Traction Elevators Market By Type (Geared Traction, Gearless Traction); By Speed (Low-Speed, Medium-Speed, High-Speed); By Application (Residential, Commercial, Industrial, Institutional); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

Introduction And Strategic Context

The Global Traction Elevators Market is projected to expand steadily, registering a CAGR of 6.1% , estimated at USD 42.8 billion in 2024 and expected to reach USD 64.4 billion by 2030 , confirms Strategic Market Research.

 

Traction elevators, often powered by counterweight systems and ropes, represent the backbone of vertical mobility in urban settings. Unlike hydraulic lifts, these systems are more energy efficient, scalable, and suitable for high-rise structures. With cities expanding vertically, traction elevators are becoming critical infrastructure — not just for convenience, but for safety, accessibility, and economic productivity.

 

Several macro forces are shaping this market. Urbanization is the biggest driver, particularly in Asia-Pacific and the Middle East, where mega-cities and high-density residential complexes dominate new construction. On top of that, sustainability mandates are reshaping procurement: governments are pushing for energy-efficient building solutions, and developers are under pressure to meet stricter green-building codes.

 

Technological upgrades are also playing a defining role. Regenerative drives, which recycle elevator braking energy back into the grid, are no longer premium features but increasingly a baseline expectation. Smart elevators that integrate IoT for predictive maintenance are gaining traction, especially in commercial towers where downtime translates into significant tenant dissatisfaction .

 

Stakeholders in this ecosystem are diverse. OEMs like Otis, KONE, Schindler, and Mitsubishi Electric lead with global platforms. Regional construction firms and real-estate developers decide adoption at scale. Facility management companies demand reliability and cost efficiency. Regulators influence through safety codes and accessibility laws. Finally, investors and insurers are increasingly factoring elevator safety and efficiency into building valuations.

 

Another shift worth noting is the role of aging populations. Countries with rapidly greying demographics — Japan, parts of Europe, and increasingly China — are prioritizing barrier-free design. This is leading to more retrofitting projects in existing buildings, which often favor traction elevators due to their flexibility and lower machine-room requirements.

 

The strategic relevance here is clear: traction elevators are no longer just hardware. They’re a service and safety platform embedded into the global real-estate cycle. Developers use them to differentiate high-end residential towers, cities depend on them to meet accessibility targets, and tenants increasingly expect seamless, tech-enabled rides.

 

Market Segmentation And Forecast Scope

The traction elevators market breaks down into four key dimensions — by Type , by Speed , by Application , and by Region . Each segment reflects how developers and building operators balance energy usage, cost, and space constraints with evolving tenant expectations and safety codes.

By Type

• Geared Traction Elevators

• Gearless Traction Elevators

Gearless systems are now the preferred option for mid- and high-rise buildings due to smoother operation, better energy efficiency, and lower maintenance needs. In 2024 , gearless traction elevators are expected to account for over 63% of the global market revenue , especially in buildings over 10 floors. That said, geared variants still find use in modernization projects where infrastructure or cost limits adoption of newer systems.

 

By Speed

• Low-Speed (≤1.0 m/s)

• Medium-Speed (1.0–2.5 m/s)

• High-Speed (>2.5 m/s)

Medium-speed elevators dominate the commercial and high-end residential categories. They strike a balance between ride comfort and operational cost. High-speed variants — used in skyscrapers and high-rise hotels — are growing quickly in Asia’s urban megaprojects. As of 2024, medium-speed elevators represent the largest segment share , but high-speed installations are projected to post the fastest CAGR through 2030 , particularly in China, the UAE, and South Korea.

 

By Application

• Residential

• Commercial

• Industrial

• Institutional

The residential sector drives the majority of volume globally, especially in multi-dwelling units across urban Asia. But when it comes to value, commercial towers and institutional facilities (like hospitals and airports) are where most high-margin systems go. These buildings require more advanced elevator systems with higher load capacities, backup systems, and smart access integration.

In mature markets like Europe and Japan, commercial retrofitting and accessibility upgrades in aging institutional buildings are boosting demand. Meanwhile, in India and Indonesia, residential high-rises are expanding rapidly, often opting for standardized traction systems at scale.

