Slumping oil prices, weakening economy and expected cut in investments will affect Saudi Arabia’s elevator and escalator market which is expected to grow at a compounded annual growth rate of 1.9 per cent during 2016-22, a report said.

Though Saudi Arabia recorded substantial demand for elevators and escalators in last five years, the market growth is expected to decline owing to falling oil prices, explained the report entitled “Saudi Arabia Elevator & Escalator Market (2016-2022)” from 6Wresearch, a real time market and competitive intelligence provider.

With declining oil prices, infrastructure development activities are anticipated to be affected for the next two years. However, the market would regain momentum when oil prices start appreciating, the report said.

Rajat Kharbanda, senior consultant, Research and Consulting, 6Wresearch, said: “Commercial vertical which comprises government and transportation, hospitality, commercial offices and retail segments has generated the majority of the market revenues in the overall market. Also, increasing construction in the residential vertical would further stimulate the growth of the market.”

“Moreover, the increasing number of foreign tourists has driven the construction of new hotels, especially in the western region, which is resulting in the increase in deployment of elevators in the country,” Kharbanda added.

Shefali Goel, research analyst, Research and Consulting, 6Wresearch, said: “In the elevator and escalator market, the new installation segment has dominated the market followed by maintenance and modernisation. The increasing number of construction projects and growing demand in the residential vertical would upshot the revenues of new installation segment.”

“The central and western regions are the key revenue-generating regions in the elevator and escalator market. Increasing investments, rise in infrastructure, growing IT sector, and establishment of several skyscrapers in these regions have contributed for their growth. Riyadh, Jeddah, Makkah and Madinah have led for the growth of these regions,” Goel concluded.

 Some of the companies in Saudi Arabia elevator & escalator market include Fujitec Saudi Arabia Co. Ltd, Gulf Elevator & Escalator Co. Ltd., Hyundai Elevator Co. Ltd, Kone Areeco Ltd., Mitsubishi Electric Saudi Ltd, Otis Elevator Company Saudi Arabia Ltd., Schindler Olayan Elevator Co. Ltd., ThyssenKrupp Elevator Saudi Co. Ltd., and Toshiba Elevator Middle East, the report said. – TradeArabia News Service