Elevator & Escalator Market Size, Share & Trends Analysis Report By Product (Elevators, Escalators, Moving Walkway), By Business (New Equipment, Maintenance, Modernization), By Elevator Technology (Traction Elevator, Machine Room-less Traction Elevator, Hydraulic), By Applications (Residential, Commercial, Industrial) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2025-2033

Elevator & Escalator Market Size

The global elevator & escalator market size was valued at USD 117.97 billion in 2024 and is expected to grow from USD 126.24 billion in 2025 to reach USD 217.06 billion by 2033, growing at a CAGR of 7.01% during the forecast period (2025-2033). 

Elevators and escalators are essential transportation systems designed to move people and goods vertically or at an incline within buildings and other structures. While elevators use enclosed cabins to travel between floors, escalators are moving staircases designed for continuous movement. Both are critical components of modern infrastructure, ensuring convenience, accessibility, and safety in urban environments.

Several factors drive the global demand for elevators and escalators. Rising urbanization is leading to the growth of densely populated cities, where high-rise buildings are a necessity. This creates substantial demand for new installations in residential, commercial, and mixed-use developments.

An aging global population further amplifies this need, as senior citizens require enhanced mobility solutions for safe and comfortable navigation within buildings. Another significant driver is the increased investment in infrastructure projects worldwide, particularly in developing economies.

The above figure represents the existing escalator units in Europe

Elevator & Escalator Market Trends

Focus on smart elevators and escalators

The shift toward smarter cities has significantly increased the demand for elevators and escalators equipped with IoT, AI, and automation technologies. These advanced systems enhance safety, efficiency, and user convenience by optimizing energy consumption, predicting maintenance needs, and enabling real-time monitoring. Leading manufacturers are developing smart elevators that seamlessly integrate with building management systems and provide predictive maintenance alerts.

• For example, the International Energy Agency reports that smart elevators can reduce energy consumption in commercial buildings by up to 30%. This capability directly aligns with sustainability goals and offers cost efficiency to building operators, making smart elevators a critical component of modern infrastructure.

Growth in modernization

Aging infrastructure, particularly in developed regions, has intensified the need for modernization in the elevator and escalator market. Many buildings are nearing the end of their operational life, requiring upgrades to meet contemporary safety standards, improve energy efficiency, and enhance overall functionality.

• For instance, data from the European Lift Association reveals that over 50% of elevators in the European Union are more than 20 years old. This has created a pressing demand for modernized systems, driving significant growth in the replacement and retrofit market.

Modernization efforts not only ensure compliance with current regulations but also contribute to sustainability by reducing energy usage and extending the lifespan of existing equipment.

Elevator & Escalator Market Growth Factors

Urbanization and infrastructure development

As urban centers expand and population densities increase, efficient vertical transportation becomes essential. High-rise buildings offer a space-efficient solution to accommodate growing populations in cities with limited land, with elevators and escalators serving as indispensable components for functionality and accessibility in these structures.

• For example, the World Bank projects that the global urban population will reach 70% by 2050. This shift will significantly drive demand for elevators and escalators, particularly in developing regions like Asia, Africa, and Latin America, where urban growth is fastest.

Meeting the accessibility needs of an aging population

As populations age, there is a growing demand for accessible infrastructure that caters to the needs of the elderly and people with disabilities, especially in developed economies with high life expectancy. Elevators, in particular, provide a convenient mode of transportation, enabling easy access across floors without physical strain.

Escalators, on the other hand, offer an efficient alternative for those capable of navigating stairs but unable to manage long flights. These systems are integral to creating inclusive environments that empower the elderly and individuals with disabilities to lead independent lives and engage more fully in society. By improving mobility and accessibility, they enhance social integration and overall quality of life.

• For instance, the United Nations estimates that by 2050, 16% of the global population will be over 65. This demographic trend will fuel significant demand for accessible elevators and escalators in residential, commercial, and public spaces worldwide.

Restraining Factors

High installation and maintenance costs

The substantial financial investment required for the installation and ongoing maintenance of elevators and escalators presents a significant challenge, particularly for smaller developers or operators with limited budgets. These costs are especially pronounced in high-rise buildings and infrastructure projects that require advanced features or customized designs to meet specific needs. Moreover, integrating accessibility features or energy-efficient technologies further raises initial expenditure.

• For instance, a report by the Building Owners and Managers Association highlights that maintenance expenses for elevators account for a considerable portion of total operating costs in commercial buildings. This financial burden can influence decision-making, particularly for operators of smaller or mid-sized buildings.

Market Opportunities

Focus on eco-friendly and energy-efficient solutions

The growing emphasis on sustainability presents a significant opportunity for the elevator and escalator market. Energy-efficient and eco-friendly solutions are in high demand, driven by stringent environmental regulations and the rising adoption of green building standards. Innovations like regenerative braking systems allow elevators to capture excess energy during braking and feed it back into the building's power grid, significantly reducing energy consumption and utility costs.

