GVR Report cover Elevators Market Size, Share & Trends Report

Elevators Market Size, Share & Trends Analysis Report By Type (Hydraulic, Traction), By Business (New Equipment, Maintenance, Modernization), By Application (Residential, Commercial), By Region, And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-4-68040-037-1
  • Number of Pages: 150
  • Format: Electronic (PDF)

Report Overview

The global elevator market size was valued at USD 72.39 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 6.4% from 2023 to 2030. Due to escalating urbanization and a significant rise in the number of elderly people, the global escalators market is anticipated to expand rapidly over the projected period. Additionally, increasing demand from end users in the residential, commercial, and industrial sectors will fuel the demand for elevators during the forecast period.

U.S. elevators market size, by type, 2020 - 2030 (USD Billion)

The COVID-19 pandemic outbreak has transformed the general business scenario for 2020 as well as for the next few years to come across numerous verticals. It caused a serious setback in a number of industry sectors, including manufacturing facilities. The COVID-19 outbreak's effects have slowed down the construction industry's expansion in recent months, resulting in delays that are the result of multiple broken supply chains. To stop the virus from spreading, the majority of commercial construction projects had to be stopped. The aforementioned factors have had a considerable impact on elevator demand.

In November 2021, the U.S. Government announced a USD 1.2 Trillion Infrastructure Bill that is expected to revamp the construction industry and transportation in the country to recover from the economic downturn caused by the pandemic. This is expected to positively impact the market. Increased construction spending globally, due to economic & industrial development and rapid population growth, is expected to boost the demand for elevators. An increasing number of large-scale infrastructure investment plans, such as hotels & hospitals, in the U.S. is anticipated to augment the growth of the construction industry, thus driving the demand for elevators across commercial buildings.

The U.S. non-residential construction spending has been increasing steadily over the last decade. According to the U.S. Construction Pipeline Trend Report by Lodging Econometrics, U.S. hotel construction projects climbed by 9% in Q2 of 2022 and by 14% in Q4 of 2022. This growth in construction projects is expected to augment the demand for elevators. In addition, the rising spending capacity of consumers coupled with the growing demand for single-family housing is expected to promote the utilization of elevators in the construction of residential buildings.

The Associated General Contractors Of America, Inc. said that the construction industry contributes significantly to the growth of the U.S. economy. Over 7.6 billion people are involved in the construction sector, which employs over 745,000 employees in 2021. Due to the strict restrictions surrounding elevators, the expanding construction sector will therefore be the primary factor driving the demand for elevators in the coming years. For instance, the American Society of Mechanical Engineers (ASME) and the Occupational Safety and Health Administration (OSHA) are responsible for establishing all federal legislation governing elevator maintenance.

Modern elevators cater to a wide range of uses, including the movement of goods and people as well as their use in ships, dams, and specialist structures like rocket launchers. Furthermore, in the coming years, demand for elevators will be driven by the development of collective operation, in which an elevator or group of elevators offers enhanced automatic operation and is popular in residential complexes and hospitals due to its affordability. One such company is Toshiba Johnson Elevators India (TJEI), which improves lives through technology and design.

Additionally, ultra-premium and premium-class elevators are part of TJEI's extensive product offering. SPACEL-III and High-end ELCOSMO-III are two products that TJEI sells in the ultra-luxury and premium segment. The ELBRIGHT series of these elevators use a small traction machine to save time and energy while cutting the machine room's size by up to 50%. These aforementioned factors will drive the demand for elevators in the coming years.

Type Insights

The traction type segment led the elevators market and accounted for 55.5% of the global revenue share in 2022. Traction elevators are frequently used in industrial and commercial structures. Additionally, the expansion of infrastructure projects for commercial buildings including offices, malls, and retail centers will further fuel market demand. Furthermore, the global market will have profitable growth prospects due to favorable government measures supporting the building sector.

The market for machine room-less traction elevators will expand greatly as a result of the strong demand for technology in mid-rise structures. Significant benefits of machine room-less traction elevators include reduced vibration and noise during high-speed operation, which qualifies these systems for speeds of at least 1.75 m/s. These systems' sales in the global elevator industry are fueled by the fact that they can carry more weight than other elevators.

The hydraulic type segment is expected to grow at a CAGR of 6.9% over the forecast period due to various benefits such as increased durability, great weight-bearing capability, and comparatively low noise levels. Hydraulic elevators, which have a lifting capability of up to 1,000 pounds and a maximum travel speed of approximately 40 feet per minute, are regarded as one of the safest solutions because of their earthquake- and fire-resistant characteristics. These factors will drive the demand for hydraulic elevators.

