A cable car or ropeway or aerial tramway is a type of transport system that uses one or two stationary ropes for support, while a third moving rope provides propulsion. Generally, cable cars operate overhead and are suspended on a single or multiple metal wires. Cable cars and ropeways are installed for long-term operation in ski sports, the tourism sector, man and material handling, and urban transport. There are different types of cable cars such as aerial tramways, chair lifts, material ropeways, surface lifts, funicular ropeways, gondola lifts, and incline lifts. The type of cable car and ropeways may vary with the prospective application. Most commonly used cable cars are considered in the report.
The global cable cars & ropeways market was accounted for US$ 3,667.2 Million in terms of value in 2019 and is expected to grow at a CAGR of 11.90% during the forecast period (2019-2027)
Market Dynamics- Drivers
Continuous growth in urban population had led to unavailability of land. According to Coherent Market Insights’ analysis, around 70% of urban population travels daily, necessitating efficient mass transit infrastructure. Governments in various countries are focused on fast and energy efficient modes of transportation. Although metros and subways are efficient ways of transportation, the cost of construction related to metros is significantly high and is not viable at every place. Hence, governments and transport authorities are shifting towards cable propelled transit (CPT) for an effective and smoother transportation system. Moreover, growing snow tourism and material handling have increased the adoption of cable cars. For instance, In 2014, Bolivia inaugurated the first phase of its ‘la-paz-telefericos’ project, which is a 10 km gondola cable car project installed with an investment of approx. US$ 234 Mn. The 2nd phase of this project is initiated, making it the world’s largest CPT with an investment of around US$ 450 Mn. Hence, increasing adoption of cable cars in urban transport is expected to boost the global cable cars & ropeway market growth in the near future.
Since aerial tramways and cable cars are elevated over 300 feet above ground, which several hundred thousand feet in mountains, stringent safety norms are imposed on installer and operator. Moreover, Europe accounts for the major market share and thus, maximum number of cable car system follows ‘European Parliament and Council Directive 2000/9/EC relating to cableway installations designed to carry passengers’ nor. This was replaced by Regulation (EU) 2016/424 of the European Parliament and of the Council of March 9, 2016, on cableway installations and repealing Directive 2000/9/EC and has been applicable since April 21, 2018. Moreover, key companies in the market are investing significantly for research and development of new technologies, in order to increase capacity of cable cars, while assuring the safety, high speed, and smooth operations. These efforts have expanded the service life of ropeways, which in turn, is expected to support the market growth over the forecast period.
Europe region dominated the global cable cars & ropeways market in 2019, accounting for 51.1% share in terms of value, followed by North America and Asia Pacific, respectively.
Source: Coherent Market Insights
Market Dynamics- Restraints
Cable cars are manufactured and installed with some high quality material and cutting-edge technology. This makes them significantly expensive. Moreover, the location, passenger capacity, support-free span, type of lift, and other varied factors make cable cars expensive. In fact, certain cable car projects may require million to billion dollars of investment and also requires timely maintenance, which increase the overall cost. The investment money is recovered albeit at a slow rate and thus increases its payback time. Therefore, prolonged payback is expected to hamper the market growth in the near future.
Installation of cable car necessitates high-end mechanical and structural engineering since the cabins need to be hauled over a wide span of supports. Moreover, cable car systems are designed in a manner that they should not be affected by bad weather conditions and must be stable at high wind speeds. Hence, cable cars are designed and manufactured with considerations to all parameters that can affect performance and safety of the system.
Presence of limited players in the global cable cars & ropeways market has presented the opportunity market consolidation. Emergence of local players can pose a threat to established players, as new entrants can effectively increase their market share by offering systems at relatively low prices. Moreover, intense competition among manufacturers may compel market players to enhance technology and offer better and cost-effective cable cars and ropeways. Asia and African countries can be potential markets as they are expected to provide major growth opportunities and high profitability, owing to low material and labor cost.
Over the years, cable car technology has evolved significantly albeit at slow rate. It took over a century for cable cars to establish good market reputation. Since cable cars can provide numerous advantages, high demand is expected in the near future, provided there are improvements in technology for enhancement of efficiency of cable cars. Ropeways are driven by a cable hauled by a bull-wheel (huge Pulley), which is powered by either a motor or gasoline engine. The propagation of cable over a large route needs high power source, which eventually increases power consumption. Thus, reducing power consumption can prove major market opportunities for key companies.
Source: Coherent Market Insights
Gondola lifts offer various advantages such as high speed and enhance passenger capacity, which is why it has witness significant demand in the recent past. Moreover, gondola lifts with glass cabins are widely preferred and installed at tourism destinations with an aim to attract tourists. Various manufacturers in the industry are focused on providing customized products, owing to high demand for gondola lifts. Moreover, major manufacturers can develop energy efficient gondola lifts and focus on building and all possible amenities inside the cabins.
Previously, cable cars were predominantly used in ski industry though they have gain significant traction due to high demand for tourism and urban transport applications. The cable cars can offer possible solution to traffic congestion in major cities and direct interconnectivity between skyscrapers. Various urban planning projects include cable cars as a mode of transport for zero emission and silent operations. Moreover, cable cars have found applications in amusement parts and leisure activities.
The tourism vertical is accounted for 63.4% in 2019 and is expected to grow at a CAGR of 10.6% during the forecast period.
Source: Coherent Market Insights
Value Chain Analysis
Key companies operating in the global cable cars & ropeways market are Damodar Ropeways & Infra Ltd., MND Group, Doppelmayr/?Garaventa Group, Conveyor & Ropeway Services Pvt. Ltd., Leitner S.p.A, Nippon Cable Co., Ltd., POMA Group, and Bartholet Maschinenbau AG (BMF).
A cable car or ropeway or aerial tramway is a type of transport system that uses one or two stationary ropes for support, while a third moving rope provides propulsion. Generally, cable cars are installed for long-term operation in ski resorts, the tourism sector, urban transport and man and material handling applications are considered in the report.
The growing snow tourism and material handling have increased the adoption of cable cars. For instance, In 2014, Bolivia inaugurated the first phase of its ‘la-paz-telefericos’ project, which is a 10 km gondola cable car project installed with an investment of approx. US$ 234 Mn. The 2nd phase of this project is initiated, making it the world’s largest CPT with an investment of around US$ 450 Mn. Hence, increasing adoption of cable cars in urban transport is expected to boost the global cable cars & ropeway market growth in the near future.
This report segments the global cable cars & ropeways market on the basis of product type, end use, category and region. On the basis of product type, the market is segmented into Aerial Tramways, Funicular Ropeways, Chair Lifts, Gondola Lifts, Surface Lifts, Material Ropeways and Inclined Lifts. Chair Lift are further sub segmented into Fixed Grip, and detachable. Moreover, Gondola Lifts are further sub segmented into Monocable, Bi-cable and Tricable. On the basis of end use, the market is segmented into Tourism, Public Transport, and Material handling. Material handling is further sub segmented into Mining, and Others. On the basis of Category, the market is segmented into Installation Service and MRO Service
For a comprehensive understanding of market dynamics, the market is analyzed across key geographical regions, namely, North America, Europe, Asia Pacific, Latin America and Middle East & Africa. Each of these regions is analyzed on the basis of market findings across major countries in these regions, for a macro-level understanding of the market.
Key features of the study:
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