 

By Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East & Africa (MEA)

Asia Pacific leads in both volume and growth , with China, India, and Southeast Asia driving dense urban developments. North America and Europe remain critical due to strong safety codes, modernization trends, and increasing demand for smart vertical transport in office and hospitality segments. MEA , while still emerging, is seeing premium traction elevator installs in cities like Dubai, Riyadh, and Doha, often in luxury hotels and government buildings.

 

Scope Note : While this segmentation appears technical, it’s increasingly strategic. OEMs are offering bundled solutions — not just elevators, but full lifecycle services including predictive maintenance and sustainability dashboards. This shifts the discussion from product selection to long-term value, particularly in commercial and institutional procurement.

 

Market Trends And Innovation Landscape

The traction elevators market is undergoing a significant transformation. It’s not just about moving people up and down anymore — it's about integrating energy efficiency, smart technology, and building-wide intelligence into a core vertical transport system. Several innovation trends are shaping how the next generation of traction elevators will function, get serviced, and add value across the building lifecycle.

Regenerative Drives Are Becoming a Standard

One of the most noticeable shifts is the widespread adoption of regenerative drives . These systems recover energy during descent and braking, feeding it back into the building’s power grid. In premium office buildings, this can offset a notable chunk of elevator electricity consumption — sometimes by 20–40% over time. What started as a high-end sustainability feature is now filtering into mid-tier installations, especially in cities with aggressive energy codes like New York, Tokyo, and Frankfurt.

An energy consultant in Berlin mentioned: “Specifying regenerative drives has gone from ‘nice-to-have’ to mandatory in almost every new spec we write.”

 

Smart Elevators and IoT Integration

From a maintenance and operational standpoint, smart elevators are redefining performance monitoring. Sensors track wear, usage patterns, and faults in real-time, sending alerts before a breakdown occurs. OEMs are embedding IoT modules that integrate with building management systems (BMS), allowing for seamless control of access , floor call patterns, and even traffic predictions during peak hours.

This shift to digital services also includes app-based elevator call buttons, touchless control systems, and cloud-based data dashboards for facilities teams. In large-scale developments, smart elevators are being used to optimize vertical traffic and reduce wait times by as much as 30% , particularly in commercial hubs.

 

AI in Predictive Maintenance and Routing

Leading OEMs are now deploying AI algorithms to anticipate service needs — not just react to them. These systems learn from elevator usage behavior, identify early warning signs, and suggest optimal maintenance schedules. Over time, this reduces downtime, extends component life, and lowers total cost of ownership.

There’s also work underway on AI-based destination dispatch that groups passengers by floor zones, significantly speeding up elevator cycles during peak periods. This tech is already live in select skyscrapers in Singapore, Chicago, and Seoul.

 

Space-Saving Machine-Room-Less (MRL) Designs

As real estate prices climb, building owners are increasingly opting for machine-room-less traction elevators . These systems eliminate the need for a separate mechanical space, which adds value in tight construction footprints. MRL systems are especially popular in mid-rise residential and hospitality buildings where space efficiency is a top priority.

This design also reduces installation time and can cut capital costs by up to 15% , particularly in retrofit projects where creating a new machine room would be expensive or logistically difficult.

 

Green Building Compliance and Certification Pressure

LEED, BREEAM, and local energy rating systems are influencing traction elevator choices. OEMs are now providing environmental product declarations (EPDs) and offering full lifecycle carbon analysis of their elevator platforms. Green elevators — those with eco-mode standby functions, low-emission materials, and energy recovery — are being specified in nearly all new government and institutional projects in developed markets.

To be honest, elevators used to be a silent contributor to emissions. Now, developers are being asked how they plan to “green” every moving part of the building — including the lifts.

 

Design Enhancements for Accessibility and Experience

Accessibility mandates are pushing upgrades in button panel height, voice command integration, and audible floor indicators. In luxury buildings, traction elevators are being designed as aesthetic focal points , featuring panoramic glass walls, biometric access, and ambient lighting. This experience-focused design is emerging as a differentiator in premium residential towers and flagship hotels.

