Smart Elevator Market Size, Share and Trends 2024 to 2034

Smart Elevator Market Size and Forecast 2024 to 2034

The global smart elevator market size accounted for USD 11.61 billion in 2024 and is predicted to be worth around USD 23.32 billion by 2034, growing at a CAGR of 7.22% from 2024 to 2034. The increasing awareness about the need for energy transitions from conventional sources to smart renewable sources and their applications, like smart elevators, creates a lucrative opportunity in the smart elevator market, further driving its growth.

Smart Elevator Market Key Takeaways

• Asia Pacific led the smart elevator market and contributed more than 44% of market share in 2023.
• Latin America is expected to expand at a solid CAGR of 7.32% over the forecast period.
• By component, the communication system segment accounted for the largest market share of 37% in 2023.
• By component, the maintenance system segment is projected to grow at a notable CAGR of 7.71% during the forecast years.
• By application, the commercial segment recorded the highest market share of 48% in 2023.
• By application, the industrial segment is projected to grow at a notable CAGR of 9.11% during the forecast period.

Asia Pacific Smart Elevator Market Size and Growth 2024 to 2034

The Asia Pacific smart elevator market size is exhibited at USD 5.11 billion in 2024 and is anticipated to reach around USD 10.38 billion by 2034, growing at a CAGR of 7.32% from 2024 to 2034.

Asia Pacific accounted for the largest share of the smart elevator market in 2023. The growth of this region is due to economically evolving countries like India, Japan, and China, where the urbanization rate is increasing, and the population of young and adult people is substantial, which helps to develop the country. Along with this, due to the rapid urbanization in the major cities, the prevalence of high-rise buildings is notable, and they need smart elevators to manage such a huge amount of passengers safely and follow the government's mandate for energy use.

North America is expected to host the fastest-growing smart elevator market during the forecasted years. The growth of this region is due to the strong and strategic economy, infrastructure development, and rapid urbanization, which further fuel the region's growth. The increasing demand for efficient vertical transportation solutions and following the government's mandate for energy usage and safety protocols are helping the adoption of smart elevators in the region. According to the countries, the U.S. dominates the market as it is a highly technologically advanced nation among the countries in North America. It has a robust and developed infrastructure that helps integrate innovative technology and its various applications.

Market Overview

The smart elevator market is expanding globally due to various reasons, including awareness about energy usage and the transition of main conventional elevators into smart elevators. Due to the efficiency and benefits, the installation of gearless permanent magnet synchronous traction machines is gradually increasing in major cities. The advantage of smart technology in elevators, like virtual reality diagnostic, artificial intelligence, and cloud predictive maintenance, is that it allows us to measure future predictions accurately and work on some aspects remotely. The increasing heights of the buildings, increasing concern of the security and adoption to modern digital security solutions are creating a potential to proliferate the market. Additionally, smart elevators help passengers to move freely, especially during hours of high traffic.

• In August 2020, KONE company launched a new KONE DX class elevator series with in-built digital technology and anti-bacterial surfaces.

AI Impact on the Smart Elevator Market

AI is significantly transforming the smart elevator market as it provides substantial promise for time and energy management applications with the help of AI technology. The more intelligent system for the smart elevator can create significant changes for more intelligent building management. The successful implementation of AI technology, along with image processing in elevator systems, provides a robust foundation for future research and development. Integrating smart elevators with internet of things (IoT) systems and building management systems could enhance the comprehensive energy management solutions. Also, exploring adaptive user interfaces and customized scheduling algorithms can again elevate the consumer's satisfaction.

• In 2022, KONE launched its AI-powered elevator system designed to optimize traffic flow within the industrial/ residential buildings complex. This system reduces waiting time by up to 30% and increases the overall user experience and efficiency of vertical transportation.
• In 2024, ThyssenKrupp launched a real-time monitoring system for elevators that alerts the building managers of potential hazards before they become critical and possibly fatal in terms of passenger safety. This increases the overall safety measures of the passengers and reduces maintenance costs by diagnosing the potential issue before it occurs, giving a reliable approach.

Smart Elevator Market Growth Factors

• Increasing advent of technically advanced and intelligent buildings to expand the smart elevator market.
• Introducing a new wave of advancement in the global industry.
• Rising construction of the high-rise and mid-rise buildings across the various countries again helps expand the market.
• Focused efforts to reduce energy costs by the major key players in the global smart elevator market.
• Increased construction activities led to the installation of the smart elevator in the innovative construction.
• Technological advancement, particularly in the IoT and artificial intelligence, will continue to increase the efficiency and safety of elevator users and enhance the experience.
• Enhance safety features is the key focus driven by stringent government regulations to improve building safety and minimize downtime as well.

