Status : Published Published On : Jun, 2021 Report Code : VRSME9038 Industry : Semiconductor & Electronics Available Format : Page : 200
2023
2030

Global Smart Elevator Market – Analysis and Forecast (2023-2030)
Industry Insight by Solution (Control Systems, Maintenance Systems, Communication Systems, and Services), by Carriage Type (Passenger and Freight), by Application (Residential, Commercial, Industrial, Institutional, and Others), and by Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)

Industry Overview

The smart elevator market is experiencing significant growth, with the global market size reaching USD 9.5 billion in 2023 and projected to reach USD 13.1 billion by 2030, registering a CAGR of 5.5% from 2023 to 2030. This growth is primarily driven by several factors, including the increase in consumer spending capability in emerging markets, growing demand for security, adoption of wireless technology, energy consumption reduction in buildings, development of smart cities, and urbanization.

Smart Elevator Market Highlights

The market has witnessed remarkable penetration in developed countries like North America, driven by the growing importance of improved infrastructure. Smart elevators are advanced systems that enable automated vertical transportation of goods or passengers. They are designed to minimize waiting time through the utilization of digital security control systems such as biometrics, touch screens, destination dispatching, and access control systems.

Although the smart elevator industry is in the developing phase, it has contributed substantially to the overall elevator industry's revenue. However, the initial investment required for setting up smart elevators may limit their widespread adoption, thus potentially impacting the growth of the global smart elevator market.

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 2023-2030.

Market Segmentation

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 2023-2030 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 2023-2030. 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.

Global Smart Elevator Market Report Coverage

Report Metric

Details

Historical Period

2018–2022

Base Year Considered

2022

Forecast Period

By 2030

Market Size in 2022

$9.5 Billion

Revenue Forecast in 2030

$13.1 Billion

Growth Rate

CAGR 5.5%

Segments Covered in the Report

By Solution, By Carriage Type and By Application

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

North America, Europe, Asia-Pacific, Middle East, and Rest of the World

Industry Dynamics

Industry Trends

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.

Growth Drivers

The growing trend of rural-to-urban migration has led to a surge in infrastructure demands, particularly the construction of tall buildings, to accommodate the increasing population. This phenomenon is expected to drive the global demand for smart elevators. Urbanization has been rapidly progressing in Asia, Africa, and the Middle East, necessitating the development of environmentally friendly and sustainable communities. By minimizing elevator waiting times, smart elevators enable customers to reach their desired floors more quickly, thereby fueling the expansion of the smart elevator market. Moreover, the adoption of energy-efficient solutions will further accelerate the growth of this 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.

Challenges

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.

Opportunities

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.

Geographic Overview

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.

Competitive Insight

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.

The Smart Elevator Market report offers a comprehensive market segmentation analysis along with an estimation for the forecast period 2023–2030.

Segments Covered in the Report

  • By Solution
    • Control Systems
    • Maintenance Systems
    • Communication Systems
    • Services
  • By Carriage Type
    • Passenger
    • Freight
  • By Application
    • Residential
    • Commercial
    • Industrial
    • Institutional
    • Others

Region Covered in the Report

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia-Pacific (APAC)
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Rest of the World (RoW)
    • Brazil
    • Saudi Arabia
    • South Africa
    • U.A.E.
    • Other Countries

Smart Elevator Market Size

Source: VynZ Research

Smart Elevator Market Analysis

Source: VynZ Research

Frequently Asked Questions

Commercial application is expected to drive the market.
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.
Increasing concerns for development and security, rise in disposable income of consumers, convenience, the need for energy-efficient solutions, rapid urbanization, and incorporation of automated solutions are some of the main factors positively impacting the growth of the global smart elevator market.
North America has the largest share in the smart elevator market.
The global smart elevator market size was valued at USD 9.5 billion in 2023 and is projected to reach USD 13.1 billion by 2030

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle

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