UAE elevator and escalator market was valued at USD 902 million in 2022 and is forecasted to reach USD 1448.54 million by 2030, with a strong CAGR of 6.1% from 2023 to 2030. It is due to the robust construction sector and substantial government investments in nationwide infrastructure development. The increasing influx of visitors in UAE has triggered the construction of more hotels, retail establishments, and buildings, driven by the demand for elevator and escalator installations. Furthermore, the growing focus on innovation and the desire for energy-efficient technologies are expected to propel the market growth. Additionally, the rising middle-class population and increased disposable income have elevated the demand for luxurious residential and commercial properties, necessitating the installation of elevators and escalators.
The continuous proliferation of skyscrapers and infrastructure investments are persistent drivers of the demand in UAE elevator and escalator market. Moreover, government initiatives including Dubai 2040 urban development plan, the Sheikh Zayed Housing Programme, the Energy Strategy 2050 and the Dubai Tourism Strategy highlight the pivotal role of infrastructure in the UAE’s growth aspirations. Additionally, the escalating need for urban mobility and governmental efforts to boost tourism and enhance transportation infrastructure will lead to the development of railways and metro systems throughout the country. The UAE modernization industry’s long-term growth potential is fueled by a digital economy strategy incorporating emerging technologies such as AI and Cyber Security, while supporting the digitization of SMEs. In 2022, maintenance and modernization in the UAE elevator and escalator market constitute 67% and 33%, respectively.
Increasing Tourism in the Country
United Arab Emirates has rapidly emerged as a sought-after tourist destination, drawing millions of visitors annually. The surge in tourism positively impacts the country’s economy, including the elevator and escalator market. With the rising number of visitors, there is a growing demand for high-quality and efficient elevator and escalator systems in hotels, retail centers, and various public establishments. Consequently, the UAE elevator and escalator market is witnessing steady growth and is poised for further expansion in the coming years.
Moreover, the UAE government’s focus on smart cities and sustainable construction drives the demand for energy-efficient and environmentally friendly elevator and escalator systems. UAE boasts a thriving tourism sector driven by diverse travelers, including business, sports, leisure, and religious visitors. Dubai and Abu Dhabi have emerged as top choices for international tourists in the UAE. In the first eight months of 2022, Dubai welcomed a remarkable 10.1 million visitors, securing its position as the fourth most-visited city globally. Simultaneously, with 5.26 million visitors, Abu Dhabi ranked 94th in the global tourism rankings.
New Installations are Spurring the Growth
UAE has been undergoing rapid growth in its construction and real estate sectors, driving an increased demand for elevators and escalators. For instance, the Dubai Mall, located in the heart of Downtown Dubai, is the world’s most frequent shopping and entertainment destination, attracting over 100 million visitors annually. With more than 1,200 retail stores, 200 international dining options, and various entertainment activities for families, the mall relies on many escalators and elevators to accommodate its vast foot traffic, making it one of the world’s best-equipped retail complexes.
In the third quarter of 2021, the Dubai Land Department (DLD) recorded 2,845 commercial property transactions amounting to USD 9.2 billion. It represented a 1% increase in transaction volumes compared to the previous quarter and a significant 34% surge compared to the same period in the previous year. The extensive deployment of elevators and escalators has played a crucial role in enhancing the shopping experience for visitors and facilitating their mobility within the mall.
Residential Construction Projects are Boosting Demand
Residential construction initiatives are pivotal in driving the demand for elevators, driven by vertical development and population growth. In densely populated urban areas, the availability of horizontal expansion space is limited. As a result, residential buildings are increasingly constructed vertically, featuring multiple stories and floors. Elevators are indispensable in these buildings to ensure convenient and efficient vertical transportation for residents. Furthermore, many cities and metropolitan regions are grappling with population growth, leading to a heightened demand for housing. Developers opt for multifamily and high-rise residential buildings to maximize occupancy within the available space, which inherently necessitates elevators.
For instance, five monumental skyscraper projects in the UAE are expected to significantly boost the demand for elevators and escalators. These projects include the construction of Ciel Tower (366 meters tall), Primo Tower 1 (356 meters tall), Uptown Tower (339 meters tall), One Za’abeel Residential Tower (330 meters tall), and Al Wasl Tower (302 meters tall), all slated for completion by the end of 2023. Consequently, there is an anticipated surge in the requirement for traction elevators as the construction of additional skyscrapers progresses.
Impact of COVID-19
The COVID-19 pandemic had a notable impact on the UAE elevator and escalator market. Movement restrictions and the closure of public spaces led to a pause in construction projects, including those requiring elevators and escalators. Manufacturing facilities were temporarily closed, disrupting the supply chain and causing production delays. Global supply chain disruptions affected the timely delivery of elevator and escalator components, impacting the installation and maintenance schedules. Restricted access to public spaces, such as malls and restaurants, reduced footfall and the demand for vertical transportation systems. However, as restrictions eased and construction resumed, the market experienced a resurgence in demand for new installations and maintenance services.
UAE Elevator and Escalator Market: Report Scope
“UAE 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 UAE elevator and escalator market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, impact of COVID-19, 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.