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The market for elevators in India is projected to grow at a compounded annual growth rate of over 8% between 2016 and 2021 with the size of the market forecast to cross $1.6 billion in 2020, according to research firm TechSci Research.
Increasing urbanization, growing demand for high rise buildings and government initiatives such as 100 Smart Cities and AMRUT cites were cited as the major growth drivers for the segment in the report titled India Elevators and Escalators Market By Type of Carriage, By Elevator Door Type, By End Use Sector, Competition Forecast & Opportunities, 2011 - 2021, released this month.
The research agency had projected the growth to cross $1.6 billion in 2020 in a separate report titled India Elevators Market Forecast and Opportunities, 2020 in September last year.
The government's focus towards modernization of airports and railway stations are also projected to drive elevators and escalators market in the country during forecast period, said the report.
"Companies involved in manufacturing elevators are increasingly focusing on smart and energy efficient elevators in order to attract consumer attention across various end use segments," said Karan Chechi, research director with TechSci Research, a research based global management consulting firm.
The top elevator manufacturers are also gearing up in a big way to serve the rising demand.
Elevator maker Mitsubishi Elevator India, a wholly owned subsidiary of Japan's Mitsubishi Electric Corporation, has set up its 5,000 units per annum plant at Vemgal near Bengaluru in Karnataka and will start serving the Indian market from December onwards. The plant will be Mitsubishi's 14th plant in the world.
Otis India is also expanding its manufacturing in India and has doubled its capacity in itsin Bengaluru plant last year by spending Rs 100 crore in the expansion.
ThyssenKrupp AG has also planned to set up its first elevator manufacturing plant at Chakan in Pune with capacity to manufacture 6,000 elevators per annum in October last year, with an investment of around Rs 300 crore.
Swiss elevator manufacturer Schindler has begun production in its Pune plant last year.
Kone India, Johnson Lifts, etc, are the other major companies operating in India's elevators market.
Southern India dominated the country's elevators market last year, due to increasing government projects, rising commercial and high rise buildings in the region.
Passenger elevators grabbed the largest volume share in India elevators market, on account of increasing number of housing projects, premium hotels, government infrastructure development projects, etc, according to the latest report.