After years of development, China's elevator industry has become an essential building equipment for modern social development, playing an irreplaceable supporting role in improving people's living standards, enhancing quality of life, and realizing the national policy of "energy conservation and land saving" in the construction industry. Meanwhile, due to its crucial function related to public safety and quality of life, elevators have long been classified as special equipment by the state. In recent years, driven by the robust development of real estate, rail transit construction, and airport renovation and expansion, China's elevator industry has experienced rapid growth, gradually becoming a shining gem in the country's equipment manufacturing sector.

As the largest elevator production and sales country, China has become the world's largest producer and consumer of elevators. According to statistics, in 2013, China's annual elevator demand exceeded 450,000 units, accounting for 60% of the global market demand. By 2014, elevator production reached 708,000 units, and the total number of elevators in operation surpassed 3.5 million. It is estimated that by 2015, the number of elevators in operation will reach 4.2 million.

Currently, although China has become the world's primary production base and consumer market for elevators, the penetration rate of elevators in China still lags significantly behind that of developed countries in Europe and America. Data shows that by the end of 2011, the per capita number of elevators in China was approximately 700 people per unit, close to the world average but still far below the level of 100-200 people per unit in developed countries. The saturation level of China's elevator market is estimated to be around 7 million units. Compared with the approximately 2.45 million elevators in operation in 2012, there remains a growth potential of about 4.5 million units in China's elevator market.

Four major factors are driving the development of the industry:

First, the growth of commercial real estate. With the continuous progress of urbanization in China, cities need to construct more office buildings and commercial premises to support the ongoing development of the local tertiary industry while providing convenience for urban residents' daily lives. Additionally, to showcase city images, various regions typically choose to construct large-scale super high-rise buildings (vertical height exceeding or equal to 300 meters). According to data from China Construction Technology Network, by the end of May 2014, China had completed 25 super high-rise buildings, 11 more than the second-ranked United States. With 78 super high-rise buildings under construction in China, compared to 47 in all other countries combined, it is evident that the continuous increase in building heights in China will inevitably drive substantial elevator demand.

Second, the increase in urban infrastructure construction. The stable growth of the macroeconomy has driven the continuous improvement of China's urbanization rate. According to data from the National Bureau of Statistics, in 2012, China's urbanization rate was 52.57%. According to the overall goal of building a moderately prosperous society in all respects, China's urbanization rate will reach 60% by 2020. The continuous increase in urbanization rate has driven the expansion of public infrastructure construction such as airports, railway stations, hospitals, and stadiums, leading to increased elevator procurement.

Third, the increase in old elevator replacement and old building renovation. In the field of old elevator replacement, elevators operating beyond their prescribed service life pose significant safety hazards. According to the "Regulations on the Safety Supervision of Special Equipment" issued by the State Council, "Special equipment with serious potential safety hazards, no renovation or maintenance value, or exceeding the service life specified in safety technical specifications shall be promptly scrapped by the user unit." In the field of old building renovation, with the improvement of social economic levels and population aging, the demand for installing elevators in existing buildings has drawn government attention. The Ministry of Construction has listed special projects in the "11th Five-Year Plan" key technology support program to study the renovation of existing buildings, particularly establishing a special topic on how to renovate and install elevators in existing buildings nationwide, conducting comprehensive research on policies, investments, technologies, standards, renovation plans, demands, and approval procedures.

Fourth, the development of export markets. As domestic enterprises increase research and development of high-end elevator products and achieve breakthroughs in key technologies, the number of elevator imports has gradually decreased. Meanwhile, with the continuous improvement of domestic elevator product technology and quality, and leveraging relatively low production costs, the competitiveness of Chinese elevators in the international market has gradually become prominent. Chinese elevator brands are increasingly recognized in overseas markets, resulting in substantial product exports.