The US elevator industry is expected to grow in the coming years due to urbanization, technological innovation, and sustainability. Hylman, the global management consulting firm, emphasizes strategic guidance and support for international companies looking to expand their sales and operations in the US elevator market, by offering customized solutions, investing in technology, building a strong brand, focusing on sustainability, and partnering with local players.
The elevator industry has experienced significant growth over the past decade, driven by urbanization, population growth, and increased demand for high-rise buildings. According to statistics, the global elevator market size was valued at roughly USD 84 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of around 7%.
The biggest elevator manufacturers, such as Otis Elevator Company, KONE Corporation, Schindler Group, and ThyssenKrupp Elevator AG, have followed several trends to stay competitive and meet the increasing demands of customers. These include the adoption of smart technologies, energy efficiency, safety features, and customization options:
Smart Elevators: Elevator manufacturers are developing smart elevators that are equipped with advanced technologies such as artificial intelligence, IoT sensors, and data analytics. These elevators can analyze passenger traffic, optimize elevator usage, and provide a personalized experience for passengers.
Energy Efficiency: Building owners and managers are increasingly focused on reducing energy consumption and carbon emissions. Elevator manufacturers are responding by developing energy-efficient elevators that consume less energy and reduce greenhouse gas emissions.
Safety: Safety is a top priority for elevator manufacturers, and they are investing heavily in technologies that improve elevator safety. Some of these technologies include destination dispatch systems, emergency evacuation systems, and predictive maintenance.
Customization: Elevator manufacturers are offering more customization options to customers. They are designing elevators that can be tailored to specific building needs, such as size, capacity, and style.
Digitalization: Manufacturers are embracing digitalization to improve their operations and customer service. They are investing in digital tools and platforms that allow customers to track their elevators' performance and request maintenance or repairs online.
One of the biggest concerns for elevator manufacturers is uninterrupted power supply (UPS) to ensure the smooth operation of elevators during power outages. The latest sources for uninterrupted power supply include battery backup systems, generator sets, and hybrid UPS systems that combine battery and generator backup:
Battery Backup Systems: Battery backup systems are a popular source of uninterrupted power supply for elevators. They are designed to provide emergency power to elevators during power outages. Battery backup systems can be charged by the building's main power supply and can provide enough power for elevators to operate for a limited amount of time.
Regenerative Drives: Regenerative drives are another source of uninterrupted power supply for elevators. They can convert kinetic energy generated by the elevator during operation into electrical energy that can be stored in batteries. This stored energy can then be used to power the elevator during power outages.
Generator Sets: Generator sets are commonly used as a source of uninterrupted power supply for elevators. They can be powered by diesel, natural gas, or propane and can provide enough power to operate the elevator during extended power outages.
Energy Storage Systems: Energy storage systems are becoming increasingly popular as a source of uninterrupted power supply for elevators. These systems can store energy from renewable sources such as solar or wind power and can provide emergency power to elevators during power outages.
Key competitive advantages for elevator manufacturers include innovation, quality, cost-effectiveness, and customer service. In terms of quality versus cost differentiation, customers are willing to pay more for elevators that offer better safety features, energy efficiency, and customizations. However, manufacturers must balance quality and cost to remain competitive.
When it comes to selling elevators, especially in the US, the industry is highly competitive, and elevator manufacturers need to have an effective sales strategy to succeed in the market. Here are some best sales techniques for elevator manufacturers to consider:
- Develop customized solutions: One way to differentiate from competitors is to offer customized solutions that meet the specific needs of customers. By understanding the unique requirements of building owners and managers, elevator companies can provide tailored solutions that address their challenges and concerns.
- Highlight safety features: Elevator safety is a major concern for building owners, managers, and occupants. Manufacturers should highlight the safety features of their products, including emergency brakes, fire alarms, and interlocks, to instill confidence in their customers. This approach can also help manufacturers differentiate themselves from competitors that may not prioritize safety.
- Leverage and invest in technology: Smart technologies, such as predictive maintenance and remote monitoring, can help elevator manufacturers differentiate themselves from competitors. Manufacturers should leverage technology to provide value-added services to their customers, such as real-time monitoring of elevator performance and predictive maintenance to reduce downtime and improve reliability.
- Offer superior customer service: Building owners and managers value exceptional customer service, and elevator companies that provide responsive, reliable, and high-quality service are more likely to earn their loyalty. Elevator companies should focus on building strong relationships with their customers by providing excellent customer service and support.
- Build strong relationships with customers: Building strong relationships with customers is essential for elevator manufacturers. Manufacturers should provide excellent customer service, including timely responses to customer inquiries, on-time delivery, and after-sales support. This approach can help increase customer loyalty and lead to repeat business.
- Build a strong brand: Elevator companies should develop a strong brand that stands out in the market. A strong brand can help differentiate from competitors and build customer loyalty. Companies should invest in marketing and advertising campaigns that highlight their unique value proposition and differentiate from competitors.
