IoT in Elevators Market Size, Share and Growth Report 2028

[Research Report] The IoT in elevators market size is expected to grow from US$ 35,415.87 million in 2022 to US$ 58,843.69 million by 2028; it is expected to grow at a CAGR of 8.8% from 2022 to 2028.

Small and medium-sized enterprises (SMEs) and large enterprises rely heavily on smart solutions. The adoption of IoT in these enterprises is becoming popular, which drives the IoT in elevators market growth. In addition, with the rising competition, many enterprises are investing significantly in smart solutions and services. Thus, there are lucrative opportunities for the key vendors of IoT in elevator as these enterprises have increasingly relied on safeguarding and protecting their property from internal or external threats. Many governments are also investing in urban development projects. As per the Ministry of Housing and Urban Affairs, the Government of India has invested US$ 160 billion in developing and upgrading urban infrastructure since 2014. Compared to 2004–2014, India's investment in the urban sector increased by over 600% from 2014 to 2021. The Indian government has established a National Infrastructure Pipeline (NIP) worth US$ 1.5 trillion for infrastructure projects that are expected to be completed between 2020 and 2025.

Favorable policies, initiatives, and massive investments in smart cities and urban development projects by government and private organizations have created lucrative opportunities for the key players operating in the IoT in elevators market. Furthermore, during the forecast period, expanding economies and growing interest in developing leading industrial verticals are expected to lift the demand for IoT in elevators. However, high initial investments needed in elevator modernization and IoT integrations restrict the growth of the IoT in elevators market.

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IoT in Elevators Market: Strategic Insights

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Impact of COVID-19 Pandemic on Europe IoT in Elevators Market Growth

The COVID-19 pandemic severely impacted the European countries, including Germany, France, Spain, and Italy. Italy was the most-affected country during the post-pandemic. Before the pandemic, the IoT in elevators market was expected to rise significantly owing to the growing demand for energy-efficient products and services; increasing adoption of IoT-based platforms, cloud-based solutions, and AI; and growing demand for industrialization in every industrial vertical.

The electronic industry is among the severely hit industries in certain countries of Europe. However, in the second wave of the COVID-19 outbreak, the electronics & semiconductor sector was negatively impacted by the pandemic. In 2021, with the relaxation of lockdown measures, the manufacturing business started again. Hence, the outlook for the IoT in elevators market has gained momentum. In addition, in 2022, the demand for IoT is expected to grow owing to the surging construction of commercial and industrial buildings. Hence, the IoT in elevators business has benefited from the pandemic. In post-pandemic scenario, the IoT adoption for sustainability, shift to cloud platforms, growing tax relief for citizens and various industrial verticals, and secured remote access would strengthen the IoT in elevators market expansion.

Market Insights – IoT in Elevators Market

The global IoT in elevators market, based on region, is segmented into North America, Europe, Asia-Pacific (APAC), Middle East & Africa (MEA), and South America (SAM).

Europe held the largest IoT in elevators market share in 2021 and is also expected to dominate the market during the forecast period. The adoption of 5G and investments by companies in improving 5G infrastructure drive the market growth in the region. Germany has a long history of investing and innovating in industrial IoT over the years. The country is also a leader in the usage of 5G to expand the use of industrial IoT. The growing demand for industrial imaging systems across the industrial manufacturing sector and for advanced automotive infotainment parts, driver monitoring devices, and driver control units from the automotive sectors further influence the demand for IoT in elevators from the manufacturing and automotive sectors. The rapidly growing construction in the commercial sector across the country is also increasing the demand for IoT-based elevator systems. These factors are boosting the growth of the IoT in elevators market in Europe.

North America held the second largest share of the IoT in elevators market in 2020. The market in the US is anticipated to retain its robust growth outlook during the forecast period. In the US, the rising disposable income and improving living standard propel the demand for smart electronics. The demand for miniature devices is high owing to the growing popularity of AI and 4.0 industrial revolution. Also, many manufacturers are investing massive capital of capital in the development of smart electronics digitization’s systems such as for infrastructure’s automation applications. The US government has taken many initiatives to boost the electronics industry. On May 6, 2022, the government proposed new bipartisan proposal in the US to fuel the country’s printed circuit board (PCB) sector. Many established electronics manufacturing industry companies in the country welcomed the proposal. The bill will support the CHIPS Act of 2021 and American Printed Circuit Boards Act of 2022. As a result, there are many lucrative opportunities for the key operating in the IoT in elevators market.

Component - Based Insights

Based on component, the IoT in elevators market is segmented into hardware, software, and services. The hardware segment accounted for the largest market in 2021. Hardware demand has increased dramatically in recent years. Artificial intelligence is used to assist operators and mechanical contractors to keep up with their daily routines and find ways to manage the elevator traffic and prevent problems before they occur, based on data collected from daily elevator usage.

Based on application, the IoT in elevators market is segmented 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 market is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America.

OTIS; Schindler Group; KONE Corporation; Hyundai Elevator Co., Ltd.; and Fujitec are among the prominent IoT in elevators market players. The market is highly fragmented with several players localized in a specific region to cater to the domestic demand.

IoT in Elevators Market Regional Insights

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

IoT in Elevators Market Report Scope

IoT in Elevators Market Players Density: Understanding Its Impact on Business Dynamics

The IoT in Elevators Market 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.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the IoT in Elevators Market are:

1. Fujitec Co., Ltd.
2. Hitachi, Ltd.
3. KONE Corporation
4. Mitsubishi Electric Corporation
5. Otis Elevator Company Ltd.

Disclaimer: The companies listed above are not ranked in any particular order.

Players operating in the IoT in elevators market analysis are mainly focused on the development of advanced and efficient products.

• In December 2021, KONE, a multinational elevator and escalator manufacturer, partnered with Amazon Web Services (AWS), the world's most comprehensive and widely used cloud platform. AWS will deliver worldwide cloud capabilities to KONE, including Internet of Things (IoT) and analytics. In addition, the firms will collaborate to create new technologies that will improve the scalability and performance of KONE's connected services and solutions.
• In April 2021, Mitsubishi Electric Corporation announced that its subsidiary Mitsubishi Elevator India Private Limited (IMEC) received a signed contract to deliver elevators to the Commerzone Madhapur and Altimus luxury complexes owned by K RAHEJA CORP, a renowned developer in India.