 

Bottom line: the innovation wave in traction elevators is blending mechanical performance with digital intelligence. It’s no longer a static system — it’s a live, responsive asset within the smart building ecosystem.

 

Competitive Intelligence And Benchmarking

The global traction elevators market is competitive — but not chaotic. It’s shaped by a small group of dominant players who’ve spent decades refining their engineering, service networks, and brand equity. That said, regional players and smart startups are gaining ground by offering faster delivery, lower-cost maintenance contracts, or hyper-local customization. Here’s how the competitive landscape breaks down.

Otis Elevator Company

Otis remains one of the most recognized brands in the vertical transportation industry. Its global footprint, service infrastructure, and diversified portfolio keep it in a leadership position. The company’s Gen2® elevator line , which includes machine-room-less traction systems, is a staple in mid-rise residential and commercial buildings across both developed and emerging markets.

Otis is leaning heavily into digitization through its Otis ONE™ IoT platform — a cloud-connected predictive maintenance solution. They also partner with smart city developers, integrating their elevators with energy analytics and access control platforms. The firm’s retrofit and modernization division is especially active in Europe and North America, where elevator stock is aging rapidly.

 

KONE Corporation

Finland- based KONE is a major innovator in smart vertical mobility. Their EcoDisc ® traction technology helped pioneer energy-efficient elevator drives years ago — and they continue to refine it with regenerative systems and compact MRL designs.

What sets KONE apart is its end-to-end service offering — from planning and simulation tools for architects, to 24/7 remote monitoring for building operators . Their “People Flow” design framework emphasizes intuitive traffic management and passenger experience, making them a preferred partner in transit hubs and commercial real estate.

In Asia-Pacific, KONE is growing rapidly thanks to joint ventures in China and high-rise projects in India and Southeast Asia.

 

Schindler Group

Swiss-based Schindler has carved out a strong presence in both the premium and mid-tier segments. Its Schindler PORT Technology platform — which optimizes traffic flow using destination control — is widely used in office towers and mixed-use developments.

What gives Schindler an edge is its dual emphasis on efficiency and elegance . Their traction elevators are often specified in architectural landmark projects due to the sleek design and ride quality. The company also promotes ESG-compliant products and offers carbon impact reporting for its newer models.

Schindler's strength in Europe and Latin America comes from robust service relationships and a consistent modernization pipeline.

 

Mitsubishi Electric

Japan’s Mitsubishi Electric brings a high-tech, engineering-first approach. Their elevators are known for speed and precision , especially in ultra-high-rise buildings. In fact, some of the world’s fastest elevators — clocking over 20 m/s — are Mitsubishi products.

They’re also advancing AI-driven diagnostics and touchless elevator tech — including gesture-based controls and smartphone integrations. Mitsubishi has been aggressive in the Middle East and Southeast Asia, focusing on large-scale commercial and hospitality projects.

However, their challenge remains global service scalability — especially outside Asia.

 

Thyssenkrupp Elevator (TK Elevator)

Since spinning off from the larger Thyssenkrupp group, TK Elevator has positioned itself as a flexible, tech-forward provider. Its MULTI system , a cable-free elevator concept that uses magnetic levitation and horizontal movement, generated buzz but is still early-stage.

More relevant today is their MAX system — a real-time predictive maintenance platform powered by Microsoft Azure. In retrofit markets like the U .S. and Germany, MAX gives TK a way to offer smarter upgrades at scale.

They’ve also shown pricing agility — often undercutting premium players to win large multi-elevator contracts in competitive tenders.

 

Regional Players and Niche Contenders

• Hitachi and Toshiba dominate local Japanese and some Southeast Asian markets with compact, high-efficiency traction systems.

• Hyundai Elevator is expanding in South Korea and parts of the Middle East.

• Fujitec focuses on high-speed and space-saving elevators across Asia.

• In China, local manufacturers like Canny Elevator and SJEC are capturing market share with cost-effective traction systems and aggressive local servicing .

 

Competitive Dynamics at a Glance:

• Otis , KONE , and Schindler own the lion’s share of global traction elevator volume, especially in new construction.

• Mitsubishi Electric and TK Elevator lead on innovation and speed, particularly in skyscraper and megaproject segments.

