Global Elevator Market Research Report, 2029

The global elevator market is experiencing significant growth, driven by rapid urbanization, increasing infrastructure development, and the rising demand for energy-efficient vertical transportation solutions. The COVID-19 pandemic outbreak has transformed the general business scenario for 2020 as well as for the next few years to come across numerous verticals. It caused a serious setback in a number of industry sectors, including manufacturing facilities. The COVID-19 outbreak's effects have slowed down the construction industry's expansion in recent months, resulting in delays that are the result of multiple broken supply chains. To stop the virus from spreading, the majority of commercial construction projects had to be stopped. The aforementioned factors have had a considerable impact on elevator demand. The demand for double deck elevators, owing to their exceptional benefits, is witnessing a rapid growth. Double deck elevator offers enhanced convenience to users by reducing the rush during peak hours and eliminating extended waiting periods, as it enables passengers from two consecutive floors to use the elevator simultaneously. These elevators occupy less building space and lead to more efficient use of space, thus resulting in their increased adoption over traditional single-deck elevators. The use of a single elevator shaft for two cabins plays a critical role in reducing construction costs, and it also lowers energy consumption. Also, these elevators, owing to their architectural designs and advanced engineering work, can adjust the distance between the two cabins, and the aerodynamic capsules minimise cabin vibration and noise, which is leading to their increased demand in high-rise buildings. Meanwhile, single deck elevators are in high demand for residential and smaller commercial buildings where the passenger traffic is moderate and does not justify the complexity and cost of double deck or multi-deck systems. Their simplicity, cost-effectiveness, and efficiency in such settings make them a preferred choice, adding to the elevators market value. According to the report titled, “Global Elevator Market Research Report, 2029â€, published by Actual Market research, the Global Elevator market was valued at USD 58.55 Billion in 2023 and it is anticipated to grow with a CAGR of more than 6.07% from 2024 to 2029, achieving USD 83.42 Billion by 2029. Modern elevators cater to a wide range of uses, including the movement of goods and people as well as their use in ships, dams, and specialist structures like rocket launchers. Furthermore, in the coming years, demand for elevators will be driven by the development of collective operation, in which an elevator or group of elevators offers enhanced automatic operation and is popular in residential complexes and hospitals due to its affordability. One such company is Toshiba Johnson Elevators India (TJEI), which improves lives through technology and design. The integration of elevators into holistic Building Management Systems (BMS) represents a significant shift towards smarter, more efficient, and user-friendly buildings. Elevators integrated with BMS can operate more energy-efficiently and contribute significantly to the elevators market development. For example, during off-peak hours, the system can reduce the number of elevators in operation or use energy-saving modes to minimise power consumption. Additionally, regenerative braking technology in elevators can feed energy back into the building's power grid, further enhancing overall energy efficiency. Growing environmental concerns have increased the demand for green, environmentally friendly products. Consumer expectations for value-added products for elevators, escalators, and moving walkways are steadily shifting toward premium green building materials. The use of green building materials can significantly reduce emissions. These materials aid in energy conservation, achieve sustainability, lower emissions, and also protect the environment. The elevators, which are essential components of residential and commercial buildings, are experiencing a significant increase in demand worldwide. With the increasing incorporation of ultra-modern facilities ranging from elevator safety solutions to elevator air purification equipment, advancements in Internet of Things (IoT) technology are estimated further to expand the future growth of the elevator market.

