Smart Elevator Market Size & Outlook, 2024-2032

Smart Elevator Market Size

The global smart elevator market size was valued at USD 16.4 billion in 2023 and is projected to reach from USD 17.90 billion in 2024 to USD 36.21 billion by 2032, growing at a CAGR of 9.2% during the forecast period (2024–2032). 

In the past few years, the world has witnessed a rapid surge in urbanization, which has led to the construction of tall and high-rise buildings, thereby driving the global market. Moreover, the demand for energy saving, efficiency, and sustainability in building design is estimated to create opportunities for the global market growth.

A smart elevator is an advanced vertical transportation system equipped with innovative technologies designed to enhance efficiency, security, and user experience. Unlike traditional elevators, smart elevators utilize IoT (Internet of Things), AI (Artificial Intelligence), and machine learning for predictive maintenance, reducing downtime and optimizing energy consumption.

Features include destination control systems that reduce wait times by grouping passengers traveling to similar floors, touchless operation through mobile apps or voice commands, and real-time monitoring for quick response to malfunctions.

Smart elevators also integrate seamlessly with building management systems, allowing for enhanced security through access control and surveillance. These innovations contribute to improved building traffic flow, energy efficiency, and user convenience, making smart elevators a crucial component in modernizing urban infrastructure and supporting smart city initiatives.

Highlights

• Control systems dominate the component segment
• Commercial dominates the application segment
• North America is the highest shareholder in the global market

Smart Elevator Market Trends

Integration of Iot and Ai Technologies

One prominent trend in the global market is the increasing integration of IoT and AI technologies in elevator systems. These technologies enable predictive maintenance, real-time monitoring, and advanced security features, which are essential for modern high-rise buildings.

• For instance, companies like Otis and Schindler have incorporated AI-driven algorithms in their elevators to optimize traffic patterns and reduce waiting times, enhancing the overall user experience. Furthermore, the adoption of smart elevators in residential buildings is gaining traction, driven by the growing preference for automated and secure living environments. This market trend is anticipated to drive significant market growth as more buildings globally embrace smart technologies to improve efficiency and safety.

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Smart Elevator Market Growth Factors

Urbanization and Construction of High-Rise Buildings

The rapid urbanization and the increasing construction of high-rise buildings are significant drivers of the global market. As urban populations grow, there is a heightened need for efficient vertical transportation systems that can handle high traffic volumes while reducing energy consumption. Smart elevators, equipped with destination control systems and energy-saving features, are becoming a standard in new construction projects.

According to the United Nations, approximately 68% of the global population is expected to reside in urban areas by 2050, significantly increasing the demand for smart elevator solutions that offer superior performance and sustainability. This market growth is further supported by government regulations promoting the adoption of green building technologies.

Restraining Factors

High Initial and Maintenance Cost

One of the primary restraints in the global market is the high initial cost of installation and maintenance. Smart elevators are equipped with advanced technologies, including sensors, AI, and IoT devices, which significantly increase the cost compared to traditional elevator systems.

Additionally, the integration of these elevators with existing building infrastructure requires significant investments, which may be a deterrent for some building owners and developers, particularly in emerging economies. This cost barrier is further exacerbated by the need for regular maintenance and updates to ensure the optimal functioning of the systems. As a result, the adoption of smart elevators may be limited in regions with budget constraints, impacting the overall market growth.

Market Opportunities

Energy Efficiency and Sustainability Initiatives

The growing focus on energy efficiency and sustainability in building design presents a significant opportunity for the global market. Smart elevators are designed to reduce energy consumption through features such as regenerative drives, LED lighting, and sleep modes, which align with global efforts to reduce carbon footprints.

According to the International Energy Agency (IEA), buildings are responsible for nearly 40% of global energy consumption, highlighting the need for energy-efficient solutions. Governments and organizations worldwide are increasingly adopting green building certifications, such as LEED and BREEAM, which incentivize the use of energy-efficient technologies like smart elevators. This shift towards sustainability is expected to drive market growth as developers and building owners seek to meet these standards and reduce operational costs.

Regional Insights

North America: Dominant Region

North America is the most significant shareholder in the global market and is expected to expand substantially during the forecast period. This growth is driven by advanced technological infrastructure, high urbanization rates, and the presence of major market players. With increasing investments in smart cities and modern infrastructure, the demand for smart elevators is on the rise. Furthermore, the key players in this region are introducing advanced smart elevators with better efficiency, thereby driving the North American smart elevator market revenue.

• For instance, in June 2023, Otis Worldwide Corp. unveiled the Gen3 Core elevator, the latest addition to the Gen3™ line of digitally advanced elevators, which is specifically tailored for the expanding two-to-six-story building market in North America.

