IoT in Elevators Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component (Hardware, Software, and Services), Application (Preventive Maintenance, Remote Monitoring, Fault Diagnosis and Prediction, Advanced Reporting, and Connectivity Ma

IoT in Elevators Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Component (Hardware, Software, and Services), Application (Preventive Maintenance, Remote Monitoring, Fault Diagnosis and Prediction, Advanced Reporting, and Connectivity Management), and End-User (Residential, Commercial, and Industrial)

The IoT in Elevators Market is expected to grow from US$ 1514.88 million in 2022 to US$ 2022.13 million by 2028; it is estimated to grow at a CAGR of 4.9% from 2022 to 2028.

The migration of people from rural to urban areas is increasing annually across the world. As per the United Nations report published in April 2018 on Sustainable Cities, Human Mobility, and International Migration, the proportion of the world's population living in cities is expected to rise from 55% in 2018 to 60% by 2030. According to the United Nations, 55% of the world's population lives in urban areas, and the percentage is expected to increase to 68% by 2050. According to the United Nations Department of Economic and Social Affairs (UN DESA), an increase in the urban population is expected to be concentrated in India, China, and Nigeria. India accounts for 35% of the projected growth of the world's urban population between 2018 and 2050. During this period, India, China, and Nigeria will have 416 million, 255 million, and 189 million urban dwellers, respectively. Migration of people from rural to urban has made many developing and developed economies governments to invest in new infrastructure projects. Therefore, in the coming years, rising urbanization will increase the demand for IoT in elevators.

With the rapid urbanization, automation, and improving economic conditions worldwide, the global construction industry is experiencing significant growth. Real estate developers and construction companies or project builders are providing automated advanced technology features and functions in their projects due to increased competition. The projects also include elevator automation in smart connected buildings. Modern elevators with IoT capabilities are designed to intelligently respond in real-time, communicate with service teams to resolve technical issues, improve maintenance operations, reduce costs, and allow passengers to summon the elevator via mobile app. The increasing adoption of automation in the construction industry propels the demand for smart and connected elevators. As a result, the IoT in elevators market is witnessing growth. IoT in elevator companies invest significantly in developing their portfolio products and services and coming up with new advanced IoT systems in elevators. On March 10, 2021, KONE Elevator India, a wholly-owned subsidiary of Finland-based KONE Corporation, introduced the world's first digitally connected elevator class, the KONE DX Class Elevators. In addition, on September 04, 2019, KONE, a global leader in the elevator and escalator industry, launched its newest innovation, KONE Care 24x7 Connected Services, in Pune, India, bolstering its position as the industry's innovation leader. IBM Watson, a recognized leader in cognitive computing, collaborated on this project. Such initiatives by the companies in the development of IoT in elevator is accelerating the IoT in elevators market growth.

The IoT in elevators market is segmented based on component, application, and end-user. Based on component, the market is segmented into hardware, software, and services. Based on application, the market is further segmented into preventive maintenance, remote monitoring, fault diagnosis and prediction, advanced reporting, and connectivity management. The IoT in elevators market, by end-user, is segmented into residential, commercial, and industrial. By geography, the IoT in elevators market is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America.

Government launched the 'Smart Dubai 2021 Strategy'. The objective of the strategy includes a smart, livable, and resilient city, leveraging ICT innovations, an interconnected society with easily accessible social services, and smooth transport driven by autonomous and shared mobility solutions. In addition, a clean environment is enabled by cutting-edge ICT innovations, and digital, lean, and connected government are the other objectives. Dubai Plan 2021 aims to transform the city into a smart and sustainable one. The Smart City project in Dubai follows a strategy that can transform ~1,000 government services in six key areas—transportation, infrastructure, communications, financial services, urban planning, and electricity. With Saudi Arabia Vision 2030, The Saudi Authority planned to start the smart city project in 10 cities, including Makkah, Riyadh, Jeddah, AI-Madinah, and AI-Ahsa. On January 10, 2021, Crown Prince and Chairman of the NEOM Company announced THE LINE AT NEOM, in which the government is investing US$ 500 million to build 170km smart cities. The smart city is a linear development of hyper-connected AI-enabled communities powered by 100% clean energy. Thus, such governments initiatives for developing smart cities are bolstering the IoT in elevators market growth.

As per International Energy Agency (IEA), with the economic recovery, the global electricity demand is expected to grow by 4% in 2022. Further, many governments are taking stringent actions in limiting their carbon footprints to maintain green sustainability. Europe is the leading region investing a significant capital in deploying novel energy technologies, such as solar installation and energy-efficient products & services. Large buildings require predictive analytics, continuous building optimization, demand response, automated building control, and enterprise integration. However, small buildings require historical billing analysis; incentive availability; and educational, behavioral, and retrofit suggestions. Thus, IoT integrations with buildings make the building intelligent as IoT can automate and control these building operations. In addition, automate and control the building operations like security, fire and safety, air conditioning, and ventilation are efficiently monitored by the IoT (Internet of Things). Therefore, IoT-based elevators are becoming popular in intelligent buildings. The government initiatives and schemes have forced many building construction contractors to deploy energy efficient products and services, which will create lucrative opportunities for the key IoT in elevators market players.

OTIS; Schindler Group; KONE Corporation; Hyundai Elevator Co., Ltd.; and Fujitec are among the major companies operating in the Asia Pacific IoT in elevators market. The rising strategic initiatives and investments in new product developments would propel the growth of the IoT in elevators market in the coming years.

Impact of COVID-19 Pandemic on MEA IoT in Elevators Market

The COVID-19 pandemic has had a significant impact on the MEA countries, including Turkey, Iran, Iraq, Israel, Saudi Arabia, and the UAE. Saudi Arabia, the UAE, Iran, and Turkey are on the verge of implementing transformative technologies in various industries. Before the pandemic, the MEA countries had significantly invested in developing advanced technologies in the construction and semiconductor & electronic industry. The emergence of the pandemic in 2020 declined the demand for construction equipment, these construction equipment’s came to a halt due to the restrictions implemented by governments across the region to limit the spread of the novel coronavirus. Further, the availability of raw materials was a major concern for IoT in elevator manufacturers. This factor reduced manufacturing activities, which negatively impacted the data center, automotive, and telecommunication industries. In addition, in the first half of the post-2020 pandemic period, efforts to complete smart cities and smart infrastructure projects thus, there was slowdown in IoT devices, AI, and cloud platforms adoptions in construction industry. The pandemic has forced the closure of production facilities, which hampered business dynamics.

The overall IoT in elevators market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the IoT in elevators market analysis. The process also serves the purpose of obtaining an overview and market forecast of the IoT in elevators market size with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the IoT in elevators market.

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