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The Global Smart Elevator Market size is estimated to increase by USD 4.92 billion, at a CAGR of 6.78% between 2023 and 2028. The market is driven by several factors: increasing construction activities, expanding investments in smart city, and a focused effort to reduce energy costs for businesses. These trends underscore a shift towards sustainable urban development and operational efficiency. The rise in construction projects fuels demand for building material and infrastructure solutions, while investments in smart cities enhance technological integration and urban planning. Simultaneously, businesses prioritize energy efficiency measures to lower operational costs and environmental impact. These factors collectively drive market growth, stimulating innovation in the construction and urban development sectors. As cities globally strive for smarter, more sustainable solutions, opportunities emerge for industries to align with evolving economic and environmental priorities, shaping the future of urban landscapes and business practices.
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The modernization segment is estimated to witness significant growth during the forecast period. Elevators usually have a service life of 30-40 years, as long as maintenance and service are undertaken periodically as per the specifications of the manufacturer. However, as the elevator ages, equipment and spare parts for older models become difficult to find and replace. This results in deteriorating elevator performance but generates demand for an upgrade to smart elevators. The process of upgrading the critical components of elevator systems to enable them to handle new technology is known as modernization. The world is moving toward USe of improved designs and technologies that enhance the efficiency of buildings.
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The modernization segment was the largest and was valued at USD 5.74 billion in 2018. Therefore, deploying energy-efficient elevator systems is important to achieve higher efficiency. Smart elevators can group people based on their destination floor, thus resulting in fewer stops while simultaneously ensuring that elevator lobbies are less crowded. Such functionalities of smart elevators make them more energy-efficient than their traditional counterparts. Changing demographics also play a key role in the increased modernization of elevator systems. Japan, which has one of the highest number of skyscrapers, also has one of the highest populations of elderly people. This gives rise to the need for elevator systems that can cater to the elderly by reducing waiting time and enhancing their convenience. It has also been observed that in many countries, owing to the aging of the population, governments are focusing on refurbishing aging infrastructure. However, the high cost of replacement is expected to result in a decline in modernization activities, thus bringing down the segment share in the market considerably over the forecast period.
North America is estimated to contribute 33% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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In North America, the market is dominated by the US, owing to the high number of skyscrapers/high-rise buildings in the country. The US and Canada have been witnessing several elevator breakdowns in recent times owing to the aging fleet of elevators; this will generate the demand for the modernization of old elevators. High-rise projects under construction will also fuel the demand. Also, some of the key skyscraper projects in Canada that are currently under construction are expected to be completed during the forecast period.
The market research report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
The market is being propelled by several key drivers and trends. Firstly, the increasing focus on sustainability and energy efficiency in buildings, especially in high-rise buildings and smart cities, is driving the adoption of Smart vertical transportation systems. With a growing emphasis on Zero net energy consumption and the construction of Green Buildings, demand for energy-efficient equipped with advanced control systems and destination-oriented technology is on the rise. Additionally, the rapid pace of urbanization and the need for efficient transportation solutions in dense urban areas are fueling the demand that can handle the vertical movement of people and goods effectively.
Secondly, advancements in Artificial Intelligence (AI), Cloud Computing, and the Internet of Things (IoT) are revolutionizing the market. These technologies enable manufacturers to develop intelligent systems that can optimize elevator operations, predict maintenance needs through cloud predictive maintenance, and enhance user experience through features like Infotainment Systems and virtual reality diagnostics. Furthermore, the integration of sensors and smart technology allows for real-time monitoring and data analysis, leading to improved safety, efficiency, and performance of Passenger Elevator Systems and Freight Elevator Systems. As the construction industry embraces smart elevators for both low & mid-rise buildings and high-rise buildings, the market is poised for substantial growth driven by innovation in both hardware and software solutions.
The market is experiencing substantial growth, largely driven by the increasing investment in smart cities worldwide. As urbanization continues to escalate, with a significant portion of the global population migrating from rural to urban areas, the demand for efficient vertical transportation systems in high-rise buildings and low & mid-rise buildings is on the rise. This trend is particularly prominent in the context of smart cities, where authorities are focusing on implementing advanced technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and Cloud Computing to optimize energy consumption and improve overall urban infrastructure. With the aim of achieving Zero net energy consumption and promoting Green Buildings, smart ones equipped with innovative features like Destination-oriented technology and Infotainment Systems are becoming integral components of modern urban landscapes.
Furthermore, the adoption of smart technology and IoT-enabled sensors in elevator control systems is enhancing operational efficiency and passenger experience in Passenger Elevator Systems and Freight Elevator Systems. As cities strive to address the challenges posed by rapid urbanization and ensure sustainable urban development, the demand is expected to surge. The momentum behind smart cities initiatives, coupled with the emphasis on cloud predictive maintenance and virtual reality diagnostics in maintenance and management, will continue to drive the growth of the market, offering efficient and intelligent vertical transportation solutions to meet the evolving needs of urban environments.
Cloud predictive maintenance is the primary trend in the market. Elevators connected by the Internet of Things (IoT) help to collect data, which is sent to the cloud and analyzed. The collected information is compared with the available legacy data from the entire database of the supplier. The analysis helps to indicate the failure of any component in the elevator.
Further, if there is any chance of occurrence of a failure, service engineers are immediately notified on their smart devices about the component that must be replaced. This helps to rectify the elevator before any major breakdown occurs, thereby reducing downtime. Such an approach also enables lift operators to save money and time on repairs. These factors are anticipated to drive the growth of the market focus during the forecast period.
Intense competition among companies is the major challenge impeding market growth. Vendors in the market are experiencing a decline in their profit margins owing to increased vendor competition and rising prices of raw materials. Some of the major vendors, such as Kone and Otis, enjoy a substantial market share. The market is experiencing continuous growth, which is attracting new vendors such as Hitachi Elevators. The expansion of the market has facilitated the entry of various players in the market.
Also, the emergence of local players has led to price wars among competitors, which has forced market vendors to reduce the prices of their products. This has also led to a reduction in profit margins. Moreover, the increasing competition among vendors could lead to the development and introduction of low-quality products in the market, which will adversely affect market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Hyundai Elevator Co. Ltd. - The company offers smart elevators such as i-XEL and THE EL. They manufacture, install, sell, and service elevators, escalators, moving walkways, automated parking systems, and material handling systems.
Otis Worldwide Corp.- The company designs, manufactures, sells, and installs a wide range of passenger and freight elevators, as well as escalators and moving walkways to customers for residential and commercial buildings and infrastructure projects.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market playersand , including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is experiencing significant growth driven by factors such as Artificial Intelligence (AI) integration, advancements in Cloud Computing, and the growing demand for energy efficient elevators in the Construction industry and in Commercial application. Elevator manufacturers and markets are adopting smart technology and control systems to enhance performance and optimize energy consumption in High-rise buildings and low & mid-rise buildings alike. Additionally, features like destination-oriented technology and regenerative drive are revolutionizing Passenger Elevator Systems and Freight Elevator Systems, ensuring efficient vertical transportation. With the rise of Smart vertical transportation systems, the market is witnessing a shift towards Green Buildings and Zero net energy consumption, and regenerative drive feature, marking a significant evolution in the traditional elevators.
The market is witnessing remarkable growth with advancements in elevator control technology and the integration of sensors and cameras for enhanced safety and efficiency. Catering to Passenger Carriage and Freight Carriage, smart elevators feature regenerative drive and permanent magnet synchronous (PMS) gearless traction machines to optimize energy usage, addressing concerns about the high cost of investment and sustainability. These elevators also offer Infotainment Systems and virtual reality diagnostics for an enhanced user experience. With the rise of Commercial applications and the demand for Renovation services and New installation services, the market continues to expand, driven by innovation in Hardware, Software, and Spatial Technologies.
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Market Scope |
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Report Coverage |
Details |
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Page number |
178 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
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Market growth 2024-2028 |
USD 4.92 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.23 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 33% |
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Key countries |
US, UK, China, Germany, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Express Lifts Ltd., Fujitec Co. Ltd., Halma Plc, Hitachi Ltd., Honeywell International Inc., Huawei Technologies Co. Ltd., Hyundai Elevator Co. Ltd., Johnson Lifts Pvt. Ltd., KONE Corp., Mitsubishi Electric Corp., Nidec Corp., Otis Worldwide Corp., Robert Bosch GmbH, Robustel, Schindler Holding Ltd., Sigma Elevator Co., thyssenkrupp AG, TK Elevator GmbH, Toshiba Corp., and Vantage Elevation LLC |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our market forecasting report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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