Elevators Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

The global Elevators market size was estimated at USD 78.5 billion in 2023 and is projected to reach USD 119.60 billion in 2030 at a CAGR of 6.2% during the forecast period 2024-2030.

The COVID-19 pandemic has significantly impacted the global business landscape, including various industrial sectors. The construction industry, in particular, faced substantial disruptions due to broken supply chains and halted projects aimed at curbing virus spread. This slowdown in construction activities has, in turn, affected the demand for elevators. However, the situation is poised to change with new governmental initiatives and economic recovery efforts.

In November 2021, the U.S. Government's announcement of a USD 1.2 trillion Infrastructure Bill marked a significant step towards revitalizing the construction industry and transportation sectors, aiming to counteract the economic downturn induced by the pandemic. This bill is anticipated to positively influence the elevator market as construction activities ramp up. Globally, increased construction spending driven by economic development and rapid population growth is expected to boost elevator demand. Major infrastructure investments, including those in hotels and hospitals in the U.S., are likely to further stimulate the construction industry, thus driving the need for elevators in commercial buildings.

Over the past decade, U.S. non-residential construction spending has been on a steady rise. According to the U.S. Construction Pipeline Trend Report by Lodging Econometrics, hotel construction projects increased by 9% in Q2 2022 and by 14% in Q4 2022. This uptick in construction activities is projected to augment elevator demand. Additionally, rising consumer spending and the growing demand for single-family housing are expected to enhance the utilization of elevators in residential building projects.

The Associated General Contractors of America, Inc. highlights the construction industry's significant contribution to the U.S. economy. Employing over 745,000 individuals in 2021, the sector plays a crucial role in economic growth. Strict regulations surrounding elevator maintenance, established by organizations such as the American Society of Mechanical Engineers (ASME) and the Occupational Safety and Health Administration (OSHA), ensure the safe and efficient operation of elevators, thereby supporting the market's growth.

Modern elevators serve various functions, including the transportation of goods and people, and their use in specialized structures such as ships, dams, and rocket launchers. The development of collective operation systems, which provide enhanced automatic operation, is particularly popular in residential complexes and hospitals due to its cost-effectiveness. Companies like Toshiba Johnson Elevators India (TJEI) are at the forefront of this technological advancement, offering a range of ultra-premium and premium-class elevators. TJEI's products, such as the SPACEL-III and High-end ELCOSMO-III, are designed to save time and energy, reducing the size of the machine room by up to 50%.

Innovation is transforming the elevator industry, with advancements like destination control systems, regenerative drives, energy-efficient motors, and Internet of Things (IoT)-enabled monitoring and maintenance solutions. These innovations are set to drive future demand for elevators, particularly as large-scale infrastructure projects, including hotels and hospitals, continue to emerge in the U.S., fueling the expansion of the construction sector. Consequently, the elevator market is expected to experience significant growth, supported by these technological advancements and increased construction activities.

Delvens Industry Expert's Standpoint

The elevator industry is undergoing a transformative shift with the introduction of smart elevators, characterized by advanced features such as energy efficiency, touch screens, biometrics, and access control systems. These innovations are revolutionizing modern buildings, particularly in high-traffic settings like hospitals and airports, where improved accessibility and user experience are paramount. Smart elevators are gaining traction globally, reshaping the market landscape with their integration into the infrastructure of high-rise buildings.

Rapid urbanization and population growth have compelled cities worldwide to build taller structures to accommodate more people within limited space. This trend is exemplified by ongoing projects such as Ciel Tower and City Tower 1 in the UAE, highlighting the global trend towards vertical urban development. Countries like China, India, Vietnam, and various Middle Eastern nations are witnessing a surge in construction activities, driving significant demand for elevators, especially in tall buildings.

Beyond passenger transport, modern elevators play diverse roles, facilitating the movement of goods and serving specialized infrastructures such as ships and dams. The adoption of collective operation systems, which offer cost-effective solutions in residential complexes and hospitals, underscores the industry's commitment to efficiency and innovation. Toshiba Johnson Elevators India (TJEI) exemplifies this trend with its range of high-end products like SPACEL-III and ELCOSMO III, designed for ultra-premium and premium market segments.

Looking forward, the elevator market is poised for substantial growth as smart technologies and sustainable practices continue to drive demand. Innovations such as compact traction machines and IoT-enabled monitoring systems are expected to enhance operational efficiency and meet the evolving needs of urban infrastructure. As urbanization accelerates and construction projects proliferate globally, elevators will remain integral to enhancing mobility and efficiency within modern buildings, shaping the future trajectory of the industry.

Market Portfolio

Key Findings

• On the basis of Type, in 2023, the traction type segment dominated the elevator market, accounting for 52.6% of the global revenue. These elevators are commonly used in industrial and commercial buildings, with demand driven by ongoing infrastructure projects such as offices, malls, and retail centres. The segment is expected to see further growth due to favourable government initiatives supporting the construction sector. Machine room-less traction elevators are particularly popular in mid-rise buildings due to their reduced vibration and noise during high-speed operation and their ability to carry heavier loads. These advantages make them suitable for speeds of at least 1.75 m/s, boosting their sales globally. The hydraulic type segment is projected to grow at a CAGR of 7.2% due to its durability, high weight-bearing capability, and low noise levels. Hydraulic elevators, with lifting capacities up to 1,000 pounds and speeds of about 42 feet per minute, are considered safe due to their earthquake- and fire-resistant properties, driving their demand. Other types of elevators, including pneumatic, climbing, and industrial elevators, are also important. Pneumatic elevators are compact and ideal for residential use, while climbing elevators are used in high-rise construction for temporary access. Industrial elevators are designed for heavy loads in shipyards, warehouses, and construction sites, built to withstand harsh conditions. These factors are expected to propel the demand for the other types segment in the coming years.

