Report: Door Automation Market Primed for Swift Recovery
AUSTIN, Texas – The $5.4 billion world market for door automation is poised for a robust recovery after languishing in recent years, according to a study by IMS Research.
Titled “World Market for Door Automation,” the study states that global revenues from the sale, service and maintenance of automatic doors and operators, driven largely by nonresidential construction activity, faltered badly following the world financial crisis. However, recent evidence suggests this trend is reversing itself.
A large number of automatic door suppliers reported modest revenue growth in the U.S. following a three-year period where revenues fell by as much as 30%. Weak market conditions in the U.S. have been detrimental to the overall performance of the Americas region, with U.S. door automation revenues accounting for more than 75% of the market. The uptick in U.S. commercial construction will not only have a positive impact on U.S. door automation sales but also those of the Americas, where revenues are estimated to increase from about $1.495 million in 2010 to more than $2.1 million in 2015. The increase amounts to a compound annual growth rate (CAGR) of 7.9%, according to IMS Research.
“Building construction is capital-intensive, so when the world banking system started to fail, the building and door automation industries went with it,” says Michael Arluck, the report author and analyst at IMS Research. “That being said, it is time for the pendulum to swing the other way. In addition to improved construction activity, developments in green initiatives, regulations and building codes, and the continued build-out of South America are each forecast to play a major role in the Americas recovery.”
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