Market Scope

Market Dynamics

Driver

Urbanization and high-rise construction

The major driving factors for the smart elevator market are the increasing urbanization and the high-rise construction. Rising urbanization worldwide has led to the rapid construction of more high-rise buildings, increasing the demand for smart elevators. Moreover, technological advancements in IoT, cloud computing, and AI help elevators provide features like predictive maintenance, real-time monitoring, and customized user experiences.

Stringent government regulations for safety also promote high-rise buildings to incorporate smart elevators with energy-saving modes like LED lighting and regenerative lights. Moreover, the demand for improved user experience like touchless controls, access to biometrics, and destination control systems are some of the reasons that are driving the demand for smart elevators further.

• In 2023, Otis launched a new IOT-based predictive maintenance solution, which significantly reduces elevator downtime by 50%. Such innovation leverages real-time data to anticipate maintenance needs, ensuring optimum performance and reliability.

Restraint

Integration complexity

The major restraining factors for the smart elevator market are the high initial cost and the integration complexity. Integration of the smart elevator with the existing building structure creates technical challenges and requires expertise and coordination between multiple stakeholders. The initial investment to install a smart elevator is substantial due to the installation of systems like IoT sensors and connectivity infrastructure. Along with this, security concerns also create challenges in adopting this technology since it collects every bit of information. Adhering to the cyber laws is also an important aspect to consider while integrating the smart elevator into existing infrastructure.

Opportunity

Proliferation in the hospitality sector

The major opportunity that the smart elevator market holds is the proliferation of smart elevators in the hospitality sector worldwide. Install smart elevators with advanced guest management systems and customized service options to help enhance consumer experience, which further increases operational efficiency. Such a strategic growth opportunity underscores the different applications of smart elevators across different sectors, which are driven by technological advancements and a rising focus on sustainability, efficiency, and user experience in the advanced building structure.

Component Insights

The communication system segment accounted for the largest share of the smart elevator market in 2023. The growth of this segment is due to various factors like enabling real-time monitoring, data acquisition, and data analysis, which make communication easier. Also, connectivity increases predictability, helps issue diagnosis, and optimizes overall operations. Also, the advanced communication system in smart elevators ensures safety by using enhanced threat detection systems with emergency response capabilities.

The maintenance system segment will witness the fastest growth in the smart elevator market during the foreseeable years. A maintenance system is necessary to ensure seamless operations. It encompasses the proactive and ongoing process of collecting data about transactions. For the passenger safety approach, regular check-ups, and maintenance, proper monitoring is required by skilled ones. Advanced diagnostics tools are required to do regular check-ups, which enable early problem detection and avoid any downtime in the elevator services.

Application Insights

The commercial segment dominated the global smart elevator market in 2023. The segment is incorporated with shopping malls, hotels, office buildings, and other complex properties. High-capacity smart elevators boost the productivity and satisfaction of the passenger by providing features like a destination control system with sensors and managing traffic flow while traveling from one place to another. Energy-efficient components and sensors also help reduce costs and achieve sustainability goals, which in turn benefit the building owners and managers.

The industrial segment will grow at the fastest rate in the smart elevator market over the studied period. In the industrial sector, smart elevators increase productivity by helping the goods movements in manufacturing plants, warehouses, and logistics spaces. Smart elevators in industrial applications are designed for heavy-duty usage, such as automated loading and transportation of heavy goods and materials safely, to ensure seamless operations. Major factors driving this segment include integration with telemonitoring and predictive maintenance to increase the efficiency and reliability of the industrial sector with the help of smart elevators.

Smart Elevator Market Companies

• Bosch Security Systems, LLC.
• Fujitec Co., Ltd.
• Hitachi, Ltd.
• Hyundaielevator Co., Ltd.
• KONE Corporation Finland
• Mitsubishi Electric Corporation
• Otis Worldwide Corporation
• Schneider Electric
• TK Elevator
• Schindler
• Toshiba Elevator and Building Systems Corporation
• Honeywell International Inc.
• Siemens

Recent Developments

• In July 2024, Fujitec Co., Ltd. opened a new sales office in Ahmedabad, India, to expand its sales in the region and establish a multi-brand strategy.
• In July 2024, Hitachi Elevator Asia Pt. Ltd. was awarded the largest contract in Singapore to supply and, consequently, install 450 lifts for high-rise residential buildings by the Housing & Development Board, surpassing previous orders.
• In April 2024, Bosch showcased its visual and audio intelligence solutions enhancing security, safety, and operations across industries at the ISC West 2024. The company demonstrated its edge-based analytics, video cameras, and Intelligent Video Analytics Pro (IVA Pro) offerings for secure perimeters, building safety, and data-driven decision-making.

Segments Covered in the Report

By Component 

• Control System
• Maintenance System
• Communication System
• Others

By Application

• Residential
• Commercial
• Institutional
• Industrial

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa