Smart Elevator Market Analysis North America,Europe,APAC,Middle East and Africa,South America - US,China,Japan,UK,Germany - Size and Forecast 2023-2027

Smart Elevator Market Forecast 2023-2027

The Global Smart Elevator Market size is estimated to increase by USD 6.39 billion between 2022 and 2027, accelerating at a CAGR of 8.97%. The market is propelled by various factors, including the increasing volume of construction activities, rising investments in smart cities, and a concerted effort to mitigate the impact of energy expenses on businesses. Moreover, contemporary trends such as cloud predictive maintenance, intuitive elevator technologies, and the adoption of regenerative drives are further stimulating market expansion.

The global market is concentrated, with many well-known manufacturers accounting for a significant share of the market revenue. Companies compete with each other based on providing smart elevator installation, modernization services, and maintenance. Additionally, the ability of these market players to cater to large-scale public infrastructure, residential, and commercial construction projects will help in increasing their market shares during the forecast period. The companies in the market are constantly developing solutions that aim at reducing the waiting time while making elevator rides more convenient, comfortable, and safe. The top players in the market are adopting expansion strategies through collaboration with governments.

What will be the Size of the Smart Elevator Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by Service (modernization, new deployment, and maintenance), Application (commercial, residential, and industrial), and Geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Service Analysis

The modernization segment was valued at USD 5.53 billion in 2017 and continued to grow until 2021. 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.  It has been observed that in many countries, owing to the aging of the population, governments are focusing on refurbishing aging infrastructure. This has fueled the modernization of elevators. 

The demand in the new deployment segment will depend on the construction of new skyscrapers during the forecast period. They are gaining popularity as they reduce waiting time and enable people to reach their destination floors in minimal time. Moreover, the governments of developing countries such as India and China are highly investing in smart city projects due to the rising rate of urbanization; this will further drive the new installation during the forecast period.

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Application Analysis

A considerable number of commercial buildings, including offices, hospitals, educational institutions, retail stores, and malls, utilize elevators due to the large footfall and offer convenience to their consumers. Unlike the demand for residential buildings, which is mostly concentrated in developed countries, smart elevators have been found to have widespread adoption even in developing countries such as China and India due to the rising commercial building construction. Therefore, the growth in the commercial building industry will also drive growth in the global market during the forecast period.

The global population is expected to grow by approximately 25% by 2050, while the share of the population residing in urban settlements is projected to reach 67%-69%. This indicates that cities will expand exponentially, and a significant number of people will migrate from rural to urban areas in search of jobs and better living standards. This trend is expected to result in the development of new megacities, thus driving the demand for appropriate residential as well as non-residential establishments.

The popularity of intelligent elevator automation systems will increase due to the accelerating development of industrial infrastructure and the introduction of sustainable building projects during the forecast period. For instance, the Indian government recently launched programs such as Housing for All and Smart Cities Mission, which will assess the development of the construction and housing industries and probably increase sales. 

Regional Analysis

North America is estimated to contribute 41% to the growth by 2027. 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 for new smart elevators. Also, some of the key skyscraper projects in Canada, that are currently under construction, are expected to be completed during the forecast period. 

Technavio’s Exclusive Market Customer Landscape

Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027. 

Market Dynamics

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 elevators 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 for smart elevators 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 smart elevator market. These technologies enable elevator 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. Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.    

Key Market Driver

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 elevators 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 for smart elevators is expected to surge. The momentum behind smart cities initiatives, coupled with the emphasis on cloud predictive maintenance and virtual reality diagnostics in elevator maintenance and management, will continue to drive the growth of the smart elevator market, offering efficient and intelligent vertical transportation solutions to meet the evolving needs of urban environments.

Significant Market Trends

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 elevator database of the supplier.

The analysis helps to indicate the failure of any component in the elevator. 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.

Major Market Challenge

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. 

Who are the Major Smart Elevator Market Companies?

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:

• Express Lifts Ltd.
• Fujitec Co. Ltd.
• Halma Plc
• Hitachi Ltd.
• Honeywell International Inc.
• Huawei Investment and Holding Co. Ltd.
• Johnson Lifts Pvt. Ltd.
• KONE Corp.
• Mitsubishi Electric Corp.
• Nidec Corp.
• Robert Bosch GmbH
• Robustel
• Schindler Holding Ltd.
• Sigma Elevator Co.
• thyssenkrupp AG
• TK Elevator GmbH
• Toshiba Corp.
• Vantage Elevation LLC

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Recent Development of the Market

• Hitachi earned the bidding for four city landmark projects in January 2022, including the Ningbo Center Building, the Hangzhou West Station Hub North Complex, the Guangzhou Knowledge Tower, and the Shenzhen Byte Dance Houhai Center. These projects each have 277 escalators, including 23 double-car elevators. 
• In August 2021, Otis Worldwide expected an increase in demand for elevators due to an increase in housing sales and the government's push for extensive investments in infrastructure.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Service Outlook
  • Modernization
  • New deployment
  • Maintenance

• Application Outlook
  • Commercial
  • Residential
  • Industrial

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Brazil
    • Argentina

Market Analyst Overview

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 Global Smart Elevators Market 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, 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.

Smart Elevator Market Scope
Report Coverage	Details
Page number	178
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 8.97%
Market growth 2023-2027	USD 6.39 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	6.26
Regional analysis	North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution	North America at 41%
Key countries	US, China, Japan, UK, and Germany
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	Express Lifts Ltd., Fujitec Co. Ltd., Halma Plc, Hitachi Ltd., Honeywell International Inc., Huawei Investment and Holding 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
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our market research 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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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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