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Market Dynamics Market Drivers • Increasing Demand for Smart Elevators is Expected to Drive the Market :The rise in the adoption of innovative technology owing to the increasing automation in industry verticals and reduction of waiting time is likely to result in the growth of smart elevators. Various key features of smart machines are gaining popularity among customers. These include a touch screens, as well as digital security controls such as biometrics, destination dispatching, and access control systems. The better serviceability through reduction of waiting time and increased traffic management is likely to result in the growth of this market. Thus, manufacturers are focusing on designing smart products to provide an enhanced user experience. For instance, in November 2019, KONE launched its new DX Class elevators with built-in connectivity. These machines enable customized and plug-in of additional software and service throughout the lifetime of a product. • Rapid Urbanization and Infrastructure Development:Urbanization, especially in developing regions, is a key driver for the elevator market. As populations move towards cities, the demand for high-rise residential, commercial, and mixed-use buildings increases, necessitating the installation of elevators. Countries like China, India, and Brazil are experiencing urban growth, and government initiatives in infrastructure development further propel market demand. For instance, smart city projects and modernization of existing buildings contribute to higher elevator installations. Market Challenges

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• High Installation and Maintenance Costs: The initial cost of purchasing and installing an elevator system can be substantial, especially for advanced models incorporating smart and energy-efficient technologies. Ongoing maintenance costs are essential to ensure safety and regulatory compliance, but they can be a financial burden for some customers. For instance, older buildings that need modernization may face increased costs for retrofitting or upgrading existing systems. • Stringent Safety and Environmental Regulations: Elevators are subject to stringent safety standards, and complying with these regulations can be challenging, especially for manufacturers in developing regions. Moreover, environmental regulations aimed at reducing energy consumption and minimizing carbon emissions require manufacturers to invest heavily in R&D to produce energy-efficient elevators. For instance, regulations by the European Union regarding energy efficiency standards and sustainable building practices add complexity to elevator manufacturing and installation. Market Trends • Trends in the Global Elevator Market:Adoption of Smart and Connected Elevators: The integration of Internet of Things (IoT) technology and artificial intelligence (AI) in elevators is a prominent trend in the market. Smart elevators can perform predictive maintenance, enhance safety, and optimize traffic flow within buildings by analyzing real-time data. For example, some elevators are equipped with touchless controls and voice recognition systems, improving the user experience and hygiene in the post-pandemic world. Leading companies like Otis and KONE are focusing on developing connected elevator systems that can communicate with building management systems. • Sustainability and Energy Efficiency: The demand for green building certifications like LEED (Leadership in Energy and Environmental Design) has pushed the elevator industry to innovate in energy-efficient solutions. Regenerative drives, which recover energy as the elevator descends, are becoming more prevalent. Moreover, the use of eco-friendly materials and designs that minimize energy consumption aligns with global trends toward sustainability. Elevators with energy-efficient motors, LED lighting, and standby modes during inactivity are in high demand, catering to environmentally conscious consumers and regulatory requirements.

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Segmentation Analysis Based on the report, the type is segmented into hydraulic, traction, machine room-less traction, others. Traction elevators utilize a system of steel ropes or belts and a counterweight to raise and lower the cab. They are favored for mid to high-rise buildings due to their energy efficiency and smooth ride quality. Traction elevators can be further classified into geared and gearless types. Geared traction elevators are less common and typically operate at speeds up to 500 ft/min, while gearless traction elevators, which account for about 80% of the market, can reach speeds of up to 4,000 ft/min, making them ideal for skyscrapers. Hydraulic elevators operate using a piston driven by hydraulic fluid, making them suitable for low-rise buildings (typically up to six stories). They are generally less expensive to install and maintain compared to traction elevators but have slower speeds (up to 150 ft/min) and higher energy requirements for operation. Variants include holed, holeless, and roped hydraulic elevators, each designed for specific installation conditions and travel heights. Machine room-less traction elevators eliminate the need for a separate machine room by integrating the machinery within the hoistway. This design maximizes usable building space and is increasingly popular in mid-rise applications. MRL elevators combine the benefits of traction systems with space efficiency, making them a cost-effective solution for buildings with limited overhead space. The others category encompasses various specialized elevator types, including freight elevators, dumbwaiters, and service elevators, each tailored for specific operational needs and environments. These elevators are designed to handle heavier loads or specific transport tasks, such as moving goods in commercial settings. Based on the report, the type is segmented into new equipment, maintenance, others (modernization). The new equipment segment encompasses the manufacturing and installation of elevators in various settings, including residential, commercial, and industrial buildings. This segment holds a significant share of the market, driven by urbanization, increasing construction activities, and the demand for modern, energy-efficient solutions. Innovations such as machine room-less (MRL) elevators and smart technology integrations are enhancing the appeal of new installations. For instance, companies like Mitsubishi have introduced models specifically designed for mid-rise and low-rise buildings, responding to the growing demand in these sectors. The maintenance segment is vital for ensuring the safety and operational efficiency of elevators. Regular maintenance services, which include inspections, repairs, and emergency services, are essential for compliance with safety regulations and to prevent costly breakdowns. This segment benefits from the increasing focus on safety and reliability, as