The global Elevators and Escalators Market is projected to grow at a CAGR of 6.5% from 2024 to 2031. The market value is expected to increase from XX USD in 2024 to YY USD by 2031. Asia-Pacific currently dominates the market, followed by Europe and North America. Key metrics include increasing urbanization, growing construction activities in emerging economies, and rising demand for smart elevator solutions.
The lift and escalator market is expanding rapidly as a result of rising urbanisation and an increase in the number of high-rise buildings globally. According to the United Nations, 68% of the global population is expected to reside in cities by 2050, up from 55% in 2018. This urbanisation trend, combined with the demand for efficient vertical transportation in buildings, is propelling market growth.
Market Trend: Integration of IoT and AI technologies for smart elevator solutions
The lift and escalator market is seeing a major increase in the integration of Internet of Things (IoT) and Artificial Intelligence (AI) technology. Smart lifts with predictive maintenance capabilities, energy-saving features, and improved user experiences are gaining popularity. For example, Otis and Schindler have introduced IoT-enabled lift systems that can predict maintenance requirements, save downtime, and optimise energy consumption. These smart solutions not only increase operating efficiency, but also improve passenger safety and comfort. The trend is being driven by rising demand for building automation and the need for more sustainable and efficient vertical transportation solutions in smart cities and modern buildings.
Market Driver: Rapid urbanization and increasing construction of high-rise buildings
The growing speed of urbanisation, as well as the increased development of high-rise structures, is a major driver of the lifts and escalators market. According to the Council on Tall structures and Urban Habitat, 106 structures of 200 meters or higher were built in 2020, up from 26 in 2000. Vertical construction is growing especially rapidly in emerging Asian and Middle Eastern countries. For example, China alone accounted for 56 of the 106 structures larger than 200 meters completed in 2020. The growing number of skyscrapers, mixed-use complexes, and large-scale infrastructure projects like airports and metro stations are driving up demand for lifts and escalators. This tendency is projected to continue, boosting market growth in the future years.
Market Restraint: High initial investment and maintenance costs
The lift and escalator sector has major challenges, including costly initial investment and continuing maintenance expenses. The installation of lift and escalator systems necessitates significant capital investment, which can be prohibitive for small-scale development projects or upgrades to existing structures. According to industry experts, installing a new lift in a mid-rise building can cost between $20,000 and $80,000, depending on the design and specifications. Furthermore, constant maintenance and modernisation of these systems increase the long-term expenditures. The requirement for specialised experts, as well as compliance with severe safety regulations, drives up operational costs. These high prices may impede market expansion, particularly in price-sensitive markets or during economic downturns.
Elevators dominate the market due to their widespread use in various building types and the increasing trend of high-rise construction.
Elevators continue to dominate the lift and escalator business, with the biggest market share. This supremacy is partly due to their vital function in vertical mobility throughout a wide range of building types, including residential complexes, commercial skyscrapers, and industrial facilities.
Recent advances in lift technology have centred on increasing energy efficiency and improving user experience. For example, a study published in the journal Energy and Buildings found that modern regenerative drive lifts can save up to 75% more energy than conventional systems. This breakthrough highlights the continued attempts to make lifts more environmentally friendly and cost-effective.
The growing popularity of high-rise building in cities contributes to the preference for lifts. According to the news reports, as of 2023, there were over 1,600 structures taller than 200 meters around the world, with hundreds more under development. This trend is especially prevalent in Asia, where growing urbanisation is generating demand for efficient vertical transit options. Elevators continue to dominate the market due to their requirement in these towering structures, as well as improvements in speed, capacity, and smart features.
Asia-Pacific leads the elevators and escalators market, driven by rapid urbanization and infrastructure development in emerging economies.
Asia-Pacific now has the greatest share of the worldwide lifts and escalators market, with China and India driving this dominance. The region's leadership is ascribed to growing urbanisation, a thriving building industry, and major investments in infrastructure development.
Recent news from the region emphasises continued efforts to improve urban mobility and sustainability. For example, Japan's Mitsubishi Electric has announced the construction of a lift capable of reaching speeds of up to 20 meters per second, making it one of the world's fastest. This innovation is intended to meet the growing demand for efficient vertical mobility in ultra-high-rise buildings.
Key data highlight the relevance of lifts and escalators in Asia-Pacific. According to the China Elevator Association, the country installed over 1 million new elevator units in 2020 alone, accounting for more than 60% of total global installations. In India, lift installations are increasing at an annual pace of 8-10%, thanks to government efforts such as "Housing for All" and the development of smart cities.
Southeast Asian countries such as Indonesia and Vietnam are undergoing a development boom, with high-rise skyscrapers rapidly expanding in Jakarta and Ho Chi Minh City. This trend is likely to boost demand for lifts and escalators in emerging markets.
The lifts and escalators industry is characterised by the existence of multiple important companies, each attempting to preserve and extend their market share using a variety of techniques. Leading firms in this field include Otis Worldwide Corporation, Schindler Group, KONE Corporation, and ThyssenKrupp AG.
