Elevator and escalator sales are expected to grow by 7% and 66% respectively this year due to increased demand from affordable housing and infrastructure projects including metros and airports, industry officials and analysts said.
Residential segment
The residential segment, especially affordable housing, is projected to drive growth in elevators. The residential segment accounts for more than 80% of the demand for elevators in the country.
“This year, the sales volume of elevators is expected to grow to 60,000 units, as compared to 56,000 units last year, up 7%,” said Uday Kulkarni, MD, Schindler India. “However, escalator volume is expected to rise sharply to 3,000 units as compared to 1,800 units last year, up 66%, mainly on account of demand from metros and railways.”
Lower GST on elevators for affordable housing at 8% will act as a catalyst, he said.
“Infrastructure development presents a great opportunity for growth with the government’s focus on development,” said Sebi Joseph, president, Otis Elevator Company India. “This commitment toward speeding up the pace of urbanisation by investing in metros, railways, and airports could provide immense growth.”
The industry is projected to grow by 50% in four years, according to the Madras Consultancy Group.
“The industry is projected to reach $175 billion by 2021,” Shankar Gopalkrishnan, President, Madras Consultancy Group, said at the recent International Elevator & Escalator Expo 2018. The market for elevators and escalators stood at $115 billion in 2017, he said.
Speaking at the same event Ramesh Nair, CEO & Country Head, JLL India said,“The major demand is expected to come from residential and new commercial concepts like co-working spaces.”
“By 2022, around 20 % of overall demand is expected from co-working spaces. For residential space there is a big opportunity going forward in terms of affordable housing with a demand of 10 million apartments per year,” he added.
