UAE is the second largest construction market in GCC region after Saudi Arabia. Construction market contributed nearly 11% to UAE's GDP in 2015 and further estimated to acquire 12% by the end of 2016. Government spending on improvising public infrastructure is leading to the growth of construction industry in the country. Expansion in the areas of metro network and airport have led for the installation of elevators & escalators in UAE.
According to 6Wresearch, UAE elevator & escalator market is forecast to grow at a CAGR of 3.9% during 2016-22. UAE elevator & escalator market is highly consolidated with few players accounting for major volume share. Although, elevator & escalator market in UAE remained stagnant in last few years, but with falling oil prices, the market is expected to decline due to halt in various government projects. In 2015-16, several infrastructure projects are anticipated to be on hold owing to dismay of investments. Though, upcoming World Expo in 2020 is forecast to elevate major construction projects in the coming years.
According to Prijo Samuel, Senior Research Analyst, Research and Consulting, 6Wresearch, "In vertical market, commercial vertical comprising of govt. & transportation, banking & financial and commercial offices accounted for largest share in revenue terms followed by residential and industrial verticals, respectively".
"Additionally, upcoming World Expo would result in influx of tourists from across the globe, thus driving the construction of new hotels, malls and expansion of metro network and airports. These infrastructures would deploy elevator & escalator, which would provide necessary boost to the overall market", Samuel further added.
According to Akash Shukla, Research Associate, Research and Consulting, 6Wresearch, "growth of elevator & escalator market in UAE is driven by new installations followed by maintenance & modernization. Vast public infrastructure and commercial projects are expected to spur the demand for new elevators & escalators in the country".
"Moreover, amongst all regions, Southern region consisting of Abu Dhabi would register growth over the next six years. Further, several projects are under work-in progress and are funded by Abu Dhabi Investment Authority (ADIA), which is pushing the construction in the region", Akash Shukla concluded.
"UAE Elevator & Escalator Market (2016-2022)" provides in-depth analysis with over 81 figures and tables covered in 120+ pages. The report estimates and forecast overall UAE elevator & escalator market by revenue, elevator & escalator type, by services, and by vertical. The report also gives insights on price trends, market trends, competitive landscape, company profiles, market drivers and restraints.
Media Source: Open PR