• On the basis of Business, the new equipment type segment dominated the elevator market in 2023, accounting for 49.1% of global revenue. This growth is driven by rising urbanization, demographic shifts, and a surge in construction activities. Innovations like Otis's Gen3™ elevator and Gen2 flat-belt system, which incorporate built-in IoT elements and advanced electronic architecture, are also fuelling demand for new elevators. The maintenance segment is projected to grow at a CAGR of 7.6%, driven by technological advancements that enhance maintenance standards, especially for low-rise buildings. Improved elevator functionality, including automated door operations, is increasing demand for maintenance services. Elevator modernization, which improves passenger safety and comfort while extending the life of existing elevators, is seeing rising demand. Factors such as a growing working population and heightened safety concerns for high-rise elevators are boosting this segment. Modernized elevators are more energy-efficient and require less maintenance. For instance, Mitsubishi Electric’s Elevator Group Control System, particularly its Destination Oriented Allocation System, enhances elevator efficiency by reducing the number of stops and optimizing travel distance. These factors are expected to drive the demand for elevator modernization in the coming years.

• On the basis of Application, the residential application segment led the elevator market in 2023, accounting for 70.5% of the revenue. This dominance is expected to continue due to rising urbanization and improving living standards in developing countries like China and India. The construction of high-rise buildings, many featuring smart elevators, will further drive market growth in residential applications. Increased investment in residential construction, such as the 15.9% rise in new residential building investments in October 2022 compared to the same month in 2021, also supports this trend. Elevators play a crucial role in the construction sector for moving people and goods between floors. The elevator market for industrial applications is poised for significant growth, driven by the increasing number of buildings in emerging economies and the demand for vertical transportation spurred by urbanization and development. The need for industrial spaces will rise alongside urban expansion, boosting the demand for industrial elevators. Additionally, elevators serve various industrial applications, including petrochemical refining, commercial construction, oil and gas, bridge building and maintenance, shipyards and ports, power plants, aggregates, pulp and paper, and freight and cargo. Companies like Century Elevators offer specialized rack-and-pinion elevators suitable for diverse industrial sites, including hazardous areas and challenging outdoor environments.

• The commercial application segment is projected to grow at a CAGR of 6.7% during the forecast period. Commercial elevators, typically larger and capable of handling more passengers than residential ones, are essential in locations such as train stations, hospitals, metro stations, shopping centres, business buildings, schools, and airports. This growing demand for commercial elevators will further propel market expansion.

• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. Asia Pacific dominated the elevator market in 2023, contributing to over 42.7% of the global revenue. The robust expansion of the construction industry in countries like India, China, and South Korea has driven the demand for elevators in the region. Factors such as rapid population growth, migration from rural areas to urban centres, and industrial development have significantly boosted the regional elevator market's growth.

Regional Analysis

Asia pacific to Dominate the Market

• Asia Pacific leads the market, accounting for over 42.7% of the global revenue in 2023. This growth is attributed to the rapid expansion of the construction industry in countries like India, China, and South Korea. The ongoing urbanization, industrial growth, and population migration from rural areas to urban centres have fuelled the demand for elevators. Notably, China is expected to develop the equivalent of around 10 New York-sized cities by 2025, which will further boost the market.

• In Central & South America, the market is projected to grow at a CAGR of 6.4% during the forecast period. The demand in this region is driven by increased technological and infrastructure development, alongside government initiatives to renovate outdated structures for public safety. This focus on modernization is creating substantial demand for elevators.

• North America is experiencing a surge in residential and commercial construction projects, which is expected to drive the demand for elevators. Urban population growth is increasing the need for housing and commercial spaces. Significant projects, such as the construction of world trade centres and high-rise buildings, along with expansions at major universities, are contributing to the market's expansion.

• Europe holds the second-largest market share after Asia Pacific, driven by high adoption rates of elevators in residential and commercial buildings. The region's focus on accessibility for the elderly and disabled, supported by government policies, also boosts demand. The maintenance and modernization segment are particularly strong in Europe.

• Latin America is benefiting from the growing industrial sector in Mexico, which positively impacts the elevator market. Additionally, the high penetration of elevators in commercial spaces in North America contributes significantly to market growth.

Competitive Landscape

• TK Elevator
• Schindler
• KONE Corporation
• Hitachi Ltd.
• HYUNDAIELEVATOR CO., LTD.
• Mitsubishi Electric Corporation
• Toshiba Group
• FUJITEC CO., LTD.
• Aritco Lift AB
• EMAK
• Sigma Elevator Company
• Schumacher Elevator Company
• ESCON Elevators Pvt Limited
• Electra Elevators
• CANNY ELEVATOR CO, LTD.

Recent Developments

• In December 2023, Schindler revealed a partnership with Umm Al Qura, a leading development and construction company, to supply additional elevators and escalators for the latest phase of the Masar development in Saudi Arabia. This collaboration will see the installation of 44 Schindler 7000 elevators, 65 Schindler 5500 elevators, 36 Schindler 9300 escalators, and 5 platform elevators. These installations will facilitate the movement of people and goods through street-level stores and restaurants, as well as provide access to the hotels within the development.

• In June 2022, KONE Corporation, a multinational elevator and escalator company, announced plans to sell its operations in Russia to local management. This strategic move aims to provide a more sustainable long-term solution for both employees and customers through local ownership and operations.

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Report Scope