• Regional players are winning deals on price and proximity — especially in China, India, and South Korea.

• Predictive maintenance, smart traffic systems, and retrofit capabilities are now the real battlegrounds — not just raw lifting power.

To be honest, this market rewards longevity and trust. But the next wave of winners will be the ones who pair technical credibility with digital fluency and ESG alignment.

 

Regional Landscape And Adoption Outlook

The adoption curve for traction elevators is closely tied to urban density, real estate maturity, construction regulations, and infrastructure investment cycles. While Asia Pacific is setting the pace in volume, North America and Europe continue to shape desig n, safety, and innovation norms. Other regions are catching up — but the nature of demand looks very different depending on where you are.

Asia Pacific: Ground Zero for Vertical Expansion

Asia Pacific dominates the global traction elevator market in both unit installations and new project value. China , India , South Korea , and parts of Southeast Asia are in the midst of an urban construction boom, with cities building upward to maximize land efficiency. Traction elevators — particularly gearless and high-speed types — are the default choice in mid- to high-rise buildings here.

In China alone, over 60% of new elevator installations are in urban residential towers, with traction models leading due to space-saving MRL designs and better energy ratings. The government’s massive urbanization push — along with public-private initiatives like “smart city” projects — is reinforcing demand for integrated, connected vertical transport.

In India , traction elevator adoption is accelerating in Tier 1 and Tier 2 cities, where high-density residential towers are becoming the norm. However, cost sensitivity still drives preference for standard geared models in mid-rise housing projects. Multinational players often partner with local OEMs to navigate the pricing-pressure and regulatory nuances.

Meanwhile, South Korea and Singapore lead in smart elevator adoption. Buildings here are more likely to integrate traction elevators with building automation systems, energy dashboards, and AI-powered maintenance platforms.

 

North America: Modernization Over New Installations

In North America , the traction elevator market is being driven less by new construction and more by modernization and retrofitting . Cities like New York, Chicago, and Toronto have thousands of aging elevators in commercial and mixed-use buildings that require upgrades to meet safety codes, ADA compliance, and energy efficiency targets.

Machine-room-less (MRL) systems are popular in retrofit scenarios, allowing building owners to upgrade vertical mobility without making major structural changes. There’s also a noticeable uptick in smart elevator systems, driven by demand for tenant-friendly features like app-based calling, real-time alerts, and access management.

What’s interesting is that in the U.S., elevator decisions are increasingly tied to building valuation. A poorly maintained or outdated elevator can materially affect leaseability and asset resale value — especially in high-rent markets.

 

Europe: Efficiency, Compliance, and Sustainability

Europe brings a different dynamic — here, regulatory compliance and green building mandates heavily influence traction elevator adoption. Countries like Germany , France , the UK , and the Nordic region are aggressively phasing in energy-efficient elevator standards. There’s also strong demand for low-noise , low-carbon , and aesthetically integrated systems.

Older buildings across Southern and Eastern Europe are undergoing retrofitting, often with compact gearless traction elevators that can fit existing shafts. EU-wide legislation, such as the Energy Performance of Buildings Directive, is pushing the market toward regenerative drives and advanced control systems.

Europe is where ESG pressure meets technical elegance — every elevator install or upgrade must check boxes for safety, sustainability, and architectural continuity.

 

Middle East and Africa (MEA): Premium Projects, Uneven Penetration

In the Middle East , especially the Gulf states , traction elevators are standard in luxury hotels, government buildings, and commercial high-rises. Cities like Dubai , Riyadh , and Doha are deploying high-speed gearless elevators in mixed-use towers, often with biometric security and full smart integration.

That said, in Africa , the market is far more fragmented. Urban centers like Nairobi , Lagos , and Cape Town are showing signs of traction elevator growth — mainly in public infrastructure and high-end residential developments — but overall penetration remains low. Local sourcing challenges, lack of skilled service staff, and cost constraints still limit wider adoption.

 

Latin America: Stable Demand, Gradual Modernization

Brazil and Mexico lead the region in traction elevator installations, mostly in urban housing complexes and business parks. Modernization is a major driver here, especially in high-density zones like São Paulo and Mexico City , where older elevator systems are increasingly non-compliant with safety or accessibility norms.

