China is the No. 1 elevator manufacturing and consuming country in the world. Elevator output and consumption accounts for 60% of global market, the total output in 2015 is around 800,000, with average price RMB200,000/elevator, that constitute a 100billion market. However the elevator per capita ownership is still far behind developed countries and regions. Look from long-term, china still has space to improve regarding per capita ownership of elevator.
The elevator industry has step into steady growing phase. Increasing for elevator production and sales volume is slow down, on one hand, with annually 20% average increase in the past 10 years, elevator production has increased nearly 6 times, as the inventory increased, the industry stepped into steady growing phase from booing increasing phase. On the other hand, real estate industry decline lead to reduced demand for elevator.
Increasing needs from rail transit, affordable housing and elevator modernization stimulate increase of the industry from real estate decline. Elevator needs from commercial and residential building accounts for more than 50% of the total needs, the rest 30-40% needs is from other industries than real estate. In the next 3-5 years, elevator production and sales volume could still remain at 5-10% increase.
Installation and maintenance is going to have great potential for booming increase. Elevators run for more than 15 years are with high maintenance fee and for the sake of safety and regulations, elevator owners are more likely to have elevator manufacturer to give maintenance service. We predict that in the next 5 years 30% in the total revenue would from maintenance.
The stable earning and well-funded elevator industry has provide financial conditions for extended development of the industry. However the decline in real estate industry and slowdown in elevator sales are provide transformation opportunity. Meanwhile the intelligent manufacturing base provides industrial base and breakthrough direction for business transformation. To combine robot, internet of things and intelligent manufacturing with elevator manufacturing capacity is the trend for the industry development.