Smart Elevators Market Expected to Reach $57.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Smart Elevators Market," The Smart Elevators Market Size was valued at $18.5 billion in 2021, and is estimated to reach $57.3 billion by 2031, growing at a CAGR of 12.1% from 2022 to 2031.

 The Smart Elevators Market has witnessed a surge in the last decade largely owing to increased investments in the development of residential, commercial, and industrial buildings. Moreover, advancements in IoT, AI, and other technologies, including advancements in hardware and software are a few of the major factors driving the growth of the smart elevators market. In addition to this, the rise in concerns over global warming is driving the demand for green buildings; thereby, driving the demand for smart elevators that are relatively more energy efficient than conventional elevators.     

Depending on different types of setup, the smart elevators market is divided on the basis of new deployment, modernization, and maintenance. Among these, the modernization segment dominated the smart elevators market share in 2021, in terms of revenue. Moreover, the maintenance segment is anticipated to grow at a significant CAGR during the forecast period. The dominance of this modernization segment is attributed to large scale integration of new technologies in old elevator systems.   

Depending on carriage, the smart elevators market is bifurcated into passenger and freight. Out of these two segments, the passenger segment contributed significantly to the total revenue generated in 2021. On the other hand, the freight segment is expected to grow with a higher CAGR throughout the forecast period, attributed to the growing number of industrial, institutional, and commercial buildings.  

Depending on application, the market is divided into residential, commercial, and industrial. Among these, the commercial segment accounted for a major share of revenue generated in 2021, and the residential segment is expected to grow with a significant CAGR during the forecast period. In commercial buildings, environmental hazards and energy consumption by elevators are major concerns for consumers. This has led to the development and launch of eco-friendly and energy-efficient elevators in the market.   

The market is mainly driven by the rise in construction of high-rise buildings, surge in demand for green buildings, and superiority of smart elevators over conventional elevators. However, the high cost of smart elevators discourages builders from installing them in buildings on a limited budget. Thus, the high cost of smart elevators is anticipated to restrain the smart elevators market growth. Contrarily, advancements in smart elevator technologies are expected to provide lucrative growth opportunities to the key players in the market.   

In addition, key players in the smart elevators market are adopting various developmental strategies, such as product launch, product development, and others to remain competitive in the market. For instance, January 2023, TK Elevator, one of the global innovation and market leaders in the elevator industry, expanded its elevator infotainment offerings by incorporating its Application Programming Interface (API) with Desk Intelligence and the Loupe art digital streaming service in the elevator lobby.   

In 2021, North America dominated the global smart elevators market, in terms of revenue, and the Asia-Pacific region is anticipated to grow with the highest CAGR, owing to increased investments for building construction and surge in disposable income in countries such as India, Vietnam, and China.  

However, various businesses in the smart elevators market had to stop their business in countries such as India, China, Vietnam, Germany, and the U.S., during the pandemic. This break directly impacted the smart elevator industry. In addition, the lack of manpower and raw materials constricted the supply of raw materials for the construction of various smart elevator, and negatively influenced the growth of the smart elevators market. However, the severity of the pandemic has significantly reduced and key players in the market are recovering rapidly, owing to vaccination. However, the spontaneous growth of COVID-19 cases in China was an event of concern for the entire world. 

Key Findings of the Study 

• The report provides an extensive analysis of the current and emerging smart elevators market trends and dynamics.   

• Depending on the setup, the modernization segment dominated the smart elevators market, in terms of revenue in 2021. 

• By carriage, the passenger segment accounted for a higher revenue share of the market in 2021. 

• By application, the commercial segment dominated the smart elevators market, in terms of revenue in 2021. 

• Asia-Pacific is projected to dominate the smart elevators market forecast by registering the highest growth rate in the coming years.  

• The key players within the smart elevators market are profiled in this report, and their strategies are analyzed thoroughly, which help understand competitive outlook of the smart elevators industry.  

• The report provides an extensive analysis of the current trends and emerging smart elevators market opportunities.   

• In-depth smart elevators market analysis is conducted by constructing estimations for the key segments between 2022 and 2031.