The elevator and escalator market in the UAE is expected to grow at a compound annual growth rate (CAGR) of 4.7 per cent during 2018-24 on the back of mega infrastructure development due to the upcoming World Expo 2020, a report said.

Further, for the upcoming World Expo 2020, more than $200 billion are expected to be spent for the expansion of existing and construction of new public and private infrastructure projects, which would deploy elevators and escalators, added the report titled "UAE Elevator and Escalator Market (2018-2024)" from 6Wresearch, a global market research and consulting firm.

According to Prijo Samuel, assistant research manager, Research and Consulting, 6Wresearch, the elevators segment accounted for majority of the market share.

Growing acceptance of elevators in the residential sector coupled with increasing heights of buildings in the country has propelled the demand for elevators in the UAE; 4 mps and above high-speed elevators are more in demand.

"Moreover, yjr increasing number of foreign tourists has driven the construction of new hotels across the region, especially in Dubai, resulting in an increased deployment of elevators," Samuel added.

Shefali Goel, research analyst, Research and Consulting, 6Wresearch, said: "Commercial vertical which include transportation and retail segments, accounted for the major market share in the overall market. The UAE is registering significant infrastructural development activities in the commercial sector. Increasing construction activities in residential vertical would further stimulate the market growth during the forecast period.”

“Further, the Northern Region accounted for majority of the revenue share in UAE elevators and escalators market attributed to key construction projects in the commercial, hospitality and retail verticals," Goel concluded.

Over the past four years, UAE elevator and escalator market registered sluggish growth in terms of number of new installations, attributed to the change in government policies pertaining to devaluation of the currency as well as decline in construction market projects, the report said.

However, upcoming new hotels and shopping malls coupled with growing government spending on infrastructural development projects and increasing inflow of FDI in the construction and retail sectors are some of the key factors that would revive growth of the UAE Elevator and Escalator market during the forecast period.

Some of the key players in UAE elevator and escalator market include Kone Corporation, Mitsubishi Electric, Otis Elevator, Schindler, ThyssenKrupp, and Hyundai Elevators, the report said.  – TradeArabia News Service