KSA Elevator and Escalator Market Outlook to 2028

KSA Elevator and Escalator Market Overview

• The elevator and escalator market in Saudi Arabia (KSA) was valued at USD 650 million in 2023, driven by rapid urbanization, a surge in infrastructure development, and an increase in high-rise building projects.
• The key players in the KSA Elevator and Escalator market include Otis Elevator Company, Schindler Group, KONE Corporation, ThyssenKrupp Elevator, and Mitsubishi Electric Corporation. These companies have established a strong presence in the market through strategic partnerships, innovative product offerings, and a robust service network.
• The inauguration of the King Abdulaziz International Airport's new terminal in 2022, which included the installation of over 250 elevators and escalators by KONE Corporation. This project highlights the increasing demand for advanced vertical transportation solutions in large-scale infrastructure projects.
• In 2023, the northern region dominated the segment, including cities like Riyadh, Tabuk, and Ha'il, which are experiencing growth due to urban development and infrastructure projects.

KSA Elevator and Escalator Market Segmentation

The KSA Elevator and Escalator Market is segmented into product type, application, and region.

• By Product Type: The KSA elevator and escalator market is segmented by product type into elevators, escalators, and moving walkways. In 2023, elevators held a dominant market share, driven by their widespread use in residential and commercial buildings.

• By Application: The market is segmented by application into residential, commercial, and industrial sectors. In 2023, the commercial segment accounted for the largest market share, primarily due to the extensive use of elevators and escalators in office buildings, shopping malls, and hotels.

• By Region: The market is segmented by region into North, South, East, and West KSA. The northern region, including Riyadh, dominated the market with the highest market share in 2023 due to Riyadh's status as the capital city and a major economic centre boosting the demand for elevators and escalators in the northern region.

KSA Elevator and Escalator Market Competitive Landscape

• ThyssenKrupp: ThyssenKrupp Elevator announced a major contract win in 2023 to supply and install 300 elevators and escalators for the Qiddiya project, a key component of Saudi Arabia's Vision 2030. This project aims to create a world-class entertainment and cultural destination, requiring extensive vertical transportation solutions.
• Otis: In 2024, Otis Elevator Company introduced its range of smart elevators in the Saudi market, featuring advanced technologies like IoT connectivity and AI-based maintenance systems. These innovations aim to enhance operational efficiency, reduce downtime, and improve passenger experience.

KSA Elevator and Escalator Market Analysis

KSA Elevator and Escalator Market Growth Drivers:

• Infrastructure Investment: Saudi Arabia's Vision 2030 initiative has led to substantial investments in infrastructure, with USD 40 billion allocated in 2023. This investment is aimed at developing high-rise buildings, commercial complexes, and smart cities, boosting the demand for elevators and escalators.
• Population Growth and Urbanization: Saudi Arabia's population is expected to grow from 35 million in 2023 to 37 million by 2024, according to the General Authority for Statistics. This population growth, coupled with increasing urbanization, will drive the demand for residential and commercial buildings, necessitating efficient vertical transportation systems.
• Commercial Real Estate Growth: The commercial real estate sector in Saudi Arabia is expanding rapidly, with new office buildings, shopping malls, and hotels being developed across the country. In 2023, the commercial real estate investment reached USD 21.3 billion and it is anticipated to grow further in 2024.

KSA Elevator and Escalator Market Challenges:

• High Compliance Costs: The introduction of stringent safety regulations by the Saudi Standards, Metrology and Quality Organization (SASO) in 2023 has led to an increase in compliance costs for elevator and escalator manufacturers. These regulations mandate the adoption of advanced safety features and regular maintenance, which require substantial investment in technology and training.
• Skilled Labor Shortage: The elevator and escalator industry in Saudi Arabia is facing a shortage of skilled labor, particularly in the installation and maintenance sectors. The demand for skilled technicians has outpaced supply, with a gap of 5,000 trained professionals reported by the Saudi Ministry of Human Resources and Social Development in 2023.

KSA Elevator and Escalator Market Government Initiatives:

• Sakani Housing Program: The Sakani Housing Program, launched to provide affordable housing for Saudi citizens, received a budget of SAR 60 billion (USD 16 billion) in 2023. The program aims to construct residential complexes with modern amenities, including elevators, to improve living standards.
• Vision 2030 Infrastructure Projects: Saudi Arabia's Vision 2030 has prioritized infrastructure development, with investments in projects like the King Abdullah Financial District and Riyadh Metro. In 2023, the government allocated SAR 120 billion (USD 32 billion) for these projects.

KSA Elevator and Escalator Future Market Outlook

The KSA elevator and escalator market is expected to grow in the coming years. The market is also likely to shift towards more organized with established players and online platforms expanding their reach.

KSA Elevator and Escalator Future Market Trends

• Sustainable and Energy-Efficient Solutions: Sustainability will be a key focus in the coming years, with an increasing demand for energy-efficient elevators and escalators. By 2028, it is projected that all new installations will comply with stringent energy efficiency standards set by the government. This shift towards green building practices will not only reduce energy consumption but also align with Saudi Arabia's commitment to environmental sustainability and reducing carbon footprints.
• Integration with Building Management Systems: The integration of elevators and escalators with advanced building management systems (BMS) will become a standard practice by 2028. This integration will enable seamless communication between various building systems, improving overall operational efficiency and safety.