Smart Elevator Market

Smart Elevator Market Size:

The global smart elevator market size reached US$ 28.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 57.2 Billion by 2032, exhibiting a growth rate (CAGR) of 7.9% during 2024-2032. The market is experiencing steady growth driven by rapid urbanization and population growth, increasing focus on sustainability and energy efficiency, significant technological advancements and innovation, growing urban mobility challenges, and increasing aging population and accessibility requirements.

Smart Elevator Market Analysis:

• Market Growth and Size: The market is witnessing stable growth, driven by the increasing urbanization and the demand for efficient vertical transportation systems.
• Technological Advancements: Integration of IoT sensors, machine learning algorithms, and cloud computing to enhance elevator performance, predictive maintenance, and passenger experience. Development of destination dispatch systems, biometric access controls, and touchless interfaces for improved safety and security.
• Industry Applications: Widely used in commercial, residential, industrial, and institutional buildings to optimize traffic flow, reduce wait times, and improve energy efficiency. Increasing adoption in healthcare facilities, airports, and shopping malls to streamline operations and enhance user experience.
• Geographical Trends: Asia Pacific dominates the smart elevator market due to rapid urbanization and infrastructure development in countries, such as China, India, and Japan. North America and Europe follow suit, driven by stringent regulations promoting energy efficiency and technological innovation.
• Competitive Landscape: Leading players include Otis Elevator Company, KONE Corporation, Schindler Group, Thyssenkrupp AG, and Mitsubishi Electric Corporation, among others. Competition intensifies with focus on product innovation, strategic partnerships, and expansion into emerging markets.
• Challenges and Opportunities: Challenges include high initial investment costs, interoperability issues with legacy systems, and cybersecurity concerns. Opportunities lie in the development of smart building ecosystems, leveraging data analytics for personalized services, and addressing the needs of aging populations in urban areas.
• Future Outlook: Rising need for energy-efficient and technologically advanced vertical transportation solutions in high-rise buildings. Emphasis on sustainable infrastructure and smart city initiatives globally, driving the adoption of smart elevators.
   

Smart Elevator Market Trends:

Rapid Urbanization and Population Growth

Urbanization is a primary driver of the smart elevator market. As populations concentrate in urban areas, there is a greater need for high-rise buildings to accommodate housing, offices, and commercial spaces. With limited horizontal space, buildings are expanding vertically, necessitating efficient vertical transportation solutions such as smart elevators. The increasing density of urban populations leads to higher demand for elevators that can handle large volumes of individuals while optimizing energy usage and reducing wait times. Furthermore, urbanization is about population growth and also about the development of smart cities. Governments and city planners worldwide are investing in smart infrastructure to improve sustainability, mobility, and overall quality of life. Smart elevators play a crucial role in these initiatives by contributing to energy efficiency, reducing carbon footprint, and enhancing building connectivity.

Sustainability and Energy Efficiency

The increasing focus on sustainability and energy efficiency is a significant factor driving the smart elevator market. With growing environmental concerns and regulations aimed at reducing carbon emissions, building owners and operators are seeking ways to minimize energy consumption and environmental impact. Smart elevators offer several features and technologies that contribute to sustainability efforts. One key aspect is the integration of energy-efficient components such as regenerative drives, LED lighting, and energy-saving materials in elevator design. These components help reduce energy consumption during operation, leading to lower operating costs and environmental footprint. Additionally, smart elevators utilize advanced control systems and algorithms to optimize energy usage based on real-time demand, further enhancing efficiency. Moreover, smart elevators enable predictive maintenance capabilities, allowing for early detection of potential issues and proactive maintenance scheduling. By addressing maintenance needs promptly, smart elevators minimize downtime and prevent energy waste associated with inefficient or malfunctioning equipment. Predictive maintenance also extends the lifespan of elevator components, reducing the frequency of replacements and associated resource consumption.

