Smart Elevators Market Opportunities and Strategies to 2033

This report describes and explains the smart elevators market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global smart elevators market reached a value of nearly $15.1 billion in 2023, having grown at a compound annual growth rate (CAGR) of 5.67% since 2018. The market is expected to grow from $15.1 billion in 2023 to $24.3 billion in 2028 at a rate of 10.01%. The market is then expected to grow at a CAGR of 10.73% from 2028 and reach $40.4 billion in 2033.

Growth in the historic period resulted from the expansion of the hospitality industry, increasing focus on infrastructure development, growth in commercial real estate developments, growth in disposable incomes and increased focus on energy efficiency in buildings. Factors that negatively affected growth in the historic period were rise in elevator accidents and high installation cost.

Going forward, increasing smart cities initiatives, increased construction of high-rise buildings and skyscrapers, increasing aging populations, rising urbanization and favorable government initiatives will drive the growth. Factor that could hinder the growth of the smart elevators market in the future include shortage of skilled labor.

The smart elevators market is segmented by setup into modernization, maintenance and new deployments. The new deployments market was the largest segment of the smart elevators market segmented by setup, accounting for 44.89% or $6.8 billion of the total in 2023. Going forward, the new deployments segment is expected to be the fastest growing segment in the smart elevators market segmented by setup, at a CAGR of 10.82% during 2023-2028.

The smart elevators market is segmented by carriage into passenger and freight. The passenger market was the largest segment of the smart elevators market segmented by carriage, accounting for 72.08% or $10.9 billion of the total in 2023. Going forward, the freight segment is expected to be the fastest growing segment in the smart elevators market segmented by carriage, at a CAGR of 10.76% during 2023-2028.

The smart elevators market is segmented by application into residential, commercial and industrial. The commercial market was the largest segment of the smart elevators market segmented by application, accounting for 51.98% or $7.8 billion of the total in 2023. Going forward, the residential segment is expected to be the fastest growing segment in the smart elevators market segmented by application, at a CAGR of 10.31% during 2023-2028.

The smart elevators market is segmented by installation into low and mid-rise and high-rise. The low and mid-rise market was the largest segment of the smart elevators market segmented by installation, accounting for 65.20% or $9.8 billion of the total in 2023. Going forward, the high-rise segment is expected to be the fastest growing segment in the smart elevators market segmented by installation, at a CAGR of 10.17% during 2023-2028.

Asia Pacific was the largest region in the smart elevators market, accounting for 36.04% or $5.4 billion of the total in 2023. It was followed by North America, Western Europe and then the other regions. Going forward, the fastest-growing regions in the smart elevators market will be Asia Pacific and Middle East where growth will be at CAGRs of 11.75% and 10.54% respectively. These will be followed by South America and Africa where the markets are expected to grow at CAGRs of 10.14% and 9.37% respectively.

The global smart elevators market is highly concentrated, with large players operating in the market. The top ten competitors in the market made up to 91.63% of the total market in 2023. Kone Corp. was the largest competitor with a 23.75% share of the market, followed by Otis Worldwide Corporation with 18.88%, Schindler Elevator with 17.71%, Hyundai Elevator with 9.29%, TK Elevator with 6.51%, Mitsubishi Electric Co. with 4.78%, Fujitec Co. Ltd. with 3.83%, Toshiba Corporation with 3.21%, Hitachi Ltd. with 2.92% and Kleemann SA with 0.75%.

The top opportunities in the smart elevators market segmented by setup will arise in the new deployments segment, which will gain $4.5 billion of global annual sales by 2028. The top opportunities in the smart elevators market segmented by carriage will arise in the passenger segment, which will gain $6.4 billion of global annual sales by 2028. The top opportunities in the smart elevators market segmented by application will arise in the commercial segment, which will gain $4.9 billion of global annual sales by 2028. The top opportunities in the smart elevators market segmented by installation will arise in the low and mid-rise segment, which will gain $5.9 billion of global annual sales by 2028. The smart elevators market size will gain the most in the USA at $2.2 billion.

Market-trend-based strategies for smart elevators market include focus on enhancing urban infrastructure with advanced elevator technology, focus on enhancing urban infrastructure with advanced elevator technology, focus on introducing the next generation of home elevators and focus on developing innovative smart elevator designs for modern buildings.

Player-adopted strategies in the smart elevators market include focus on improving portfolio through new product launches and focus on enhancing business operations by introducing new product lines.

To take advantage of the opportunities, the analyst recommends the smart elevators companies to focus on enhancing urban infrastructure, focus on low-rise building solutions, focus on next-generation home elevators, focus on innovative smart elevator designs, focus on new deployments market segment, expand in emerging markets, continue to focus on developed markets, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, focus on residential market segment and focus on the freight segment.