The hydraulic elevators market is expected to grow at a CAGR of 2.46%, reaching a market size of US$220.997 million in 2029 from US$195.698 million in 2024.
Hydraulic elevators use fluid pressure, usually hydraulic oil, to move the elevator car. They are made up of a hydraulic piston located beneath the elevator car and connected to an electrically powered pump. Such elevators are known for their smooth and silent operation and are widely used in multistorey residential and commercial establishments. The establishment of automotive manufacturing plants, airport terminals, and rapid urbanization are the major driving forces behind the hydraulic elevator market growth.
Hydraulic elevators lift and transport vehicles between levels of a manufacturing facility, making them easier to move during assembly, testing, or storage. These elevators can be designed to fit into small spaces, allowing automotive manufacturers to optimize their floor plans and add more production lines or equipment. The establishment of new automotive manufacturing plants contributed to the hydraulic elevator market growth. For instance, in January 2024, Maruti Suzuki announced its plans to spend INR32 billion to establish a fourth production line in its wholly-owned subsidiary Suzuki Motor Gujarat Private Limited ("SMG"), to increase electric vehicle production in upcoming years. Additionally, in September 2023, Lucid Group officially launched Saudi Arabia's first car manufacturing facility, which produces Lucid's groundbreaking electric vehicles for Saudi Arabia and exports to other markets.
Airport terminals frequently handle heavy loads, such as large luggage, cargo, or equipment, and Hydraulic elevators are known for their large load-carrying capacity, making them ideal for transporting heavy items in airports. It includes safety features like emergency stop buttons, door sensors, and backup power systems that ensure passenger safety and reduce the probability of accidents or elevator service disruptions. The establishment of new airport terminals is propelling the hydraulic elevator industry’s growth. For instance, in December 2023, the Indian Prime Minister inaugurated the newly built terminal building at Surat Airport in Gujarat which improves the travel experience and promotes economic growth, tourism, and connectivity.
Rapid urbanization promotes the construction of high-rise buildings, which are frequently equipped with elevators. As more people move to cities the need for vertical transportation within these buildings expands, thus increasing the demand for hydraulic elevators. For instance, according to the World Bank, over half of the world's population currently lives in cities, and the urban population is expected to increase by 1.5 times to 6 billion by 2045.
North America is projected to constitute a considerable share of the hydraulic elevator market due to the establishment of new automotive manufacturing plants and favorable investment in construction projects. For instance, in September 2022, Continental celebrated a significant milestone with the official launch of its new, cutting-edge automotive manufacturing facility in New Braunfels, Texas with an investment of more than $110 million. Additionally, in December 2022, the Ontario government announced the launch of General Motors' (GM Canada) first full-scale electric vehicle (EV) production facility in Ingersoll. Moreover, in November 2023, the government of Canada invested nearly $1.4 million in the building construction sector in Northwestern Ontario. Furthermore, in November 2023, the U.S. General Services Administration announced a $2 billion investment in over 150 construction projects.
Hydraulic elevators require regular maintenance and inspections to ensure optimal performance and safety. Hydraulic systems' complexity and potential issues with fluid leaks or component failures can result in higher maintenance costs and downtime which may limit the adoption of hydraulic elevators in numerous sectors thus affecting the market growth.