Significant Technological Advancements and Innovation

Technological advancements and innovation are pivotal factors driving the smart elevator market forward. As new technologies emerge and existing ones continue to evolve, there is a constant push to enhance the functionality, safety, and efficiency of elevator systems. Smart elevators incorporate cutting-edge technologies such as IoT sensors, machine learning algorithms, and cloud computing to revolutionize the vertical transportation experience. One significant technological advancement is the integration of Internet of Things (IoT) sensors and connectivity within elevator systems. These sensors collect real-time data on various parameters such as elevator usage, performance metrics, and environmental conditions. By leveraging IoT technology, smart elevators enable remote monitoring, predictive maintenance, and data-driven insights to optimize operations and enhance reliability. Furthermore, machine learning algorithms play a crucial role in predictive maintenance and optimization of elevator performance. By analyzing vast amounts of data collected from sensors and historical usage patterns, these algorithms can identify potential issues, predict maintenance needs, and optimize elevator operations in real-time. This proactive approach to maintenance reduces downtime, extends equipment lifespan, and improves overall reliability.

Urban Mobility Challenges

Urban mobility challenges, such as traffic congestion, limited parking space, and inadequate public transportation, are significant factors driving the smart elevator market. As urban populations grow and cities become more congested, there is a pressing need for efficient vertical transportation solutions to alleviate traffic congestion and improve accessibility within buildings. Smart elevators offer a scalable and sustainable solution to address urban mobility challenges by optimizing traffic flow, reducing wait times, and enhancing user experience in high-rise buildings. Traffic congestion is a pervasive issue in urban areas, especially during peak hours, leading to increased travel times, fuel consumption, and air pollution. Smart elevators equipped with destination dispatch systems and advanced traffic management algorithms can mitigate congestion by efficiently allocating elevator cars based on passenger demand and traffic patterns. By minimizing unnecessary stops and maximizing elevator throughput, smart elevators help reduce congestion within buildings, improving overall mobility and efficiency.

Smart Elevator Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on solution and application.

Breakup by Solution:

• Control Systems
  • Security Control System
  • Elevator Control System
• Access Control System
  • Maintenance Systems
  • Communication Systems
• Services
  • Support and Maintenance
  • New Deployments
  • Modernization
     

Control systems accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the solution. This includes control systems (security control system, elevator control system), access control system (maintenance systems and communication systems), and services (support and maintenance, new deployments, and modernization). According to the report, control systems represented the largest segment.

Control systems constitute a significant segment of the smart elevator market, encompassing the technological backbone that governs elevator operations and functionality. These systems include a variety of components such as destination dispatch systems, predictive maintenance algorithms, and energy management software that optimize elevator performance, enhance user experience, and improve operational efficiency. Destination dispatch systems revolutionize elevator operations by intelligently assigning elevator cars based on passenger destinations, reducing wait times, and optimizing traffic flow within buildings. These systems analyze passenger demand in real-time, dynamically adjust elevator routes, and prioritize efficient elevator usage to minimize congestion and improve passenger satisfaction.

Access control systems are integral to smart elevator solutions, providing security and authentication mechanisms to regulate elevator access and ensure controlled entry to designated floors or areas within buildings. These systems employ a variety of technologies such as biometric authentication, keycard readers, and mobile access solutions to authenticate passengers, enforce access policies, and enhance building security. Biometric authentication technologies, such as fingerprint scanners, facial recognition systems, and iris scanners, offer secure and convenient access control solutions that authenticate passengers based on unique biological traits. These technologies provide reliable identification, prevent unauthorized access, and enhance security in high-security environments such as corporate offices, government buildings, and research facilities.

Services constitute an essential component of the smart elevator market, encompassing a wide range of offerings such as installation, maintenance, modernization, and consulting services that support the lifecycle management of elevator systems and ensure optimal performance, reliability, and safety over time. Installation services involve the deployment and integration of smart elevator systems into new or existing buildings, encompassing activities such as site assessment, system design, equipment installation, and commissioning. These services ensure proper implementation of elevator solutions, compliance with regulatory standards, and seamless integration with building infrastructure.

Breakup by Application:

• Residential
• Commercial
• Industrial
• Institutional
• Others
   

Commercial holds the largest share in the industry

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes residential, commercial, industrial, institutional, and others. According to the report, commercial accounted for the largest market share.

