Elevators Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Service (New Installation, Maintenance & Repair, Modernization), By Technology (Machine Room Less Traction and Machine Room Above Traction), By Door Type (Automatic and Manual), By End-User (Residential, Commercial, Industrial, Infrastructure), By Region, By Competition, 2020-2030F

Market Overview

The Elevators Market was valued at USD 87.47 Billion in 2024 and is expected to reach USD 126.76 Billion by 2030 with a CAGR of 6.22%. The elevators market encompasses the production, installation, and maintenance of vertical transportation systems that enable the movement of people and goods within buildings, including residential, commercial, and industrial properties. These systems are a critical component of modern architecture, facilitating the efficient flow of traffic in high-rise buildings and large facilities. The market includes various types of elevators such as passenger elevators, freight elevators, and specialized systems designed for specific applications like hospitals, hotels, and shopping centers. The elevators are typically powered by electric motors, and can operate using different mechanisms such as traction, hydraulic, and pneumatic systems. The increasing urbanization and construction of high-rise buildings in both developed and emerging economies have been key drivers of the elevators market, alongside the growing demand for advanced features such as energy efficiency, smart technology integration, and enhanced safety standards.

Key Market Drivers

Urbanization and Infrastructure Development

Urbanization is a major driver for the elevators market as it leads to the construction of more residential, commercial, and mixed-use buildings, which inherently require efficient vertical transportation systems. The United Nations projects that by 2050, nearly 68% of the global population will live in urban areas, up from 55% in 2018. This rapid urban migration necessitates the development of infrastructure such as skyscrapers, high-rise apartments, and office buildings, all of which depend on modern elevator systems for transportation within the buildings. For instance, in China, urbanization has driven the demand for elevators, with over 10,000 high-rise buildings being constructed annually in major cities.

The expansion of urban infrastructure in emerging markets, especially in Asia-Pacific and Africa, is further fueling the need for reliable elevator systems. With increasing economic growth and rising disposable income in these regions, consumers expect higher living standards, which includes advanced and efficient elevator solutions. In the Middle East, the rise of mega-projects like the Burj Khalifa in Dubai, the world’s tallest building, also highlights the significance of elevators in modern infrastructure. As cities continue to grow and space becomes more limited, the demand for elevators that can efficiently transport people and goods in high-rise buildings will grow exponentially, driving market expansion.

Technological Advancements and Smart Elevators

The ongoing technological innovations in the elevator industry are playing a crucial role in the market's growth. Elevators are becoming smarter, safer, and more energy-efficient due to advancements in automation, IoT (Internet of Things), and AI (artificial intelligence). 

This growth is fueled by the increasing adoption of IoT and AI-based elevator systems that optimize operations, improve safety, and reduce energy consumption. Smart elevators can offer benefits like predictive maintenance, which reduces downtime and extends the life of the system, as well as faster response times through AI-powered algorithms that calculate the most efficient routes for passengers. These technologies also allow for features such as touchless controls, integration with mobile apps, and even voice-activated commands. The use of energy-efficient systems, like regenerative drives, also contributes to reducing energy costs, as these systems capture energy during braking and feed it back into the building's power grid. For instance, Otis, one of the leading elevator manufacturers, has introduced its ‘Gen2’ elevator, which uses energy-efficient technologies like a flat belt instead of conventional steel ropes. These advancements in elevator technology not only improve the overall user experience but also align with growing environmental and sustainability goals, providing a competitive edge to elevator companies that embrace these innovations.

Safety Regulations and Government Initiatives

Strict safety regulations and government initiatives are critical drivers for the growth of the elevator market. Regulatory bodies such as the American Society of Mechanical Engineers (ASME) in the U.S. and the European Union's CE marking requirements ensure that elevators meet safety standards and undergo regular inspections. The global elevator and escalator market is anticipated to experience growth as governments around the world implement stricter safety protocols in both residential and commercial buildings. In the U.S., the Occupational Safety and Health Administration (OSHA) mandates the installation of safe and reliable elevator systems in public buildings, contributing to a significant demand for modern elevator systems. Additionally, in countries like India and China, government-led initiatives to improve infrastructure and enhance urban living conditions have spurred demand for safe and reliable vertical transportation systems in newly built high-rises. As urbanization increases, so does the need for elevators that adhere to both local and international safety standards. The heightened focus on safety and building compliance with codes, particularly in the wake of high-profile elevator accidents, will continue to drive the demand for new and retrofitted elevator systems.

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Key Market Challenges

High Installation and Maintenance Costs

The elevator market faces a significant challenge in terms of high installation and maintenance costs. The installation of elevators, particularly in high-rise buildings, often requires significant capital investment, both in terms of purchasing advanced elevator systems and in installation logistics. These high upfront costs create a barrier to adoption, particularly in developing regions or by small and medium enterprises that may struggle to absorb these costs. In addition, elevator systems require regular maintenance and servicing to ensure they are functioning efficiently and safely. The global elevator market spends an estimated USD 2 billion annually on elevator maintenance alone. This cost burden is exacerbated in regions where labor costs are high, further escalating operational expenditures. For example, in North America, it is reported that elevator maintenance costs can reach approximately USD 500 to USD 1,000 per month per unit, depending on the age and type of the elevator. With increasing urbanization and the growing number of multi-story buildings worldwide, elevator companies and property owners face the dilemma of balancing these high costs with the need for safe, efficient, and reliable vertical transportation solutions.

Technological Integration and Adaptation Challenges

As the demand for smart buildings and advanced technologies increases, the elevator market faces significant challenges in integrating cutting-edge technologies into existing infrastructure. Elevators are increasingly being equipped with advanced features like IoT-based monitoring, AI-driven predictive maintenance, and energy-efficient systems. However, integrating these technologies into older buildings or traditional elevator systems can be complex and expensive. For instance, retrofitting a building's existing elevator system with advanced predictive maintenance or AI-driven analytics might cost between USD 10,000 to USD 30,000, depending on the complexity of the system and building age.

These technological integrations often require specialized expertise and extensive modifications, which can delay project timelines and increase costs. Furthermore, integrating new elevator systems with building management systems (BMS) for smart buildings can involve additional investment in software and hardware infrastructure. This challenge is particularly pronounced in regions where older infrastructure prevails, making it difficult to meet the growing demand for technologically advanced elevator systems that offer features like real-time monitoring, energy efficiency, and automated operations. Thus, while technological advancements in the elevator market promise increased efficiency, safety, and convenience, the adaptation and integration of these technologies into existing systems pose a significant hurdle.

Key Market Trends

Smart and Connected Elevators: The Integration of IoT and Automation

The integration of Internet of Things (IoT) and automation in the elevators market is rapidly transforming the sector. As urbanization increases, the demand for smarter, more efficient elevator systems is growing. Smart elevators are equipped with advanced technologies, such as AI, predictive maintenance systems, and IoT connectivity, which allow for real-time monitoring and efficient operations. These technologies enable elevators to communicate with building management systems, optimize traffic flow, reduce waiting times, and ensure predictive maintenance, which ultimately improves operational efficiency and safety.

For instance, many modern skyscrapers and commercial buildings are adopting these solutions, which lead to higher energy efficiency and lower maintenance costs. In the Asia Pacific region, which is expected to be the largest market for smart elevators, countries like China, India, and Japan are driving this growth, with increased investments in smart city projects and infrastructure development. This technology is seen as a key enabler in the modernization of elevator systems, as well as the enhancement of user experience, making it one of the leading trends shaping the industry.

Sustainability and Energy-Efficient Elevators

With growing environmental concerns and stricter regulations, the demand for sustainable and energy-efficient elevators is on the rise. As commercial buildings and residential structures aim to reduce their carbon footprint, elevator manufacturers are focusing on developing energy-efficient solutions. The global market for green elevators, defined by energy-saving technology and eco-friendly materials, is expected to witness significant growth in the coming years.

These elevators use technologies like regenerative drives, LED lighting, and low-power standby modes to reduce energy consumption. For instance, regenerative drives can convert excess energy generated during braking into reusable power, thereby significantly improving the system’s energy efficiency. The introduction of machine-room-less (MRL) elevators is another trend contributing to energy efficiency, as these systems require less space and less energy to operate compared to traditional elevator models. Additionally, elevator systems with advanced materials that minimize energy loss are becoming increasingly popular in both new and retrofit projects.

The shift toward energy-efficient elevators is particularly notable in regions with stringent sustainability goals, such as Europe and North America. The European Union’s regulations on energy consumption in buildings, including elevators, are propelling the demand for green building certifications like LEED and BREEAM, further driving this trend. As commercial real estate developers and building owners focus on reducing operating costs and enhancing sustainability, the adoption of energy-efficient elevators will continue to rise, making it a key market trend.

Vertical Transportation Solutions for High-Rise Buildings

As urban populations continue to grow, high-rise buildings are becoming more common, and the need for advanced vertical transportation solutions is increasing. The trend toward taller skyscrapers, especially in emerging economies, is expected to significantly drive the growth of the elevator market.

Elevators for high-rise buildings face unique challenges, such as handling large volumes of passengers, minimizing waiting times, and ensuring safety during long ascents and descents. To address these challenges, manufacturers are developing specialized elevator technologies such as double-decker elevators, destination dispatch systems, and high-speed elevators. Double-decker elevators, for instance, enable more passengers to be transported at once, thus improving efficiency in densely populated buildings. Meanwhile, high-speed elevators in skyscrapers, such as those in the Burj Khalifa (Dubai), travel at speeds of up to 10 meters per second.

In addition to advanced technology, the design of elevators in high-rise buildings is evolving to meet aesthetic and functional demands. Glass elevators and panoramic lift systems are becoming increasingly popular in luxury buildings, offering a visual experience while maintaining high-performance standards. The demand for these vertical transportation systems is especially strong in markets like the Middle East, Asia Pacific, and North America, where the construction of super-tall buildings is expected to increase in the coming years.

Segmental Insights

Service Insights

The New Installation segment held the largest Market share in 2024. ​The new installation segment of the global elevator market is experiencing robust growth, driven by several key factors. Urbanization is a primary driver, with the United Nations projecting that 68% of the world’s population will reside in urban areas by 2050, necessitating efficient vertical transportation solutions. This trend is particularly evident in Asia Pacific, which accounted for 75% of global elevator and escalator market growth between 2024 and 2028 . Technological advancements, such as the integration of Internet of Things (IoT) and Artificial Intelligence (AI), are enhancing elevator efficiency and predictive maintenance, further boosting demand. Additionally, the shift towards energy-efficient and smart elevators, incorporating features like regenerative drives and destination control systems, aligns with global sustainability goals and is driving market expansion . The increasing construction of high-rise buildings, particularly in emerging markets, coupled with stringent safety and accessibility regulations, is further propelling the growth of the new installation segment in the elevator market.​

Technology Insights

The Machine Room Less Traction segment held the largest Market share in 2024. ​The Machine Room Less (MRL) Traction Elevator market is experiencing robust growth, driven by several key factors that align with contemporary urban development and sustainability goals. A significant driver is the increasing urbanization and population growth in urban centers, leading to a surge in high-rise buildings. According to the World Bank, over 55% of the global population currently resides in urban areas, a figure projected to reach 68% by 2050. This demographic shift necessitates efficient vertical transportation solutions, making MRL traction elevators an attractive option for developers and building owners.

Additionally, the growing emphasis on energy efficiency and sustainability in construction practices is propelling the adoption of MRL elevators. These systems typically consume less energy compared to traditional elevator systems and often incorporate regenerative drives that convert excess energy into reusable power, aligning with global green building standards and reducing operational costs. Technological advancements further enhance the appeal of MRL elevators. The integration of smart control systems, IoT connectivity, and predictive maintenance capabilities improves operational efficiency, safety, and user experience.

These innovations make MRL elevators a preferred choice for modern buildings seeking to optimize performance and reduce maintenance costs. Regionally, the Asia Pacific market is witnessing the highest growth, driven by rapid urbanization, substantial infrastructure development, and increasing disposable incomes in countries like China and India. These factors contribute to a significant demand for MRL traction elevators in both new constructions and modernization projects. Collectively, these drivers underscore the MRL traction elevator market's potential for sustained growth, offering solutions that meet the evolving demands of urban development, energy efficiency, and technological integration.​

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Regional Insights

North America region held the largest market share in 2024. The North American elevators market is experiencing significant growth driven by various factors, with a key driver being the increasing demand for residential and commercial infrastructure development. According to the National Association of Home Builders, housing starts in the U.S. are projected to reach approximately 1.4 million annually by 2025, creating a substantial demand for elevators in multi-story residential buildings. The growing trend of luxury and smart homes also contributes to this demand, with consumers increasingly opting for elevator solutions to enhance the convenience and accessibility of their properties.

Furthermore, the aging population in North America is another major driver. According to the U.S. Census Bureau, by 2030, all baby boomers will be over the age of 65, and by 2040, the number of older adults in the U.S. is expected to rise to 80 million. This demographic shift is driving the need for elevators, especially in residential properties, to ensure mobility for elderly individuals and those with mobility challenges. Additionally, commercial buildings, including office towers, shopping malls, and hotels, are incorporating elevators as a necessity for accessibility, driven by stringent regulations such as the Americans with Disabilities Act (ADA). This legislation mandates that all public and commercial buildings in the U.S. be accessible to individuals with disabilities, creating a constant demand for elevator installations and upgrades. In terms of technological advancements, the North American market is witnessing an increasing adoption of energy-efficient and smart elevators. The rise of green buildings, spurred by LEED certification and environmental regulations, has led to greater emphasis on energy-efficient elevator systems.

