Enjoy complimentary customisation on priority with our Enterprise License!
The Global Smart Elevator Market size is estimated to increase by USD 6,395.94 million between 2022 and 2027 accelerating at a CAGR of 8.97%. Factors such as the growing number of construction activities, growing investment in smart cities, and focus on reducing the impact of energy costs on business are driving the market. Additionally, current trends such as cloud predictive maintenance, intuitive elevator technologies, use of regenerative drives are propelling the market growth.
The global smart elevator market is concentrated, with many well-known manufacturers accounting for a significant share of the market revenue. The vendors compete with each other on the basis of providing smart elevator installation, modernization services, and maintenance. Additionally, the ability of these vendors to cater to large-scale public infrastructure, residential, and commercial construction projects will help in increasing their market shares during the forecast period. The vendors 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 vendors in the market are adopting expansion strategies through collaboration with governments.
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.
To learn more about this report, Download the FREE Report Sample
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.
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. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The growing investment in smart cities is notably driving market growth. The increasing investment in smart city projects worldwide is primarily driven by growth in migration from rural to urban which has led to the continuous expansion of urban areas and, consequently, led to a shortage of land availability. Moreover, uncontrolled urbanization leads to informal settlements and inadequate service delivery to residents.
According to The World Bank Group estimates, globally, the share of the urban population is expected to reach 66.07% of the total population by 2050. Therefore, authorities worldwide, in a bid to ensure proper planning of urban areas and to cope with rapid urbanization and adequate delivery of basic amenities to citizens, are adopting the smart city model. Smart cities will provide smarter solutions that can be deployed to reduce the strain due to the urban population growth; these solutions will include the introduction of energy-efficient road networks, leading to efficient public transportation systems. The growing momentum of smart cities and massive investments in their development are expected to spur the demand for smart elevators during the forecast period.
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.
Intense competition among vendors 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.
Vendors 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. Under this segment, the company manufactures, installs, sells, and services 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 vendors, including:
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.
The modernization segment was valued at USD 5,531.18 million 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 for smart elevators in the new deployment segment will depend on the construction of new skyscrapers during the forecast period. Smart elevators 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 of smart elevators during the forecast period.
Get a Customised Report as per your requirements for FREE!
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 smart elevator 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.
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.
For more insights on the market share of various regions Request PDF Sample now!
In North America, the market for smart elevators is dominated by the US, owing to the high number of skyscrapers/high-rise buildings in the country. 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, which are currently under construction, are expected to be completed during the forecast period.
The outbreak of COVID-19 impacted the growth of the market in the region. However, gradual rising economic activities and the growth in the number of residential projects in the region across the region are expected to accelerate the regional smart elevator market growth in the region during the forecast period.
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.
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 6,395.94 million |
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 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 report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.