According to the latest report by global consultancy firm TechSci Research, the Saudi Arabia elevator and escalator market is expected to recover in the short-term and be worth $1.34 billion by 2025, compared to $961.70 million in 2020.
This growth is “owing to the increasing construction activities, development of infrastructure, rising number of multi-storey commercial and residential buildings and skyscrapers, growth in the real estate sector and technological advancements in the elevator industry,” the report said.
While the number of construction contracts in Saudi Arabia declined in 2020, many real estate experts believe the market will make a quick recovery.
“Whilst the total value of new contracts has decreased, the level of activity underway in Saudi Arabia still remains high compared to previous years and considering new financing agreements signed during the course of 2020, particularly those relating to urban and real estate development, we expect new contracts activity levels to begin to return to pre-pandemic highs in 2021,” Taimur Khan, an associate partner at real estate consultancy Knight Frank, told Arab News in December.
In its Q3 2020 construction report, the US-Saudi Business Council also said that the government’s megaprojects related to Vision 2030 would continue to be its focal point in the near-term, with investments continuing into these strategically important areas.
A recovery in the construction sector would be the catalyst for the elevator and escalator market, the TechSci Research report said.
The Kingdom’s “rising urbanization and growing population are driving the urban construction sector in Saudi Arabia. An increase in demand for high-rise buildings across various cities of Saudi Arabia is augmenting the installation of elevators and escalators,” the report said.