OEMs in this region often win business by offering hybrid models — standardized traction platforms that can be quickly serviced, locally assembled, and offered with flexible financing.

 

Regional Outlook at a Glance:

• Asia Pacific = volume leader, smart city integration, high-speed systems

• North America = retrofit-driven, smart systems, compliance upgrades

• Europe = sustainability-focused, high regulatory pressure, aging building stock

• Middle East = premium towers, high-tech features, luxury market

• Africa & Latin America = emerging demand, public infrastructure-led adoption

Here’s the real story: the global traction elevator market isn’t growing everywhere at the same speed — but almost every region is moving upward. The challenge is not just supply, but the local ability to install, maintain, and modernize these systems sustainably.

 

End-User Dynamics And Use Case

Traction elevators aren’t sold in isolation — they’re integrated into buildings where uptime, ride experience, and long-term serviceability shape end-user expectations. Whether it’s a commercial skyscraper or a government hospital, each category of buyer evaluates traction elevators through a different lens: space availability, usage intensity, regulatory standards, and tenant demands.

Residential Buildings: Cost Efficiency Meets Longevity

In mid- and high-rise housing , traction elevators are the most common choice, particularly in dense urban areas across Asia and Latin America. Developers here often prioritize machine-room-less (MRL) traction elevators for their space-saving design and lower energy footprint.

End-users — both developers and building associations — tend to focus on:

• Reliability and low failure rates

• Affordable maintenance contracts

• Basic energy-saving features like auto-dimming lights or standby modes

What’s changing? Larger residential complexes are beginning to request predictive maintenance and mobile-based elevator call systems , especially in upper-middle-income communities in cities like Mumbai, Jakarta, and São Paulo. These features were once luxury add-ons but are now moving toward standard expectations.

 

Commercial and Mixed-Use Towers: Performance and Intelligence

In the commercial real estate segment, traction elevators are all about speed, intelligence, and passenger throughput . Office buildings, corporate headquarters, and shopping centers face peak-hour congestion — so the goal is to move more people, more efficiently.

Typical buyer requirements include:

• Destination dispatch control for traffic grouping

• Smart card or biometric integration for floor-level access

• Regenerative drives to align with building energy goals

In many new commercial buildings, elevators are tied directly into the building management system (BMS) , allowing centralized control of power usage, access, and service diagnostics. In premium properties, aesthetics matter too — elevators with glass walls, LED displays , and ambient music are part of the tenant experience.

 

Hospitals and Institutional Buildings: Safety and Redundancy First

Hospitals, universities, airports, and government buildings often demand traction elevators for their load capacity, ride smoothness, and failure resistance . These buildings can’t afford downtime — so the priorities here are:

• Redundant power systems (emergency backup drives)

• Stretch load ratings (for stretchers, gurneys, or large groups)

• Hands-free operation and wide doors (especially in healthcare)

In newer hospitals across Europe and Asia, traction elevators are being configured with zonal isolation features — meaning they can switch to emergency mode and serve specific floors only, depending on patient movement needs.

 

Retail Malls and Transit Hubs: Volume, Visibility, and Speed

For shopping centers , metro stations , and airports , traction elevators must perform under constant load — moving thousands daily. These use cases emphasize:

• High durability with minimal maintenance

• Crowd control through floor-grouping logic

• Transparent cabs for visibility and aesthetics

Retail developers, especially in Europe and the Middle East, are also requesting custom branding inside elevators — screens with in-mall promotions or store directories are becoming more common in glass traction elevators.

 

Use Case Highlight

A metro rail corporation in Southeast Asia was upgrading a series of older commuter stations to meet accessibility mandates. They needed elevators that could withstand extreme usage (over 5,000 trips per day), provide wheelchair and stroller access, and be installed quickly without major reconstruction.

They selected gearless traction elevators with MRL design , outfitted with anti-vandal buttons , emergency power override , and IoT sensors for remote monitoring. The project included a predictive maintenance dashboard connected to the transit authority’s central ops center. Within eight months of deployment, unplanned elevator downtime dropped by 52% , and commuter complaints around access delays fell significantly.

