A recent survey found that the increase in commercial space and infrastructure development are major drivers for the growth of the elevator and escalator market in India. The development of more mega cities gives a strong anticipation for a need for more elevators and escalators.
India’s economy has shown a steady growth of five to six percent over the last two to three years, despite global recession. Because of this, the real estate market in India is booming. It is estimated that real estate projects will reach $265 billion in 2020, over $150 billion more than in 2010. High disposable incomes, a young workforce, and a large base of middle-class households will help India’s economy and real estate market thrive.
It is expected that India will have 25 mega cities with populations of eight million or more with a GDP of $250 million. The country also expects to experience the creation of four mega regions by 2025, each with a population of over 15 million. All this growth equates to more commercial buildings. As the mega cities expand, the building will soar higher, creating a need for commercial size elevators and escalators.
Currently, elevator sales in India are between 40,000 and 45,000 units per year. This is a big leap from the 15,000 units per year that were being sold ten years ago. The market is not just in commercial elevators either, more than 50 percent of the elevator sales in India come from residential elevator purchases. More high rise apartments are being built to accommodate the growing population, causing the elevator market to grow and expected 15-17 percent in the next five to seven years.