|Status : Published||Published On : Jun, 2021||Report Code : VRSME9038||Industry : Semiconductor & Electronics||Available Format :||Page : 200|
The global smart elevator market size was valued at USD 9.5 billion in 2021 and is projected to reach USD 13.1 billion by 2027, registering a CAGR of 5.5 % from 2021-2027. The key factor driving the growth of the market is the increase in the spending capability of consumers in emerging markets, increase in the need for security, growing adoption of wireless technology, reduction of energy consumption in the buildings, development of smart cities, and growth in urbanization. The smart elevator market phenomenal penetration in developed countries like North America owing to the rising importance of improved infrastructure. Smart Elevators are progressive systems that allow automated vertical transportation of goods or passengers. They are designed to reduce the waiting time by using digital security control systems i.e., biometrics, touch screen, destination dispatching, and access control systems. The smart elevator is in the developing phase and is providing good revenue to the overall elevator industry. However, the initial investment in the set-up of smart elevators would restrict its presence and will adversely affect the global smart elevator market growth.
The COVID-19 pandemic has reduced the demand for the smart elevator market. It has a devastating effect on the construction industry. The construction of new buildings has been stopped since lockdown was imposed worldwide. Laborers have returned to their hometowns. Consumers are not interested to invest in infrastructure properties due to financial instability and economic crisis. However, the use of smart elevators for repairs and maintenance is expected to be strong. Thus, as the lockdown restrictions are removed, the market will witness slow growth during the forecast timeframe 2021-2027.
Insight by Solution
Based on solution, the market is divided into control systems, maintenance systems, communication systems, and services. Control systems is further subdivided into security control system, elevator control system, and access control system. Services are further subdivided into support & maintenance, new installation and deployments, and modernization. The control systems in expected to have an upward trend during the forecast period 2021-2027 as it provides enhanced security and management in crowded buildings. In commercial buildings, access control systems help in safeguarding IT resources and allowing business managers to control and monitor building structures. In residential buildings, the access control systems restrict the entry of salespersons and tenants on various floors. Thus, act as a restraint against property damages, criminal & theft activities in residential and commercial places.
New installation is anticipated to have the largest share of the smart elevator market during the forecast period as various emerging economies such as China, India, Africa, and Indonesia are expected to grow owing to the advanced security automation and access control systems. The maintenance segment is anticipated to have significant growth because of the maintenance activities of already installed products in North America and Europe.
Insight by Carriage Type
Based on carriage type, the market is segmented into passenger and freight. The passenger segment is anticipated to have substantial growth during the forecast period 2021-2027. According to United Nations data, around 6.7 billion population will live in cities by 2050. This will accelerate the growth of the smart elevator industry as there will be an increase in commercial and residential projects. Moreover, initiatives by the government to construct smart buildings and low-carbon cities will propel the growth of the market. The freight segment is anticipated to have a considerable growth rate due to industrialization and the rising demand for bulk material handling.
Insight by Application
Based on application, the smart elevator market is categorized into residential, commercial, industrial, institutional, and others. The commercial segment to hold the largest market share during the forecast period owing to benefits such as low power consumption, cost savings, and reduced operational cost. Moreover, integration of energy-efficient initiatives in airports, malls, and other commercial facilities and digital building technologies into commercial structures.
The construction of high-rise buildings to accommodate the rising urban population and the rising disposable income in the residential segment will witness the highest growth rate during the forecast period. The industrial segment is emerging as the fastest-growing application during the forecast period owing to the increase in demand for energy-efficient solutions.
The smart elevator market is expected to grow because of the rise in infrastructure transformations, construction activities, deployment of IT infrastructure in emerging economies. Also, government and private investment to adopt energy-efficient solutions will drive the growth of the smart elevator market globally. The adoption of cable-free lifts, increasing security concerns, and the use of digital security systems are the market factors that will drive the smart elevator industry globally. The consumer preference towards accepting intelligent and technically advanced buildings will drive the industry for smart elevators globally.
The rise in migration of population from rural to urban areas has increased the demand for infrastructure development such as the construction of high-rise buildings so as to cater to accommodation needs will propel the need for smart elevators globally. The rapid urbanization in Asia, Africa, and the Middle East has increased the need for eco-efficient and sustainable societies. The minimum waiting time for the elevators will provide will help the customers to reach faster to their desired floors, thus fuelling the growth of the smart elevators market. The energy-efficient solutions will accelerate the growth of the smart elevator market.
Security is one of the integrated features of any building. The use of iris recognition, biometrics will mitigate the security concerns and will provide stringent security to the commercial and residential buildings. Nevertheless, in the current business scenario, these security measures will have a positive impact on the smart elevator market in the future.
The global economic slowdown because of the COVID-19 pandemic has severely affected the growth of the construction industry and consequently affect the demand for elevators. There is a high initial investment required for the installation of smart elevators and the high cost of installing control systems in elevators is a challenge that restricts the growth of the market. The automated access control systems and security systems are integrated into the smart elevators which increases the total cost of smart elevators. As a result, it restricts the use of smart elevators in low, mid-rise buildings. There is a requirement for skilled technical consultants for the installation and integration of access control systems which will hinder the growth of the smart elevator market.
The green engineering concept offers the opportunity for players to provide energy-efficient solutions and reduce operational costs through automation and modernization of existed elevators. The integration of IoT and artificial intelligence (AI) in the elevators and building solutions will provide opportunities for the smart elevator market. The need for advanced security automation and access control systems, spending capability of consumers will provide robust opportunities for the smart elevator market globally.
Geographically, APAC is projected to have a high CAGR during the forecast period as emerging economies such as Indonesia, India, Bangladesh, and Vietnam are improving their standard of living, thus leading to urbanization and the construction of smart technologies.
North America is the dominant market for smart elevators because of its well-established infrastructure and early technology adopters in the region. The need to upgrade existing elevators because of the government mandates will lead to up-gradation which will drive the demand for smart elevators globally.
Key players in the smart elevator market are focusing on product launch and product development. Manufacturers are strengthening their regional presence by collaboration and mergers & acquisitions with other companies in the industry to have a competitive edge. Major industry players achieve a competitive advantage by providing superior distribution channels and improved service capability.
In October 2020, Hitachi acquired a 9.99% share in Yungtay Engineering (Taiwan) in order to strengthen its elevator and escalator market. Hitachi has acquired a ~51% share in Yungtgay.
Some of the major players in the global smart elevator market include ThyssenKrupp AG, Otis Worldwide Corporation, KONE Oyj, FUJITEC CO., LTD., Mitsubishi Electric Corporation, Schindler, Hitachi, Ltd., Bosch Security Systems, LLC., HYUNDAIELEVATOR CO., LTD., and Honeywell International Inc.
Source VynZ Research
Source VynZ Research