The commercial sector represents another significant application area for smart elevators, driven by the demand for efficient vertical transportation solutions in office buildings, retail centers, and mixed-use developments. In commercial buildings, where foot traffic is high and efficiency is paramount, smart elevators play a crucial role in optimizing traffic flow, reducing wait times, and enhancing user experience. Destination dispatch systems, predictive maintenance, and cloud-based monitoring enable seamless operation and management of elevator systems, improving tenant satisfaction and building efficiency. Additionally, features, such as energy-efficient components and occupancy sensors contribute to cost savings and sustainability goals for building owners and operators.

The residential segment accounts for a significant portion of the smart elevator market as the demand for vertical mobility solutions in high-rise residential buildings continues to rise. In urban areas, where land availability is limited and population density is high, vertical expansion through high-rise residential towers is a common trend. Smart elevators in residential buildings offer various benefits such as improved energy efficiency, enhanced security features, and personalized user experiences. Features, such as destination dispatch systems, biometric access controls, and touchless interfaces cater to the needs and preferences of residents, providing convenience and comfort. Moreover, predictive maintenance capabilities ensure reliable and uninterrupted elevator service, contributing to resident satisfaction and building value.

The industrial sector represents a niche yet important application area for smart elevators, particularly in manufacturing facilities, warehouses, and distribution centers. In industrial settings, vertical transportation plays a critical role in material handling, logistics, and workflow efficiency. Smart elevators equipped with advanced control systems and automation technologies streamline vertical movement of goods, equipment, and personnel, optimizing operational processes and minimizing downtime. Features such as remote monitoring, predictive maintenance, and integration with industrial automation systems enhance reliability and productivity in industrial environments.

The institutional segment encompasses a wide range of facilities including healthcare facilities, educational institutions, government buildings, and cultural centers, all of which have unique vertical transportation needs. In healthcare facilities, for instance, smart elevators play a critical role in patient mobility, staff efficiency, and emergency response. Features, such as priority service for medical staff, bed tracking systems, and patient-friendly interfaces improve the overall patient experience and operational efficiency in hospitals and clinics. In educational institutions, smart elevators enhance accessibility and safety for students, faculty, and visitors, supporting inclusive learning environments. Moreover, in government buildings and cultural centers, smart elevators contribute to public safety, security, and accessibility, ensuring smooth vertical movement for citizens and tourists.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest smart elevator market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America is a significant market for smart elevators, driven by several factors. The robust economy, of the region along with rapid urbanization and infrastructure development, fuels the demand for advanced vertical transportation solutions. Smart cities initiatives in cities, such as New York, Chicago, and San Francisco prioritize sustainability and efficiency, spurring the adoption of smart elevator technologies. Moreover, stringent building codes and regulations pertaining to energy efficiency and accessibility drive the integration of smart elevators in commercial and residential buildings across the region. Major players in the smart elevator market, such as Otis Elevator Company and Schindler Group, have a strong presence in North America, contributing to market growth through innovation and technological advancements.

Asia Pacific dominates the smart elevator market, driven by rapid urbanization, population growth, and infrastructure investments in countries, such as China, India, and Japan. Urbanization in the region creates a high demand for high-rise buildings, driving the adoption of smart elevator technologies to optimize space utilization and enhance vertical mobility. Moreover, government initiatives promoting sustainable urban development and smart city infrastructure further accelerate market growth. The Asia Pacific region is also a hub for technological innovation, with companies investing in research and development to meet the evolving needs of the market. Additionally, rising disposable incomes and urban lifestyles fuel the demand for luxury residential and commercial properties, creating opportunities for premium smart elevator solutions in the region.

Europe represents a significant market for smart elevators, characterized by stringent regulations, sustainability initiatives, and technological innovation. The commitment of the region to environmental sustainability drives the adoption of energy-efficient smart elevators in green building projects and sustainable urban developments. European cities, such as London, Paris, and Berlin prioritize smart city initiatives, fostering the integration of advanced vertical transportation systems to enhance mobility and efficiency. Moreover, the presence of leading elevator manufacturers, such as KONE Corporation and Thyssenkrupp AG, contributes to market growth through continuous innovation and product development. Furthermore, the aging population of the region and focus on accessibility requirements stimulate the demand for smart elevators with features that cater to diverse user needs and enhance safety and convenience in public spaces and buildings.

