Smart Elevator Market revenue worth over $23.5 billion by 2027
Published Date: April 9, 2021 Authors: Preeti Wadhwani, Prasenjit Saha
Smart Elevator Market size is set to be over USD 23.5 billion by 2027, according to a new research report by Global Market Insights Inc.
Rapid increase in the acceptance of smart elevators in Asia Pacific, the Middle East, and Latin America will drive the smart elevator industry revenue. Market factors including reliability and longer durability will support the market trends for smart elevators. Furthermore, increasing customer spending capabilities in emerging markets coupled with the demand for energy-efficient solutions globally will fuel the market expansion.
The significant increase in urbanization across the globe will generate new growth opportunities for the market. Rising inclination toward wandering to urban areas will augment the industry demand. As per the data reported by the World Bank in 2019, around 70.7% of Italy’s total population resides in urban areas. The growing adoption of quicker vertical transportation in urban areas to support the market size through 2027.
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The factor hampering the growth of the smart elevator market is the high operational cost incurred for maintenance and servicing of smart elevators. These elevators are often prone to damage due to wear and tear of moving parts including pulley mechanism, bearings, and motor. Smart elevators also require skilled professionals to provide frequent maintenance, further hampering the demand. The frequent servicing of smart elevators to mitigate the risk of breakdown also acts as a challenge to the industry.
Analyst view: “Increasing demand for energy-efficient solutions in Europe will accelerate the smart elevator market. The upward market trend of high-rise buildings will also drive the market growth over coming years.”
The smart elevator market saw a significant decline in the first half of 2020 due to the emergence of COVID-19 pandemic in many countries globally. The slowdown in the construction industry can also be accounted for this decline. Restriction on domestic and international trade along with unavailability of skilled labors globally is hampering the market statistics. However, the demand for these elevators is anticipated to witness an upward market trend over the coming years owing to the rising smart cities globally.
The demand for new deployments will proliferate during the forecast timeline
The services segment is likely to grow at 8% CAGR from 2021 to 2027. The rapid increase in the demand for new deployments is significantly accountable for the high market revenues. Rapid increase in the construction of several new commercial and residential structures and the surging demand for new intelligent building automation technologies will contribute to the escalating market revenues.
Furthermore, the changing demand for time-saving building & home solutions that help safety and comfort will propel the smart elevator market revenue. Market players are focused on developing new digital platforms & solutions to facilitate safe and quick fitting of new lifts and lessen delivery times.
Browse key industry insights spread across 170 pages with 205 market data tables & 20 figures & charts from the report, “Smart Elevator Market Size By Solution (Control Systems [Security Control System, Elevator Control System, Access Control System], Maintenance Systems, Communication Systems, Services [Support & Maintenance, New Deployments, Modernization]), By End-Use (Residential, Commercial, Institutional, Industrial), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Increasing adoption of smart elevators in the residential segment will propel the market demand
The residential end use segment valued at USD 4 billion in 2020 driven by the construction of automated and advanced homes, residences, and apartments globally. The lift manufacturers and service providers offer fast delivery and installation in housing projects. They also offer maintenance systems and access control that alert building management and residents about any problems related to electricity cuts and malfunctioning.
Moreover, in residential spaces, the smart elevator services and solutions ensure safety against the entry of unwanted people and theft on restricted floors. Several companies in the market focus on offering varied lift solutions for various residential buildings depending on the number of residents and floors. For instance, Kone Oyj offers different solutions including N MonoSpace, N MiniSpace, E MiniSpace, and E MonoSpace, for high, mid, and low-rise residential structures, thereby supporting the market in 2020.
Construction of various complex and high-rise buildings in North America will support the market
The North America smart elevator market is projected to witness a steady growth at around 9% CAGR through 2027 propelled by the construction of various complex and high-rise buildings. North America is witnessing a faster adoption of smart elevators impelled by the presence of technically strong and aware users coupled with high spending capacity on smart technologies. Additionally, rising government focus on reducing the carbon emissions and organizing energy-efficient building solutions will contribute to the surging market demand.
The players in the market are focusing on enhancing their service offerings and geographic presence in the region. Companies are also focusing on strategic partnerships and collaborations to gain an edge over the competitors and enhance their service offerings. For instance, in March 2020, Thyssenkrupp entered into an agreement with Cinven, Advent, and RAG Foundation to trade its Elevator Technology commercial segment to lower its structural costs and strengthen its cash flow.
The key players in smart elevator market include Otis Elevator Company, Bosch Security Systems, Thyssenkrupp AG, Fujitec, Kone Oyj, Mitsubishi Elevator, Hitachi Ltd., and Schindler Group.