Smart Elevator Market

Introduction of the Smart Elevator Market Report

Analysts at GMI Research estimates that the Smart Elevator Market size was worth USD 10.5 billion in 2023, and forecast to touch USD 21.5 billion in 2031, growing at a significant higher CAGR of 9.4% from 2024-2031.

Smart elevator systems such as modern digital controls systems include access controls i.e. card-based systems, biometric systems, touch screens & keypads, and automation systems. According to the need for higher safety, better comfortability, and ease of access, there has been an increase in the demand for smart elevators. The global smart elevator market covers applications such as residential, commercial, industrial, and others.

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Major Smart Elevator Market Drivers

The global smart elevator market growth and size are anticipated to rise due to an increase in the integration of smart elevators, speedy urbanization, and industrialization, and the establishment of smart cities. The evolution of technically advanced and smart buildings is reshaping the elevator market, leading to a new era of innovation in the industry. The focus on heights, increased privacy concerns, smart grouping, adoption of advanced digital security system controls, and the integration of cable-free lifts are introducing the potential for smart elevators in both high-rise, mid-rise & low-height buildings. In addition, the integration of smart technology in elevators, incorporating features such as cloud predictive maintenance, virtual reality diagnostics, and AI allows accurate measurement and identification of potential concerning future issues. This technology also enables remote servicing for certain elevator components. Furthermore, advanced routing technology develops passenger movement effectiveness, specifically during peak hours of traffic. For instance, in 2020, KONE company announced the introduction of an innovative KONE DX Class elevator range which was built with the feature of digital connectivity, and anti-bacterial surfaces preferably for smart buildings.

The rise in the construction of high-rise buildings integrated with automated vertical transportation systems owing to rapid urbanization is expected to lead the market growth. Continuous influx of people to urban areas is pushing more and more demand for housing needs and infrastructure development especially driving development of high rise residential building for accommodation. As per UN estimates urban population is projected to reach 68% by 2030. The estimated rapid urbanization during the coming years is expected to influence the smart elevator market. This surge in urbanization is particularly popular in Africa, Asia, and the Middle East, where several people are relocating to cities. This shift has increased the demand for eco-efficient and sustainable societies, consequently propelling the integration of smart elevators across these regions. For instance, over 50% of the population inhabits cities in Asia, and this trend will probably rise in the forecast period as working professionals are speedily taking steps towards service-based sectors from the agriculture sector.

The global market is witnessing growth due to the rising trend of adopting the digital world and the Internet of Things. The installation of different sensors in elevators has increased interconnectivity, enabling the measurement and identification of factors such as cab speed, motor temperature, shaft alignment, and door functioning. This enhanced connectivity not only allows technicians to diagnose issues prior but also facilitates quicker device repairs. In addition, in-cab services are equipped with advanced technologies like a ‘go to sleep’ mode, automatically turning off lights, ventilation, video, music, and many more functionalities when activated. These features contribute to both effective maintenance practices and energy conservation in smart elevators. Efforts to decrease or conserve energy not only enhance travel time and effectiveness but also result in cost savings and decreased overall waiting time. Elevator control technology, such as destination selection control, has emerged to optimize user experience, allowing them to reach their destination floor speedily with minimal intermediate stops. This technology results in reduced crowding in lift lobbies and can increase passenger handling capacity by up to 30%.

The smart elevators face a challenge in the form of considerable investment. This comprises expenses for installation, integrating automation and security solutions, providing post-sales services, and confirming timely maintenance. Thereby, the total cost of smart elevators exceeds that of traditional ones. In addition, the challenge arises for construction contractors working on mid-rise buildings or apartments, as confined project funding makes the installation of these elevators challenging. This is projected to hinder the growth of the smart elevator market in the forecast period.

Although, green engineering focuses on accomplishing peak effectiveness by harnessing excess energy, typically lost as heat. This system passes the grabbed energy back into the building’s electric control grid for reuse within the smart elevator market. Building projects globally use nearly 40% of the energy with elevators accounting for 2-10% of this consumption. Through the integration of smart solutions in building modernization, this figure can be lowered to 1-5%. The concept of Green engineering provides an opportunity for stakeholders to offer energy-efficient solutions, thereby decreasing running costs through mechanization and upgrading existing elevators. Orona (Spain) has innovated elevators with zero net energy consumption. These elevators feature a structure equipped with energy storage systems and photovoltaic panels, allowing the generation of renewable energy within the smart elevator system.

Moreover, the innovative advancement in smart elevator technology is predicted to present growth opportunities for industry players. For instance, in 2023, Otis Elevator announced the launch of Gen3TM, a digitally connected elevator, now accessible in South Korea. The innovative offering comprises ‘Otis ONE technology,’ allowing continuous real-time monitoring of equipment performance and help. It also features Otis eViewTM, an in-car infotainment display that can connected to the 24/7 OTISLINE customer support center through video chat in case of emergencies. Substantial advancements in Artificial Intelligence, cameras, the Internet of Things, spatial technologies, and a diverse range of sensors are important in the global smart elevator market growth.

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By Component, the Control Systems Segment is Projected to Exhibit the Largest Growth in the Forecast Period

The control system is anticipated to be the leading revenue segment in the global smart elevator market. The incorporation of destination-oriented technology in elevators plays an important role in lowering congestion, thereby fostering increased requirements for control systems. Control systems comprise different components such as access control systems, security control systems, sensors, microcontrollers, and elevator control systems. Whereas, the elevator control systems include destination systems which are chosen to alleviate traffic blocking in elevators. Also, the rise in security concerns for properties and data drives the adoption of security control systems. Elevator access control systems aid in traffic management, and car call handling, and contribute to energy, power, and time savings. Different sensor types, including current sensors, position sensors, and photoelectric sensors, are being installed in the global smart elevator market.

By Service, New Installation Services for Commercial Application Dominated the Largest Global Smart Elevator Market Size

New installation services for commercial applications led the market growth because the commercial sector comprises retail establishments, hotels, airports, leisure parks, and offices. The rise in construction of different entertainment units, hotels, and retail outlets is estimated to rise after the occurrence of the COVID-19 pandemic. The foremost focus of building owners is accomplishing power efficiency in buildings and maintaining the flow of traffic in elevators of commercial space. Therefore, the installation of new smart elevators is becoming more prevalent in commercial spaces. For instance, several projects on new airports in Europe are in the line, particularly in the Nordic countries. Similarly, different African nations have also announced the construction of new and advanced airports to address the rising demand of emerging countries.

By Application, Commercial Applications for Renovation Services Accounted for the Largest Market Size in the Global Smart Elevator Market 

The commercial application for renovation services is expected to dominate the market growth. The enforcement of safety regulations for elevators and escalators drives the demand for advanced services in commercial workspaces. Renovation in the context of smart elevators involves upgrading or replacing elevator control systems and cabins with innovation technologies and products. This process develops elevator durability, preserves power, confirms a comfortable and preventive commuting experience, and develops usability for individuals.

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By Region, the Smart Elevator Market in the Asia Pacific Region is Expected to Lead the Largest Revenue Share 

The growth in the Asia Pacific region is attributed to a rise in living standards in developing nations and rapid industrialization and urbanization coupled with the construction of workspaces with the integration of smart technologies. In addition, the existence of the largest populated nations including China and India, make this region a dominant one in the global smart elevator market because infrastructure development and rapid urbanization in this region lead to different market growth opportunities for a diverse range of companies.

Top Market Players

Various notable players operating in the market include Otis World, KONE Corporation, Schindler, thyssenkrupp AG, Hitachi, Ltd., HYUNDAIELEVATOR CO., LTD., Mitsubishi Electric Corporation, FUJITEC, Toshiba Elevator and Building Systems Corporation, and Honeywell International, Inc., among others. 

