Australia elevator and escalator market is valued at USD 1.31 billion in 2022 and is projected to reach USD 1.91 billion by 2030. The market is poised to grow at a CAGR of 4.85% from 2023 to 2030, driven by factors including the increasing demand for the renovation and modernization of existing elevator and escalator systems, the growing popularity of home technology and smart homes, and the rising preference for mid-rise structures in metropolitan areas.
Several key drivers contributing to the market’s growth include heightened government investments in infrastructure development, integration of high-tech features, infrastructure revitalization efforts, and the ongoing urbanization process, leading to increased congestion. Additionally, the government’s focus on critical infrastructure initiatives like the Melbourne Metro and WestConnex, is creating new opportunities for elevator and escalator companies. Furthermore, Fire and Rescue, NSW data indicates an 80% surge in elevator rescue incidents since 2014, with 1,620 individuals rescued from elevators in New South Wales in 2018. This increase in elevator incidents has driven the demand for new elevators, especially replacing and renovating aging buildings.
Moreover, there is a growing emphasis on sustainability, resulting in the development of energy-efficient elevators and escalators, which are gaining popularity in commercial settings. These products consume less energy and offer reduced operating costs, making them a cost-effective choice over the long term.
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Technological Advancements are Fueling the Market
Australia’s elevator and escalator industry embraces IoT integration, AI, touchless controls, energy efficiency, remote monitoring, and smart maintenance. IoT sensors collect real-time data on usage patterns, traffic flow, equipment performance, enhancing operations, and reducing downtime. AI algorithms predict maintenance needs, detect anomalies, and optimize traffic flow, reducing wait times and energy consumption. Touchless controls, introduced during the COVID-19 pandemic, allow users to operate elevators without touching buttons or surfaces, reducing virus transmission risks.
Manufacturers focus on energy-efficient systems like regenerative drives, LED lighting, and motor systems. Remote monitoring and diagnostics enable maintenance teams to identify issues and perform proactive maintenance, reducing downtime. Destination control systems use AI and data analytics to optimize traffic flow, reducing wait times and energy consumption. Smart maintenance tools and IoT data enable maintenance teams to schedule repairs before breakdowns occur. Australian elevator and escalator companies are adopting green technologies to comply with environmental regulations and customer demand.
Widespread Usage in Commercial and Industrial Settings
Australia’s elevator and escalator market is experiencing rapid growth, primarily driven by its role in enhancing efficiency and productivity in industrial settings. These products find extensive use in places like manufacturing plants and warehouses, where they facilitate the quick and secure movement of goods between various levels. Similarly, escalators are essential in industrial environments like airports, retail malls, and stadiums, where there’s a need to transport large crowds efficiently.
The surge in the construction of high-rise structures, particularly in major cities like Sydney and Melbourne, has significantly increased the demand for elevators and escalators in the country. For example, in 2022, the completion of the USD 3 billion commercial skyscraper at 50 Bridge Street, spanning about 97,000 sq. meters, exemplified this trend. Additionally, plans were in motion to approve a USD 1 billion office tower and a rental apartment complex on the North Bank of Melbourne, further highlighting the robust demand for these systems in commercial buildings across Australia.
Government Initiatives
The Australian government’s commitment to developing smart cities aims to tackle the challenges of rapid urbanization and foster sustainable and efficient urban living. These smart cities harness advanced technologies and data-driven solutions to improve infrastructure, transportation, and the overall quality of urban life. The Smart Cities Plan, backed by a USD 50 million investment, outlines the government’s strategic approach to transform the urban infrastructure. Additionally, Directions 2031 is a pivotal spatial framework guiding the growth of Perth and Peel, emphasizing the need for effective urban expansion management.
The commitment to smart cities is expected to stimulate demand for elevators in several ways. First, smart cities prioritize high-density urban development, including tall buildings, which necessitate elevators for efficient vertical transportation. Secondly, elevators with advanced technology and connectivity features are in demand to enhance energy efficiency, security, and user experience in smart buildings. Lastly, elevators facilitate seamless vertical mobility within smart city complexes, encompassing mixed-use developments, commercial centers, and residential high-rises. Consequently, the government’s smart city initiatives are poised to drive innovation in the elevator industry, promoting its growth in Australia.
Impact of COVID-19
The elevator and escalator industry in Australia faced supply chain disruptions during the pandemic, resulting in delays in installation and maintenance. New safety measures like passenger limits and frequent disinfection were introduced to address sanitation concerns. Despite these challenges, the industry was poised to benefit from a growing demand for smart and energy-efficient systems. Market participants are further expected to shift their focus towards developing innovative and sustainable solutions to cater to changing customer preferences and needs.
Australia Elevator and Escalator Market: Report Scope
“Australia Elevator and Escalator Market Assessment, Opportunities and Forecast, 2016-2030F” is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of the Australia elevator and escalator market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, COVID-19 and Russia-Ukraine war impact, opportunities, and forecast between 2023 and 2030. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business model, competitive intelligence, etc.