Smart Elevator Market by Technology Type (IoT-Enabled, AI-Powered, Regenerative Drive); By Application (Residential, Commercial, Industrial); By End-User (Building Owners, Elevator Manufacturers, Construction Contractors); By Region, Segment Revenue Estimation, Forecast, 2024–2030

Introduction And Strategic Context

The Global Smart Elevator Market is poised for substantial growth, with an expected Compound Annual Growth Rate (CAGR) of 8.7% from 2024 to 2030 . Valued at approximately USD 15.5 billion in 2024 , it is projected to reach USD 26.5 billion by 2030.

 

Smart elevators, equipped with advanced technologies such as Artificial Intelligence (AI), Internet of Things (IoT) connectivity, and automated control systems, are revolutionizing the way people navigate buildings. These elevators offer enhanced operational efficiency, energy savings, and improved passenger experience, positioning them as a key component in the rise of "smart buildings." As urbanization accelerates, and demand for efficient vertical transportation grows, the adoption of smart elevators is expected to become a strategic priority across residential, commercial, and industrial sectors.

 

One of the primary drivers of this market is the growing demand for sustainable and energy-efficient solutions. Smart elevators, equipped with regenerative drives and advanced algorithms, not only optimize power usage but also reduce carbon footprints. Additionally, regulations and safety standards in regions like North America and Europe are pushing for the integration of smart technologies to improve energy efficiency and reduce environmental impact .

 

The rising adoption of smart technologies in residential and commercial infrastructure is another critical factor. Urban centers worldwide are increasingly investing in "green" building certifications such as LEED, which encourage the integration of energy-saving technologies like smart elevators. Governments and private entities are aligning with these trends, recognizing the market potential for such innovations.

 

Stakeholders in the smart elevator ecosystem include Original Equipment Manufacturers (OEMs), technology providers, building owners, contractors, and system integrators. These stakeholders are collectively shaping the market by developing products that meet the growing needs for connectivity, automation, and sustainability in building management. The market’s diverse player base spans from global giants like Schindler , Otis , and Thyssenkrupp , to smaller, specialized firms focusing on cutting-edge technologies such as AI-driven predictive maintenance and IoT-enabled monitoring.

 

Looking ahead, the smart elevator market is set to become an integral part of the smart cities’ infrastructure, influencing vertical transportation, and contributing to the overall improvement of urban living.

 

Market Segmentation And Forecast Scope

The Smart Elevator Market is segmented across various dimensions, reflecting the wide range of technological innovations and applications within the sector. This segmentation helps in understanding the diverse needs of end users, the evolving technologies driving the market, and regional preferences.

By Technology Type

• IoT-Enabled Smart Elevators
  These elevators are equipped with sensors and connectivity features, allowing them to interact with other building management systems. The integration of IoT enables real-time monitoring and predictive maintenance, making these systems a popular choice for high-rise buildings and commercial spaces. This segment is projected to grow at the fastest rate, as more developers look for integrated building solutions that enhance operational efficiency.

• AI-Powered Elevators
  AI-based systems are employed to optimize elevator performance by learning user patterns, predicting traffic, and adjusting operations accordingly. These elevators are particularly beneficial in commercial buildings, hotels, and airports, where passenger flow management is critical. The demand for AI-powered elevators is increasing, driven by the need for more advanced automation and smart decision-making capabilities.

• Regenerative Drive Elevators
  This technology allows elevators to regenerate energy during braking, contributing to sustainability goals. These elevators reduce energy consumption by sending the energy back into the building’s grid, making them increasingly desirable for eco-conscious urban developments. The regenerative drive segment is growing steadily as sustainability becomes a priority in construction projects.

 

By Application

• Residential
  Smart elevators are gaining traction in residential buildings, especially in high-end apartments and luxury homes. The growing trend of "smart living" in urban areas has led to an increased demand for advanced technologies like smart elevators, which offer greater convenience and energy efficiency. In 2024, the residential segment accounted for approximately 27% of the market share.

