Smart Elevator Market Size, Share, Growth & Industry Analysis, By Setup (New Deployment, Renovation, and Maintenance), By Carriage (Passenger and Freight), By Application (Residential, Commercial, and Industrial), and Regional Analysis, 2024-2031

Smart Elevator Market Size

Global Smart Elevator Market size was recorded at USD 21.93 billion in 2023, which is estimated to be at USD 23.97 billion in 2024 and projected to reach USD 48.95 billion by 2031, growing at a CAGR of 10.74% from 2024 to 2031. In the scope of work, the report includes services offered by companies such as Hitachi, Ltd., Toshiba, Hyundai Elevator, Sigma Elevators, Otis, Schindler, Halma plc, FUJITEC CO., LTD., TK Elevator, KONE, and others.

Growing adoption of building automation systems, which integrates smart elevators, and the uptake of cloud-based platforms, are stimulating the growth of the smart elevator market. The increasing adoption of building automation systems is leading to the growing integration of smart elevators into modern infrastructure.

As buildings become more advanced and interconnected, smart elevators, equipped with cutting-edge technologies such as IoT sensors, AI-driven predictive maintenance, and destination control systems, are becoming essential components.

Building automation systems (BAS) manage various building functions, such as HVAC, lighting, security, and vertical transportation. Smart elevators seamlessly integrate with BAS to enhance operational efficiency, energy management, and user experience.

For instance, smart elevators optimize energy usage by aligning with real-time building occupancy data and adjusting their operations accordingly. They further improve traffic flow within buildings by using intelligent algorithms to predict and manage passenger demand, thereby reducing wait times and congestion.

Furthermore, the integration of smart elevators into BAS enables centralized control and monitoring, allowing facility managers to track performance, schedule maintenance, and quickly address issues remotely. This integration of building automation and smart elevators contributes to sustainability goals by reducing energy consumption and enhances the overall safety, security, and convenience of the building environment.

Smart elevators represent the next evolution in vertical transportation by combining advanced technology with traditional elevator functions to create a more efficient, reliable, and user-friendly experience. These elevators are equipped with sophisticated systems such as IoT sensors, artificial intelligence, and destination control technology.

The setup of smart elevators typically involves integrating these technologies into the elevator's operational framework, which includes the carriage, control panels, and communication systems. The carriage itself is designed to be more intelligent, often featuring touchscreens or voice-activated controls that enhance user interaction.

Smart elevators communicate with building management systems to optimize their operation based on real-time data, such as traffic patterns and energy usage. Applications of smart elevators extend beyond traditional passenger transport, playing a pivotal role in high-rise buildings, commercial complexes, and even hospitals where efficiency and reliability are paramount.

For instance, in office buildings, smart elevators streamline the movement of employees during peak hours by predicting and managing traffic, while in healthcare settings, they prioritize emergency services. This level of automation and intelligence makes smart elevators an integral part of modern building infrastructure, aimed at improving efficiency, safety, and user satisfaction.

Analyst’s Review

The landscape of the smart elevator market is shaped by the strategic initiatives and growth imperatives of key players, who are focusing on innovation, strategic partnerships, and market expansion. These companies are heavily investing in research and development to introduce cutting-edge technologies that enhance the functionality and efficiency of smart elevators.

For instance, the integration of AI and IoT for predictive maintenance and energy optimization is a primary focus area, aiming to reduce operational costs and improve service reliability.

• For instance, in June 2024, KONE Corporation secured an order to modernize the Thirty High skyscraper in Central London with advanced people flow solutions. Landsec’s refurbishment aims for net-zero construction and operation.

Additionally, strategic collaborations with real estate developers and technology firms are enabling these companies to expand their market reach and offer comprehensive building automation solutions. Geographical expansion into emerging markets is another critical strategy, as these regions present significant growth opportunities due to rapid urbanization and infrastructure development.

Furthermore, enhancing user experience through features such as personalized destination control and advanced security measures remains a top priority. The imperative for these companies is to gain competitive edge by continually innovating and adapting to changing market demands, ensuring sustainable growth and leadership in the smart elevator market.

