Elevator Market is Expected to Reach USD 137.57 Billion by 2030

The global urbanization along with the expanding construction industry are significantly boosting the growth of the global elevator market

According to a new research report by Next Move Strategy Consulting, the Global Elevator Market was valued at USD 82.07 billion in 2023, and is expected to reach USD 137.57 billion by 2030, with a CAGR of 6.6% during the forecast period, 2024–2030.

The surge in building and construction activity is a primary catalyst behind the growing elevator market. As urbanization continues to reshape landscapes worldwide, the demand for vertical infrastructure such as high-rise buildings, skyscrapers, and mixed-use developments is escalating.

This tendency is particularly evident in developing economies, in which rapid urbanization and population growth necessitate innovative solutions for accommodating dense urban population.

In response, the construction industry is witnessing a surge in ambitious architectural projects that redefine city skylines and urban environments.

Within these towering structures, elevators play a pivotal role as indispensable conduits of vertical mobility.

They efficiently transport occupants and goods between floors, ensuring seamless access to various amenities, residences, offices, and recreational spaces. Elevators enhance convenience and optimize space utilization within these tall structures. They maximize the value of the vertical real estate.

Additionally, the rapid pace of urbanization worldwide has significantly contributed to the growth of the elevator market.

As cities expand to accommodate increasing population and address space constraints, the demand for efficient vertical transportation systems such as elevators has surged considerably. High-rise buildings, skyscrapers, and mixed-use developments have become prevalent features of urban landscapes, necessitating the installation of elevators to facilitate movement within these structures.

Moreover, urbanization has led to denser populations in cities, resulting in a greater foot traffic and a heightened need for elevator systems in residential, commercial, and public buildings. Elevator systems also ensure smooth and timely vertical mobility.

According to The UNCTAD Handbook of Statistics 2023, the proportion of urban inhabitants was estimated to have risen to 56.9% by 2022.

This proportion tends to be higher in developed regions, reaching 79.7% in 2022, compared to developing countries, which stood at 52.3%.

Furthermore, urbanization trends are often accompanied by an increased focus on sustainability and energy efficiency. This led to the adoption of modern elevator technologies that offer energy-saving features and contribute to eco-friendly building designs.

Consequently, the growing urbanization worldwide continues to be a driving force behind the expansion of the elevator market, with manufacturers innovating to meet the evolving needs of urban environments.

However, high costs associated with elevator installations, maintenance, and modernization are significant factors restraining the market growth.

The initial investment required for installing elevator systems, especially in buildings not initially designed such infrastructure, can pose a considerable financial burden on building owners and developers.

Additionally, ongoing expenses related to maintenance contracts, including routine inspections and repairs, contribute to the overall cost of ownership.

On the contrary, artificial Intelligence (AI)-powered predictive elevator maintenance presents a lucrative opportunity for the elevator industry. It leverages AI to revolutionize servicing and management practices.

By analyzing data from elevator sensors, AI algorithms can proactively identify maintenance needs, minimizing downtime and maximizing elevator uptime.

This approach extends the lifespan of elevator components, enhances safety by preventing unexpected breakdowns, and optimizes resource allocation.

This, in turn, leads to significant cost savings for elevator companies. Moreover, dependable and well-maintained elevators contribute to increased user satisfaction, thereby enhancing the overall experience for both building occupants and visitors. Embracing AI-powered predictive maintenance positions elevator companies to stay competitive and deliver superior service quality in a rapidly evolving market landscape.

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According to the report, leading players operating in the elevator market include Schindler, Otis Elevator Company, TK Elevator (TKE), KONE Corporation, Hitachi Ltd., Fujitec Co., Ltd., Hyundai Elevator Co., Ltd., Mitsubishi Electric Corporation, Toshiba Elevator and Building Systems Corporation, Winone Elevator Company Limited, and others. These market players are adopting various strategies such as acquisition and product launches across various regions to maintain their dominance in the Elevator market.

For instance, in November 2023, Otis launched next-generation smart elevator system, the Otis Gen360 digital elevator, and the 515NPE public escalator. The new digital innovation is expected to boost smart city development and improve buildings to be smarter, more accessible, and sustainable.

Also, in June 2023, Otis launched the Otis ONE IoT digital service solution. This platform provides real-time monitoring and predictive maintenance insights for elevators and escalators, aiming to improve performance and equipment uptime.

Moreover, in October 2022, TK Elevator launched the EOX, a digital elevator platform, to meet urban sustainability needs. It consumes up to 28% less energy with regenerative drive technology and an eco-mode, improving efficiency and reducing carbon footprint.

Key Insights from the Elevator Market Report:

• The information related to key drivers, restraints, and opportunities and their impact on the elevator market is provided in the report.

• The value chain analysis in the market study provides a clear picture of the roles of each stakeholder.

• The market share of the players in the global elevator market along with their competitive analysis are provided in the report.

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