Latin America smart elevator market is fueled by urbanization, infrastructure development, and government initiatives to improve urban mobility and sustainability. Countries, such as Brazil, Mexico, and Argentina experience rapid urbanization, driving the construction of high-rise buildings and mixed-use developments that require efficient vertical transportation solutions. Moreover, rising disposable incomes and urban lifestyles in the region contribute to the demand for modern amenities and luxury properties, creating opportunities for premium smart elevator installations. Additionally, government investments in transportation infrastructure and smart city initiatives accelerate market growth, with a focus on enhancing accessibility, efficiency, and environmental sustainability in urban areas. Leading elevator manufacturers are expanding their presence in Latin America, capitalizing on market opportunities and catering to the evolving needs of the urban population of the region.

The Middle East and Africa represent a growing market for smart elevators, driven by urbanization, infrastructure investments, and government initiatives to promote sustainable development. Rapid urbanization in cities, such as Dubai, Riyadh, and Nairobi fuels the construction of high-rise buildings and smart cities projects, creating a demand for advanced vertical transportation solutions. Moreover, the focus of the region on luxury real estate and hospitality sectors drives the adoption of premium smart elevator installations in iconic skyscrapers and luxury developments. Additionally, government investments in transportation infrastructure and smart city initiatives accelerate market growth, with a focus on enhancing urban mobility, efficiency, and sustainability. Leading elevator manufacturers are expanding their presence in the Middle East and Africa, capitalizing on market opportunities and catering to the unique requirements of the rapidly growing urban centers of the region.

Leading Key Players in the Smart Elevator Industry:

Key players in the smart elevator market, such as Otis Elevator Company, KONE Corporation, Schindler Group, Thyssenkrupp AG, and Mitsubishi Electric Corporation, are actively investing in research and development to drive innovation and stay competitive. These companies are focusing on developing advanced elevator technologies, such as IoT integration, machine learning algorithms, and predictive maintenance solutions, to enhance performance, safety, and energy efficiency. Additionally, they are expanding their product portfolios to cater to diverse consumer needs and market segments, including commercial, residential, and institutional buildings. Strategic partnerships, acquisitions, and collaborations are also utilized to strengthen their market presence and expand into emerging regions and verticals.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Bosch Service Solutions GmbH
• Hyundai Elevator Co. Ltd.
• KONE Elevator India Private Limited (Kone Oyj)
• Mitsubishi Electric Corporation
• Otis Worldwide Corporation
• Schindler Holding Ltd.
• Thames Valley Controls Ltd
• TK Elevator
• Toshiba Elevators and Building Systems Corporation (Toshiba Corporation)
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Latest News:

• June 2021: Otis launched its latest innovation, the Smart Gen3 elevator, enhancing the smart elevator offerings within the Chinese market. This introduction significantly enriches the product portfolio available to sectors in China seeking elevator solutions for their upcoming infrastructure ventures. With continued focus of China on expanding its infrastructure, the Smart Gen3 addresses the growing demand for technologically advanced vertical transportation systems. By offering state-of-the-art features and functionalities, such as IoT integration and predictive maintenance capabilities, Otis aims to meet the evolving needs of consumers in rapidly developing urban landscape of China.
• June 2021: Hyundai Elevators and KT recently formalized their collaboration by signing a memorandum of understanding (MoU), aimed at accelerating their joint initiatives in the Elevator Digital Transformation (DX) Expansion sector. This agreement signifies a commitment from both parties to enhance their efforts in transforming elevator technology and services through digitalization. By pooling their expertise and resources, Hyundai Elevators and KT aim to drive innovation and efficiency in the elevator industry, ultimately delivering improved experiences for consumers and stakeholders.
• March 2021: Kone Elevator India has recently introduced a pioneering product in the smart elevator segment, unveiling digitally connected elevators. This innovative offering represents a significant leap forward in vertical transportation technology, leveraging digital connectivity to enhance functionality and user experience. By integrating IoT capabilities and advanced sensors, these elevators enable real-time monitoring, remote diagnostics, and predictive maintenance, ensuring optimal performance and reliability.

Smart Elevator Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the smart elevator market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global smart elevator market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the smart elevator industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.