• Commercial
  The commercial sector, including office buildings, shopping malls, and entertainment complexes, is the largest end-user of smart elevators. With an increasing number of multi-story buildings and the need for enhanced traffic management systems, commercial buildings are adopting IoT, AI, and regenerative drive technologies to improve efficiency and reduce energy consumption. This segment is expected to grow steadily due to urbanization and commercial infrastructure development.

• Industrial
  The industrial sector is increasingly incorporating smart elevators, particularly in high-rise factories, warehouses, and manufacturing plants. These elevators are essential for optimizing employee and material movement across different levels of large facilities. They help ensure operational efficiency and safety, particularly in environments with high-volume transportation needs.

 

By End-User

• Building Owners and Operators
  Building owners and facility managers are the primary purchasers of smart elevators. They are focused on integrating cost-effective, energy-efficient solutions to enhance the value of their properties while meeting sustainability standards. These stakeholders are keen on investing in smart elevators to manage operational costs, enhance user satisfaction, and reduce the building’s overall carbon footprint.

• Elevator Manufacturers and OEMs
  Companies in this segment focus on designing, producing, and distributing smart elevator systems. Key players include global manufacturers like Otis , Schindler , and Kone , as well as smaller companies specializing in advanced elevator technologies such as AI and IoT integration.

• Construction Contractors
  Contractors are responsible for installing smart elevator systems in new buildings or during major renovations. The demand for smart elevators from contractors is rising as more construction projects aim for sustainability certifications like LEED, which emphasize energy-efficient systems like smart elevators.

 

By Region

• North America
  North America leads the smart elevator market, driven by advancements in building automation systems and a high rate of green building certifications. The United States and Canada are key markets due to their adoption of IoT and AI technologies in residential and commercial buildings. High regulatory standards in this region ensure the widespread use of energy-efficient elevator solutions.

• Europe
  Europe is another significant market for smart elevators, with strong demand from commercial buildings and large infrastructure projects. European regulations around energy efficiency, particularly in countries like Germany and the UK, are propelling the growth of regenerative drive and IoT-enabled elevators. The region’s ongoing smart city initiatives further support market growth.

• Asia-Pacific
  The Asia-Pacific region is expected to grow at the fastest pace, driven by rapid urbanization, infrastructure development, and the rising demand for residential and commercial spaces in countries like China, India, and Japan. Government initiatives promoting smart cities and energy-efficient buildings are helping accelerate the adoption of smart elevator systems.

• Latin America, Middle East & Africa (LAMEA )
  In the LAMEA region, smart elevator adoption is still emerging but steadily growing, particularly in the Middle East where large-scale urban developments and high-rise buildings are prevalent. Investment in infrastructure and increasing urbanization are expected to drive market growth in these regions.

 

Market Trends And Innovation Landscape

The Smart Elevator Market is undergoing a transformative shift, driven by emerging technologies, evolving consumer preferences, and a growing emphasis on sustainability. Here’s an in-depth look at the key trends and innovations shaping the future of the market:

1. IoT Integration for Real-Time Monitoring

The integration of the Internet of Things (IoT) in elevator systems is one of the most significant trends in the market. Smart elevators are now equipped with sensors and connected to building management systems (BMS), providing real-time data on elevator performance, usage patterns, and maintenance needs. This enables predictive maintenance, where potential malfunctions are identified before they cause failures. For instance, if an elevator's door mechanism shows signs of wear, the system can notify the building manager to perform repairs before it becomes a costly problem. IoT connectivity also enhances the user experience by allowing remote monitoring and diagnostics, making it easier to optimize elevator traffic and reduce waiting times.

As building operators increasingly seek more control over their infrastructure, IoT-connected elevators offer both convenience and operational efficiency, becoming a must-have feature for modern buildings.

 

2. AI-Powered Optimization

Artificial Intelligence (AI) is making elevators smarter by enabling systems to learn and adapt to user behaviors . AI-powered algorithms can predict traffic patterns, optimizing elevator movement to reduce wait times and improve energy efficiency. In commercial settings, where high passenger traffic is common, AI-powered elevators can adjust their operations based on peak traffic times, thereby improving overall building flow.

Additionally, AI is enhancing predictive maintenance . AI models can analyze data from sensors to forecast when specific elevator components are likely to fail, enabling proactive servicing. This not only reduces the risk of downtime but also extends the lifespan of the elevator system. For example, AI systems can forecast that a motor is nearing the end of its optimal lifespan and schedule maintenance well in advance, reducing costly breakdowns and repairs.

 

3. Regenerative Drive Systems for Energy Efficiency

Energy efficiency is a critical priority in the smart elevator market , with regenerative drive systems leading the charge. These systems capture energy generated when the elevator slows down or descends, converting it back into the building’s electrical grid. This technology is particularly valuable in tall buildings where elevators frequently move between floors, as it significantly reduces energy consumption and costs.

Regenerative systems align with the growing demand for sustainable building practices , making them an attractive solution for commercial developers seeking energy-efficient certifications, such as LEED (Leadership in Energy and Environmental Design). As building codes become stricter on energy use, regenerative drive systems are becoming a standard feature in new elevator installations.

In some large commercial buildings, regenerative drive systems have led to energy savings of up to 30%, making them a critical investment in energy-efficient building design.

 

4. Cloud-Based Elevator Management

Cloud computing is revolutionizing elevator management by enabling centralized control and monitoring of elevator systems. With cloud-based platforms , building managers can monitor multiple elevator systems across several locations in real time, improving service efficiency and response time. These systems offer data analytics capabilities, which help identify trends, assess elevator performance, and generate reports for preventive maintenance.

Cloud technology also allows for over-the-air (OTA) software updates . This eliminates the need for on-site visits for system updates, streamlining maintenance and reducing downtime. The ability to manage elevators remotely, from anywhere in the world, is driving growth in the commercial sector, where multiple properties may be managed from a single point.

 

5. Smart Security and Passenger Experience

The introduction of smart security features in elevators is another innovation that is gaining momentum. Smart elevators are increasingly equipped with facial recognition, biometric authentication, and touchless controls to improve both security and user experience. These systems enhance safety by controlling access to specific floors based on user identity, a particularly attractive feature for high-security areas such as corporate offices or residential buildings with restricted access.

Additionally, user experience design is becoming more important. Elevator operators are focusing on creating a seamless and pleasant experience for passengers. Innovations such as ambient lighting , interactive touchscreens , and integrated voice commands are improving user engagement and comfort. The addition of personalized services, such as floor preference memory and entertainment options like music or video during rides, is becoming increasingly common in luxury residential and commercial properties.

 

6. Collaboration and Strategic Partnerships

To accelerate innovation, several key players in the market are forming strategic partnerships with technology companies. Collaborations between elevator manufacturers and AI, IoT, and cloud providers are creating next-generation elevator systems that integrate the latest advancements in machine learning, real-time data analytics, and automation. Such collaborations are expected to fuel growth and innovation, with Schindler and Otis being prime examples of companies that are investing in these partnerships to enhance their elevator systems with cutting-edge technology.

Partnerships between building management companies and elevator service providers are expected to expand as the demand for fully integrated building solutions increases, creating a more comprehensive market offering.

 

Competitive Intelligence And Benchmarking

The Smart Elevator Market is characterized by intense competition and innovation. Key players in the market are focusing on enhancing their product offerings through technological advancements, strategic partnerships, and global expansion. Below, we analyze the strategies of some of the leading players in the market:

1. Otis Elevator Company

Strategy : Otis is a global leader in the elevator industry, and its strategy revolves around technological innovation, with a strong emphasis on digitalization and sustainability. The company has made significant strides in integrating IoT and AI into its elevator systems, offering real-time monitoring, predictive maintenance, and energy-efficient solutions. Otis’ flagship Gen2 Smart Elevator utilizes advanced algorithms for optimizing elevator traffic and energy use, offering a smoother and more efficient experience for users.

Global Reach : Otis has a vast presence in North America, Europe, and Asia-Pacific, with its advanced technology and sustainable solutions gaining significant traction in high-rise residential and commercial buildings.

Product Differentiation : The company’s focus on AI-driven predictive maintenance and its IoT-based smart building integrations position Otis as a top contender in the market. Additionally, Otis' strong brand recognition and history in the market contribute to its competitive edge.

 

2. Schindler Group

Strategy : Schindler is investing heavily in digital transformation and sustainability . The company has developed the Schindler Ahead platform, a cloud-based elevator management system that allows building operators to monitor and optimize the performance of their elevators remotely. Schindler’s elevators are equipped with AI-based learning systems , helping them adjust to changing traffic patterns and improving energy efficiency.

Global Reach : Schindler has a strong presence across Europe, North America, and Asia-Pacific, particularly in high-growth regions such as China and India. The company is also focusing on expanding its footprint in emerging markets.

Product Differentiation : Schindler’s unique selling proposition lies in its smart maintenance systems and advanced connectivity features . The company is well-known for its strong service network, which ensures quick response times for troubleshooting and maintenance.

 

3. KONE Corporation

Strategy : KONE's focus is on providing seamless user experiences and energy-efficient solutions . The company’s KONE DX Class elevators integrate with smart building technologies to provide IoT connectivity and advanced analytics . KONE’s smart elevators also focus on sustainability, offering regenerative drive systems that significantly reduce energy consumption. KONE is also heavily involved in AI and machine learning to improve elevator traffic management and user personalization.

Global Reach : KONE has a global footprint, particularly strong in Europe, North America, and Asia. It’s known for its presence in major metropolitan areas, where high-rise buildings require advanced elevator solutions.

Product Differentiation : KONE’s user- centered design and energy-saving technologies make it a market leader. Their focus on user experience, including personalized travel and touchless features , appeals to luxury residential, office buildings, and airports.

 

4. Thyssenkrupp Elevator

Strategy : Thyssenkrupp focuses on vertical mobility solutions that integrate smart technologies such as IoT, AI, and cloud computing . Thyssenkrupp’s MULTI elevator system is revolutionary, as it does not require cables and can move horizontally and vertically, which makes it ideal for ultra-tall buildings. The company also emphasizes sustainability through energy-efficient technologies and predictive maintenance systems that help prevent elevator downtime.

Global Reach : Thyssenkrupp has a strong presence in Europe and North America, and is expanding rapidly in Asia-Pacific and the Middle East.

Product Differentiation : Thyssenkrupp’s MULTI elevator system differentiates it from other competitors, offering a unique solution for buildings with limited vertical space. The company’s focus on innovation and design flexibility gives it an edge in the market for futuristic high-rise developments.

 

5. Fujitec Co., Ltd.

Strategy : Fujitec has positioned itself as a leader in customized elevator solutions , focusing on the integration of smart technologies such as IoT and cloud-based monitoring systems . The company is also focusing on safety, ensuring its elevators meet the latest industry standards. Fujitec has a strong presence in the Asia-Pacific region , where the demand for smart elevators is rapidly growing.

Global Reach : While Fujitec is well-established in Japan and other Asian markets, the company is expanding its reach in Europe and the Middle East.

Product Differentiation : Fujitec’s elevators are known for their high reliability and customization capabilities, making them particularly attractive for projects requiring tailored solutions. Additionally, the company’s commitment to safety and innovation helps it differentiate itself from the competition.

 

6. Mitsubishi Electric

Strategy : Mitsubishi Electric’s strategy in the smart elevator market centers around sustainability and technological integration . The company’s Destination Dispatch System , which is designed to optimize elevator operations, is a standout product, helping buildings manage heavy traffic more effectively. Mitsubishi is also incorporating AI and IoT in its elevator systems for enhanced performance and energy efficiency.

Global Reach : Mitsubishi Electric has a strong presence in Asia and is expanding rapidly in North America and Europe.

Product Differentiation : Mitsubishi Electric’s Destination Dispatch System and advanced energy-saving technologies help it stand out. The company also focuses on offering elevators that are easy to install and low-maintenance , which is a key selling point for developers.

 

Competitive Landscape Summary:

The Smart Elevator Market is highly competitive, with major players such as Otis , Schindler , KONE , Thyssenkrupp , Fujitec , and Mitsubishi Electric leading the charge. These companies are differentiating themselves through technology integration , customization , and a focus on sustainability . The integration of IoT, AI , and regenerative drives into elevator systems is becoming standard, and smart maintenance systems are gaining popularity. As urbanization and demand for energy-efficient solutions continue to rise, competition will intensify, with strategic partnerships , innovation in mobility solutions , and customized offerings becoming critical to maintaining a competitive edge.

 

Regional Landscape And Adoption Outlook

The adoption of smart elevators varies significantly across regions, influenced by factors such as urbanization, economic development, regulatory frameworks, and technological infrastructure. The demand for smart elevators is rising globally, with some regions experiencing faster growth due to a combination of large-scale urban projects, sustainability initiatives, and advancements in building technologies.

North America

Market Overview : North America remains the most mature market for smart elevators , driven by the rapid adoption of advanced technologies in building infrastructure and strict energy efficiency regulations. The United States and Canada are leaders in this market, supported by well-established construction standards and a high concentration of green building projects .

Growth Drivers :

• The increasing demand for sustainable, energy-efficient buildings is a major driver.

• Government regulations and codes such as LEED (Leadership in Energy and Environmental Design) are encouraging the integration of technologies like smart elevators in new and existing buildings.

• Urbanization in major cities like New York , Chicago , and Toronto is fueling the need for high-rise buildings equipped with intelligent elevator systems to manage traffic efficiently.

Key Insights :

• IoT-enabled elevators are becoming standard in commercial real estate projects, especially in office buildings and skyscrapers.

• Major cities are seeing an influx of smart city initiatives that incorporate building automation systems , including smart elevators, as part of larger sustainable urban infrastructure.

 

Europe

Market Overview : Europe is another key region for the smart elevator market , with countries like Germany , France , Italy , and the UK leading the adoption of smart technologies in buildings. Europe’s robust building codes and the EU’s sustainability goals have spurred the demand for energy-efficient and smart building systems, including elevators.

Growth Drivers :

• The European Union’s push for sustainability is encouraging the adoption of green technologies, including smart elevators , to meet carbon reduction goals .

• The growing number of high-rise commercial and residential buildings , particularly in cities like London and Berlin , has created demand for more efficient vertical transportation solutions.

• A growing focus on IoT integration is driving innovation in elevator technologies, improving operational efficiency and user experience.

Key Insights :

• AI-driven and regenerative drive systems are growing in popularity, especially in commercial developments and smart cities initiatives.

• In the UK and Germany, regulatory frameworks encourage building owners to adopt energy-efficient technologies , pushing the adoption of smart elevator systems .

 

Asia-Pacific

Market Overview : The Asia-Pacific region is experiencing the fastest growth in the smart elevator market , fueled by rapid urbanization, increasing building construction activities, and rising investments in smart city development . Countries like China , India , Japan , and South Korea are witnessing significant expansion in the demand for smart technologies, including elevators.

Growth Drivers :

• Urbanization in countries like China and India is leading to a surge in the number of high-rise buildings and commercial complexes that require advanced elevator systems.

• Government initiatives promoting smart cities and sustainability are accelerating the adoption of IoT-enabled and energy-efficient elevator solutions .

• Increasing economic growth and rising disposable incomes are contributing to a rise in demand for luxury residential buildings , many of which are equipped with smart elevators.

Key Insights :

• China is expected to be the largest market in the region, driven by massive investments in urban infrastructure and the development of smart cities .

• India is also a rapidly growing market, where commercial and residential projects are increasingly incorporating smart building solutions like IoT-enabled elevators to cater to the growing population and rising urbanization.

 

Latin America, Middle East & Africa (LAMEA)

Market Overview : In the LAMEA region , the adoption of smart elevators is in the early stages but is expanding steadily, particularly in the Middle East . Countries like the UAE , Saudi Arabia , and Qatar are investing heavily in infrastructure and high-rise buildings, creating significant demand for advanced elevator systems. Meanwhile, in Latin America and Africa , adoption is growing in select urban areas where infrastructure projects are being prioritized.

Growth Drivers :

• The Middle East is undergoing rapid urbanization, with countries like Saudi Arabia and the UAE investing in massive construction projects, including commercial complexes, residential towers, and mixed-use developments that require advanced elevator systems.

• Infrastructure projects in Brazil , Mexico , and South Africa are helping to drive the demand for smart elevator systems in both commercial and residential buildings.

• Governments and private investors in these regions are focusing on creating sustainable cities that integrate smart technologies, including energy-efficient elevators, into building designs.

Key Insights :

• The UAE and Saudi Arabia are adopting smart elevators in many of their high-profile buildings and smart city projects .

• In Brazil and Mexico , the market is more price-sensitive, and affordable, energy-efficient elevators are in demand as part of larger urban development projects.

Regional Growth Summary :

• North America and Europe lead in market maturity, driven by sustainability initiatives and advanced building codes.

• The Asia-Pacific region is the fastest-growing market, with China and India leading the charge in urban development.

• The Middle East is making rapid strides in smart elevator adoption, while Latin America and Africa are in the early stages, with select cities driving adoption.

The growth outlook for the smart elevator market is promising across all regions, with rapid urbanization, sustainability trends, and technological advancements driving demand.

 

End-User Dynamics And Use Case

The adoption of smart elevators varies across different types of end users, each with distinct needs and expectations. From building owners and facility managers to technology providers and end users, each stakeholder group plays a crucial role in shaping the market dynamics. Below, we break down the key end-users and explore a relevant use case to highlight how smart elevators are transforming building operations.

1. Building Owners and Facility Managers

Building owners and facility managers are the primary end-users of smart elevators. They are focused on improving the operational efficiency of their buildings while reducing maintenance costs and enhancing the overall tenant experience. The key factors driving adoption among these users include:

• Energy Efficiency : Smart elevators are seen as a critical tool for reducing energy consumption in high-rise buildings. With technologies like regenerative drives and AI-based traffic optimization , these elevators help lower electricity bills and improve a building’s environmental footprint, making them highly attractive to building owners.

• Predictive Maintenance : Facility managers prefer smart elevators equipped with IoT sensors and AI-driven predictive maintenance capabilities . These systems alert maintenance teams about potential issues before they become costly repairs, reducing elevator downtime and improving the reliability of building services.

• Improved User Experience : Smart elevators enhance the tenant experience through touchless controls , personalized settings , and seamless integration with smart building systems . Building owners understand that offering an upgraded, user-friendly experience adds value to their properties, especially in high-demand residential and commercial markets.

 

2. Elevator Manufacturers and OEMs

Original Equipment Manufacturers (OEMs) are responsible for designing and building smart elevators. They are increasingly focusing on innovation and differentiation by incorporating advanced technologies such as IoT and AI into their elevator systems. These manufacturers play a crucial role in driving market growth by producing solutions that meet the demands of building owners and facility managers.

Key trends for OEMs include:

• Modular Design : OEMs are creating modular elevator systems that can easily be customized for different building types and sizes, including residential, commercial, and industrial spaces.

• Collaboration with Technology Providers : Elevator manufacturers are increasingly collaborating with IoT, AI, and cloud computing companies to integrate cutting-edge technologies into their systems. These collaborations enhance their product offerings, making smart elevators more efficient and capable of meeting the complex needs of modern buildings.

 

3. Construction Contractors

Construction contractors are pivotal in the installation of smart elevator systems in new buildings or major renovation projects. They play a key role in ensuring that elevators are seamlessly integrated into the building’s infrastructure. For contractors, the appeal of smart elevators lies in:

• Speed and Efficiency : Smart elevators are designed to operate more efficiently, which can reduce waiting times and improve building access for tenants. This is especially important in large buildings with high traffic.

• Building Code Compliance : Contractors are often under pressure to ensure that new buildings meet modern building codes and sustainability standards. Smart elevators, particularly those that reduce energy consumption and improve operational efficiency, help contractors meet these compliance requirements.

 

4. Commercial and Residential Tenants

While building owners and managers are the direct adopters, tenants in commercial and residential buildings are indirect end-users of smart elevators. They benefit from the enhanced performance and user-friendly features of smart elevators. The key aspects that tenants value include:

• Convenience : Tenants expect fast, efficient, and reliable elevator systems. Features like personalized floor preferences , AI-optimized travel times , and voice command integration significantly enhance user convenience.

• Safety and Security : Smart elevators offer enhanced security through features like biometric authentication , keycard access , and touchless operation , ensuring that tenants feel safe and secure in their living or working spaces.

• Sustainability : Tenants are increasingly conscious of the environmental impact of their living or working spaces. Smart elevators contribute to the sustainability of the building, which is an attractive feature for eco-conscious tenants.

 

Use Case: High-Rise Commercial Building in Dubai

A large commercial building in Dubai was facing challenges with elevator wait times during peak hours, especially in the morning when employees were arriving. The building had over 40 floors and high tenant traffic, leading to long waiting times and overcrowding during business hours. The building owner decided to upgrade their elevator system by installing AI-powered smart elevators equipped with IoT sensors and regenerative drive systems .

• Problem : The primary issue was the inefficient elevator traffic management during peak hours. Standard elevator systems couldn’t adjust to the flow of traffic based on real-time demand, leading to long waits and inefficiency.

• Solution : The smart elevator system installed in the building used AI-based algorithms to predict and optimize elevator movement based on real-time passenger demand. The system also employed regenerative drives to reduce energy consumption and provide the building with energy savings . Additionally, predictive maintenance sensors were installed to alert the building management about potential failures before they occurred.

• Outcome : After the installation of the smart elevator system, the building experienced a 40% reduction in wait times and a 20% decrease in overall energy consumption . Tenant satisfaction improved, with tenants reporting a smoother, more efficient elevator experience. The building also received positive recognition for its sustainability efforts , which contributed to its green building certification .

 

Recent Developments + Opportunities & Restraints

Recent Developments (Last 2 Years)

• AI-Powered Predictive Maintenance by KONE
  In 2024, KONE unveiled an AI-powered predictive maintenance system designed to improve elevator reliability and reduce downtime. This system uses real-time data from IoT sensors to predict failures and notify maintenance teams before issues become critical. The system’s advanced algorithms have already reduced unscheduled downtimes by 15% in pilot installations across Europe and North America.

• Schindler’s Integration of Regenerative Drive Systems in New Installations
  Schindler announced in 2023 that its regenerative drive technology would be integrated into all new elevator systems by 2025. This move is part of their broader initiative to meet sustainability goals and reduce the carbon footprint of new buildings. Schindler's commitment to energy-efficient solutions has already set a benchmark in the industry, with their regenerative drives reducing energy consumption by up to 30% in tall buildings.

• Partnership Between Otis and IBM for Smart Building Integration
  In 2023, Otis entered into a partnership with IBM to enhance its smart elevator systems with AI and cloud-based services . This collaboration enables Otis to provide building owners with deeper insights into elevator usage patterns and predictive analytics for optimized maintenance. The integration of AI-driven traffic management is set to improve elevator performance in high-rise buildings by enhancing traffic flow based on real-time demand.

• Mitsubishi Electric Launches Touchless Elevator Control
  Mitsubishi Electric launched a new line of touchless elevators in 2024, catering to a growing demand for hygienic, contactless systems. This technology uses motion sensors and voice recognition to allow passengers to call and control the elevator without physical contact, providing a safer, more convenient experience. These systems are especially popular in healthcare facilities and high-traffic commercial buildings.