Pneumatic (vacuum) elevators, climbing elevators, and industrial elevators are all included in the other types of elevators. By design, pneumatic elevators are small and work well for residential elevator applications, however, climbing elevators are frequently utilized during high-rise building construction to carry workers and materials until a permanent elevator is put in place.

Additionally, the industrial elevator is utilized frequently in shipyards, warehouses, and construction since it is made to raise and hoist exceptionally heavy loads. They are built to endure harsh circumstances in some of the most hazardous environments on earth. These aforementioned factors will propel the demand for others type segment in the coming years.

Business Insights

The new equipment type segment led the market and accounted for 47.9% of the global revenue share in 2022 as a result of rising urbanization, demographic changes, and a sharp increase in construction activities. In the coming years, the need for new equipment-type elevators will be driven by the aforementioned factors. For instance, in April 2022, Otis offers the Gen3TM elevator and Gen2 flat-belt system. Gen2 flat-belt system offers built-in IoT elements, and the Gen360 elevator, which brings a new electronic architecture with impacts for business, safety, comfort, and passenger experience.

The maintenance type segment is expected to grow at a CAGR of 7.1% over the forecast period Rising technological developments aimed at raising maintenance standards for elevators at different low-rise construction sites have been a significant factor in the market's increased domination of elevators. Elevator maintenance enhances machine functionality and, when paired with automatic actions such as door closing and opening without the pressing of buttons, contributes to high demand in low-rise building operations. The need for elevator maintenance business will increase as a result of the aforementioned issues in the coming years.

Elevator modernization increases passenger safety and comfort while extending the life of the current elevators. As a result, there has been a rising demand for an effective mobility system inside buildings, which is the main reason fueling the market's expansion. In addition, the increased working population and growing safety concerns about high-rise elevators are increasing the demand for elevator modernization, which will lead to market growth in the upcoming years.

Modernized elevators are more effective, reduce energy use, and require less maintenance. For instance, Mitsubishi Electric's Elevator Group Control System is a technology that significantly improves the efficiency of elevators. (Destination Oriented Allocation System) is a standout system from Mitsubishi Electric. This method allows elevators to travel farther while making fewer stops at various floors. These aforementioned factors drive demand for modernization business in elevators.

Application Insights

The residential application segment accounted for the largest revenue share of 68.7 % in 2022. The demand for elevators will rise in the next years as a result of rising urbanization and a rising standard of living in developing nations like China and India. As a result, the development of high-rise structures, many of which have smart elevators, will further fuel the market for elevators used in residential applications. Additionally, rising investment in residential construction will fuel the market growth. For instance, when compared to the same month in 2019, investment in new residential buildings, for instance, increased by 14.6% in October 2020.

Elevators are frequently utilized in the construction sector for transporting people and commodities from one floor to another. The increase in the number of buildings in the emerging economy is expected to result in significant growth for the elevator market for industrial applications. Vertical transportation is increasingly in demand as a result of growing urbanization and development. There will be a greater requirement for industrial areas as urbanization increases. The demand for elevators used for industrial applications will be driven by the aforementioned considerations.

Global elevators market share, by application, 2022 (%)

In addition to petrochemical & refining, commercial construction, oil & gas, bridge building and maintenance, shipyards and ports, power plants, aggregates, pulp and paper, and freight and cargo are just a few of the industrial applications that elevators serve. For instance, Century Elevators offers rack-and-pinion elevators, which are perfect for industrial sites of all kinds, including restorations, new construction, renovations, building additions, and maintenance. The business specializes in hazardous-area elevators and other vertical access equipment built for outdoor usage in challenging environments.

The commercial application segment is expected to grow at a CAGR of 6.0% over the forecast period. Elevators are typically put at locations including train stations, apartment buildings, hospitals, metro stations, shopping centers, business buildings, schools, and airports. Commercial elevators are often larger than residential elevators since they are required to business more people at once, in addition to needing to meet minimum size and weight criteria. Over the anticipated timeframe, the aforementioned causes will fuel demand for elevators utilized for commercial applications.

Regional Insights

Asia Pacific led the market and accounted for over 41.0% of the global revenue in 2022. The need for elevators in APAC has increased as a result of the building industry's strong expansion and rising outputs in nations like India, China, and South Korea, among others. Due to the rapid population growth, rural emigration, and industrial growth in recent years, the regional elevator market has seen tremendous growth.

For instance, according to the American Institute of Architects Shanghai, China will have developed the coequal of around 10 New York-sized cities by 2025. The market will grow as a result of the ongoing improvement in socioeconomic conditions in countries like China, Indonesia, and other Southeast Asian markets.

