Elevator Market Size By Product (Hydraulic & Pneumatic, Machine Room [MR] Traction, Machine Room-Less [MRL] Traction), By End-user (Building & Construction [Residential, Institutional, Commercial], Industrial), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

Published Date: Feb 2021  |  Report ID: GMI2834  |  Authors: Kiran Pulidindi, Akshay Prakash

Report Format: PDF   |   Pages: 260   |   Base Year: 2020

Summary Table of Contents Industry Coverage Methodology

Industry Trends

Elevator market size valued at USD 82.29 billion in 2020 and will witness a CAGR of around 2.5% from 2021 to 2027. Proliferation in high-rise buildings & structures across the world is expected to increase the market share from the global vertical transportation sector.

Elevator Market

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The elevator sector will witness significant growth owing to the growing number of high-rise buildings in developing economies from 2021 to 2027. Countries including China, the UAE, the U.S., and the UK have reported an unprecedented growth in skyscraper construction during past few years. This can be attributed to urbanization, a growth in income level, and rising construction expenditure of these countries. In 2020, Asia accounted for a share of over 60% of the world’s 100 tallest building structures followed by the Middle East and North America with 20% and 14% share respectively. Such trends are forecast to drive the demand for elevators from 2021 to 2027.

Rising need for maintenance & modernization of elevators is another growth enabling factor globally. Elevators are maintained under full-service contract agreements due to high labor costs and short service cycle. The global elevators & escalators installed base has been estimated to grow at a gradual rate by 2027. Growing concerns of aging infrastructure in North America and Europe are likely to drive the need for elevator services and modernization. However, the maintenance of elevators will largely be influenced by factors including equipment base, regulatory landscape, and service costs across different countries.

Ongoing coronavirus pandemic is anticipated to slow down the global elevator market size from 2019 to 2020. This will be contributed to a dip in the global construction volume followed by restriction of international trade between countries. Europe and North America have faced substantial losses in terms of new equipment sales and service contracts related to elevators & escalators. The market is estimated to recover gradually post-2021 on account of growth in the construction output worldwide.

Elevator Market Report Coverage
Report Coverage Details
Base Year:2020
Market Size in 2020:82.28 Billion (USD)
Forecast Period:2021 to 2027
Forecast Period 2021 to 2027 CAGR:4.5%
2027 Value Projection:96.75 Billion (USD)
Historical Data for:2017 to 2020
No. of Pages:260
Tables, Charts & Figures:354
Segments covered:Product, End-user, Region
Growth Drivers:
  • Development in the Asia Pacific building & construction industry
  • Elevator maintenance and service market growth in Europe and North America
  • Booming construction activities in the Middle East
Pitfalls & Challenges:
  • High installation and maintenance costs

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MR traction elevators are the preferred choice for building owners

The MR traction elevator market to generate around USD 38 billion in 2020. This can be contributed to its growing demand in mid to high-rise buildings around the globe. MR traction elevators travel at an average speed ranging between 500 – 2,000 feet per minute and can travel up to a distance of 250 to 2,000 feet. These products are available in both geared & gearless motor drive. However, these elevators have a higher upfront and maintenance cost, which may restrict their growth from 2017 to 2027.

Flourishing housing sector & urbanization will increase product penetration in the building & construction segment

Elevator Market Size

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Building & construction is projected to witness over 2.5% CAGR in the global elevator market until 2027, driven by the rising construction activities. Asia Pacific is estimated to lead the overall construction industry in the near future. Chinese construction expenditure was reported to reach over USD 4.5 trillion in 2019, which is poised to drive housing development across the region. The rising income level and rapid urbanization are major factors driving the regional market demand.

The booming construction sector in APAC countries will fuel elevator sales

Elevator Market Share

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Asia Pacific elevator market is estimated to lead the global industry with more than 70% share by 2027. China plays a significant role by dominating the construction growth in this region. In 2016, The China construction industry achieved a 17% growth in the market value.

Furthermore, other countries including India, Japan, and South Korea are set to increase their construction expenditures over 2021 to 2027. The Government of India has received USD 24.67 billion worth foreign direct investments in the construction sector from 2000 to 2017. This positive trend in the industry can be attributed to various government initiatives to propel the India construction sector.

Increasing focus on the high-rise buildings sector will further enhance the market revenue. In 2020, China completed 56 units of 200 meter plus high-rise buildings followed by South Korea, India, and Japan with four, three, and three units respectively. A rise in the number of skyscrapers is projected to drive the product share in these countries by the end of 2027.

Consolidation will impose challenges for new players in the global elevators sector

The elevator industry share is divided among new equipment manufacturers and service providers. The New Equipment/Installation (NI) industry is highly consolidated with top industry players accounting for a majority stake in the global market in 2020.

Some of the top elevator market players are KONE, thyssenkrupp AG, Schindler India, Hitachi Ltd., OTIS, and Hyundai. Key strategies adopted by major players include strategic initiatives, new product development, and capacity expansion.

The elevator maintenance market is moderately consolidated owing to high initial costs along with a superior technical expertise for maintaining equipment. However, the growing concerns toward aging elevators in European countries along with stringent regulatory environments will drive the penetration of new players by 2027.

The market research report on elevator includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD million from 2017 to 2027 for the following segments:

Market, Product, By End-user

  • Hydraulic & pneumatic
    • Building & construction
    • Commercial
  • Machine-Room traction (MR traction)
    • Building & construction
    • Commercial
  • Machine-room Less traction (MRL traction)
    • Building & construction
    • Commercial
  • Others (climbing, inclined, etc.)
    • Building & construction
    • Commercial

Market, By End-user

  • Building & construction
    • Residential
    • Institutional
    • Commercial
  • Industrial

The above information is provided on a regional and country basis for the following:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Spain
    • Italy
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Indonesia
    • Malaysia
    • Brazil
    • Mexico
  • MEA
    • South Africa
    • Saudi Arabia
    • UAE
    • Kuwait

Frequently Asked Questions (FAQ) :

The global elevator industry surpassed USD 82.29 billion in 2020 and is estimated to register a steady growth rate of around 2.5% through 2027, says this GMI report.
The machine room traction elevator industry share was over USD 38 billion during 2020 and will expand due to benefits like high speed which is suitable for mid to high-rise structures.
With increased commercial and residential projects, the market share from building and construction segment is expected to record about 2.5% CAGR between 2021-2027.
APAC is expected to be the leading elevator market, with more than 70% share of the global market by 2027 owing to robust construction expenditure in countries like China, India, South Korea and Japan.

Premium Report Details

  • Published Date: Feb 2021
  • Pages: 260
  • Tables: 328
  • Charts / Figures: 26
  • Companies covered: 14
  • Countries covered: 23

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