Impact of COVID-19 on the Global Elevators and Escalators Market
The elevators and escalators market has been negatively impacted in recent months owing to the lockdowns imposed in the majority of the countries due to the outbreak of the COVID-19 pandemic in December 2019. Several countries, including Italy, the US, and India, have witnessed curfew-like situations where businesses (except essential services) were not allowed to operate. Also, the impact of the COVID-19 outbreak has slowed down the growth of the construction industry in recent months, causing delays, which can be attributed to several disrupted supply chains. Most commercial construction projects were ordered to be shut down to curb the spread of the virus. The factors mentioned above have significantly impacted the demand for elevators and escalators in the last few months. The elevator & escalator manufacturers and the overall construction industry are expected to face several challenges as most of the commercial projects are likely to be left incomplete or be delayed owing to supply chain disruptions, cash flow constraints, unavailability of the workforce, and production shutdown. The halt in construction activity at project sites has further put an additional financial strain on several manufacturers and developers.
The demand for elevators and escalators is anticipated to increase in the coming months as several governments prepare to lift the lockdowns in a phased manner. As the lockdowns gradually come to an end, the construction industry is anticipated to grow, though not at the same pace as compared to the last few years. As the commercial projects restart globally, the demand for elevators and escalators is anticipated to grow in the coming months. The elevators and escalators market is expected to rebound in the first quarter of 2021 and grow at a significant CAGR in the next five years with China, being the leader in the global elevators and escalators market.
FDI INVESTMENTs IN TOP COUNTRIES, 2016–2019 (USD MILLION)