Elevator and Escalator Market Assessment, By Type [Elevators, Escalators, Moving Walkways], By Working Mechanism [Hydraulic, Traction, Others], By Solution [New Installation, Maintenance, Modernization], By Application [Residential, Commercial, Industrial

Elevator and Escalator Market Assessment, By Type [Elevators, Escalators, Moving Walkways], By Working Mechanism [Hydraulic, Traction, Others], By Solution [New Installation, Maintenance, Modernization], By Application [Residential, Commercial, Industrial, Others], By Sales Channel [Direct, Channel], By Region, Opportunities and Forecast, 2017-2031F

Global Elevator and Escalator market is projected to witness a CAGR of 6.64% during the forecast period 2024-2031, growing from USD 94.1 billion in 2023 to USD 157.3 billion in 2031. The growing demand for high-rise buildings, including residential and commercial structures, is driven by increased urban migration, leading to a greater adoption of elevators and escalators. Additionally, the aging population and rising mobility challenges have created a need for easier building access, further boosting the demand for these systems. Government investments in infrastructure development are significant to improve accessibility for individuals with disabilities.

The market is benefiting from the increasing demand for energy-efficient elevators and escalators, reflecting the global trend toward sustainability and efficiency. Furthermore, these facilities are in greater demand in healthcare and hospitality. Additionally, the need for efficient transportation solutions in airports, metros, and other public spaces is contributing to market expansion. The growing demand for elevators and escalators in shopping malls, theaters, cafes, restaurants, and other retail spaces further drives the market growth. Technological advances, such as destination management systems and smart elevators, are expected to continue to fuel development in the coming years.

Multifamily Construction Projects are Driving the Demand

The increase in multifamily construction projects is driven by millennials and the new generation seeking apartments in high-rise residential buildings. This trend is primarily due to the growing demand for affordable and convenient housing in regions like Asia and North America. The multifamily market presents a highly lucrative opportunity in India, where there are over 400 million millennials, accounting for a considerable portion of the population and possessing substantial spending power of nearly USD 330 billion.

A 2023 study by CBRE found that 44% of young Indians plan to purchase multifamily homes in the next couple of years, and millennials account for 54% of the homes bought in India in 2022. Similarly, a 2017 study conducted by HSBC in China revealed that almost 70% of home ownership in the country was led by millennials. As a result of the increasing demand for high-rise residential buildings, the demand for elevators and escalators is on the rise and is expected to continue growing in the coming years.

Infrastructure Development is Fueling the Market Growth

The elevator and escalator market's growth are significantly driven by infrastructure expansion. As cities worldwide experience increasing population density, there is a growing demand for efficient vertical transportation systems. The global trend of urbanization is a primary factor fueling the expansion. Cities are expanding, and buildings are becoming taller and more complex, necessitating elevators and escalators.

Moreover, these systems have been integrated into building management systems, resulting in heightened efficiency, safety, and security. This has created a demand for modern, technologically advanced systems with improved safety features, user convenience, and lower maintenance costs.. The construction of tall skyscrapers in advanced and emerging economies is another significant driver of market expansion. For example, constructing the 644-meter-tall Merdeka PNB 118 skyscraper in Malaysia, set to become the tallest building in Southeast Asia, illustrates this trend, further stimulating market growth.

Technological Advancements to Drive the Market Expansion

Numerous technological advancements are poised to drive significant growth in the global elevator and escalator market in the forecast years. Integrating smart technology, including sensors and artificial intelligence (AI), is expected to play a pivotal role among these advancements. Another groundbreaking innovation is the introduction of cable-free elevators, which leverage magnetic levitation technology to transform how elevators move within buildings. A notable example is ThyssenKrupp's Multi elevator system, which utilizes high-speed magnetically propelled trains for vertical movement within elevator shafts.

Additionally, adopting green technologies, such as regenerative drives and energy-efficient motors, is helping to reduce the environmental impact of elevator and escalator systems. These advancements collectively position the elevator and escalator industry for sustained growth and progress, aligning with the growing demand for safer, more efficient, and environmentally friendly vertical transportation solutions.

Regional Insight

Europe accounted for largest market share in 2023 and expected to maintain its dominance over the forecast period of 2024 to 2031. The growing number of skyscrapers in the European region is driving the market growth. As of 2023, six European cities have more than 10 cities have skyscrapers above 490 ft. These are Moscow (70), Istanbul (52), London (38), Paris (23), Frankfurt (19), and Warsaw (17). European consumer shift towards sustainable products is driving elevator manufacturers towards energy-efficient systems. These efforts align with broader environmental goals and sustainable building practices.

Future Market Scenario (2024 – 2031F)

Predictive maintenance is transforming the elevator industry. Companies are working on integrating AI technology for this purpose. The AI module is expected to help consumers obtain real-time insights about elevators, leading to enhanced uptime and improved performance.

Companies are introducing touchless buttons in elevators. Since the Covid-19 pandemic, demand for contactless elevators has surged. Commercial spaces, such as shopping complexes and corporate offices, are the primary target customers for this product. Companies including Kone Corporation and Hitachi, Ltd offers contactless elevators.

Key Players Landscape and Outlook

Prominent players in the elevator and escalator market increasingly prioritize sustainability as a central element of their corporate strategies. These companies are incorporating smart building technologies into their elevator and escalator systems. By integrating their products with building management systems and Internet of Things (IoT) platforms, they enable more efficient utilization of elevators and escalators. It results in reduced energy consumption and enhanced user experiences.

For example, in 2022, KONE introduced a standardized version of KONE JumpLift for machine-room-less elevators. The innovation can revolutionize construction flexibility and potentially reduce construction timelines by several months for distinct types of buildings. KONE also offers elevators fully compatible with wooden buildings and shafts constructed from timber products. This presents a sustainable and environmentally friendly construction solution, aligning with the growing interest in using wood as a construction material.

In April 2022, Mitsubishi Electric Corporation formally announced its complete acquisition of Motum AB, a Sweden-based company primarily engaged in the elevator and automatic door sector. This strategic move by Mitsubishi Electric was geared towards enhancing its ability to provide maintenance and modernization services for elevators and escalators in Sweden and various other regions, including Europe.