Otis Worldwide Corporation, a global leader in the lift and escalator sector, has maintained its dominant position via continual innovation and strategic acquisition. The company's recent spin-off from United Technologies Corporation has allowed it to concentrate more heavily on the lift industry. Otis announced a 2.8% growth in new equipment sales in its most recent financial report, underlining the company's solid market performance amid global economic headwinds.
Schindler Group has been focussing on growing its footprint in emerging areas, particularly Asia. The company's "Schindler Ahead" digital platform, which provides IoT-enabled solutions for smart lifts, has been a significant distinction. Schindler reported a 5.6% rise in order intake in the Asia-Pacific area during the most recent fiscal year, demonstrating the success of its regional expansion plan.
KONE Corporation has been in the forefront of developing environmentally friendly solutions for metropolitan areas. The company's UltraRope technology, which lowers energy usage in high-rise lifts, has been warmly embraced by the market. KONE's focus on sustainability and technological innovation has helped them maintain a solid competitive position, with orders up 4.3% in 2022.
While exact data are closely guarded, industry analysts believe that the top four players control roughly 65-70% of the global lifts and escalators market. The remaining market share is split between regional firms and smaller, specialised companies.
Looking ahead, the competitive landscape is projected to change as smart building solutions and sustainable technology gain traction. Companies that can successfully incorporate IoT, AI, and energy-efficient technology into their goods will certainly gain a competitive advantage in the future years.
The lift and escalator market is set to undergo substantial upheaval in the next years, driven by technology developments and shifting urban landscapes. A crucial trend to monitor is the growing emphasis on touchless and contactless lift systems, which has been pushed by the global epidemic. Voice-activated controls, gesture detection, and mobile app-based lift calls are anticipated to become increasingly common, improving the user experience and cleanliness standards.
Another notable trend is the increased emphasis on vertical mobility as a service (VMaaS). This concept entails connecting lift systems with building management systems and even citywide transit networks to provide seamless mobility solutions. As smart cities expand, lifts and escalators will be critical in connecting various levels of urban infrastructure, such as underground metro stations, skywalks, and rooftop gardens.
Otis Worldwide Corporation
Schindler Group
KONE Corporation
ThyssenKrupp AG
Hitachi, Ltd.
Fujitec Co., Ltd.
Mitsubishi Electric Corporation
Hyundai Elevator Co., Ltd.
Toshiba Elevator and Building Systems Corporation
Sigma Elevator Company
September 2023: The introduction of a new generation of energy-efficient escalators featuring regenerative drive technology.
Artificial intelligence-powered predictive maintenance systems for lift networks in smart buildings will be introduced in February 2024.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. Otis Worldwide Corporation
5.2. Schindler Group
5.3. KONE Corporation
5.4. ThyssenKrupp AG
5.5. Hitachi, Ltd.
5.6. Fujitec Co., Ltd.
5.7. Mitsubishi Electric Corporation
5.8. Hyundai Elevator Co., Ltd.
5.9. Toshiba Elevator and Building Systems Corporation
5.10. Sigma Elevator Company (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Integration of IoT and AI technologies for smart elevator solutions
6.1.2. Growing focus on touchless and contactless elevator technologies
6.1.3. Emergence of vertical mobility as a service (VMaaS)
6.2. Market Drivers
6.2.1. Rapid urbanization and increasing construction of high-rise buildings
6.2.2. Growing demand for energy-efficient and sustainable vertical transportation solutions
6.2.3. Increasing investments in infrastructure development in emerging economies
6.3. Market Restraints
6.3.1. High initial investment and maintenance costs
6.3.2. Safety concerns and stringent regulatory requirements
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Elevators
7.2. Escalators
7.3. Moving Walkways
8. BY SERVICE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. New Installation
8.2. Maintenance & Repair
8.3. Modernization
9. BY TECHNOLOGY (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Traction
9.2. Hydraulic
9.3. Machine Room-Less Traction
10. BY END-USE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. Residential
10.2. Commercial
10.3. Institutional
10.4. Infrastructure
11. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
11.1. North America
11.1.1. United States
11.1.2. Canada
11.1.3. Mexico
11.2. South America
11.2.1. Brazil
11.2.2. Argentina
11.2.3. Rest of South America
11.3. Europe
11.3.1. Germany
11.3.2. United Kingdom
11.3.3. France
11.3.4. Italy
11.3.5. Spain
11.3.6. Russia
11.3.7. Rest of Europe
11.4. Asia-Pacific
11.4.1. China
11.4.2. Japan
11.4.3. India
11.4.4. Australia
11.4.5. South Korea
11.4.6. Rest of Asia-Pacific
11.5. Middle-East
11.5.1. UAE
11.5.2. Saudi Arabia
11.5.3. Turkey
11.5.4. Rest of Middle East
11.6. Africa
11.6.1. South Africa
11.6.2. Egypt
11.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
By Type:
Elevators
Escalators
Moving Walkways
By Service:
New Installation
Maintenance & Repair
Modernization
By Technology:
Traction
Hydraulic
Machine Room-Less Traction
By End-Use:
Residential
Commercial
Institutional
Infrastructure
By Region:
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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