commercial real estate and tourism, is driving increased investments in construction ventures, stimulating demand for elevators and escalators. Concurrently, technological innovations in elevator and escalator design, such as machine room-less (MRL) systems, are enhancing energy efficiency and space utilization, making these solutions more appealing to developers and building owners seeking modernization and efficiency in their projects.
Maintenance and Modernization:
The aging elevator and escalator infrastructure in South Africa necessitates regular maintenance and modernization to ensure operational efficiency and safety. This presents a substantial growth avenue for companies providing maintenance and modernization services. Leveraging Internet of Things (IoT) technology enables predictive maintenance and remote monitoring, minimizing downtime and optimizing maintenance schedules, thus driving the market for maintenance and modernization services.
Growing Demand for Aesthetics and Customization:
Elevators and escalators are increasingly regarded as integral architectural elements, prompting architects and designers to incorporate them into building designs. This trend fuels the demand for aesthetically pleasing elevator and escalator systems offering customizable features like glass panels, digital displays, and unique finishes. The growing preference for customization enables building owners to impart a distinct identity to their structures, further propelling market expansion.
Market Trends:
- Surge in Infrastructure Development: South Africa’s ongoing infrastructure development projects, including investments in public transportation, airports, and commercial buildings, are creating a strong demand for elevators and escalators. These projects require efficient and reliable vertical transportation solutions to manage increased passenger flow. For instance, 18 projects valued at around R10 billion have been completed, covering human settlements, roads, water, and sanitation. The value of projects currently in construction is over R230 billion. Public-sector infrastructure spending over the 2022 medium-term expenditure framework (MTEF) period is estimated at R812.5 billion.
- Urbanization and High-Rise Construction: The rapid urbanization trend in South Africa, particularly in major cities like Johannesburg and Cape Town, is fueling the construction of high-rise buildings. This growth in residential and commercial high-rises necessitates the installation of elevators and escalators to ensure accessibility and efficient movement within these structures. In 2022, over 68.34 percent of South Africa’s total population lived in urban areas and cities. Johannesburg, the largest city in South Africa, is home to many high-rise buildings. For instance, The Leonardo, standing at 234m with 55 floors, is the fourth tallest building in Africa and the tallest in sub-Saharan Africa. Cape Town, another major city, has also seen a surge in the construction of high-rise buildings. The residential property market is the largest component of the South African property market, accounting for the majority of property assets in the country. As of the end of June 2021, the total value of the existing 2 million government-subsidized properties makes up 8.9% of South Africa’s residential property market.
- Focus on Modernization and Energy Efficiency: Building owners and managers are increasingly prioritizing modernization of existing elevator and escalator systems. This trend is driven by a desire to improve safety, reliability, and energy efficiency. Advancements in technologies like machine room-less (MRL) elevators and regenerative drives are gaining traction due to their space-saving capabilities and lower energy consumption.
- Growing Awareness of Accessibility Standards: There’s a growing emphasis on adhering to accessibility standards in building design. This includes the installation of elevators and escalators to ensure buildings are accessible for people with disabilities. This trend is expected to further stimulate demand for elevators and escalators in various sectors.
- Rise in Focus on Aesthetics and Customization: Beyond functionality, there’s a growing focus on aesthetics and customization in elevator and escalator design. Architects and building owners are opting for elevators and escalators that complement the overall building design and enhance the user experience. This trend presents an opportunity for manufacturers to offer customized solutions that cater to specific design preferences.
Market Restraints and Challenges:
- High Initial Investment and Maintenance Costs: Installing elevators and escalators requires a significant upfront investment, which can be a major hurdle for budget-constrained building projects, particularly in the residential and public infrastructure sectors. Additionally, ongoing maintenance costs associated with these complex systems can further strain budgets, potentially leading to deferred maintenance and safety concerns.
- Skilled Labor Shortage: The proper installation, maintenance, and repair of elevators and escalators necessitate qualified technicians. However, South Africa faces a shortage of skilled labor in this field. This lack of skilled professionals can lead to delays in installation projects, inadequate maintenance practices, and potential safety risks due to improper servicing.
- Power Outages and Infrastructure Deficiencies: South Africa experiences frequent power outages, which can disrupt elevator and escalator operations, causing inconvenience and potential safety hazards for passengers. Additionally, aging infrastructure, particularly in older buildings, may not be able to support the installation of new elevators and escalators, requiring costly upgrades before modernization is possible.
- Safety Concerns and Regulations: Stringent safety regulations are essential for ensuring the safe operation of elevators and escalators. However, navigating the complexities of compliance and adhering to regular inspections can be a challenge for building owners and maintenance companies. Furthermore, public awareness of elevator and escalator safety incidents can create hesitancy among some users, potentially impacting demand in certain segments.
- Competition from Low-Cost Imports: The South African market may face competition from low-cost elevator and escalator components and systems imported from countries with lower production costs. This can put pressure on domestic manufacturers and suppliers to reduce prices, potentially impacting quality and innovation within the market.
Key player:
- Otis Elevator Co.
- Schindler Holding Ltd.
- KONE Corporation
- Mitsubishi Electric Corporation
- Thyssenkrupp AG
- Hyundai Elevator Co. Ltd.
- Kleemann Hellas S.A
- Omega Elevators
- Fujitec Co. Ltd.
- Hitachi Ltd.
- EGGEEC (FUJI)
Recent Developments:
- In April 2024, Hitachi Energy and SP Energy Networks collaborated to boost renewable energy flow. This collaboration is part of Hitachi’s broader efforts to promote sustainable energy solutions.
