Elevator Market Poised for Robust Growth, Projected to Reach USD 138 Billion by 2030
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The global elevator market is experiencing significant growth, driven by rapid urbanization, technological advancements, and increasing demand for sustainable vertical transportation solutions.
According to a comprehensive report by Next Move Strategy Consulting, the global Elevator Market is predicted to reach USD 138 billion, registering a compound annual growth rate (CAGR) of 5.8% by 2030. This press release highlights the key findings of the report, including market growth, segmentation, geographical analysis, major players, and emerging trends shaping the future of the elevator industry.
Market Growth Driven by Urbanization and Infrastructure Development
The elevator market is witnessing a dynamic transformation fueled by the global surge in urbanization and infrastructure development.
As urban populations continue to grow, with the UNCTAD Handbook of Statistics 2023 estimating that 56.9% of the global population lived in urban areas in 2022, the demand for efficient vertical transportation systems has escalated. High-rise buildings, skyscrapers, and mixed-use developments are becoming integral to urban landscapes, necessitating advanced elevator systems to ensure seamless mobility.
The report highlights that the rise in construction activities, particularly in developing economies, is a primary catalyst for market expansion. Elevators are no longer just functional components but pivotal elements of modern infrastructure, enhancing accessibility and optimizing space utilization in densely populated urban centers.
The market’s growth is further propelled by the increasing focus on sustainability and energy efficiency. Modern elevator technologies, such as regenerative drives and energy-efficient motors, align with global environmental goals, reducing energy consumption by 2% to 7% in buildings.
This shift towards eco-friendly solutions is driving demand for smart elevators that integrate Internet of Things (IoT) capabilities and artificial intelligence (AI) for enhanced performance and predictive maintenance. The report underscores that these technological advancements are critical in meeting the evolving needs of urban environments, positioning the elevator market for sustained growth through 2030.
Market Segmentation: Diverse Solutions for Varied Needs
The global elevator market is segmented by type, service, end-user, and geography, offering a comprehensive view of its diverse applications and growth opportunities. The Next Move Strategy Consulting report provides detailed insights into these segments:
· By Type: The market is divided into passenger elevators, freight elevators, and others. Passenger elevators dominate the market, particularly in residential and commercial buildings, due to their critical role in enhancing convenience, security, and efficiency. Freight elevators are gaining traction in industrial settings, supporting the movement of goods in manufacturing plants and logistics hubs.
· By Service: The market is categorized into new installation, maintenance and repair, and modernization. New installations are driven by the construction of high-rise buildings and infrastructure projects, while maintenance and repair services are essential for ensuring safety and reliability. Modernization is a growing segment, as building owners upgrade older systems to comply with updated safety standards and improve energy efficiency.
· By End-User: The market serves residential, commercial, and large-scale industrial sectors. The residential segment led the market in 2023, accounting for a significant share due to the rising demand for high-rise housing in urban areas. The commercial sector, encompassing office buildings, shopping malls, and hotels, is also a major contributor, driven by the need for high-capacity elevators with advanced features like destination control systems. The industrial segment is expected to see rapid growth, fueled by the demand for efficient vertical transportation in manufacturing and logistics.
Geographical Analysis: Asia-Pacific Leads, Emerging Markets Surge
The Next Move Strategy Consulting report provides a detailed geographical analysis, highlighting regional trends and growth prospects. The Asia-Pacific region held the largest market share in 2023, valued at USD 35.84 billion, and is projected to reach USD 65.79 billion by 2030, with a CAGR of 8.0%.
This dominance is driven by rapid urbanization in countries like China and India, where infrastructure development and smart city initiatives are accelerating demand for elevators. China’s elevator market, valued at USD 19.06 billion in 2023, is expected to reach USD 23.87 billion by 2030, while India’s market is projected to grow from USD 2.95 billion in 2024 to USD 4.84 billion by 2030.
North America, with a market size of USD 24.38 billion in 2023, is anticipated to reach USD 38.56 billion by 2030, driven by technological innovation and urban development in the U.S. and Canada. The U.S. market alone was valued at USD 19.41 billion in 2023 and is projected to grow to USD 29.01 billion by 2030.
Latin America and the Middle East are emerging as high-growth regions, with market sizes of USD 2.60 billion and USD 1.25 billion in 2023, respectively, projected to reach USD 3.85 billion and USD 2.38 billion by 2030. These regions are benefiting from increasing infrastructure investments and urban population growth.
Major Players Driving Innovation
The global elevator market is highly competitive, with key players leading through innovation, strategic partnerships, and acquisitions. Major companies include Schindler Group, Otis Worldwide Corporation, ThyssenKrupp AG, Kone Oyj, and Hitachi Ltd. These industry leaders are investing heavily in research and development to introduce cutting-edge solutions.
For instance, Kone India launched the world’s largest passenger elevator at Jio World Centre, Mumbai, in May 2022, and introduced the digitally connected KONE DX Class Elevators in October 2021. Hitachi Ltd. developed a touchless lift solution in July 2021, enhancing user safety through mobile access systems. Otis Worldwide Corporation has expanded its market presence through acquisitions, such as Bay State Elevator in the U.S. in August 2020.
These companies are focusing on smart elevator technologies, integrating IoT and AI to improve performance, safety, and user experience. Their efforts in product launches, business expansions, and partnerships are setting new benchmarks for efficiency and sustainability in the elevator industry.
Emerging Trends: Smart Elevators and AI-Driven Maintenance
The elevator market is undergoing a technological revolution, with smart elevators and AI-driven predictive maintenance emerging as key trends. Smart elevators, equipped with IoT connectivity, touchless operations, and advanced safety features like biometric recognition, are transforming vertical transportation. These systems optimize traffic flow, reduce energy consumption, and enhance user experience, making them a cornerstone of modern building infrastructure.
AI-driven predictive maintenance is another game-changer, leveraging data from elevator sensors to anticipate maintenance needs, minimize downtime, and extend equipment lifespan. This proactive approach not only improves safety but also reduces operational costs, offering significant value to building owners and facility managers.
Additionally, the adoption of green technologies, such as energy-efficient motors and regenerative drives, aligns with global sustainability goals, further driving market growth.
Conclusion
The global elevator market is on a robust growth trajectory, driven by urbanization, infrastructure development, and technological innovation. With a projected market size of USD 137.57 billion by 2030 and a CAGR of 6.6%, the industry is poised to play a pivotal role in shaping modern urban landscapes.
The dominance of the Asia-Pacific region, coupled with strong growth in North America, Latin America, and the Middle East, underscores the global demand for efficient and sustainable vertical transportation solutions.
Major players like Schindler, Otis, and Kone are leading the charge, introducing smart and eco-friendly elevators that meet the evolving needs of urban environments. As the industry embraces AI, IoT, and green technologies, the elevator market is set to redefine accessibility, safety, and sustainability in buildings worldwide.
About Next Move Strategy Consulting
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