Elevators Market by Type (Hydraulic, Traction, Machine Room-Less Traction, and Others), Business (New Equipment, Maintenance, and Modernization), Application (Residential, Commercial, and Industrial), and Region (North America, Europe, Asia-Pacific, and LAMEA): Opportunity Analysis and Industry Forecast, 2023-2032

Elevators Overview

Elevators also referred to as lifts in some regions, are vertical transportation devices used to move people or goods between different floors or levels within buildings or structures. They consist of an enclosed platform called the cab or car, which travels along vertical guide rails or elevator shafts. Elevators play a pivotal role in modern constructions, particularly in tall or multi-story buildings, offering a convenient and efficient means of transportation. The main components of an elevator system include the cab, a counterweight to balance its weight, guide rails to keep it aligned, an electric motor for propulsion, a control system to manage its operation, safety mechanisms, and doors for entry and exit on each floor. With advanced features like automatic doors, destination control systems, and energy-efficient designs, elevators have become an indispensable aspect of high-rise buildings, significantly enhancing accessibility and usability for occupants and visitors alike.

Global Elevators Market Analysis

The global elevators market size was $72.56 billion in 2022 and is predicted to grow with a CAGR of 6.20%, by generating a revenue of $129.77 billion by 2032.

COVID-19 Impact on Global Elevators Market

The COVID-19 pandemic significantly impacted the elevator market. Lockdowns and construction delays reduced demand for new elevators in commercial and residential buildings. At the same time, disruptions in the global supply chain affected the production and delivery of elevator components. Safety concerns about enclosed spaces resulted in decreased elevator usage and occupancy limits to maintain physical distancing. Maintenance and servicing of elevators were also affected due to reduced building occupancy. However, the industry showed resilience by adapting to the changing demands. Elevator manufacturers and service providers began offering touchless technology and hygiene-focused features to address safety concerns.

Additionally, the pandemic accelerated the adoption of digital technologies in the elevator industry, promoting remote monitoring and predictive maintenance. As restrictions eased and economies recovered, the elevator market was expected to rebound gradually, with continued emphasis on touchless technology and intelligent solutions for enhanced efficiency and customer experience.

Urbanization and Infrastructure Development to Drive the Market Growth

The elevators market is driven by several key factors. Urbanization and infrastructure improvement have expanded the demand for elevators in residential and commercial buildings, particularly with the growth of high-rise construction and vertical living spaces. Technological advancements, such as smart elevators and energy-efficient designs, have also impacted market growth. Additionally, the aging population has created a need for elevators in healthcare facilities and senior living residences to enhance accessibility. Stricter safety regulations and the push for sustainability have prompted the modernization and replacement of old elevators, boosting the market. Furthermore, emerging markets with rapid urbanization and real estate trends play a significant role in driving the demand. The ongoing focus on smart city initiatives and the revenue generated from maintenance and service contracts further contribute to the dynamic growth of the elevators market.

Economic Downturns to Restrain the Market Growth  

Several factors were restraining the elevator market. Economic conditions, such as downturns or uncertainty, can reduce construction activity and lower demand for elevators in both residential and commercial sectors. Fluctuations in the construction industry can directly affect the demand for new installations. Moreover, the high initial costs of elevators can deter some potential buyers, particularly in regions with limited financial resources. Strict building codes, safety regulations, and certifications can also slow elevator installation and increase costs for manufacturers and building owners. Additionally, the market may need help in older buildings where retrofitting elevators is complex due to space constraints or technical limitations. Intense competition in mature markets could hinder significant growth without innovative offerings. Emerging technologies and a focus on energy efficiency also impact market dynamics.

Advancements in Technology to Drive Excellent Opportunities

The elevator market offers various opportunities for growth and development. One of the key opportunities is technological advancement. Technological advancements in the industry, such as IoT, artificial intelligence, and cloud connectivity, present opportunities to enhance elevator efficiency, safety, and maintenance. Moreover, the trend towards retrofitting and modernizing existing elevator systems to comply with safety regulations and energy efficiency standards creates a lucrative market niche. The rising focus on green and sustainable initiatives drives the need for eco-friendly and energy-efficient elevator solutions. Additionally, the aging population fuels the demand for elevators in healthcare facilities, senior living communities, and public spaces to enhance accessibility. To know more about global elevators market opportunities, get in touch with our analysts here.