well as the aging installed base of elevators that require ongoing service. The modernization segment involves upgrading existing elevator systems to enhance performance, safety, and energy efficiency. This includes retrofitting older elevators with new technologies, such as energy-efficient drives and advanced control systems. The demand for modernization is growing, driven by the need for sustainability and compliance with updated safety standards. Modernization projects not only improve the functionality of elevators but also extend their lifespan, making them a cost-effective solution for building owners. Based on the report, the type is segmented into residential, commercial, industrial. The residential segment is the largest application area for elevators, primarily due to the increasing construction of multi-story buildings and high-rise apartments. Urbanization and rising living standards in developing countries, such as China and India, are significant contributors to this growth. Elevators in residential buildings enhance accessibility for all residents, including the elderly and disabled, making them essential in modern housing designs. The demand for smart and energy-efficient elevators is also rising, as homeowners seek sustainable solutions that reduce energy consumption and operational costs. The commercial segment encompasses elevators installed in office buildings, hotels, shopping malls, and educational institutions. This segment is driven by the growing trend of vertical construction in urban areas, where space is limited. Elevators in commercial settings are crucial for efficient vertical transportation, accommodating high foot traffic and enhancing user experience. The increasing focus on eco-friendly designs and smart technologies, such as IoT-enabled elevators, further fuels demand in this sector. Companies are investing in modern elevator systems that offer improved safety, energy efficiency, and user convenience. The industrial segment includes elevators used in warehouses, manufacturing facilities, and logistics centers. These elevators are often specialized for transporting heavy goods and materials, such as freight elevators and dumbwaiters. The growth of industrialization and the need for efficient material handling systems are driving demand in this sector. As industries expand and modernize, the requirement for robust and reliable vertical transport solutions becomes critical, leading to increased investments in industrial elevator systems. Regional Analysis Asia Pacific is leading the global elevator market primarily due to rapid urbanization, significant construction activities, and a growing demand for high-rise buildings driven by economic development and population growth. The Asia Pacific region has emerged as a dominant force in the global elevator and escalator market, accounting for a substantial share of revenue and projected growth. This leadership is largely attributed to the rapid urbanization occurring across countries such as China and India, where vast numbers of people are moving from rural areas to urban centers. This demographic shift necessitates the construction of high-rise buildings, which in turn drives the demand for vertical transportation systems like elevators and escalators. Furthermore, government initiatives aimed at modernization and urban development, such as India's Smart Cities Mission, have spurred investments in infrastructure, enhancing the need for advanced elevator systems. The region is also seeing an influx of new technologies, including AI and smart elevators, which improve efficiency and user experience. For instance, companies like Hyundai Elevator are innovating with AI prediction technology to optimize elevator performance, thereby reducing wait times and enhancing service reliability. The increasing focus on green building practices and energy-efficient solutions further supports market growth, as developers seek to comply with sustainability standards. Key Developments • In December 2023, Schindler announced the partnership with Umm Al Qura, a development and construction company, to provide additional elevators and escalators to the latest development of Masar, Saudi Arabia. These will feature 44 Schindler 7000 elevators, 65 Schindler 5500 elevators, 36 Schindler 9300 escalators, and 5 platform elevators, helping to transfer people and products through the stores and restaurants on street level, as well as to the hotels. • In October 2023, Hitachi Elevator Engineering Hong Kong, operating as a subsidiary of the global conglomerate Hitachi, successfully obtained a significant contract from Sun Hung Kai Properties, a prominent property developer in Hong Kong. This contract entails the supply of a total of 160 units, which encompasses a variety of vertical and horizontal transportation solutions, including elevators for transporting people vertically within buildings, escalators for easy movement between floors, and moving sidewalks (also known as travelators) for horizontal transportation across longer distances within buildings or complexes. • In June 2022, KONE Corporation, a multinational elevator and escalator company, will sell its operations in Russia to local management. The ideas for local ownership and operations will give a stronger long-term solution for both staff and customers. COVID-19 impacts: The elevator and escalator business has been significantly damaged in recent years as a result of lockdowns implemented in Global due to the COVID-19 pandemic outbreak in December 2019. The COVID-19 epidemic has hindered the construction industry's expansion in recent years, generating delays that can be ascribed to various damaged supply chains. The elevator and escalator manufacturers, as well as the overall construction industry, are expected to face a number of challenges as most commercial projects are likely to be left incomplete or delayed due to supply chain disruptions, cash flow constraints, workforce unavailability, and production shutdowns. The demand for elevators and escalators is expected to rise in the coming years as various governments of Global prepare to gradually lift the lockdowns. As the lockdowns progressively cease, the construction sector is expected to increase. As commercial developments resume throughout the world, demand for elevators and escalators is expected to rise in the upcoming years. Considered in this report • Geography: Global • Historic Year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Global Elevator & Escalator Market with its value and forecast along with its segments • Application wise tire industry distribution • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Type • Hydraulic • Traction • Machine Room-Less Traction • Others By Business • New Equipment • Maintenance • Others (Modernization) By Application • Residential • Commercial • Industrial The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to elevator & escalator industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.