Key Developments:

• • In 2023, Nomadix Inc., joined hands with Wide Computer Systems to offer benefits to both new as well as existing clients and strengthen its product portfolio.
  • In 2021, Hyundai Elevators and KT signed a MoU to reinforce their portfolio with the implementation of AI technology in elevators.
  • In 2021, Hyundai Elevators collaborated with Woowa Brothers to provide and design advanced elevators and robotic synchronization which finds its applications in several industries such as residential apartments, hotels, and commercial buildings.
  • In 2020, Hitachi Ltd., acquired share in Yungtay Engineering to improve its elevator and escalator market.
  • In 2020, Otis World acquired Bay State Elevator to increase its presence in the northeast US. The acquisition includes the company’s service portfolio and operations.

Segments covered in the Report:

The Global Smart Elevator Market has been segmented on the basis of Setup, Carriage and Application. Based on the Setup, the market is segmented into New Installation, Maintenance, Renovation. Based on the Carriage, the market is segmented into Passenger, Freight.  Based on the Application, the market is segmented into Residential, Commercial, Industrial.

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Report Coverage	Details
Market Revenues (2023)	USD 10.5 billion
Market Base Year	2023
Market Forecast Period	2024-2031
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Setup, By Carriage, By Application, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Otis World, KONE Corporation, Schindler, thyssenkrupp AG, Hitachi, Ltd., HYUNDAIELEVATOR CO., LTD., Mitsubishi Electric Corporation, FUJITEC, Toshiba Elevator and Building Systems Corporation, and Honeywell International, Inc., among others; a total of 10 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global Smart Elevator Market by Setup

• • New Installation
  • Maintenance
  • Renovation

Global Smart Elevator Market by Carriage

• • Passenger
  • Freight

Global Smart Elevator Market by Application

• • Residential
  • Commercial
  • Industrial

Global Smart Elevator Market by Region

• • North America Smart Elevator Market (Option 1: As a part of the free 25% customization)

    • North America Smart Elevator Market by Setup
    • North America Smart Elevator Market by Carriage
    • North America Smart Elevator Market by Application
    • US Smart Elevator Market All-Up
    • Canada Smart Elevator Market All-Up

  • Europe Smart Elevator Market (Option 2: As a part of the free 25% customization)

    • North America Smart Elevator Market by Setup
    • North America Smart Elevator Market by Carriage
    • North America Smart Elevator Market by Application
    • UK Smart Elevator Market All-Up
    • Germany Smart Elevator Market All-Up
    • France Smart Elevator Market All-Up
    • Spain Smart Elevator Market All-Up
    • Rest of Europe Smart Elevator Market All-Up

  • Asia-Pacific Smart Elevator Market (Option 3: As a part of the free 25% customization)

    • North America Smart Elevator Market by Setup
    • North America Smart Elevator Market by Carriage
    • North America Smart Elevator Market by Application
    • China Smart Elevator Market All-Up
    • India Smart Elevator Market All-Up
    • Japan Smart Elevator Market All-Up
    • Rest of APAC Smart Elevator Market All-Up

  • RoW Smart Elevator Market (Option 4: As a part of the free 25% customization)

    • North America Smart Elevator Market by Setup
    • North America Smart Elevator Market by Carriage
    • North America Smart Elevator Market by Application
    • Brazil Smart Elevator Market All-Up
    • South Africa Smart Elevator Market All-Up
    • Saudi Arabia Smart Elevator Market All-Up
    • UAE Smart Elevator Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Smart Elevator Market All-Up

Major Players Operating in the Smart Elevator (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Otis World
  • KONE Corporation
  • Schindler
  • thyssenkrupp AG
  • Hitachi, Ltd.
  • HYUNDAIELEVATOR CO., LTD.
  • Mitsubishi Electric Corporation
  • FUJITEC
  • Toshiba Elevator and Building Systems Corporation
  • Honeywell International, Inc.