The global elevator and escalator market is predicted to reach USD 162.18 billion in 2024 and USD 221.37 billion by 2029, growing with a CAGR of 6.42% during the forecast period.
Because of the increased economic and educational possibilities in metropolitan areas, the global urbanization rate has seen a huge increase in demand. The need for commercial and institutional buildings has increased as the urban population has grown. In order to accommodate more people, the size of commercial buildings has expanded in terms of square footage. The relevance of vertical transit systems for the proper operation of buildings has risen as a result. Because escalators allow people to go from one floor to another continually, these considerations have benefited the escalator business. Furthermore, in order to alleviate traffic congestion, several governments throughout the world are focusing on the building of efficient metro rail systems, which is driving market demand. Furthermore, the rise in the general public's purchasing power in emerging countries has resulted in a significant increase in the number of shopping malls. Escalators are less noisy and vibrational than staircases and may be built in the same area. These technological improvements have increased the market for escalators.
As a consequence of the rising transfer of a large population base from rural to urban regions, infrastructure development, such as the construction of high-rise buildings, has become more important to meet accommodation demands. According to the Department of Economic and Social Affairs of the United Nations, urban populations would account for 60% of global population by 2030 and 68 percent by 2050. In the not-too-distant future, this is expected to result in rapid urbanization. As a large number of people relocate to cities, especially in Asia, Africa, and the Middle East, the demand for eco-efficient and sustainable communities is increasing. In Asia, for example, more than half of the population now lives in cities, and as the working population transitions away from agriculture and toward service-based sectors, this tendency is projected to continue in the not-too-distant future.
Implementing safety regulations is critical in the elevator, and escalator sector since a lack of safety can result in catastrophic injuries or fatalities. Accidents are caused by factors such as risky riding habits, incorrect product design or selection, and a lack of sufficient maintenance. The level and expense of maintenance are the industry's primary challenges. Elevator and escalator accidents are common, but they may be avoided. Elevators in the United States transport billions of passengers each year, yet according to estimates from the US Bureau of Labor Statistics and the Consumer Product Safety Commission, there are roughly 27 deaths every year. To avoid mishaps, it is vital to detect aging equipment, flaws, and items that do not meet acceptable safety requirements. However, frequent inspection and maintenance come at a significant expense, which acts as a market restriction.
Manufacturers are concentrating their efforts on creating new technologies in order to differentiate their products and maintain their market dominance. Smart elevators, for example, are the next generation of vertical transportation systems, with improved hardware and software systems controlling them. Elevator speed is crucial to decrease waiting time outside elevators of high-rise buildings due to growing building heights, which necessitates pre-emptive planning while designing the structures. With the focus on projects like "housing for all" and the development of smart cities, higher structures with even more efficient and creative transportation solutions will be required in the near future. Developing countries are expanding marketplaces with a surge in infrastructure and related services demand. The need for high-speed, energy-efficient elevators is increasing as the number of high-rise structures grows.