Smart Elevator Market Growth Factors

The widespread adoption of cloud-based platforms is revolutionizing the smart elevator market by enabling remote monitoring, predictive maintenance, and comprehensive data analytics. These platforms provide a centralized system where elevator performance data is continuously collected and analyzed in real-time.

Remote monitoring allows service providers and building managers to oversee elevator operations from anywhere, significantly enhancing the ability to respond to issues swiftly and reducing downtime.

Predictive maintenance, powered by cloud-based analytics, uses historical and real-time data to forecast potential malfunctions before they occur, thereby minimizing disruptions and extending the lifespan of elevator components. This proactive approach to maintenance ensures higher reliability and optimizes resource allocation and reduces operational costs.

Additionally, data analytics provide valuable insights into usage patterns, energy consumption, and performance trends, enabling more informed decision-making for building management and enhancing overall efficiency. The integration of cloud-based platforms in smart elevator systems is a key factor fostering innovation, offering scalable, flexible, and efficient solutions that meet the evolving needs of modern buildings.

High initial costs present a significant challenge to the smart elevator market. The advanced technologies and sophisticated systems that make smart elevators efficient and user-friendly further contribute to their high upfront expenses. These costs include the installation of IoT sensors, AI algorithms, cloud integration, and enhanced security features, presenting significant obstacles for numerous building developers and owners, especially in smaller or older buildings.

The substantial investment required for retrofitting existing elevators with smart technologies exacerbates this challenge. Additionally, the complex nature of these systems demands specialized expertise for installation and maintenance, thereby adding to the overall cost.

While the long-term benefits of smart elevators such as energy savings, improved efficiency, and reduced maintenance costs are well-documented, the initial financial burden acts as a deterrent for numerous potential adopters. Addressing this challenge requires innovative financing models, government incentives, and cost-effective technological advancements that lower the entry barrier and make smart elevators more accessible to a broader range of buildings and developers.

Smart Elevator Market Trends

Smart elevators are leveraging IoT sensors and AI algorithms to significantly optimize performance and enhance energy efficiency. IoT sensors embedded in elevator systems continuously monitor various parameters such as load, speed, and usage patterns, providing real-time data that is analyzed to improve operational efficiency.

AI algorithms process this data to predict peak usage times, optimize elevator dispatching, and reduce wait times for passengers. This intelligent management of elevator traffic enhances the user experience and contributes to substantial energy savings by minimizing unnecessary movements and idle times.

• For instance, smart elevators enter a low-power state during off-peak hours or when not in use, thereby reducing overall energy consumption.

Additionally, predictive maintenance enabled by AI helps identify potential issues before they lead to failures, ensuring that elevators operate smoothly and efficiently. This trend of integrating IoT and AI in elevator systems reflects a broader shift toward smarter, more sustainable building solutions. This trend highlights the ongoing innovation in the vertical transportation sector, with a major focus on improving performance and minimizing environmental impact.

Segmentation Analysis

The global market is segmented based on setup, carriage, application, and geography.

By Setup

Based on setup, the market is categorized into new deployment, renovation, and maintenance. The new deployment segment captured the largest smart elevator market share of 44.52% in 2023, largely attributed to the surge in new construction projects globally.

Rapid urbanization and the increasing demand for modern infrastructure have led to a significant rise in the construction of residential, commercial, and high-rise buildings. These new buildings require advanced elevator systems that offer enhanced efficiency, safety, and user experience.

Furthermore, the integration of smart technologies in new construction projects is becoming a standard practice, propelled by the growing need for energy-efficient and sustainable building solutions. The new deployment segment benefits from these trends as developers and architects prioritize the installation of state-of-the-art smart elevators to meet regulatory requirements and market demands.

By Carriage

Based on carriage, the smart elevator market is classified into passenger and freight. The passenger segment is poised to record a staggering CAGR of 10.89% through the forecast period, fueled by the growing need for efficient vertical transportation solutions in densely populated urban areas. As cities expand and high-rise buildings become more prevalent, the demand for reliable and advanced passenger elevators increases.

Smart elevators, equipped with technologies suchas AI, IoT, and destination control systems, are particularly favored for their ability to enhance passenger flow, reduce wait times, and improve overall user experience.

