Cable cars and ropeways are transportation systems used to transport passengers, material goods, animals, and other objects across difficult terrain where roads are not available or not easily built. Cable cars run on steel cables while ropeways operate hanging from one or more steel ropes. They are widely utilized in transportation across mountains, oceans, steep slopes, and rivers.
The cable cars & ropeways market is expected to witness significant growth over the forecast period owing to growing tourism industry and rapid urbanization in developing economies. The adoption of cable cars and ropeways as an environment-friendly and cost-effective mode of mass transportation is expected to drive the market growth. According to the United Nations World Tourism Organization, international tourist arrivals are projected to grow 3% to 4% annually over the coming decades. Furthermore, rapid urbanization in developing countries like India and China is leading to need for efficient transportation systems in mountainous urban areas, which in turn is projected to boost the market of cable cars and ropeways during the forecast period. Additionally, investments in new infrastructure projects such as cable cars for public transportation are also expected to propel the market growth. However, high initial installation and maintenance costs associated with cable cars and ropeways may hamper the market growth to some extent.
Strength: The cable car and ropeway system offers an efficient mode of transportation for hilly and mountainous terrains. It is a cost-effective transportation solution compared to roads in such difficult terrains. Existing systems have a long lifetime and require low maintenance.
Weakness: Initial investment required for setting up the infrastructure is very high. Cable car and ropeway systems are susceptible to weather hazards like heavy rain, snow, or wind. There can be technical faults and accidents causing disruption of service.
Opportunity: With increasing tourism and urbanization in hilly areas, there is a rise in demand for efficient transportation. Governments across countries are investing in cable car projects to boost regional connectivity and tourism. New technologies enable enhanced safety, reliability, and passenger experience.
Threats: Delays and cost overruns in government-funded projects impact returns. Changing regulations can increase compliance costs. Environmental clearances for new projects require lengthy approval process.
The global Cable Cars & Ropeways market is expected to witness high growth, exhibiting a CAGR of 10% over the forecast period 2023-2030, due to increasing investments in tourism development projects globally. Asia Pacific region currently dominates the market with over 35% share due to large number of ongoing and planned projects across India, China, and Southeast Asian countries. The European region is also growing at a significant rate due to heavy investments from countries like Switzerland, Italy, France and Austria to boost their tourism industry.
Regional analysis: The Asia Pacific region is currently the largest and fastest growing market for cable cars and ropeways globally. Countries like India, China, Indonesia are witnessing rising investments in cable car projects, mainly for improved regional connectivity and tourism promotion. India alone has planned projects worth over $3 billion over the next five years across states like Himachal Pradesh, Uttarakhand and Jammu & Kashmir. The increased focus on developing world-class tourism infrastructure will continue driving the market.
Key players: Key players operating in the 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). The market remains fairly consolidated with top players accounting for over 50% share. Companies are focusing on partnerships for large project contracts globally and investing in new technologies for enhanced safety, reliability and guest experience.