Elevators and escalators are subject to stringent restrictions and standards, which may stifle growth. Because even the tiniest flaw in a product might endanger a user's life, compliance with rules and standards is essential. American Society of Mechanical Engineers, the Elevator and Escalator Safety Trust, the Elevator Escalator Safety Foundation, and the Texas Health and Safety Code Safety's Elevator Advisory Board (Board) have all established rules and regulations to ensure public safety in the elevator industry. The ASME, for example, has established important codes for escalators, elevators, moving walkways, and similar equipment that cover safety in design, installation, operation, inspection, testing, maintenance, and alteration and repair. One of the bi-national codes for the elevators and escalators sector is ASME A17.7-2007/CSA B44.7-07. Manufacturers are expected to follow these requirements in order to maintain market share since even minor flaws in the operation of these machines can result in accidents, reducing a company's earnings.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
6.42% |
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Segments Covered |
By Type, Service, End Use Industry and Region. |
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Various Analyses Covered |
Global, Regional, & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Fuji Electric Co. Ltd., Fujitec Co. Ltd., Hitachi Ltd., KÖHLER Elevator GmbH, KONE Corp., Mitsubishi Electric Corp., Otis Worldwide Corp., Schindler Holding Ltd.,thyssenkrupp Elevator AG, Toshiba International Corp and Others. |
Elevators represent 2% to 7% of the total energy consumed in the entire building and have a significant margin for improvement in energy consumption. Therefore, manufacturers are focusing on the development of energy-efficient elevators. These elevators consume less energy with improved hardware and controls and offer greater compactness. In addition, increased government initiatives to conserve energy are expected to lead to the growth of the market for energy-efficient elevators and escalators. For example, the Swiss government encouraged the renovation of old elevators to improve energy efficiency in 2019, with Schindler Switzerland as a technology partner. Therefore, it is likely to result in a strong demand for electrically competent elevators.
The elevator market derives its revenue from new elevator installations (unit and service), maintenance, and modernization. Smart elevators are gaining popularity in high-rise projects because they reduce waiting time and allow people to reach their destination floors in minimal time. These technological advancements in elevators will increase their adoption.
Escalators and elevators have a high penetration in shopping centers, such as shopping malls, shopping malls, and shared workplaces. The growing trend towards eco-efficiency, flexible design, and safety is driving the commercial segment. Additionally, the rise of self-employment has sparked demand for more coworking in recent years. Therefore, the evolution of office space investments is expected to further contribute to the growth of the escalator and elevator market. For example, in 2018, the Indian embassy official said it would raise around $ 775.7 million through the First Real Estate Trust of India.
Europe is expected to show growth in escalator and elevator maintenance and modernization.
85% of the market growth will come from APAC during the forecast period. China, India and Japan are the key markets for the elevator and escalator market in APAC. Market growth during this region are going to be faster than market growth in other regions. The development of smart cities due to the constant increase in urban population will facilitate the growth of the elevator and escalator market in APAC during the forecast period.
Increased commercial and residential construction activity in the Middle East and Africa is expected to contribute significantly to market growth.
Major Key Players in the Global Elevator and Escalator Market are
As Otis celebrates the 20th anniversary of its flagship Gen2® elevator, it also celebrates a milestone: surpassing one million units sold, making this revolutionary elevator the best-selling system of all time. Otis Worldwide Corporation (NYSE: OTIS) is the world's leading elevator and escalator manufacturer, installation, and service provider.
Mitsubishi Electric Corporation (TOKYO: 6503) today announced the establishment of MELCO Elevator Lao Sole Co., Ltd. (MLAO) to accelerate the growth of its elevator and escalator activities in the promising Mekong regional market.
KONE Elevator India, a leading elevator and escalator manufacturer and a wholly-owned subsidiary of Finland-based KONE Corporation, launched the world's first revolutionary class of digitally connected KONE DX-class elevators, which will redefine the elevator experience
Commercial and residential buildings, medium to ultra-fast elevators - We are your partner for vertical transport!
By Type
By Service
By End-use Industry
By Region
Frequently Asked Questions
Key factors include urbanization, technological advancements, safety regulations, aging infrastructure requiring modernization, and the growing construction of residential, commercial, and industrial buildings.
Technological advancements such as smart elevators with IoT integration, energy-efficient systems, AI-based maintenance, and touchless control technologies are significantly shaping the industry. These innovations improve efficiency, safety, and user experience.
Major trends include the increasing adoption of smart elevators, a focus on energy efficiency, the implementation of advanced safety features, and the rise of predictive maintenance using AI and IoT technologies.
Environmental concerns are driving the development of energy-efficient elevators and escalators. Manufacturers are focusing on reducing energy consumption, using sustainable materials, and incorporating green technologies to meet regulatory requirements and customer demand for eco-friendly solutions.
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