Additionally, the trend toward smart buildings and the rising adoption of building automation systems are propelling the growth of the passenger segment. These elevators are crucial for residential and commercial buildings and for public infrastructure such as airports, train stations, and hospitals, where managing large volumes of people efficiently is paramount.

By Application

Based on application, the smart elevator market is divided into residential, commercial, and industrial. The commercial segment garnered the highest revenue of USD 9.59 billion in 2023, propelled by the booming real estate and commercial construction sectors.

The increasing development of office spaces, shopping malls, hotels, and mixed-use buildings has led to increased demand for advanced elevator systems that offer superior performance, safety, and efficiency. Commercial buildings require elevators that can handle high traffic volumes, operate smoothly during peak hours, and provide a seamless experience for users.

The adoption of smart elevator technologies, such as destination control systems and predictive maintenance, has supported the growth of the growth. These advancements have notably enhanced operational efficiency and reduced downtime. Moreover, the emphasis on sustainability and energy efficiency in commercial real estate has led to the installation of elevators with energy-saving features and eco-friendly designs.

Economic growth in emerging markets and substantial investments in commercial infrastructure projects have fueled the growth of the segment. The commercial sector's focus on creating modern, high-tech environments for businesses and consumers contributes significantly to the strong performance and revenue generation of smart elevator solutions.

Smart Elevator Market Regional Analysis

Based on region, the global market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

The North America smart elevator market share stood around 28.64% in 2023 in the global market, with a valuation of USD 6.28 billion, underscoring the region's leadership in the adoption of advanced elevator technologies. This dominance is bolstered by several factors, including rapid urbanization, a robust real estate sector, and significant investments in modern infrastructure.

North America is home to numerous high-rise buildings and commercial complexes that demand efficient, reliable, and energy-efficient vertical transportation solutions. Additionally, stringent building codes and regulations promoting sustainability and safety have accelerated the adoption of smart elevators.

The region's strong focus on technological innovation and integration of IoT, AI, and cloud-based solutions in building management systems bolsters North America smart elevator market. Major cities such as New York, Chicago, and Toronto are continually investing in upgrading their existing infrastructure, which includes retrofitting older buildings with state-of-the-art smart elevator systems, thereby fostering regional market development.

Asia-Pacific is poised to grow at a significant CAGR of 11.51% in the forthcoming years, mainl due to rapid urbanization, economic development, and massive infrastructure projects across the region. Countries such as China, India, and Southeast Asian nations are experiencing a construction boom, with numerous high-rise residential and commercial buildings being developed to accommodate the growing population and support economic activities.

The increasing focus on smart city initiatives and the adoption of advanced building technologies are key factors propelling the growth of the Asia-Pacific smart elevator market. Furthermore, rising disposable incomes and improving living standards are boosting demand for modern, efficient, and safe vertical transportation solutions.

Government policies supporting energy efficiency and sustainable construction practices are spurring the adoption of smart elevators. The region's burgeoning real estate market, coupled with technological advancements and increasing foreign investments in infrastructure, creates a conducive environment for the growth of the Asia-Pacific market.

Competitive Landscape

The smart elevator market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions.

Manufacturers are adopting a range of strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, to strengthen their market standing.

List of Key Companies in Smart Elevator Market

• Hitachi, Ltd.
• Toshiba
• Hyundai Elevator
• Sigma Elevators
• Otis
• Schindler
• Halma plc
• FUJITEC CO., LTD.
• TK Elevator
• KONE

Key Industry Developments

• June 2024 (Expansion): Fujitec Co., Ltd delivered 33 elevators and escalators to the 54-story Headquarters Building of Fubon Financial Holdings.
• October 2023 (Expansion): Hitachi, Ltd. announced the delivery of 120 elevators and escalators, including the "FIBEE" destination floor reservation system, to the newly opened Toranomon Hills Station Tower. This installation comprises 78 elevators, 41 escalators, and a small freight elevator, featuring an 8,000kg (116 people) capacity elevator, the largest in Hitachi's portfolio.

The global smart elevator market is segmented as:

By Setup

• New Deployment
• Renovation
• Maintenance

By Carriage

• Passenger
• Freight

By Application

• Residential
• Commercial
• Industrial

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America