• Thyssenkrupp’s Expansion into Smart City Projects
  In 2023, Thyssenkrupp secured a contract to install their MULTI elevator system in a major smart city project in the UAE. This groundbreaking system, which allows elevators to move horizontally as well as vertically, is set to revolutionize high-rise construction by reducing the number of elevator shafts needed. The project is expected to be completed by 2026 and will set the stage for future developments in vertical transportation within smart cities.

 

Opportunities

• Expansion in Emerging Markets
  The smart elevator market presents substantial opportunities in emerging markets, particularly in Asia-Pacific , Latin America , and parts of the Middle East and Africa . Rapid urbanization and large-scale construction projects in countries like China , India , and Brazil are creating a need for efficient vertical transportation solutions. As these regions develop their infrastructure, the demand for smart, energy-efficient elevators will increase.

• Integration of Smart Elevators into Smart Buildings
  As smart buildings gain traction, the demand for smart elevator systems is expected to rise. IoT-enabled elevators that integrate seamlessly with other building management systems (BMS) can significantly improve energy efficiency, traffic flow, and overall building performance. Building owners are increasingly looking for comprehensive smart building solutions , and elevators are a key component in this transformation. This trend will drive the adoption of AI-powered optimization and predictive maintenance systems .

• Sustainability and Green Building Certifications
  With growing concerns about climate change and energy consumption, buildings worldwide are seeking green certifications such as LEED . The increasing focus on sustainability presents opportunities for smart elevator manufacturers to innovate with energy-efficient solutions , including regenerative drive systems and low- energy elevators . These products align with global goals to reduce carbon footprints, making them highly attractive to developers and building owners.

• AI and Automation for Enhanced User Experience
  The integration of AI and machine learning into elevator systems provides opportunities to offer more personalized experiences . Features such as predictive traffic management , adaptive control systems , and personalized floor selection can significantly improve the user experience, especially in commercial and luxury residential buildings. As demand for intelligent automation increases, smart elevator systems will become more sophisticated, creating significant growth potential.

 

Restraints

• High Initial Investment and Installation Costs
  One of the biggest challenges facing the smart elevator market is the high initial cost of installation. The integration of advanced technologies like AI, IoT, and regenerative drives into elevator systems can significantly increase the upfront cost. This can be a barrier for smaller developers and owners of existing buildings looking to retrofit their elevators with smart features. While the long-term benefits in terms of energy savings and operational efficiency are clear, the high capital expenditure remains a concern for some stakeholders.

• Lack of Skilled Workforce for Installation and Maintenance
  As smart elevators become more advanced, there is an increasing need for a skilled workforce that can handle the installation , maintenance , and operation of these systems. There is a shortage of trained personnel who are proficient in handling IoT-enabled and AI-powered elevator technologies . This skill gap could hinder market growth, particularly in regions with less technical infrastructure.

• Regulatory and Safety Challenges
  While many countries have strong building codes and regulations, smart elevator systems still face challenges in meeting safety standards in some regions. For instance, new technologies like biometric authentication and AI-based traffic optimization may need to be rigorously tested for compliance with existing safety regulations. The slow pace of regulatory updates and the complexity of integrating new technologies into existing standards may delay market adoption.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 15.5 Billion
Revenue Forecast in 2030	USD 26.5 Billion
Overall Growth Rate	CAGR of 8.7% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Technology, Application, End User, Geography
By Technology	IoT-Enabled Smart Elevators, AI-Powered Elevators, Regenerative Drive Elevators
By Application	Residential, Commercial, Industrial
By End User	Building Owners and Operators, Elevator Manufacturers and OEMs, Construction Contractors
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., UK, Germany, China, India, Japan, Brazil, Saudi Arabia, UAE, etc.
Market Drivers	– Growing demand for energy-efficient vertical transport systems – Rising integration of AI and IoT into smart building infrastructure – Urbanization and high-rise construction trends across emerging economies
Customization Option	Available upon request