Market Challenges And Opportunities

Global Elevator Control Market Drivers:

Increasing implementation of advanced technologies in control systems to boost the market growth

The elevator control systems have witnessed rapid development, with the growing number of high-rise buildings, and the designs of these systems continue to improve. Manufacturers are increasingly implementing advanced technologies in control systems. Moreover, advanced technologies such as IoT, artificial intelligence, and smart sensors, among others are widely adopted, as these technologies help in reduction of energy consumption, control traffic or congestion conveniently and effectively, and in improving the safety of the elevators. Thus, implantation of such technologies in control systems is driving growth of the market.

Growing investment in building infrastructure to propel the market growth

The rise in investment in allied infrastructure to achieve sustainability and it is concerned majorly with the increasing urbanization around the world. For instance, in October 2020, the International Monetary Fund (IMF), suggested member governments to seize the low-interest rate opportunity for investment in infrastructure to boost the recovery from the Covid-19 pandemic and to turn to greener energy. Moreover, increasing number of infrastructure is also driving growth of the global elevator control market during the forecast period.

Global Elevator Control Market Opportunities:

Growing urbanization around the globe is creating growth opportunities in the global elevator control market. For instance, as per the United Nations Department of Economic and Social Affairs data, the rate of urbanization across the globe is likely to increase to 68.4% in 2050 from 53.9% in 2015. Such urban centers have become important drivers for regional and national economic growth. Thus, increasing global urbanization is creating growth opportunities in the market.

Furthermore, advent of Covid-19 pandemic is creating lucrative environment for growth opportunities in the global elevator control market. During the pandemic, several facilities issues priority list, which included the use of elevators. Due to this the adoption of touchless technology in multi-story buildings for stimulating safe physical interaction among visitors in the public spaces of buildings is increasing around the world. Thus, demand for advanced elevator control components and assembly is likely to grow in the future, which in turn will create growth opportunities in the market.

Global Elevator Control Market Restraints:

High initial investment cost to hamper the market growth

The growth of the global elevator control market is challenged by the high cost of investment required in the elevator control systems. Due to the need for skilled technical consultants for integrating and installing elevator control systems, the total cost of investment in elevator control market increases. Moreover, the cost of manufacturing of these systems is also high, which further reflects on higher actual cost of these systems in the market. Thus, this factor is hampering the market growth. However, due to the introduction of technologies such as gearless motor operations and VF drivers (inverters), the cost of elevator control systems has declined. And this is anticipated to support the market growth.

Slowdown of global economy to challenge growth of the market

The economic indicators and the growth of the construction industry are directly interlinked. Any type of slowdown, a sudden pandemic outbreak, or recession can adversely impact growth of the construction industry, which in turn adversely impacts the demand for elevators. In 2020, due to slowdown of global economy, the smart elevator market was negatively impacted. The investment potentials of several countries was lowered due to the pandemic in major sectors such as construction and infrastructure. This factor is likely to impede growth of the market in the near future.