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Smart Elevator Market Size
Smart Elevator Market size exceeded USD 13.5 billion in 2020 and is expected to grow at a CAGR of around 9% between 2021 and 2027. The market in 2021 is poised to witness a surge in the adoption of smart elevators due to the initiatives taken by various governments globally to adopt energy-efficient solutions.
Rising infrastructure transformations and constructions globally is likely to drive the industry growth. Significant increase in the commercial & residential structure transformation activities by integrating of intelligent technologies is contributing to the global market trends. The intelligent solutions are progressively deployed to attain automation, advanced security, and high energy efficiency compared to conventional lifts, thereby enhancing the demand for smart elevators.
Smart elevators can be operated by users by pushing a key to set their terminus. There is an indicator in the elevator that will guide them to their destination. Furthermore, the size, speed or number of elevators required and the design, which are required to move between the floors will increase their market representation.
Market factors, such as adoption of cable-free lifts, dizzying heights, rising security concerns, and adoption of digital security systems, are generating market growth opportunities. Growing consumer preference towards the acceptance of intelligent and technically-advanced buildings drove the industry in 2020. The integration of Internet of Things (IoT) and Artificial Intelligence (AI) into elevators and building solutions will further generate robust opportunities for the smart elevator market.
One of the major factors hampering the industry growth is the high initial cost associated with smart elevators. It includes installation cost, integration of security and automation solutions, timely maintenance, and after-sales service. This increases the overall cost of the smart elevator when compared to the traditional counterparts, thereby challenging the market demand. Furthermore, it becomes a challenge for construction contractors to install these elevators in apartments and mid-rise building owing to limited funds allotted for the project.
| Report Attributes | Details |
|---|---|
| Base Year: | 2020 |
| Market Size in 2020: | USD 13.5 Billion |
| Forecast Period: | 2021 to 2027 |
| Forecast Period 2021 to 2027 CAGR: | 9% |
| 2027 Value Projection: | USD 23.5 Billion |
| Historical Data for: | 2017 to 2020 |
| No. of Pages: | 170 |
| Tables, Charts & Figures: | 225 |
| Segments covered: | Solution, End-use |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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The COVID-19 pandemic has slowed down the growth of the smart elevator market. Financial instabilities and global economic crisis hampered the market size during the first half of 2020. Severe impacts on the construction industry during this period also hindered the market for smart elevators. High initial cost of smart elevators coupled with rising financial securities will pose a threat to the market growth. However, with leniency in lockdown restrictions imposed, the market will witness a sluggish growth during the forecast timeframe.
Smart Elevator Market Analysis
The control systems segment is anticipated to witness an upward trend through 2027 owing to the enhanced security & management offered by these systems in crowded buildings. The segment held a market share of over 40% in 2020. These systems consist of fast connectivity parameters, advanced access control, and video surveillance that guarantee high passenger comfort and elevator security, thereby contributing to the smart elevator market expansion.
In commercial surroundings, the access control systems enable IT resource & data security by limiting the entry of unlawful building and personnel occupants on several restricted floors, enhancing the market demand. These features help in safeguarding IT resources and permitting business managers to control & monitor building structures. In residential buildings, these access control systems are used to limit the entry of salespersons and tenants, on various floors where they are not permissible. These control systems act as restraints against property damages, criminal activities, and theft activities in both residential and commercial places.
The smart elevator market from commercial segment is projected to register a CAGR of more than 10% from 2021 to 2027. The commercial segment is anticipated to show significantly high growth rate compared to the residential segment on account of the integration of energy-efficient initiatives and digital building technologies into commercial structures.
The infrastructure development of high-rise buildings including retail & office complex, shopping malls, theatres, and healthcare facilities is contributing to the usage of intelligent commuting & lift systems. Increasing government expenditures in several infrastructural development projects including La Défense- Central Business District of the Paris Urban area in France that comprises construction of an advanced set of skyscrapers will contribute to the market revenue.
Smart building management solutions that are adopted in new commercial and residential structures support the distribution of smart elevators to enable security and provide assistance to the residents in travelling to desired floors in minimum time. Owing to smart signalization and grouping features, these lifts further provide efficiency in mitigating long waits, accelerating the smart elevator industry growth.
The Asia Pacific smart elevator market valued at above USD 4 billion in 2020 according to the industry analysis. Rapid increase in the population coupled with the increasing trend of urbanization in countries including India, China, and Japan will provide lucrative growth opportunities. According to the data published by World Bank, the population in India increased from 1.3 billion in 2017 to 1.36 billion in 2019. Similarly, the urban population in China accounted for 842.9 million in 2019 compared to 823.8 million in 2018.
Smart Elevator Market Share
Players in the smart elevator market are focused majorly on mergers and acquisitions to enhance their service offerings and expand their geographic presence. For instance, in October 2020, Hitachi Ltd. announced the acquisition of 9.99% share in Yungtay Engineering (Taiwan). The acquisition aided Hitachi to strengthen its escalator and elevator market. Similarly, in August 2020, Bay State Elevator was acquired by Otis Elevator Company to expand its business in the northeast U.S. The acquisition consists of the company operations and service portfolio in upstate New York Massachusetts, Vermont, and Connecticut.
The leading industry players in this market include
- Thyssenkrupp AG
- Otis Elevator Company
- Kone Oyj
- Fujitec
- Mitsubishi Elevator
- Schindler Group
- Hitachi Ltd.
- Bosch Security Systems
This market research report on smart elevator includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2017 to 2027 for the following segments:
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Market, By Solution:
- Control Systems
- Security Control System
- Elevator Control System
- Access Control System
- Maintenance Systems
- Communication Systems
- Services
- Support & Maintenance
- New Deployments
- Modernization
Market, By End-Use:
- Residential
- Commercial
- Institutional
- Industrial
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- Latin America
- Brazil
- Mexico
- MEA
- UAE
- Saudi Arabia
- South Africa
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