These advancements not only support sustainability goals but also align with the preferences of environmentally conscious businesses and consumers aiming to reduce their carbon footprint. The adoption of such technologies enhances building sustainability and offers a competitive edge to manufacturers in developed and environmentally progressive markets.

• For example, the U.S. Green Building Council reports that green building practices, including the integration of energy-efficient elevators, are expected to grow as sustainability remains a priority within the construction industry.

Regional Insights

Asia-Pacific: Dominant region with a significant market share

The Asia-Pacific region leads the global elevator & escalator market, driven by rapid urbanization, robust infrastructure development, and a surge in high-rise construction across emerging economies like China, India, and Southeast Asia. As these nations experience significant economic growth, their cities are expanding vertically to accommodate growing populations and urban migration, creating a strong demand for efficient vertical transportation in both residential and commercial buildings.

The boom in high-rise projects—ranging from office buildings to residential complexes, shopping malls, and mixed-use developments—has amplified the need for advanced elevator and escalator systems to ensure smooth and efficient movement within these structures. Moreover, the rise of the middle class, increasing disposable incomes, and a shift toward modern, urban living have further driven demand.

North America: Significant rapidly growing region

North America is witnessing significant growth in the market, primarily driven by the ongoing modernization and refurbishment of aging infrastructure, especially in major urban centers. As many buildings, particularly older, low-rise structures, undergo renovations or retrofitting, there is an increased demand for upgraded vertical transportation systems that meet modern safety standards, improve operational efficiency, and enhance accessibility.

Urbanization continues to accelerate, with more people relocating to metropolitan areas, increasing the need for high-rise buildings and commercial spaces that require advanced elevator and escalator systems. Government incentives and policies promoting sustainable building practices, including grants and tax credits for eco-friendly retrofits and LEED certifications, are also supporting regional growth.

Countries Insights

• United States: The U.S. is a key player in global infrastructure innovation, with strong demand for elevators and escalators driven by the expansion of high-rise office buildings and the ongoing modernization of aging structures. As older buildings undergo retrofitting, there is increased demand for updated vertical transportation systems that meet modern safety and efficiency standards.

For example, New York City's skyscrapers are incorporating smart elevators to enhance performance and energy efficiency, aligning with urban development trends and sustainability goals.

• China: China, the world's largest construction market, sees enormous demand for elevators and escalators, particularly in residential high-rises and commercial buildings. Rapid urbanization, coupled with an ever-growing middle class, drives this demand as cities continue to expand vertically.

For instance, Shanghai's booming skyline includes numerous high-rise residential and commercial projects, each requiring advanced elevator systems to manage high traffic efficiently. These advancements are crucial for maintaining mobility in increasingly dense urban environments.

• Japan: Japan is renowned for its advanced elevator technology, including innovations in high-speed and earthquake-resistant systems. With dense urban centers and a focus on safety and efficiency, Japan has led the way in integrating cutting-edge elevator systems.

The country’s high-speed bullet trains are also complemented by advanced elevator systems in stations to manage passenger flow efficiently. Tokyo’s Skytree, one of the tallest structures in Japan, features state-of-the-art elevators designed to handle both speed and seismic resistance.

• Germany: Germany is a leading market in Europe, especially focused on modernization and sustainability, driven by high standards for elevator safety and efficiency. In cities like Berlin, where historical buildings are being retrofitted, demand for energy-efficient and eco-friendly elevators has grown.

Germany is also at the forefront of integrating smart technologies into elevator systems, aligning with its commitment to sustainability. For example, the modernization of the Reichstag building included eco-friendly, machine-room-less elevators to improve accessibility and energy performance.

• India: India experiences rapidly increasing demand for elevators and escalators due to rapid urbanization and government investments in smart cities. The development of cities like Bengaluru and Hyderabad includes the integration of advanced vertical transportation solutions in commercial and residential properties.

The Indian government’s push for smart cities, such as the new developments in Dholera, is also fueling demand for modern, energy-efficient elevator systems.

• Brazil: In Brazil, rising infrastructure development in both the commercial and residential sectors has boosted the demand for elevators and escalators. Major cities like São Paulo and Rio de Janeiro are undergoing significant urban renewal projects, driving the need for advanced vertical transportation systems.

For example, the expansion of shopping malls and office complexes in São Paulo is supported by state-of-the-art elevator systems, ensuring efficiency and accessibility as these buildings rise to accommodate growing urban populations.

• United Kingdom: The United Kingdom is known for its luxury and heritage buildings, where modernization and maintenance are crucial market segments. As many buildings in cities like London are historical landmarks, they often require elevator upgrades to meet current safety standards without compromising their architectural integrity.

