Report : Turkey Elevator Market Forecast to 2027 - COVID-19 Impact and Country Analysis By Type (Hydraulic Elevator, Traction Elevator, Machine-Room-Less (MRL) Elevator, and Vacuum Elevator); Application (Residential, Commercial, and Industrial)
Increasing infrastructural developments in Turkey to lead elevator market growth at 7.5% CAGR during 2019–2027
According to our latest market study on “Turkey elevator Market to 2027 – Analysis and Forecast by Types [Hydraulic Elevator, Traction Elevator, Machine-Room-Less (MRL) Elevator, and Vacuum Elevator]; Application [Residential, Commercial, and Industrial]; and Geography,” the market was valued at US$ 658.6 million in 2019 and is projected to reach US$ 1,159.9 million by 2027; it is expected to grow at a CAGR of 7.5% from 2019 to 2027. The report highlights key factors driving the market growth, and prominent players and their developments in the market.
The elevators market is anticipated to witness high growth during the forecast period on the back of the mounting urbanization as well as the substantial upsurge in the global population of senior citizens. The elevators market is booming across various industries, which have highly capitalized on the constantly evolving field of technology. The constant growth in architectural as well as construction activities is expected to drive the elevator market. These elevators have wide applications across several verticals such as residential, industrial, and commercial places. They are conventionally installed at places such as residential complexes, railway stations, hospitals, malls, metro stations, schools, office buildings, and airports. The installation of elevators in mid-rise and high-rise buildings has become critical, thus serving the market to gain momentum across the construction sector. The steep growth in the energy and power consumption is one of the significant challenges faced by companies in the elevators market. The huge investments are being made on R&D for reducing the energy consumption by the elevators. The elevator market is very susceptible as well as receptive to prevailing economic conditions. As the market is highly capital intensive, the new entrants in the market has to focus robustly on the high initial investment, set up costs as well as installation, which may pose a challenge to penetrate into the market.
Turkey is a developing economy wherein there is a huge scope for infrastructural development, and thus the country attracts a large number of investments for these developments across different sectors, including construction, healthcare, transportation, and energy. As per the World Bank, Turkey ranks third in the world in terms of the Public-Private Partnership (PPP) projects, with a total contract value of ~USD 140 billion. With the GDP rate of ~5.5% and the population of 82 million, as well as rising urbanization with a population of over 1 million in urban areas, the demand for infrastructural developments in Turkey is also mounting. Further, the country's economic distresses have relentlessly affected the construction activities in the country; the depreciation in the currency, as well as high-interest rates, has lifted up construction costs, which is bringing projects to a halt. To overcome these issues, the government of Turkey is focusing on the infrastructural developments in the residential and commercial sectors, thereby boosting the installation of advanced elevators.
The Turkey elevator market is concentrated with a few well-established players, including Alben; Arkel; Asir Lift Elevator Manufacturer Co.; Aybey Elektronik A.?.; BSB Elevator; Delta Greentech Elektronik San. Ltd. Sti.; HAS Elevator; ISF Elevator and Engineering Company; KLEEMANN; Mik-el Elektronik San. ve Tic. Ltd. Sti.; Mikrolift Mühendislik Asansör Otomasyon S?ST. San. Ve tic. Ltd. ?T?.; MP Yener Övünç Asansör; Nergiz Kablove Plastik San. Tic. Ltd. ?ti. (Nergiz Cable); Prysmian Group; PT. IndustriLiftindo Nusantara; Shenzhen Hpmont Technology Co., Ltd.; and Yukselis Asansor.
Impact of COVID–19 on Turkey Elevator Market
The emergence and rapid spread of COVID-19 have paralyzed numerous developed, as well as developing, countries. The continuous surge in the count of infected people is threatening several industries across the globe. As per the latest WHO figures for May 25, 2020, there are ~5.37 million confirmed COVID-19 cases globally, with ~3,42,070 total deaths, and the number is growing at varying rates in different countries. The COVID-19 crisis is affecting the industries worldwide, and the global economy is anticipated to take the worst hit in the year 2020, which is likely to continue in 2021. As of May 26, 2020, the total number of confirmed cases on Turkey was ~157,814, with ~4,369 deaths. Turkey has implemented partial lockdown measures, which include issuing stay at home orders for those over the age of 65 and under the age of 20. The partial lockdown has affected the purchase of key elevator products in the country, indicating limited investments in these solutions. The temporary shutdown of manufacturing facilities is also showcasing a negative trend in the elevator market. The continuity of the COVID-19 spread would be severely dangerous for elevator market players. Furthermore, the decrease in the lira, coupled with the deteriorating economic conditions, is anticipated to weaken the growth of the Turkish construction sector severely.
The report segments the Turkey elevator market as follows:
- Hydraulic Elevator
- Traction Elevator
- Machine-Room-Less (MRL) Elevator
- Vacuum Elevator