“Smart Elevator Market is expected to grow from USD 9.7 billion in 2021 to USD 12.6 billion by 2026.; it is expected to grow at a CAGR of 5.4% from 2021 to 2026. The key factors fueling the growth of this market comprise of reducing energy consumption within the buildings, development of smart cities and growth in urbanization. Moreover, increased construction of high-rise buildings equipped with smart vertical transportation systems due to rapid urbanization; and modernization of old buildings plays a key role in driving the growth of smart elevator market.
Major players in the market are:OTIS Elevator (US), Kone Corporation (Finland), Schindler Group (Switzerland), Thyssenkrupp AG (Germany), Hitachi Ltd. (Japan), Hyundai Elevators Co., Ltd. (South Korea), Mitsubishi Electric (Japan), Fujitec Co., Ltd. (Japan), Toshiba Elevators and Building Systems Corporation (Japan), Honeywell (US)
Elevator control segment is expected to hold the largest share of the smart elevator control system market during the forecast period
The elevator control segment is expected to account for the largest segment of the overall revenue of the smart elevator control systems market throughout the forecast period. It is further expected to grow at a significant rate during the forecast period. The growing demand for smarter buildings with seamless passenger flow and easy-to-use elevators is driving the demand for destination control technology. Improving living standards in emerging economies have led to the demand for more high-tech buildings, coupled with the adoption of less energy that further fuels the demand for elevator control systems.
Smart elevator market for residential application is expected to expected to grow at the fastest CAGR during the forecast period
The global residential market is being driven by the growing sophistication of living standards in emerging economies. Emerging economies, such as India, China, and South East Africa, are witnessing unprecedented growth in urbanization as the population in these countries is migrating towards cities for employments. Consequently, the construction of high-rise buildings—that almost invariably are equipped with smart elevators—has become rather necessary to accommodate a sizeable population in cities. The growth of the real estate industry in developing countries is also a key metric for the growth of the segment. Also, people are looking for better security systems and energy-efficient buildings. Furthermore, the trend of building automation is also likely to favor the market growth during the forecast period.
New Installations is expected to remain dominant over the forecast period 2021 to 2026
New installations are done in ongoing construction activities across the world. Therefore, emerging economies, such as India, China, Indonesia, and Africa, are expected to lead the market for new installation services. Additionally, emerging economies and untapped markets in India and other Asian countries are responsible for the high growth of new installations in the APAC market. Urban cities are now growing into megacities, with the population rising to millions. A few examples are Tokyo, Mexico City, Seoul, and Lagos. This results in the construction of skyscrapers, futuristic transportation hubs, and many more such developments to cater to the huge population. Hence, new installation is expected to grow in the coming years.
APAC projected to grow at the highest CAGR of smart elevator market from 2021 to 2026.
APAC is a mix of developing and mature markets for smart elevators. The residential market is the fastest due to the high middle-class population base seeking better residential properties and consequently moving to cities. The region is predicted to witness an increase in new equipment sales in the coming years, where China is the largest new equipment market globally and India the second-largest market. APAC is expected to lead the smart elevator market in 2021 owing to the rising urban population in China and India. To that end, China is expected to continue to remain a dominant market for smart elevators in APAC throughout the forecast period. The renovation initiatives in this region backed by government support are the major factor contributing to the growth of the smart elevator market in APAC.