- In March 2024, Tokyo’s new city landmark Azabudai Hills added specially designed elevators by Nippon Otis. This is a testament to Otis’s commitment to providing innovative and reliable solutions for buildings of all sizes.
- In February 2024, Otis won a modernization project and a 10-year service contract extension for Burj Khalifa. This demonstrates Otis’s ability to maintain and improve the world’s most iconic structures.
- In February 2024, Schindler’s revenue increased by 1.0% to CHF 11,346 million, while order intake decreased by 1.7% to CHF 11,961 million. This shows Schindler’s resilience in a challenging market environment.
- In October 2023, Schindler was recognized as a World’s Best Company. This recognition underscores Schindler’s commitment to excellence and innovation in the elevator and escalator industry.
- In January 2023, KONE announced plans to renew its operating model to strengthen its competitiveness and customer focus. This strategic move is aimed at enhancing KONE’s ability to deliver superior customer experiences and drive growth.
- In July 2023, Hyundai Elevator completed a second elevator plant in the suburbs of Chennai, which became fully operational in February 2024. This new facility underscores Hyundai Elevator’s commitment to meeting the growing demand for elevators and escalators in India.
- In 2023, Kleemann celebrated 40 years of operation, commitment to quality, innovation, and customer service. This milestone reflects Kleemann’s long-standing tradition of excellence and its dedication to serving its customers.
- In October 2023, KONE Corporation finalized the sale of its operations in Russia to S8 Capital, a diversified holding company based in Russia.
- In November 2022, KONE concluded the buyback of its own class B shares, acquiring a total of 1,083,500 shares at an average price of USD 49.5 per share.
- In April 2022, Hitachi, Ltd. declared the successful acquisition of all outstanding shares of Yungtay Engineering Co., Ltd. (“Yungtay”), a subsidiary based in Taiwan involved in the manufacturing, sale, and service of elevators and escalators. This strategic move aims to enhance Hitachi’s elevator and escalator business presence in the People’s Republic of China (“China”) and other regions of Asia.
Regional Analysis:
Johannesburg:
As the economic powerhouse of South Africa, Johannesburg is poised to drive significant demand for elevators and escalators. Its status as the country’s financial hub attracts numerous commercial and business activities, necessitating vertical transportation solutions in office buildings, corporate centers, and commercial complexes. Moreover, ongoing infrastructure developments, including the construction of high-rise buildings and public transportation systems, will further stimulate the demand for elevators and escalators. Additionally, urban renewal projects aimed at revitalizing the city center are likely to create opportunities for elevator and escalator replacements in existing buildings, contributing to market growth.
Cape Town:
Cape Town’s vibrant tourism and hospitality sector are anticipated to be key drivers of elevator and escalator demand. The city’s renowned attractions and burgeoning hospitality industry, including hotels, resorts, and convention centers, will require efficient vertical transportation systems to cater to the needs of guests and visitors. Furthermore, the rise in luxury apartment developments in Cape Town is expected to fuel demand for high-end elevator and escalator solutions, catering to the discerning tastes of affluent residents. With a strong focus on sustainability initiatives, there is also a growing preference for energy-efficient elevator and escalator technologies in line with Cape Town’s environmental goals.
Durban:
Durban’s strategic location as a major trade gateway for South Africa positions it as a significant market for elevators and escalators. Port modernization projects aimed at enhancing cargo handling capacities are expected to drive demand for heavy-duty elevators and escalators in port facilities. Additionally, the development of special economic zones in Durban is poised to attract new businesses and industries, thereby increasing the demand for vertical transportation solutions in industrial facilities and commercial complexes within these zones. Moreover, the growth in the residential construction sector in Durban is likely to lead to an uptick in demand for elevators in multi-story apartment buildings as urbanization and population growth continue to shape the city’s landscape.
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Future Outlook:
- Urbanization and Infrastructure Development: The rising urbanization trend in South Africa will continue to drive demand for elevators and escalators in high-rise buildings, shopping malls, and public transportation infrastructure.
- Government Investment in Infrastructure: Government initiatives focused on infrastructure development, including investments in public transport systems and airports, are expected to boost demand for elevators and escalators.
- Growing Demand for Modernization and Replacement: As existing elevators and escalators age, there will be an increasing need for modernization and replacement projects, creating growth opportunities for the market.
- Focus on Safety and Accessibility: Growing emphasis on safety regulations and accessibility standards will lead to increased demand for elevators and escalators equipped with advanced safety features and accessibility solutions.
- Technological Advancements: Advancements in elevator and escalator technologies, such as machine learning-based predictive maintenance and energy-efficient systems, will enhance operational efficiency and attract customer interest.
- Rise of Green Building Initiatives: The growing focus on sustainable construction practices will fuel the demand for eco-friendly elevators and escalators with improved energy efficiency.
- Increased Focus on Aesthetics and Design: With a rising focus on aesthetics in building design, there will be a growing demand for customized elevators and escalators that complement the overall architectural design.
- Demand from Emerging Sectors: The market is expected to witness increased demand from emerging sectors like healthcare facilities, educational institutions, and data centers.
- E-commerce Growth and Warehouse Development: The burgeoning e-commerce sector will likely drive the demand for elevators and escalators in warehouses and logistics facilities.
- Skilled Labor Shortage: The market may face challenges due to a potential shortage of skilled labor for installation, maintenance, and repair of elevators and escalators. However, this could also lead to increased focus on training and skill development initiatives.
