Market and Driving Forces

Urbanisation and sustainability drive market growth

The market for Alimak Group’s vertical access solutions varies according to the demand from end customers in the industrial and construction sectors. The increased focus on sustainability is a market outlook driver for customers across the world as well as their choice of supplier.

The market’s increased focus on sustainability is manifested in different ways, including higher safety standards and the transition to renewable energy and more efficient solutions. Stricter work environment legislation in both mature and emerging markets calls for safer working places. A number of European countries already have, or are about to implement, national laws that regulate the maximum height the operator may climb on a tower crane, which contributes to increased demand for reliable vertical access solutions. In the long term, demand for Alimak Group’s products is also driven by increased automation and requirements for cost-effective and energy-efficient production, which boost demand for upgrades and investments in new solutions.

The Industrial Market

The market for the business area Industrial Equipment consists of customers in many different industries and demand follows the general levels of investment in them. In recent years, the mature markets have seen stable positive development while the emerging markets continue to demonstrate good growth. The pace of investment in oil & gas has weakened globally, though some renewed early activity within the segment has been noted during 2017.

China’s and South East Asia’s increasing growth and need for electrical power opens up possibilities. Investments in tall buildings continue and facades are growing ever more complicated, resulting in the need for innovative facade maintenance systems. As continued expansion of electrical power production is necessary, wind towers grow taller and utilities increase their focus on occupational health and safety which strengthens demand for service elevators. There is, however, an on-going price pressure in the market driven by reduced subsidies to wind power by local governments. This highlights the need for constant cost reduction to stay competitive.

The Construction Market

Population growth and urbanisation generate increased construction activity which drives demand for the Group’s construction solutions. Demand varies greatly between geographic regions with developing countries accounting for more than half of all construction worldwide. Going forward, emerging markets are therefore expected to account for an increasing share of the world market.

To meet this, Alimak Group has developed new products specifically designed for the mid-market. This has resulted in growing sales in many Asian and African markets as well as in South America.

Vertical Access Anytime Anywhere
Vertical Access Anytime Anywhere

Vertical Access Anytime, Anywhere