Elevator Modernization Market Overview
As per MRFR analysis, the Elevator Modernization Market Size was estimated at 20.06 (USD Billion) in 2022. The Elevator Modernization Market Industry is expected to grow from 21.11(USD Billion) in 2023 to 33.5 (USD Billion) by 2032. The Elevator Modernization Market CAGR (growth rate) is expected to be around 5.26% during the forecast period (2024 - 2032).
Key Elevator Modernization Market Trends Highlighted
Technological advancement, safety concerns and urbanization are the factors that have fueled the growth of the elevator modernization market. The market is also propelled by the growing trend of smart elevators, which offer better connectivity, efficiency and convenience. Also, the governments and building proprietors have elevated elevator safety as a concern, which has caused modernization projects to be undertaken to comply with regulations and reduce risk.
The maturing population of elevators, in conjunction with the need for resource-efficient alternatives, also works toward fulfilling the expansion of the market. There is a huge scope for firms that deal with components of modernization such as sensors, controllers and drives. Some recent activities include the installation of AI systems that optimize lift functioning, the use of remote-control systems for predictive maintenance and remote access of building systems through the elevator systems.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Elevator Modernization Market Drivers
Rising Demand for Energy-Efficient Elevators
The growing demand for energy-efficient buildings has led to a surge in the adoption of energy-efficient elevators. These elevators utilize innovative technologies, such as regenerative drives and LED lighting, to reduce energy consumption and carbon footprint. Their ability to contribute to sustainability goals and lower operating costs is driving their popularity, particularly in commercial and residential buildings.
Government Regulations and Safety Standards
Government regulations and safety standards play a crucial role in driving the Elevator Modernization Market Industry. Stringent safety regulations, such as the Americans with Disabilities Act (ADA) in the United States and the European Union's Machinery Directive, mandate the modernization of elevators to ensure compliance. These regulations focus on improving accessibility, safety features, and emergency response systems, creating a significant demand for elevator modernization solutions.
Advancements in Technology and Digitalization
Advancements in technology and digitalization have revolutionized the Elevator Modernization Market Industry. The integration of smart technologies, such as IoT sensors, cloud computing, and predictive analytics, enhances elevator performance, efficiency, and passenger experience. These technologies enable real-time monitoring, predictive maintenance, and personalized services, leading to increased reliability, reduced downtime, and improved passenger convenience.
Elevator Modernization Market Segment Insights
Elevator Modernization Market Building Type Insights
As per the Elevator Modernization Market report, segment insights show that in 2023, the commercial building type segment held the largest revenue share of around 45%. This dominance is attributed to the increasing number of commercial constructions ly and the need for the modernization of elevators in these buildings to enhance safety, efficiency, and aesthetics. Moreover, government regulations and building codes in various countries mandate regular elevator inspections and upgrades, further driving the growth of this segment. The residential building type segment is expected to witness significant growth over the forecast period due to the rising demand for elevator modernization in existing residential buildings to improve convenience, safety, and accessibility for residents.
Additionally, the growing trend of smart home technologies and the integration of elevators with home automation systems are expected to contribute to the segment's growth. The industrial building type segment is also projected to experience steady growth, driven by the increasing need for elevator modernization in factories, warehouses, and other industrial facilities to enhance productivity, safety, and compliance with industry standards.
The institutional building type segment, which includes hospitals, schools, and government buildings, is expected to show moderate growth due to the focus on improving accessibility, safety, and energy efficiency in these buildings. Overall, the Elevator Modernization Market is expected to witness significant growth in the coming years, driven by increasing urbanization, rising demand for modernization in existing buildings, and the growing adoption of smart elevator technologies.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Elevator Modernization Market Elevator Type Insights
The Elevator Type segment plays a crucial role in the Elevator Modernization Market, and each type exhibits distinct characteristics and growth dynamics. Hydraulic Elevators, Traction Elevators, and Machine-Room-Less (MRL) Elevators are the primary segments within this market. Hydraulic Elevators utilize hydraulic fluid to power their movement, making them ideal for low-rise buildings and applications with limited space. In 2023, the Hydraulic Elevators segment held a significant market share and is projected to grow steadily in the coming years.
Traction Elevators, on the other hand, employ a traction system to move the elevator car. They are commonly found in mid to high-rise buildings and offer higher speeds and energy efficiency compared to Hydraulic Elevators. The Traction Elevators segment is expected to witness substantial growth in the Elevator Modernization Market by 2032. Machine-Room-Less (MRL) Elevators have gained popularity in recent years due to their space-saving design and reduced maintenance requirements. These elevators do not require a separate machine room, making them suitable for buildings with limited space or aesthetic considerations.
