North America Elevator Market size exceeded USD 2,733.6 million in 2020 and is set to observe around 1.2% CAGR between 2021 and 2027. The rising need for maintenance, repair, and aftersales service activities and a considerable demand for new elevator installations are some of the growth enabling factors of the market.

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An elevator or a lift is a type of hydraulic cylinder, roller-track, or cable-assisted machine that is widely used to vertically transport freight or people between levels, floors, or decks of a structure, building, or vessel. A range of elevators can be employed depending upon the need. The most common elevators currently used include hydraulic elevators, traction elevators, pneumatic elevators, machine room-less (MRL) traction elevators, and machine room (MR) traction elevators, among others (paternoster, inclined elevators, climbing elevators, dumbwaiter, etc.). The major application of these elevators or lifts is in commercial or industrial buildings or facilities along with considerable usage in residential structures.

In developed regions like North America, activities, such as repair and maintenance contribute significant revenue to the regional market owing to consistency in the construction industry. The growing building and construction industry is the prominent driver of North America elevator market growth. For instance, the U.S. is one of the largest construction markets with expenditure reaching over USD 1,200 billion. The residential sector has showcased notable growth in recent years. Rising trends in the residential construction sector are a key factor of the proliferating construction industry in the region. Within the U.S., new construction projects in South Atlantic have observed a significant rise, impelling the product demand.

Both public and private construction sectors have witnessed substantial growth in the past few years. For instance, the private sector expenditure surpassed over USD 1 trillion in 2020 from over USD 0.9 trillion in 2017. The private sector has outperformed the public sector within the same period. A rising urban population, increasing disposable income, and a high rate of urbanization coupled with government initiatives for economic developments are anticipated to create a positive scenario for industry growth.

However, factors, such as high installation and maintenance costs are expected to pose challenges to the industry expansion. Elevators need timely repair & maintenance for their regular operations. The costs of such maintenance activities can be several times the initial purchasing cost, which is likely to impede the market growth. Additionally, the North America elevator market has sustained severe losses due to the ongoing COVID-19 pandemic. The imposed lockdowns, restricted movements, and halted manufacturing operations have adversely affected the business profitability of the market players.

North America Market, By Product

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In 2020, the MR-traction generated over USD 1 billion revenue in North America elevator market. The robust demand for these elevators is attributed to their superior capabilities. MR-traction elevators are capable of covering a maximum distance of 2,000 feet and can speed up to 2,000 feet per minute. These elevators are highly preferred for mid and high-rise buildings due to their higher travel speeds than hydraulic & pneumatic elevators. In addition, the energy efficiency characteristics of MR-traction elevators are another key factor resulting in higher adoption of the product.

North America Market, By End-user

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The commercial building & construction sector held over 20% North America elevator market revenue share. The surging erection of commercial structures, such as shopping malls, hotels, hypermarkets, restaurants, etc. along with an increase in the number of people opting for recreational activities will further catalyze the growth of this sub-segment.

Competitive Industry Landscape

Prominent players operating in the North America elevator market include Otis Elevator Company, Fujitec Co. Ltd., Kone Corporation, Mitsubishi Electric Corporation, Schindler Group, Thyssenkrupp Elevator Technology, Hitachi Ltd., Hyundai Elevator Co. Ltd., TK Elevator Corporation, American Crescent Elevator, Delta Elevator Co. Ltd. and Modern Elevator.

The companies are engaged in strategic developments, such as mergers, acquisitions, new product launches, and facility expansion, among others. For instance, Otis Elevator Company, a US-based manufacturer of elevators, produced a custom-made glass elevator that was highly demanded for the Empire State Building in New York. Such key strategic initiatives will reinforce the market hold of existing players and are likely to have a positive impact on the business profitability of such players.