Elevator Modernization Market Report 2026

The elevator modernization market size has grown strongly in recent years. It will grow from $14.13 billion in 2025 to $15.22 billion in 2026 at a compound annual growth rate (CAGR) of 7.7%. The growth in the historic period can be attributed to increasing need to replace aging elevator components in commercial and residential buildings, rising adoption of traction machines and motors to improve ride quality and reliability, expansion of safety system enhancements driven by stricter building codes, development of door safety sensors reducing operational hazards, growing demand for interior cabin renovation to modernize outdated elevator aesthetics.

The elevator modernization market size is expected to see strong growth in the next few years. It will grow to $20.21 billion in 2030 at a compound annual growth rate (CAGR) of 7.3%. The growth in the forecast period can be attributed to rising emphasis on energy-efficient modernization solutions reducing building operating costs, increasing adoption of digital control systems enabling smoother and smarter elevator operations, expansion of modernization projects in high-rise and urban infrastructures, growing demand for advanced safety components to meet evolving regulatory standards, development of modular modernization kits enabling faster and cost-efficient upgrades. Major trends in the forecast period include growing demand for code-compliance modernization, rising focus on elevator safety redundancy features, accelerated adoption of regenerative and energy-saving retrofits, increased emphasis on aesthetic and user-experience upgrades, expansion of lifecycle extension services for aging elevator fleets.

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 companies operating 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., Stanley Elevator Company Inc.

North America was the largest region in the elevator modernization market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the elevator modernization market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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.

Tariffs are increasing the cost of critical elevator modernization components such as motors, controllers, safety systems, and electronic fixtures, elevating project expenses and extending upgrade timelines. Equipment upgrades, control enhancements, and energy-efficiency retrofits face the highest impact, particularly in regions dependent on imported parts such as Asia-Pacific and Europe. Despite cost pressures, tariffs are stimulating local sourcing, domestic manufacturing expansion, and innovation in cost-optimized modernization solutions, producing some positive long-term effects.

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.

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 countries covered in the elevator modernization market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

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 that 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.

This product will be delivered within 1-3 business days.