The United States smart elevator market is the largest contributor in North America. The country's robust construction industry, combined with a growing focus on sustainable building practices, has accelerated the adoption of smart elevators.

• For instance, major cities like New York and San Francisco are witnessing a surge in high-rise building projects equipped with advanced elevator systems. Additionally, the U.S. government's support for energy-efficient technologies through initiatives such as the Leadership in Energy and Environmental Design (LEED) certification further boosts the market. Furthermore, leading companies like Otis Elevator Company and ThyssenKrupp have their headquarters in the U.S., contributing to market revenue and innovation.

Asia-Pacific: Fastest Growing Region

The Asia-Pacific region is expected to witness the highest growth in the global market during the forecast period. This growth is driven by rapid urbanization, increasing infrastructure investments, and the rising demand for energy-efficient buildings in countries like China, India, and Japan. The region is also experiencing significant growth in the construction of high-rise buildings, particularly in urban centers, which is fueling the demand for advanced elevator systems. Furthermore, governments across the region are implementing policies to promote green buildings, further driving market growth.

China’s smart elevator market is the largest market for smart elevators in the Asia-Pacific region, contributing significantly to the overall market size. The country's rapid urbanization, coupled with massive infrastructure projects such as the Belt and Road Initiative, has led to an increased demand for smart building solutions. According to the National Bureau of Statistics of China, the urban population reached 64.7% in 2023, driving the need for efficient vertical transportation systems. Moreover, China's commitment to reducing carbon emissions is promoting the adoption of energy-efficient technologies, including smart elevators, in both residential and commercial buildings.

Smart Elevator Market Segmentation Analysis

By Components

The control systems segment is responsible for the largest market share over the forecast period. The control systems segment is pivotal in the global market, commanding the largest market share. These systems are crucial for managing elevator operations, including destination dispatching, traffic management, and energy efficiency. Advanced control systems, such as AI-driven algorithms and predictive maintenance features, optimize elevator performance by reducing waiting times and improving energy consumption.

Furthermore, the growing demand for intelligent building solutions has accelerated the adoption of sophisticated control systems, particularly in high-traffic environments like commercial and residential buildings. Moreover, innovations in control systems are a key driver of market growth, enabling enhanced safety, efficiency, and user experience in smart elevator installations.

By Setup

The new installation segment is experiencing robust growth in the global market, fueled by the surge in new construction projects, particularly in urban areas. As cities expand vertically, there is a growing need for advanced elevator systems that can efficiently manage high traffic volumes while offering energy-efficient solutions.

New smart elevator installations are becoming standard in modern buildings, equipped with cutting-edge technologies like AI, IoT, and advanced control systems. Developers and builders are increasingly opting for smart elevators to meet the demands of modern infrastructure and regulatory standards, driving significant market growth in this segment.

By Application

The commercial segment held the largest market share during the forecast period. The commercial segment dominates the global market, driven by the increasing construction of smart offices, shopping malls, hotels, and other commercial spaces. The need for efficient vertical transportation in high-rise buildings with heavy foot traffic has spurred the adoption of smart elevators equipped with advanced features like destination control systems, energy-saving technologies, and real-time monitoring.

Commercial buildings prioritize these solutions to enhance tenant satisfaction and reduce operational costs. The growing trend of smart buildings, which integrate IoT and automation, further boosts the demand for smart elevators in this segment, contributing significantly to the market's overall growth and expansion.

List of key players in Smart Elevator Market

1. Otis Elevator Company
2. KONE Corporation
3. Schindler Group
4. Thyssenkrupp AG
5. Hitachi Ltd.
6. Mitsubishi Electric Corporation
7. Fujitec Co., Ltd.
8. Toshiba Corporation
9. Hyundai Elevator Co.Ltd.
10. Bosch Security Systems
11. others

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Recent Development

• June 2024- Elite Elevators introduced its first flagship products: The X300 and X300 Plus intelligent residential elevators. The X300 and X300 Plus are introducing a new age of cost-effective and secure house elevators, adding to an already impressive selection of products.
• August 2024- Otis introduced its Gen3™ linked elevator platform during its recent 'Platform for Possibility' launch event in Bangkok. Otis Worldwide Corporation (NYSE: OTIS) is the preeminent global producer of elevators, escalators, and moving walkways.

Analyst’s Perspective

As per our research analyst, the smart elevator market is set for a dynamic and prosperous future, driven by technological advancements, urbanization, sustainability efforts, and the increasing demand for enhanced passenger experiences. Stakeholders in the industry, including manufacturers, technology providers, and developers, should focus on innovation, strategic partnerships, and addressing market challenges to capitalize on the vast opportunities ahead. As cities become smarter and more connected, smart elevators will undoubtedly play a pivotal role in shaping the future of urban mobility.