Smart Elevator Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031F

Residential is the fastest growing sector, North America is the largest market

The global smart elevator market is projected to expand substantially, growing from USD 19.72 billion in 2025 to USD 35.92 billion by 2031, at a compound annual growth rate of 10.51%. These advanced vertical transportation systems leverage digital connectivity, artificial intelligence, and the Internet of Things to optimize passenger flow, bolster security, and enhance energy efficiency. This market expansion is primarily fueled by rapid urbanization and the urgent requirement to modernize aging infrastructure, which demands intelligent upgrades to efficiently manage increasing user densities. The substantial potential for modernizing existing installations is evident in major markets; for example, China registered 11.32 million vertical transportation units in 2024, as reported by the China Elevator Association, representing a vast opportunity for digital modernization.

However, a significant obstacle to market growth is the complex process of integrating these sophisticated systems with legacy building infrastructure, alongside the inherent cybersecurity risks. As elevators become increasingly interconnected, they face potential digital vulnerabilities, necessitating the implementation of robust and often costly security protocols. Such expenses can deter facility managers, particularly those sensitive to costs, from adopting these technologies. This reluctance is further exacerbated by the high initial investment required to either replace outdated mechanical systems or retrofit them with comprehensive digital solutions.

Market Drivers

A transformative driver reshaping the smart elevator market is the integration of artificial intelligence and the Internet of Things for predictive maintenance, shifting service models from reactive repairs to proactive care. By embedding smart sensors and connectivity into vertical transportation systems, manufacturers can continuously monitor equipment performance. Advanced algorithms then analyze this data to predict potential component failures before they disrupt operations, significantly reducing downtime and maintenance costs for facility managers while simultaneously enhancing passenger safety and equipment longevity. This digital adoption is rapidly expanding, with major industry players prioritizing connectivity in their service offerings; for instance, Otis Elevator Company reported that its global maintenance portfolio included approximately 1.0 million connected units by the end of 2024, according to its January 2025 'Fourth Quarter and Full Year 2024 Results'.

Furthermore, rapid urbanization and the continuous expansion of high-rise infrastructure vigorously propel the global smart elevator market, creating an urgent demand for efficient vertical mobility solutions in densely populated urban centers. As cities grow vertically to accommodate burgeoning populations, the installation of sophisticated elevator systems becomes indispensable for the functionality of modern skyscrapers and mixed-use developments. This trend ensures a consistent increase in the active installed base, necessitating both new advanced installations and the modernization of existing units to manage higher traffic volumes effectively. Such growth is evident in key markets; for example, the Chinese market saw a net addition of 902,600 registered vertical transportation units in 2024, as cited by Elevator World in June 2025, while Schindler Group secured a total order intake of CHF 11.33 billion for the fiscal year 2024, according to its February 2025 'Annual Results'.

Market Challenges

The complex integration of advanced digital systems with legacy infrastructure, coupled with the stringent cybersecurity requirements, represents a significant impediment to the growth of the Global Smart Elevator Market. While new construction projects can readily incorporate smart technologies, the retrofit sector faces substantial technical hurdles because older mechanical elevators often lack the necessary electronic architecture to interface with IoT sensors or support modern security protocols. This incompatibility necessitates comprehensive and capital-intensive overhauls rather than simple component upgrades, thereby significantly inflating the initial investment. Consequently, facility managers frequently postpone these modernization projects, as the high cost and complexity of transforming analog systems into secure, connected assets often outweigh the immediate operational benefits.

The immense scale of this infrastructural challenge is underscored by the vast number of aging units that require extensive modernization to become "smart." For example, the European Lift Association reported that in 2024, the region maintained an existing stock of over 6.7 million lifts, a substantial portion of which comprises legacy systems incapable of supporting digital connectivity without significant physical alterations. This enormous foundation of outdated equipment creates a bottleneck in the market, as the logistical and financial difficulties involved in upgrading millions of pre-digital units to modern standards directly decelerate the adoption rate of smart elevator technologies across established markets.

Market Trends

The implementation of energy-regenerative drive technologies is rapidly becoming a standard requirement for vertical mobility systems, primarily driven by the rigorous sustainability mandates embedded within green building certifications such as LEED. These innovative drives effectively capture energy that would typically be lost as heat during braking operations, instead feeding it back into the building’s electrical grid, which substantially reduces the operational carbon footprint. Manufacturers are successfully commercializing these eco-efficient platforms to meet evolving regulatory and market demands in mature regions. This trend is further evidenced by recent procurement data from TK Elevator's July 2025 'Sustainability Report 2023/2024', which stated that its eco-efficient EOX elevator platform accounted for approximately 75% of its total elevator orders in Europe during the final quarter of the fiscal year, signaling a strong market preference for energy-saving propulsion systems.

Simultaneously, the market is observing a distinct shift toward modular retrofitting and modernization of legacy units, which enables facility managers to upgrade digital components without the significant financial burden typically associated with full system replacement. This emerging trend effectively addresses the challenges of integrating modern connectivity into aging infrastructure by employing overlay solutions that digitize mechanical elevators. Leading Original Equipment Manufacturers are capitalizing on this demand by deploying scalable modernization packages designed to enhance traffic throughput and ensure compliance with updated safety standards. The commercial impact of this strategic pivot is clear; Otis Elevator Company reported an impressive year-over-year increase of 18% in modernization orders in its January 2025 'Fourth Quarter and Full Year 2024 Results', highlighting accelerating investment in upgrading global vertical transportation stocks.

Key Market Players

• Hitachi, Ltd.
• TK Elevator GmbH
• Schindler Holding Ltd.
• Otis Worldwide Corporation
• KONE Corporation
• Mitsubishi Electric Corporation
• Fujitec Co., Ltd.
• Hyundai Elevator Co., Ltd.
• Honeywell International, Inc.
• Toshiba Corporation

Report Scope

In this report, the Global Smart Elevator Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Smart Elevator Market, by Component:

• Control Systems
• Maintenance Systems
• Communication Systems

Smart Elevator Market, by Installation:

• Low and Mid-rise
• High Rise

Smart Elevator Market, by Application:

• Residential
• Commercial
• Institutional

Smart Elevator Market, by Service:

• New Installation Services
• Modernization Services
• Maintenance Services

Smart Elevator Market, by Region:

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Smart Elevator Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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