A LEADING technology research and advisory company has in its report forecast the elevators and escalators market in Saudi Arabia will grow at a CAGR (compound annual growth rate) of 6.9 per cent over the period 2012-2016.

TechNavio’s report, the Elevators and Escalators Market in Saudi Arabia 2012-2016, has been prepared following an in-depth market analysis focusing on Saudi Arabia with inputs from industry experts.

It also covers the elevators and escalators market landscape and its growth prospects in the coming years. The report also includes a discussion of the key vendors operating in this market, and aims to aid decision makers’ understanding of the significant trends impacting this market.

“One of the key factors contributing to this market growth is the increase in civil and construction activities across Saudi Arabia. The elevators and escalators market in Saudi Arabia has also been witnessing the emergence of eco-friendly elevators and escalators. However, the need for increased capital costs could pose a challenge to the growth of this market,” says a spokesman for the research company.

Commenting on the report, an analyst from TechNavio’s Engineering team says: “Movement within buildings is more time-consuming in the taller buildings and skyscrapers that are now being built. Therefore, legacy elevators moving at a speed of 2 to 5 m per second cannot be used as an effective means of transportation in today’s tall buildings. For this reason, several vendors are developing high-speed elevators that will enable the faster movement of people and goods within buildings by reducing the weight of elevator cars and incorporating high-powered motors to increase speed.”

According to the report, one of the main drivers is the increase in civil construction activities in Saudi Arabia. The increase in the construction of commercial, residential, and industrial buildings drives the growing demand for elevators and escalators. Further, the report reveals that one of the main challenges in the market is the high cost of elevators and escalators.

The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry in addition to a SWOT (strengths, weaknesses, opportunities, and threats) analysis of the key vendors.

The key vendors dominating this market space are Fujitec Company, Mitsubishi Electric Saudi, and Schindler Group. The other vendors mentioned in the report are Gulf Elevator and Escalators Company (GEEC), Kone Corporation, ThyssenKrupp, Otis Elevator Company, Hyundai Elevators Company, and Toshiba Elevator and Building Systems Corporation.

The report, published early this year, has aimed to answer key questions including the market size in 2016 and its growth rate; key market trends and what is driving this market; challenges to market growth; the key vendors in this market space; the market opportunities and threats faced by the key vendors; and the strengths and weaknesses of the key vendors.