The rising demand for elevators in tier-2 and tier-3 cities

The India elevator industry is today the second largest in the world, only after China. There are several drivers that are propelling the industry growth of around 5.2 per cent per year over the next five years. Urbanization is the key to growing demand of elevators, and it is tier-2 and tier-3 cities that are evincing higher demand, notes Manish Mehan.

 

The Indian elevator Industry stands second throughout the world after China.  The elevator industry stood at $1351.53 million in FY21 and is likely to grow at a CAGR of 5.22 per cent until FY27. India has a requirement of about 56,000-57,000 elevators a year. The industry itself is changing aspects within the country with the increasing demand due to urbanization and rising residential areas. The industry noticed higher demand especially, in tier 2 and tier 3 cities.

 

Demand for elevators in tier-1 cities

Tier-1 cities like Pune, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Ahmedabad contribute over 60 per cent of the elevator market as the cities are highly populated and lack land resources. Hence, these cities are developing high rise residential and commercial buildings. The high-rise buildings demand high-speed transaction elevators at a large number. Various manufactures are looking into the improvement, upgrading the industry with technology to fulfill and enhance the consumer trends.

 

Demand for elevators in tier-2 and tier-3 cities

India has more than 100 tier-2 cities, and the rest are tier-3 cities. Both tier-2 and tier-3 cities are at different phases towards development. Cities like Agra, Srinagar, Solapur, Nagpur, Gwalior, Raipur, Indore, Jaipur, Lucknow, Solapur, Varanasi, Jhansi, Kolhapur, Noida, Mangalore, Surat, Pondicherry, Vishakhapatnam, Madurai, Baroda, and Nashik fall under tier-2 and tier-3 cities.

These cities are developing through government push through infrastructure projects like the smart cities. These cities are coming up with superior infrastructures like residential complexes, highly facilitated hospitals, commercial buildings, malls, and many more. These upcoming infrastructures do require smart and efficient elevators for the convenience of the users and gain a more elite foundation. As some of these cities are tourist attractions, potential hubs, and smart cities.

Well, the total number of elevators requirement from one city might be low. But considering the number of cities, the national market requirement for elevators in tier 2 and 3 cities is unquestionably high.

 

The necessity of elevators in all the cities

 

Sustainable elevators

Eco-conscious elevators and standby modes in elevators have the potentials to diminish consumption of power, which will indeed help achieve the sustainable goal of the infrastructure.

 

Adequate movement of people

Elevators help in technological upgrade meant in the movement of people where people can move efficiently within the infrastructure. Also, accommodate a special class of the society that is disabled with overcoming the barriers.

 

Help in end times

Assists a person in a rush and saves time, as the schedules are busy and people have no time to spare. Elevators help in easing the time barrier.

 

Bottomline

The Indian lifestyle is already going through a transition, where people leave a more elite life and have planned time to spare. Technology adoption has fastened after the outbreak of Covid-19 and demands infrastructure suitable to this lifestyle. Well, elevators are a prominent component in this upgrading as it is a key to advancing infrastructure. The elevator industry is no wonder in demand by the infrastructure requirements in tier-2 and tier-3 cities. Along with which the industry itself is growing with the necessity of the consumers and upcoming technologies.

 

About the author

Manish Mehan is CEO & MD, TK Elevator India Pvt Ltd