Mr. Manish Mehan, CEO & MD, TK Elevator India talks about the demand for elevators in Tier 2 and Tier 3 cities.
The Indian elevator Industry stands second throughout the world after China. The elevator industry stood at USD 1351.53 million in FY2021 and is likely to grow at a CAGR of 5.22% until FY2027. India has a demand 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
The tier 1 cities like Pune, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai, and Ahmedabad contribute over 60% 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 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. The cities like Agra, Srinagar, Solapur, Nagpur, Gwalior, Raipur, Indore, Jaipur, Lucknow, Varanasi, Jhansi, Kolhapur, Noida, Mangaluru, Surat, Puducherry, Visakhapatnam, Madurai, Baroda, and Nashik fall under tier 2 and tier 3 cities. The cities are developing through government push through infrastructure projects like the smart city. 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.
The total number of elevators required from one city might be low. But considering the number of cities, the national market requirement for elevators in tier 2 and 3 cities can be significant.
The necessity of elevators in all the cities
Green or energy-efficient elevators with standby modes have the potential to reduce consumption of power, which will indeed help achieve the sustainable goal of the infrastructure. TK Elevator also supplies units that can be equipped with regeneration drives, which make possible the conversion of mechanical energy of a descending elevator to electrical energy. Elevators equipped with regeneration drives are more eco-friendly, and have the potential to deliver significant savings.
Adequate movement of people
Elevators help people move efficiently within buildings and infrastructures. Elevators also make buildings more inclusive and accessible for the disabled to overcome mobility barriers.
The Indian lifestyle is already going through a transition, where people treasure the quality of life more and have more planned time to spare. Technology adoption has picked up pace after the outbreak of covid-19 and demands infrastructure suitable to this lifestyle. The elevator industry benefits from the increasing demands in tier 2 and tier 3 cities, the industry itself also continues to evolve through technological advancement and innovation.