Elevator Modernization Market Report 2025

The elevator modernization market size has grown strongly in recent years. It will grow from $13.12 billion in 2024 to $14.13 billion in 2025 at a compound annual growth rate (CAGR) of 7.7%. The growth during the historic period can be credited to a rise in the number of tall buildings, expanding urban populations, stricter government regulations and standards, increased demand from residential and commercial sectors, and a boost in construction activities.

The elevator modernization market size is expected to see strong growth in the next few years. It will grow to $18.85 billion in 2029 at a compound annual growth rate (CAGR) of 7.5%. The growth projected for the forecast period is driven by the rising number of high-rise developments, increasing property values, growing tenant expectations, a greater demand for elevator modernization, and an increase in green building certifications. Key trends during this period include LED-based cabin lighting systems, predictive maintenance algorithms, solar-powered elevator integration, AI-driven traffic management, and facial recognition with personalized features.

The growing number of high-rise developments is expected to drive the expansion of the elevator modernization market in the coming years. High-rise developments are multi-story buildings, generally with more than 12 to 15 floors, built for residential, commercial, or mixed-use purposes. These structures emphasize vertical construction to optimize space in urban environments. The rise in high-rise buildings is fueled by rapid urbanization, which increases the need for space-efficient residential and commercial buildings in densely populated city centers. Elevator modernization plays a vital role in these developments by upgrading existing elevator systems to enhance speed, reliability, energy efficiency, and passenger safety, ensuring effective vertical transportation in crowded buildings. For example, the Council on Tall Buildings and Urban Habitat, a US-based non-profit organization, reported in January 2024 that 2023 saw a record number of tall building completions, with 185 buildings reaching 200 meters or taller, a 12.8% increase compared to 164 completions in 2022. Consequently, the rise in high-rise developments is driving the elevator modernization market.

Technological progress is fueling the adoption of smart elevator solutions in modernization projects. Key players in the elevator modernization market are developing advanced technologies such as smart elevators to boost operational efficiency and offer real-time monitoring and predictive maintenance features. Smart elevators utilize artificial intelligence (AI) and digital control systems to improve efficiency, safety, energy management, and user experience, offering capabilities like destination control, continuous monitoring, and predictive maintenance. For instance, in November 2024, Otis Electric, a US-based manufacturer, introduced the Otis Electric 7000, a smart elevator designed for both new construction and modernization efforts. This elevator features AI-powered cameras that detect trapped passengers, real-time 24/7 data reporting, automatic rescue functions, and adherence to the highest safety standards. The Otis Electric 7000 aims to boost reliability, enhance passenger experience, and improve operational efficiency for building owners and facility managers, demonstrating Otis’s commitment to smart, connected elevator technologies.

In September 2024, H.I.G. Capital LLC, a US-based investment firm, acquired Action Elevator for $65 billion. Through this acquisition, H.I.G. Capital seeks to strengthen its investment portfolio, increase its presence in the elevator modernization industry, and create long-term value through operational enhancements and strategic growth. Action Elevator is a US-based company specializing in elevator modernization, focusing on upgrading existing elevator systems to enhance performance, safety, and efficiency.

Major players in the elevator modernization market are Hyundai Group, Hitachi Ltd., Mitsubishi Electric Corporation, Toshiba Corporation, Otis Worldwide Corporation, Schindler Holding Ltd., TK Elevator GmbH, KÖHLER Elevator GmbH, Fujitec Co. Ltd., Wittur Holding GmbH, Kleemann GmbH, SJEC Corporation, KONE Corporation, Champion Elevator Corp., Delaware Elevator Inc., Delta Elevator Company Ltd., Liberty Elevator Corporation, Escon Elevators Private Limited, Mid-American Elevator Company Inc., and Stanley Elevator Company Inc.

North America was the largest region in the elevator modernization market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in elevator modernization report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the elevator modernization market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The sharp hike in U.S. tariffs and the associated trade disputes in spring 2025 are notably impacting the aerospace and defense sector by raising costs for titanium, carbon fiber composites, and avionics materials largely sourced from global suppliers. Defense contractors, locked into fixed-price government contracts, absorb these added costs, while commercial aerospace firms face airline pushback on higher aircraft prices. Delays in component shipments due to customs bottlenecks further disrupt tight production schedules for jets and satellites. The industry is responding by stockpiling critical materials, seeking waivers for defense-related imports, and collaborating with allied nations to diversify supply chain.

Elevator modernization is the thorough process of updating existing elevator systems by replacing outdated mechanical and electrical parts with advanced technologies to improve overall functionality and performance. This process focuses on enhancing operational efficiency, ensuring compliance with regulations, and extending the elevator’s lifespan without requiring a full replacement.

The primary types of modernizations in elevator modernization include equipment upgrades, control system improvements, safety enhancements, aesthetic refurbishments, and energy efficiency retrofits. Equipment upgrades consist of replacing or upgrading essential components such as motors, doors, cables, or braking systems to boost reliability and performance. These upgrades are applicable to various elevator types, including traction and hydraulic elevators, and incorporate technologies like IoT-enabled systems, smart controls, AI and machine learning applications, telematics and monitoring solutions, and energy management systems. The key end users are residential and commercial buildings, industrial sites, healthcare facilities, and the hospitality industry.

The elevator modernization market research report is one of a series of new reports that provides elevator modernization market statistics, including elevator modernization industry global market size, regional shares, competitors with an elevator modernization market share, detailed elevator modernization market segments, market trends and opportunities, and any further data you may need to thrive in the elevator modernization industry. This elevator modernization market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The elevator modernization market includes revenues earned by entities by providing services such as door system upgrades, interior cabin renovation, energy efficiency improvements, cabin interior refurbishment, and safety system enhancements. The market value includes the value of related goods sold by the service provider or included within the service offering. The elevator modernization market also consists of sales of products including traction machines and motors, safety components, door safety sensors, cab interiors, and signal fixtures. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values and are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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