For instance, the Shard, one of London's tallest buildings, incorporates high-performance, space-saving elevator systems designed to meet both modern accessibility needs and the aesthetic demands of luxury developments.

Saudi Arabia: Saudi Arabia’s elevator and escalator market is experiencing high demand due to growth in tourism, infrastructure, and real estate development. As the country invests heavily in mega-projects such as the NEOM smart city and the expansion of the King Abdulaziz International Airport, advanced vertical transportation systems are required to ensure smooth mobility in these large developments.

Elevator & Escalator Market Segmentation Analysis

By Product

Elevators dominate the global elevator and escalator market with the largest market revenue due to their critical role in high-rise buildings and extensive use across residential, commercial, and industrial sectors. The surge in urbanization and the increasing construction of skyscrapers and vertical cities have significantly driven demand for elevators worldwide. These systems provide essential vertical transportation, ensuring convenience and accessibility for dense urban populations.

Moreover, advancements in smart elevator technology, such as smart systems and energy-efficient solutions, have further propelled their adoption, making them a cornerstone in modern infrastructure projects.

By Business

The maintenance segment leads the market, driven by the mandatory need for regular upkeep to ensure safety, reliability, and compliance with stringent regulations. With a vast number of installed elevators and escalators globally, the demand for maintenance services remains steady, particularly in regions with aging infrastructure.

Frequent inspections, repairs, and modernizations are essential to extend the lifecycle of these systems and meet evolving safety standards. This segment is further bolstered by service contracts, which guarantee long-term maintenance and create recurring revenue streams for manufacturers and service providers.

By Elevator Technology

Machine Room-Less traction elevator segment dominated the market with the largest market revenue. Machine Room-less (MRL) traction elevators are gaining popularity for their energy efficiency, space-saving design, and suitability for taller buildings. By eliminating the need for a traditional machine room, MRL technology maximizes available space, a critical factor in densely populated urban areas. These elevators consume less energy compared to conventional systems, aligning with sustainability goals and reducing operational costs. Their compact design and ability to support high-rise structures make them a preferred choice for modern buildings, including residential towers, commercial complexes, and mixed-use developments.

By Application

The commercial segment represents the largest application for elevators and escalators, fueled by their extensive use in shopping malls, airports, offices, and public transportation hubs. Rapid urbanization and significant investments in infrastructure projects, particularly in developing regions, have driven demand for these systems in commercial spaces.

High foot traffic in these settings necessitates efficient and reliable vertical transportation solutions to ensure smooth operations and enhanced user experience. Moreover, trends in smart cities and automation are further boosting the adoption of advanced elevators and escalators in commercial applications.

Company Market Share

Key market players in the Elevator & Escalator industry are focusing on advanced technologies and strategic initiatives, including collaborations, acquisitions, and partnerships, to strengthen their product offerings and expand their market presence. By investing in innovations such as smart elevators, energy-efficient systems, and machine-room-less technologies, these companies are enhancing product performance, safety, and sustainability.

Otis Elevator Company: An Emerging Player

Otis Elevator Company, a leading global elevator and escalator company, specializes in the development of innovative, smart, and eco-friendly solutions. Known for its focus on safety and sustainability, Otis has made strides in digital services, including IoT-enabled monitoring solutions for predictive maintenance.

Recent Developments:

• In March 2024, Otis announced a strategic partnership with Microsoft to integrate IoT capabilities into their elevators, allowing real-time performance monitoring and predictive maintenance to enhance uptime and reliability.

Recent Developments

• February 2024 - Schindler Group strengthened its position in Latin America by acquiring a local elevator company in Brazil. This strategic move aims to expand Schindler’s footprint in the region while enhancing its service capabilities, catering to the increasing demand for modern vertical transportation solutions in Brazil's rapidly growing infrastructure market.
• January 2024 - KONE Corporation introduced a new line of eco-efficient escalators in Europe. Designed to meet stringent sustainable building requirements, these escalators focus on reducing energy consumption and minimizing environmental impact, addressing the growing demand for green building solutions across Europe. 

Analyst Opinion

As per our analyst, the global elevator and escalator market continues to experience steady growth, driven by key factors such as rapid urbanization, aging infrastructure, and the rising demand for accessible and energy-efficient solutions.

Modernization projects in aging buildings across North America and Europe are playing a pivotal role in this market expansion. The primary growth opportunity lies in the development of green, IoT-integrated systems that meet stringent energy efficiency and safety standards, catering to both new constructions and retrofit projects.

While high maintenance costs and technical complexities remain challenging, industry leaders like Otis, KONE, and Schindler are strategically investing and innovating to strengthen their market presence, particularly in emerging economies. To maximize profitability, they fully capitalize on the growing demand for infrastructure development worldwide.