Smart Elevator Market Size

Smart Elevator Market Size

Smart Elevator Market size exceeded USD 13.5 billion in 2020 and is expected to grow at a CAGR of around 9% between 2021 and 2027. The market in 2021 is poised to witness a surge in the adoption of smart elevators due to the initiatives taken by various governments globally to adopt energy-efficient solutions.

Rising infrastructure transformations and constructions globally is likely to drive the industry growth. Significant increase in the commercial & residential structure transformation activities by integrating of intelligent technologies is contributing to the global market trends. The intelligent solutions are progressively deployed to attain automation, advanced security, and high energy efficiency compared to conventional lifts, thereby enhancing the demand for smart elevators.

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Smart elevators can be operated by users by pushing a key to set their terminus. There is an indicator in the elevator that will guide them to their destination. Furthermore, the size, speed or number of elevators required and the design, which are required to move between the floors will increase their market representation.

Market factors, such as adoption of cable-free lifts, dizzying heights, rising security concerns, and adoption of digital security systems, are generating market growth opportunities. Growing consumer preference towards the acceptance of intelligent and technically-advanced buildings drove the industry in 2020. The integration of Internet of Things (IoT) and Artificial Intelligence (AI) into elevators and building solutions will further generate robust opportunities for the smart elevator market.

One of the major factors hampering the industry growth is the high initial cost associated with smart elevators. It includes installation cost, integration of security and automation solutions, timely maintenance, and after-sales service. This increases the overall cost of the smart elevator when compared to the traditional counterparts, thereby challenging the market demand. Furthermore, it becomes a challenge for construction contractors to install these elevators in apartments and mid-rise building owing to limited funds allotted for the project.

The COVID-19 pandemic has slowed down the growth of the smart elevator market. Financial instabilities and global economic crisis hampered the market size during the first half of 2020. Severe impacts on the construction industry during this period also hindered the market for smart elevators. High initial cost of smart elevators coupled with rising financial securities will pose a threat to the market growth. However, with leniency in lockdown restrictions imposed, the market will witness a sluggish growth during the forecast timeframe.