Elevators will be more in demand as a result of the baby boomer generation's rapid aging, which will also result in an increase in the elderly population and the number of persons with impairments. In Europe, the government has advised the implementation of national measures to guarantee that all floors of finished and still-under-construction buildings are accessible to people with disabilities. For instance, each new building should have at least one elevator for people in wheelchairs.

Elevators Market Trends by Region

Central & South America region is estimated to witness growth at a CAGR of 6.7% over the forecast period. Elevator demand in this region has increased as a result of increased attention being paid to technological and infrastructure development. Concerns are also raised by a number of government policies involving the renovation of outdated structures for public safety. Due to these conditions, the region of Central and South America has a significant demand for elevators.

In North America, there are many residential and commercial complexes being built. The demand for housing and commercial space will expand as the urban population rises, which will benefit the elevator business. The industry's expansion has been further accelerated by a number of new initiatives.

The industry will experience strong growth thanks to initiatives like the construction of three world trade centers in New York, numerous high-rise structures in Portland, expansion projects at the Universities of Virginia, North Carolina, Cleveland State, and Marquette, as well as other notable initiatives across the nation. These aforementioned factors will drive the demand for elevators in the coming years.

Key Companies & Market Share Insights

To obtain a competitive edge, many businesses are concentrating on strategic activities like mergers and acquisitions, partnerships, collaborations, facility expansion, and product launches. For instance, in 2022, Mitsubishi Electric will expand its presence in Florida by opening a new branch in Miami.

The term "Equipment as a Service" refers to a business model where machines or production systems are offered by a provider for a price as a subscription rather than being purchased. Equipment as a Service or EaaS reduces risks through regular revenue or expenses, predictable subscription pricing, and flexible contracts. Also, equipment as a service creates new markets and revenue streams that is not previously possible.

For instance, In contrast to Schindler, Otis is utilizing digitization to market Otis One, a subscription-based management platform that was introduced in China in 2019 and is currently in the pilot stage in Europe and the U.S. The Otis platform offers analytics tools that recognize anomalous sensor readings, such as opening times & unusual door closing and notify property owners. Some prominent players in the global elevators market include:

  • TK Elevator

  • Schindler

  • KONE Corporation

  • Hitachi Ltd.

  • HYUNDAIELEVATOR CO.,LTD.

  • Mitsubishi Electric Corporation

  • Toshiba Group

  • FUJITEC CO., LTD.

  • Aritco Lift AB

  • EMAK

  • Sigma Elevator Company

  • Schumacher Elevator Company

  • ESCON Elevators Pvt Limited

  • Electra Elevators

  • CANNY ELEVATOR CO, LTD.

Elevators Market Report Scope

Report Attribute

Details

Market size value in 2023

USD 76.37 billion

Revenue forecast in 2030

USD 119.31 billion

Growth Rate

CAGR of 6.4% from 2023 to 2030

Base year for estimation

2022

Historical data

2018 - 2021

Forecast period

2023 - 2030

Quantitative units

Revenue in USD billion and CAGR from 2023 to 2030

Report coverage

Revenue forecast, company market position analysis, competitive landscape, growth factors, and trends

Segments covered

Type, business, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country Scope

U.S.; Canada; Mexico; Germany; France; Italy; Spain; U.K.; China; Japan; India; South Korea; Australia; Malaysia; Indonesia; Brazil; Argentina; Saudi Arabia; UAE; South Africa

Key companies profiled

TK Elevator; Schindler; KONE Corporation; Hitachi Ltd.; HYUNDAIELEVATOR CO.,LTD.; Mitsubishi Electric Corporation; Toshiba Group; FUJITEC CO., LTD.; Aritco Lift AB; EMAK; Sigma Elevator Company; Schumacher Elevator Company; ESCON Elevators Pvt Limited; Electra Elevators; CANNY ELEVATOR CO, LTD.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

 

Global Elevators Market Segmentation

This report forecasts revenue growth at global, regional & country levels, and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global elevators market report based on type, business, application, and region:

Global Elevators Market Segmentation

  • Type Outlook (Revenue, USD Billion, 2018 - 2030)

    • Hydraulic

    • Traction

    • Machine Room-Less Traction

    • Others

  • Business Outlook (Revenue, USD Billion, 2018 - 2030)

    • New Equipment

    • Maintenance

    • Modernization

  • Application Outlook (Revenue, USD Billion, 2018 - 2030)

    • Residential

    • Commercial

    • Industrial

  • Regional Outlook (Revenue, USD Billion, 2018 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • France

      • Italy

      • Spain

      • U.K.

    • Asia Pacific

      • China

      • Japan

      • India

      • South Korea

      • Australia

      • Malaysia

      • Indonesia

    • Central & South America

      • Brazil

      • Argentina

      • Saudi Arabia

      • UAE

      • South Africa

    • Middle East & Africa

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