- Focus on sustainability: Environmental sustainability is becoming increasingly important to building owners and managers, and elevator companies that can offer sustainable solutions are more likely to win contracts. Elevator companies should focus on developing energy-efficient elevators, reducing carbon emissions, and minimizing their environmental impact.
- Emphasize energy efficiency: Energy efficiency is becoming an increasingly important factor for building owners and managers. Elevator manufacturers should highlight the energy-saving features of their products, such as regenerative drives, LED lighting, and smart controls, to appeal to environmentally conscious customers. Manufacturers can also highlight the long-term cost savings that energy-efficient elevators can provide.
- Partner with local players: The US elevator market is highly fragmented, and partnering with local players can help international elevator companies gain access to new markets and customers. By collaborating with local companies, elevator companies can leverage their expertise and knowledge of the local market to expand their sales activities and gain market share.
The elevator industry in the United States is highly competitive, with several global players operating in the market. As the market becomes increasingly crowded, elevator manufacturers are looking for ways to differentiate themselves from their competitors and gain a competitive advantage. One approach is to develop an international competitive differentiator, which can help manufacturers stand out in the market and increase their market share.
There are several factors driving the need for an international competitive differentiator in the US elevator market. One of the main drivers is the increasing globalization of the elevator industry. As the industry becomes more global, elevator manufacturers need to develop products and services that can compete on a global scale.
Another factor is the changing nature of customer demand. Building owners and managers are becoming more sophisticated in their purchasing decisions and are looking for elevators that offer more than just basic transportation. They are looking for elevators that are energy-efficient, have advanced safety features, and are customized to meet their specific needs. Elevator manufacturers that can offer these features are more likely to win contracts and gain market share.
In addition, the US elevator market is highly regulated, and manufacturers must comply with strict safety and environmental standards. Manufacturers that can develop products that meet these standards while also providing value-added features are more likely to succeed in the market.
Finally, the US elevator market is highly fragmented, with several regional and local players competing with global manufacturers. Elevator manufacturers that can develop a strong international competitive differentiator are more likely to succeed in the market, as they can leverage their global scale and resources to offer better products and services.
To develop an international competitive differentiator, elevator manufacturers need to focus on innovation, sustainability, and customization. They must invest in research and development to develop new products and technologies that meet changing customer demands and regulatory requirements. They must also focus on sustainability, offering energy-efficient elevators that help building owners reduce their carbon footprint. Finally, they must provide customized solutions that meet specific customer needs, building strong relationships with customers through excellent customer service.
The future outlook for the elevator industry globally looks promising, with continued growth driven by the increasing demand for high-rise buildings, urbanization, and technological advancements. However, manufacturers must adapt to changing customer demands, emerging technologies, and regulations to remain competitive.
The future outlook for the elevator industry in the US is positive, with several trends expected to drive growth in the coming years.
One of the main drivers of growth is urbanization. As more people move into cities, the demand for high-rise buildings and elevators will continue to increase. The US population is expected to continue to grow, and by 2050, it is estimated that 89% of the population will live in urban areas. This trend is expected to drive demand for elevators, especially in major cities.
Another driver of growth is technological innovation. The elevator industry has seen significant advances in technology in recent years, and this trend is expected to continue. Manufacturers are investing in new technologies, such as smart elevators, that can provide a more seamless and personalized experience for passengers. These technologies are also designed to improve efficiency, reduce energy consumption, and enhance safety.
Environmental sustainability is another key driver of growth in the elevator industry in the US. Building owners and managers are increasingly focused on reducing their carbon footprint and achieving sustainability goals. Elevator manufacturers are responding by developing energy-efficient elevators that consume less energy and reduce greenhouse gas emissions.
In addition to these drivers of growth, there are several challenges that the elevator industry will need to overcome in the US market. One of the main challenges is the increasing complexity of elevators. As elevators become more sophisticated, they also become more difficult to install and maintain. This trend is driving demand for highly skilled technicians and engineers, which can be a challenge for some manufacturers.
Another challenge is the increasing competition in the market. The US elevator market is highly competitive, with several global players competing for market share. This trend is driving manufacturers to differentiate themselves by offering customized solutions, innovative technologies, and superior customer service.
To attain demand and market share, elevator manufacturers should focus on the following recommendations:
Invest in research and development to develop new products and technologies that meet changing customer demands and regulatory requirements.
Focus on innovation and sustainability to differentiate from competitors and meet growing demand for environmentally friendly and energy-efficient solutions.
Provide customized solutions that meet specific customer needs and build strong relationships with customers through excellent customer service.
Emphasize safety and energy efficiency features in sales and marketing efforts to attract customers who prioritize these factors.
Build strong partnerships with suppliers, dealers, and other stakeholders to create a strong supply chain and ensure high-quality products and services.
In conclusion, the elevator industry has experienced significant growth over the past decade, driven by urbanization and increased demand for high-rise buildings. To remain competitive, elevator manufacturers must adapt to changing customer demands, emerging technologies, and regulatory requirements, while also focusing on innovation, sustainability, and customization. By implementing these recommendations, elevator manufacturers can attain demand and market share and position themselves for future growth.