UAE elevator market to grow by 3.9% by 2022
6Wresearch's latest report found the 3.9% CAGR will be driven by metro and airport network expansion projects, and an increasing demand for maintenance services
The UAE's elevator and escalator market is expected to grow at a CAGR of 3.9% between 2016 and 2022.
According to 6Wresearch, the UAE is the GCC's second largest construction market after Saudi Arabia, contributing almost 11% to the UAE's GDP in 2015.
Expansion in the country's metro and airport infrastructure have led to increased national demand for elevators and escalators.
6Wresearch's most recent study, titled 'UAE Elevator & Escalator Market (2016-2022)', stated that the sector is "highly consolidated, with few players accounting for major volume share".
In a statement, 6Wresearch added: "Although the UAE's elevator and escalator market remained stagnant for the last few years, with falling oil prices, the market is expected to decline due to a halt in various government projects.
"Between 2015 and 2016, several infrastructure projects are anticipated to be on hold owing to dismay of investments. However, Dubai Expo 2020 is forecasted to elevate major construction projects in the coming years."
National growth in the sector will also be driven by maintenance and modernisation schemes.
Remarking on these findings, Prijo Samuel, senior analyst for research and consulting at 6Wresearch, said: "Banking, financial, and commercial office sectors accounted for the largest share in market revenues, followed by residential and industrial sectors.
"Dubai Expo 2020 will result in an influx of tourists from across the globe, driving the construction of new hotels and malls, and the expansion of metro and airport networks.
"These infrastructures will need elevators and escalators, which would provide the necessary boost to the sector," Samuel added.