The MRL Elevators segment is anticipated to experience strong growth in the Elevator Modernization Market, driven by increasing urbanization and the construction of high-rise buildings. The Elevator Modernization Market is expected to grow significantly in the coming years, with a projected market valuation of 33.5 USD Billion by 2032. The rising demand for elevator modernization to enhance safety, efficiency, and aesthetics is a key factor driving the market growth. The adoption of advanced technologies, such as IoT and cloud-based solutions, is also expected to fuel market expansion.
Elevator Modernization Market Modernization Scope Insights
The Elevator Modernization Market is segmented by Modernization Scope into Full Modernization, Partial Modernization, and Minor Modernization. The Full Modernization segment is expected to hold the largest market share in 2023 and is projected to grow at a CAGR of 5.5% from 2024 to 2032. This growth is attributed to the increasing demand for energy-efficient and technologically advanced elevators. The Partial Modernization segment is expected to grow at a CAGR of 5.2% during the forecast period, owing to the growing demand for cost-effective modernization solutions. The Minor Modernization segment is expected to grow at a CAGR of 4.8% from 2024 to 2032 due to the increasing demand for minor upgrades and repairs.
Elevator Modernization Market Service Type Insights
The Elevator Modernization Market is segmented by Service Type into Preventive Maintenance, Reactive Maintenance, and Predictive Maintenance. Among these, Preventive Maintenance holds the largest market share. This is primarily due to the growing awareness of the importance of regular maintenance to extend the lifespan of elevators and ensure their optimal performance. Preventive Maintenance involves scheduled inspections and servicing of elevators to identify and address potential issues before they escalate into major problems. This proactive approach helps prevent costly breakdowns and downtime, ensuring the safety and reliability of elevators.
Reactive Maintenance, on the other hand, involves repairing elevators only when they break down. This approach is less effective as it can lead to unexpected downtime and increased repair costs. However, it is still commonly used in some cases, particularly for older elevators or those with limited budgets. Predictive Maintenance is gaining traction as a more advanced approach to elevator maintenance. It involves using sensors and data analytics to monitor elevator performance and predict potential failures. This allows for timely interventions and targeted maintenance, reducing the risk of unplanned breakdowns and improving elevator uptime. As a result, the demand for Predictive Maintenance services is expected to grow significantly in the coming years.
Elevator Modernization Market Control System Insights
The control system segment is expected to witness significant growth in the coming years. Revenue is projected to reach USD 5.2 billion by 2024, representing a CAGR of 5.8% during the forecast period. The growth can be attributed to the increasing demand for energy-efficient and reliable elevators. Microprocessor-based systems are expected to dominate the market, accounting for over 55% of the total revenue by 2024. Relay-based systems are expected to decline in popularity due to their lower efficiency and reliability. Solid-state systems are expected to gain traction owing to their superior performance and durability.
Elevator Modernization Market Regional Insights
Regionally, North America is anticipated to dominate the market with a 36.8% share in 2023 due to the presence of a large number of aging elevators and stringent safety regulations. Europe is projected to hold the second-largest market share, followed by APAC, South America, and MEA. The APAC region is expected to witness significant growth during the forecast period, driven by rapid urbanization and increasing investments in infrastructure development.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Elevator Modernization Market Key Players And Competitive Insights
Major players in the Elevator Modernization Market industry are continuously striving to maintain their dominance and stay ahead of the competition. Leading Elevator Modernization Market players are focusing on strategic partnerships, technological advancements, and collaborations to gain an edge over their competitors. The Elevator Modernization Market development is driven by the increasing demand for energy-efficient and safe elevators. These strategic initiatives are expected to contribute significantly to the Elevator Modernization Market Competitive Landscape.
One of the key Elevator Modernization Market players is thyssenkrupp Elevator. The company offers a wide range of modernization solutions to meet the needs of different customers. thyssenkrupp Elevator has a strong focus on innovation and research and development. Another major player is Schindler Group. The company provides a comprehensive portfolio of modernization solutions and has a presence in various markets across the globe. Schindler Group places a strong emphasis on customer satisfaction and service excellence.
A third major player in Elevator Modernization Market is Kone. The company offers a variety of modernization solutions tailored to the specific needs of different types of buildings. Kone is committed to providing sustainable and energy-efficient solutions.
Key Companies in the Elevator Modernization Market Include
- Mitsubishi Electric
- LG Elevator
- Johnson Controls
- Fujitec
- Schindler Elevator India
- Otis Elevator Company
- Hyundai Elevator
- KONE Corporation
- Schindler Group
- Kone China Elevator
- Toshiba Elevator and Building Systems Corporation
- ThyssenKrupp Elevator
- Hitachi Elevator Engineering
Elevator Modernization Market Industry Developments
The elevator modernization market is poised to witness substantial growth, driven by factors such as increasing urbanization, rising demand for energy-efficient solutions, and growing safety concerns. In 2023, the market was valued at approximately USD 21.11 billion, and it is projected to reach USD 33.5 billion by 2032, exhibiting a CAGR of 5.26%.
Recent developments in the market include the launch of advanced elevator technologies, such as destination control systems and mobile applications for remote monitoring. Additionally, governments worldwide are implementing regulations to enhance elevator safety and accessibility, further propelling market expansion. Key players in the industry are focusing on strategic partnerships, acquisitions, and product innovations to strengthen their market position.
Elevator Modernization Market Segmentation Insights
- Elevator Modernization Market Building Type Outlook
- Residential
- Commercial
- Industrial
- Institutional
- Elevator Modernization Market Elevator Type Outlook
- Hydraulic Elevators
- Traction Elevators
- Machine-Room-Less (MRL) Elevators
- Elevator Modernization Market Modernization Scope Outlook
- Full Modernization
- Partial Modernization
- Minor Modernization
- Elevator Modernization Market Service Type Outlook
- Preventive Maintenance
- Reactive Maintenance
- Predictive Maintenance
- Elevator Modernization Market Control System Outlook
- Microprocessor-Based Systems
- Relay-Based Systems
- Solid-State Systems
- Elevator Modernization Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
Elevator Modernization Market Report Scope
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Report Attribute/Metric
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Details
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Market Size 2022
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20.06(USD Billion)
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Market Size 2023
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21.11(USD Billion)
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Market Size 2032
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33.5(USD Billion)
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Compound Annual Growth Rate (CAGR)
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5.26% (2024 - 2032)
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Report Coverage
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Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
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Base Year
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2023
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Market Forecast Period
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2024 - 2032
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Historical Data
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2019 - 2023
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Market Forecast Units
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USD Billion
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Key Companies Profiled
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Mitsubishi Electric, LG Elevator, Johnson Controls, Fujitec, Schindler Elevator India, Otis Elevator Company, Hyundai Elevator, KONE Corporation, Schindler Group, Kone China Elevator, Toshiba Elevator and Building Systems Corporation, ThyssenKrupp Elevator, Hitachi Elevator Engineering.
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Segments Covered
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Building Type, Elevator Type, Modernization Scope, Service Type, Control System, Regional.
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Key Market Opportunities
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Digital Upgrades Sustainability Enhancements Smart Building Integration Remote Monitoring and Predictive Maintenance Safety Modernizations
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Key Market Dynamics
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Aging Building Infrastructure Government Regulations Technological Advancements Increasing Energy Efficiency Growing Adoption of Smart Elevators
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Countries Covered
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North America, Europe, APAC, South America, MEA
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Frequently Asked Questions (FAQ) :
The Elevator Modernization Market is currently valued at USD 21.11 billion in 2023.
The Elevator Modernization Market is expected to reach USD 33.5 billion by 2032, growing at a CAGR of 5.26% from 2024 to 2032.
The key factors driving the growth of the Elevator Modernization Market include increasing demand for energy-efficient and safe elevators, rising urbanization, and growing infrastructure spending.
Elevator Modernization is primarily used in commercial buildings, residential buildings, and public infrastructure.
The key competitors in the Elevator Modernization Market include Otis Elevator Company, Schindler Group, KONE Corporation, Mitsubishi Electric Corporation, and Hyundai Elevator.
The key trends shaping the Elevator Modernization Market include the adoption of smart technologies, increasing focus on safety and accessibility, and growing demand for customized solutions.
The major challenges faced by the Elevator Modernization Market include high installation and maintenance costs, lack of skilled labor, and stringent regulatory requirements.
The Asia-Pacific region is expected to dominate the Elevator Modernization Market, followed by North America and Europe.
The COVID-19 pandemic had a negative impact on the Elevator Modernization Market due to lockdowns and supply chain disruptions.
The key opportunities for growth in the Elevator Modernization Market include the increasing demand for energy-efficient and smart elevators, government initiatives to promote modernization, and growing investments in infrastructure.