The lesson? Traction elevators are no longer just infrastructure — they’re part of the passenger experience and a litmus test for inclusive design.

 

Bottom line: every end user category — whether it’s residential or institutional — wants different things from traction elevators. But across the board, safety, reliability, and integration with building systems are becoming non-negotiable. The winners in this space? Those who can flex across use cases without adding complexity.

 

Recent Developments + Opportunities & Restraints

Recent Developments (Last 2 Years)

• Over the past 24 months, the traction elevator market has seen a flurry of strategic moves — from digital partnerships to product innovation and localized manufacturing. Many of these developments reflect growing pressure on OEMs to deliver elevators that are smarter, greener, and more cost-efficient.

• Otis launched its Gen3™ platform globally in 2023 , featuring cloud-connected MRL traction elevators with built-in IoT sensors and a redesigned user interface. The Gen3 line also includes voice-activated controls, touchless call panels, and real-time diagnostics — all designed for smart building integration.

• KONE announced a partnership with Amazon Web Services (AWS) in 2024 to power its digital elevator services via the cloud. This enables faster data analytics, predictive maintenance, and real-time elevator performance da shboards for property managers.

• Mitsubishi Electric introduced a high-speed MRL traction elevator for mid-rise commercial buildings in Asia. This marks a shift toward offering faster elevators without the spatial cost of a machine room, particularly rel evant for dense urban projects.

• Schindler unveiled its Elevator Digital Twin platform in early 2024, allowing facility managers to simulate elevator usage and traffic flow before installation. It’s now being piloted in high-ri se office towers across Europe.

• TK Elevator expanded its MAX digital maintenance solution to over 20 new countries, including major rollouts in Latin America and Southeast Asia. The platform now supports bilingual and offline service diagnostics f or areas with limited internet.

 

Opportunities

• Smart Retrofit Market Is Heating Up
  Older buildings in North America and Europe are demanding MRL traction elevators with integrated IoT and regenerative drives. This retrofit market is huge — and still under-addressed. Developers now expect upgrades to not just meet code but add long-term value. Vendors offering bundled retrofit kits — cab + controls + drive system — are ahead of the curve.

• Emerging Market Urbanization
  Rising vertical development in cities like Nairobi, Ho Chi Minh City, and Manila is opening up new sales pipelines. Local governments are also pushing accessibility reforms, which will require traction elevators in public infrastructure. There’s room for mid-tier systems with localized servicing, especially from players that can deliver quickly at scale.

• Energy-Efficiency Regulations Will Fuel Replacements
  Stricter codes in Germany, California, Singapore, and South Korea are already penalizing buildings using inefficient or high-emission elevator systems. Retiring old hydraulic lifts in favor of energy-efficient traction elevators is becoming mandatory in some places.

 

Restraints

• High Initial Installation Cost
  Even with lifecycle efficiency, traction elevators — especially gearless or smart variants — require higher upfront investment than hydraulic systems. For smaller contractors and cost-sensitive residential projects, this remains a key barrier.

• Skilled Labor and Maintenance Shortage
  In many emerging markets, trained elevator technicians are in short supply. Even the smartest elevator needs the right hands on site. Without local service expertise, OEMs face difficulty scaling their digital platforms effectively.

To be honest, it’s not demand that limits the market — it’s deployment complexity. OEMs who simplify servicing, reduce install costs, and support digital adoption will take a larger share of both new installs and retrofits.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 42.8 Billion
Revenue Forecast in 2030	USD 64.4 Billion
Overall Growth Rate	CAGR of 6.1% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Type, By Speed, By Application, By Region
By Type	Geared Traction, Gearless Traction
By Speed	Low-Speed (≤1.0 m/s), Medium-Speed (1.0–2.5 m/s), High-Speed (>2.5 m/s)
By Application	Residential, Commercial, Industrial, Institutional
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., UK, Germany, China, India, Japan, Brazil, UAE, etc.
Market Drivers	- Rapid urbanization and vertical real estate expansion - Demand for energy-efficient and space-saving elevator systems - Growing adoption of IoT and predictive maintenance in smart buildings
Customization Option	Available upon request