Smart Elevator Market Growth and Analysis by 2031

The smart elevator market is projected to reach US$ 43.91 billion by 2031 from US$ 18.70 billion in 2023. The market is expected to register a CAGR of 11.3% during 2023–2031. Technological advancements and the introduction of new technologies in smart elevators are anticipated to be the key smart elevator market trends during the forecast period.

Smart Elevator Market Analysis

In contrast to traditional elevators, smart elevators use progressive security measures such as facial recognition, biometrics, and other technologies to avoid unauthorized access. Furthermore, smart elevators integrate sensors and other systems that continually monitor the irregular behavior shown by the elevators, which includes excessive vibration, electrical faults, and others. Thus, the demand for smart elevators is anticipated to increase during the forecast period.

Smart Elevator Market Overview

Smart elevators are equipped with modern technology such as artificial intelligence (AI), the Internet of Things (IoT), cloud computing, hardware, and software. Together, these systems allow for condition-based analysis, proactive, real-time data sharing, predictive maintenance, enhanced security, destination prediction, and other features. The smart elevators are user-friendly, energy-efficient, safe, and secure and experience minimum downtime. Freight and passenger elevator systems have smart features; however, enhanced interior design, infotainment systems, and other precise passenger features do not exist in a smart freight elevator.

Smart Elevator Market Drivers and Opportunities

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Smart Elevator Market: Strategic Insights

Rise in Building Construction and Increase in Demand for Green Buildings to Favor Market

The upsurge in building construction and the increase in demand for green buildings are major drivers for the smart elevator market growth. Moreover, the increase in demand for these elevators is attributed to the several features that set them apart from conventional elevators. Conventional elevators are ineffective since their basic computing power cannot improve users' waiting time. Furthermore, they are not energy efficient compared to modern elevators and do not include real-time monitoring of the elevator system. On the other hand, smart elevators are technically advanced and have various functions that contribute to their application among building contractors. The usage of autonomous systems in these elevators aids in optimizing elevator actions, which, in turn, helps lessen wait time, eventually leading to effective passenger transportation during busy hours. Thus, the demand for smart elevators is projected to increase during the forecast period.

Smart Elevator Market Report Segmentation Analysis

The “smart elevator analysis” has been performed by considering the following segments: setup, carriage, application, and geography.

• By setup, the smart elevator market is segmented into modernization, new deployment, and maintenance. In 2022, the modernization segment dominated the market share in terms of revenue, and the maintenance segment is predicted to register a considerable CAGR during the forecast period. The modernization segment involves installing novel systems in an old elevator system to make it advanced. Over time, the statutory and technology guidelines associated with the buildings are likely to be modified; thus, numerous amenities, including elevators, need to be modernized. With modernization services, conventional elevators have features such as cloud-based predictive maintenance solutions, real-time monitoring, improved user interface and infotainment systems, and greater security.
• Additionally, the maintenance segment involves the maintenance of already existing elevators in a building. Regular maintenance of smart elevators allows for extended life of the elevator and avoids unscheduled breakdowns.
• By carriage, the smart elevator market is bifurcated into passenger and freight. The market, by application, is segmented into residential, commercial, and industrial.

Smart Elevator Market Share Analysis by Geography

The geographic scope of the smart elevator market report is mainly divided into five regions: North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America.

In 2022, North America held the major smart elevator market share. However, Asia Pacific is estimated to register the highest CAGR during the forecast period. The US and Canada are affluent nations with high urban living standards. Moreover, the rate of implementation of novel and latest technologies in all nonindustrial and industrial sectors is comparatively higher than in other parts of the globe, which is anticipated to boost the demand for elevators in buildings. Novel building construction and the availability of a higher number of tall buildings are playing a major role in boosting the smart elevator market growth for the new installation segment and modernization and maintenance segments in North America.

Furthermore, the high CAGR of Asia-Pacific is attributed to wide economic growth and a rise in urbanization and population in countries such as India, China, Indonesia, and Vietnam. The global population has amplified significantly in the past few years and is anticipated to increase rapidly in the coming years. According to the data published by United Nations projections, at the end of 2022, the worldwide population reached 8 billion and is projected to rise to 8.5 billion by 2030. Moreover, it is projected to become 9.7 billion by 2050. Africa and Asia, particularly countries such as China and India, are estimated to contribute majorly to the increase in urbanization in the next 30 years. These factors are likely to have a significant impact on the smart elevator market forecast in the next few years.

Smart Elevator Market News and Recent Developments

The smart elevator market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. Following is a list of developments in the market:

• In December 2022, Otis announced the launch of a new Gen3 smart elevator with round-the-clock real-time tracking of elevator performance capability. (Source: Otis Corporation, Press Release)

Smart Elevator Market Regional Insights

The regional trends and factors influencing the Smart Elevator Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Smart Elevator Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Smart Elevator Market Report Scope

Smart Elevator Market Players Density: Understanding Its Impact on Business Dynamics

The Smart Elevator Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Smart Elevator Market Report Coverage and Deliverables

The “Smart Elevator Market Size and Forecast (2023-2031)” report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles