Poised for Significant Growth

In this Readers’ Platform, your author discusses growth drivers elevating India’s VT business.

India’s vertical-transportation (VT) business has been witnessing significant growth in recent years due to urbanization, infrastructural development and increased demand for high-rise buildings in both residential and commercial sectors. The elevator and escalator industry is poised for significant growth due to various factors. Let’s take a closer look at some of the growth drivers elevating VT business:

Urbanization and Infrastructure Development

India’s rapid increase in urban population due to increased migration of people from rural areas to cities is one of the major causes for the increase in urban population. As cities grow vertically, to accommodate the surge in population, demand for elevators and escalators in both residential and commercial buildings is rising. Additionally, the government’s focus on infrastructure development, including smart cities and metro projects, will further drive the demand for VT systems.

Technological Advancements 

The industry is experiencing technological advancements that are enhancing safety, increasing energy efficiency and improving performance of elevators and escalators. Innovations such as destination control systems, regenerative drives and machine learning-based predictive maintenance solutions are gaining prominence in the Indian market. The adoption of advanced technologies will be crucial in driving growth and meeting evolving customer expectations.

Government Regulations and Safety Standards 

Adequate national regulations and standards are available, along with a few state governments having their own regulations for ensuring the reliability and safety of elevators and escalators. Compliance with these regulations is mandatory for manufacturers and service providers. Enforcement of safety measures creates a conducive environment for the growth of the industry, as it fosters consumer confidence and trust in the products.

Retrofitting and Modernization Opportunities

With a significant number of existing buildings lacking modern VT systems, demand for retrofitting and modernization projects grows. Building owners are recognizing the need to upgrade their aging elevators and escalators to improve safety, energy efficiency and user experience. This presents a substantial business opportunity for manufacturers and service providers.

Focus on Energy Efficiency

The increasing emphasis on energy conservation and sustainability is driving demand for energy-efficient elevators and escalators in India. Green building certifications and energy-saving initiatives are encouraging the adoption of eco-friendly solutions. VT companies are investing in R&D to develop energy-efficient products that align with these sustainability goals.

Increasing Consumer Awareness and Expectations 

As Indian consumers become more aware of the benefits and convenience offered by elevators and escalators, their expectations are rising. Customers expect reliable, technologically advanced and aesthetically appealing VT systems. Manufacturers and service providers need to cater to these evolving expectations to stay competitive and drive business growth.

Competitive Landscape

The elevator and escalator industry in India is highly competitive, with both domestic and international players vying for market share. Manufacturers and service providers need to offer innovative products, competitive pricing and superior after-sales service to differentiate themselves in this competitive market. Collaboration with architects, developers and building owners will be essential to secure contracts and projects.

The specific influence of each factor may vary over time and across different regions within the country. It’s important to remember that it’s crucial to adapt these growth factors to specific business models, target markets and goals. One must conduct thorough research, create a detailed business plan and stay agile in response to market dynamics to ensure the growth and success of elevator and escalator business in India.

As part of a study, 20-plus VT professionals directly dealing with elevator business development were interviewed in an unstructured survey to find out their future plans to grow VT business in India. We managed to gather valuable insights through the use of indirect questions, and this is what they had to say:

1. The common opinion expressed by most of the interviewees is to target high-growth areas such as major cities and urban areas where there is a rapid increase in infrastructure development, commercial buildings, shopping malls and residential complexes. These locations will have a higher demand for elevators and escalators.

2. A few of the VT professionals acknowledged that there were major gaps in developing business and hinted that they were working on: 

• Offering customization and innovation: Indian customer value customization and innovation. Provide tailored solutions that meet the unique requirements of different industries, buildings and architectural designs. They will offer technologically advanced features, energy-efficient options and smart integration to appeal to customers. 
• Building relationships with architects and builders: Forge strong relationships with architects, builders and real estate developers who are involved in large-scale projects. Collaborate with them from the design stage to ensure elevators and escalators are seamlessly integrated into their projects. 
• Expanding geographical market coverage and develop partnerships: Collaborate with local civil engineers, suppliers and contractors to expand reach across different regions in India. Establishing strategic partnerships can help to tap into new markets and leverage local expertise. 
• Training and educating: Conduct regular training programs and workshops for architects, engineers, property managers, facility management companies and construction professionals to educate them about the latest advancements in elevator and escalator technology. This positions the company as a thought leader and helps build trust among industry professionals. 
• Regularly conducting market research and analysis to identify current demand, trends and competition in the elevator and escalator industry in India. Understand the specific needs and preferences of the market.

3. Every professional spoke of customer-centric transformation. The needs of users can be understood and met much better on the basis of the information gathered. Also invest considerably more in building rapport with end customers. 

4. One of the inputs from a VT professional was they want to invest in up-skilling and reskilling their current sales team by offering expanded learning opportunities to grow market coverage, generate demand and increase their segment of share in India VT market. This is a very significant thought transformation. 

5. A few professionals spoke about exploring government initiatives related to infrastructure development, smart cities and urbanization in India. Identify opportunities to participate in government projects, tender processes and public-private partnerships and match up demand, pricing and technology.

6. The most interesting thing we heard during the interaction with the VT professionals was on smart lift technology and mobility concepts that will be transforming VT business growth, and these technologies leverage advanced connectivity, automation and data analytics to enhance efficiency, safety and user experience. Many VT professionals talked of some key features of smart lifts: 

• Destination control
• Predictive maintenance
• Energy efficiency
• Enhanced security
• Internet of Things integration (IoTi).

7. One of the respondents talked of the hidden growth driver: the installed base, plenty of assets in the field, many opportunities to ramp up service and repair businesses. Service business requires relatively low capital investment; they start to generate revenue quickly and can continue to do so over the long term. It can be easier to convince customers to sign off on service purchases than on capital investments, and service revenues can be more stable and less affected by economic cycles than original-equipment sales. They can also be given feedback that thousands of passengers rely on elevators and escalators for efficient and seamless movement. Outages and equipment malfunctions are not only an inconvenience but a real challenge, and they are planning investment in new maintenance technology that allows collecting data on outages and overall equipment performance. The pilot project has started by installing sensors on elevators and escalators. We can collect real-time data that lets us know within minutes when a unit becomes inoperable.

The VT market will continue to grow in India because of its high population — currently 1.5 billion — and still projected to increase. The rising middle class in India, coupled with changing lifestyles, has increased demand for modern amenities and conveniences. The opportunities are so great here. Elevators and escalators are considered essential — not just for comfortable living but also as a basic necessity. It is important for VT companies to adapt to market trends, technological advancements and changing customer needs to stay competitive in the Indian elevator business. Continuous innovation, R&D and a customer-centric approach will be crucial for future growth and success.