According to a report by the U.S. Green Building Council, over 90,000 commercial and institutional buildings in the U.S. are LEED-certified, further driving demand for eco-friendly and energy-efficient elevator solutions. Additionally, advancements in elevator technology, such as the integration of IoT (Internet of Things) and AI (Artificial Intelligence), are improving the overall functionality and efficiency of elevators. These technologies enable predictive maintenance, reducing downtime and improving service reliability, which is increasingly important for both residential and commercial elevator users. The U.S. market alone for smart building technologies is projected to grow at a CAGR of 10.8% from 2023 to 2030, further boosting the elevator market as smart buildings often require advanced elevator systems.

The commercial real estate sector, which has seen a resurgence following the COVID-19 pandemic, also contributes significantly to the growth of the elevator market in North America. According to CBRE, office leasing activity in the U.S. rebounded by 20% in 2023 compared to the previous year, leading to increased demand for elevators in newly constructed and renovated commercial properties. Finally, government initiatives and investments in infrastructure development, such as the U.S. Infrastructure Investment and Jobs Act, which allocated $1.2 trillion for transportation and infrastructure projects, are also indirectly supporting the growth of the elevator market by funding the modernization of existing buildings and the construction of new facilities. These drivers collectively create a favorable environment for the elevator market in North America, fostering growth across residential, commercial, and industrial sectors.

Emerging region:

South America is the emerging region in Elevators Market. ​The South American elevator market is experiencing robust growth, driven by several key factors that are reshaping the region's urban landscape. Urbanization is a primary catalyst, with the United Nations projecting that Latin America's urban population will reach 90% by 2050, significantly increasing the demand for vertical transportation solutions. This demographic shift is particularly evident in major cities like São Paulo, Buenos Aires, and Santiago, where high-rise residential and commercial developments are on the rise.​

Infrastructure development is another significant driver. Countries such as Brazil and Argentina are investing heavily in modernizing their urban infrastructure, including the construction of new skyscrapers, commercial complexes, and transportation hubs, all of which require advanced elevator systems. 

The growing middle class in South America is also contributing to the market's expansion. As disposable incomes rise, there is an increasing preference for modern amenities, including high-quality elevators in residential and commercial buildings. This trend is particularly noticeable in emerging economies like Colombia and Peru, where urban development is accelerating.​

Technological advancements are enhancing the appeal of elevator systems. The adoption of smart elevators equipped with features like touchless controls, energy-efficient systems, and integration with building management systems is gaining traction. These innovations not only improve user experience but also align with the region's growing emphasis on sustainability and energy efficiency.​

Additionally, government initiatives aimed at promoting sustainable urban development are influencing the elevator market. Policies encouraging green building certifications and energy-efficient construction practices are leading to increased demand for elevators that meet these standards. For example, the implementation of LEED certification in several South American countries has spurred the adoption of energy-efficient elevator systems.​

In summary, the South American elevator market is poised for significant growth, driven by urbanization, infrastructure development, a rising middle class, technological advancements, and supportive government policies. These factors collectively create a dynamic environment for the elevator industry, offering ample opportunities for growth and innovation.

Recent Developments

• In August 2024, Otis unveiled its Gen3 connected elevator platform at the 'Platform for Possibility' event in Bangkok. This new offering combines the advanced technology of Otis' Gen2 elevator with the Otis ONE IoT digital platform, enhancing the passenger experience through features such as Ambiance aesthetics, Pure fixtures, eView infotainment, and air purification.
• In January 2024, TK Elevator introduced its new home elevator concept, 'enta villa,' specifically designed for multi-floor residences and villas in India. This launch caters to the growing demand for luxury housing and lifestyle products in the company's home market.

Key Market Players

• TK Elevator
• Schindler Group
• KONE Corporation
• Hitachi Ltd.
• Mitsubishi Electric Corporation
• Toshiba Group
• FUJITEC CO., LTD.
• Sigma Elevator Company
• Schumacher Elevator Company
• ESCON Elevators Pvt Limited

Report Scope:

In this report, the Global Elevators Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Elevators Market, By Service:

o   New Installation

o   Maintenance & Repair

o   Modernization  

• Elevators Market, By Technology:

o   Machine Room Less Traction

o   Machine Room Above Traction  

• Elevators Market, By Door Type:

o   Automatic

o   Manual  

•  Elevators Market, By End-User:

o   Residential

o   Commercial

o   Industrial

o   Infrastructure  

• Elevators Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia-Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

§  Kuwait

§  Turkey

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Elevators Market.

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Company Information

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