Global Elevators Market Share, by Type, 2022

The traction sub-segment accounted for the highest market share in 2022. The traction type of elevators has been gaining popularity and dominating the market. Traction elevators have seen widespread adoption for several reasons. They are efficient and fast, utilizing a counterweight system that saves energy and facilitates smooth rides. This efficiency makes them particularly suitable for high-rise buildings, where they can handle significant heights and loads. Moreover, modern advancements in technology, such as regenerative drives and improved control systems, have made traction elevators more appealing to developers of modern buildings. They are known for their safety, reliability, and space efficiency, requiring less room for the machine than hydraulic elevators. Additionally, their eco-friendliness aligns with the increasing focus on sustainability. As competitive pricing became more prevalent due to technological advancements and increased adoption, traction elevators became favored by many building developers. Nevertheless, the market dynamics may vary across regions, and other elevator types, like hydraulic and machine-room-less (MRL) elevators, continue to have their applications and advantages.

Global Elevators Market Share, by Business, 2022

The new equipment sub-segment accounted for the highest market share in 2022. New equipment businesses have potentially dominated the elevator market through various factors. One key element is their emphasis on technological advancements, investing in research and development to create innovative elevator systems with energy efficiency, smart features, and enhanced safety. Additionally, these businesses often offer customization and flexibility, catering to niche markets and tailoring solutions to specific customer needs. Competitive pricing initially helps attract clients seeking cost-effective installations. Furthermore, focusing on excellent customer service, agility, and responsiveness has allowed new players to build trust and loyalty, differentiating themselves from established manufacturers. Targeting emerging markets and creating unique brand identities have also contributed to their growth.

 Global Elevators Market Share, by Application, 2022                

The residential sub-segment accounted for the highest market share in 2022. The residential application has been gradually impacting the elevator market, and it might have continued to grow and dominate the market by 2023. Several factors have contributed to the increasing dominance of the residential elevator market. Firstly, the rise of high-rise living and urbanization has fueled the demand for elevators in residential complexes. Additionally, the aging population's need for accessibility and convenience has made elevators essential in residential buildings. In luxury living and upscale developments, elevators have become a symbol of luxury and a standard feature. Technological advancements in the industry have led to more efficient, aesthetically pleasing, and energy-efficient elevator systems suitable for residential settings. Safety features and increased real estate investments have also significantly driven the demand for residential elevators. Furthermore, changing lifestyles and the increasing emphasis on convenience have made elevators attractive to multi-story homes. With customization options allowing seamless integration, residential elevators have become increasingly popular among homeowners.

Global Elevators Market Share, by Region, 2022

The Asia-Pacific elevators market generated the highest revenue in 2022. The Asia-Pacific region has emerged as a dominant force in the elevator market. This dominance was driven by several factors contributing to the region's significant growth in the vertical transportation industry. The Asia-Pacific region witnessed rapid urbanization, with cities experiencing exponential population growth, necessitating efficient vertical mobility solutions like elevators and escalators. Moreover, the region's extensive investment in construction and infrastructure projects, including high-rise buildings, commercial complexes, and metro systems, further fueled the demand for elevators. Countries like Japan and South Korea pioneered technological advancements, developing innovative elevator systems and enhancing their competitive edge in the global market.  The presence of several elevator manufacturers in the region fostered healthy competition, resulting in competitive pricing and a wide array of options for customers.

Competitive Scenario in the Global Elevators Market

Investment and agreement are common strategies followed by major market players. Some of the leading elevators market players are TK Elevator, Schindler, KONE Corporation, Hitachi Ltd., HYUNDAIELEVATOR CO., LTD., Mitsubishi Electric Corporation, Toshiba Group, FUJITEC CO., LTD., Aritco Lift AB, EMAK, Sigma Elevator Company, Schumacher Elevator Company, and ESCON Elevators Pvt Limited.