Electric Elevator and Escalator Market Outlook

The global electric elevator and escalator market is projected to reach approximately USD 100 billion by 2035, growing at a CAGR of about 6% during the forecast period from 2025 to 2035. This growth is primarily driven by rapid urbanization, increasing construction activities across the globe, and the need for enhanced vertical transportation in high-rise buildings. Additionally, technological advancements in elevator and escalator systems, including energy-efficient designs and smart technologies, are significantly contributing to market expansion. Governments in various regions are also investing in infrastructure projects, further boosting demand for elevators and escalators. Furthermore, the rising awareness regarding safety standards and the growing trend of automated building systems are anticipated to fuel market growth in the coming years.

Growth Factor of the Market

The growth of the electric elevator and escalator market is significantly influenced by several key factors, including urbanization trends that see more people moving to cities where high-rise buildings are prevalent. The increasing population density in urban areas demands efficient transportation solutions that elevators and escalators provide, making them indispensable in modern construction. Additionally, the commercial sector's need for efficient movement of people and goods within buildings is driving investment in advanced elevator and escalator solutions. Innovations in technology, such as smart elevators equipped with IoT capabilities, are enhancing user experience and operational efficiency, thus attracting more consumers towards modern solutions. Lastly, regulatory measures aimed at improving safety and accessibility standards in public and private buildings are compelling developers to incorporate advanced elevator and escalator systems into their designs, ensuring compliance and enhancing market growth.

Key Highlights of the Market

• Projected market size of approximately USD 100 billion by 2035.
• Significant CAGR of about 6% from 2025 to 2035.
• Increasing demand driven by urbanization and high-rise building construction.
• Technological advancements leading to enhanced user experiences.
• Regulatory compliance driving investments in safety and accessibility.

By Product Type

Electric Elevators:

Electric elevators are the cornerstone of vertical transportation, accounting for a substantial share of the market. They utilize electric power to operate hoisting mechanisms that transport passengers and goods between floors. With advancements in technology, modern electric elevators are now equipped with smart features such as destination control systems and energy-efficient mechanisms that significantly reduce energy consumption. The demand for electric elevators is further augmented by the growth of urban landscapes featuring skyscrapers and multi-story buildings, where the need for efficient vertical transport is critical. Furthermore, the increasing trend of retrofitting old buildings with modern elevator systems is propelling market growth, as building owners seek to improve accessibility and comply with new safety regulations.

Electric Escalators:

Electric escalators play an essential role in facilitating the movement of large numbers of people in both commercial and public spaces. They are designed to transport individuals between different levels of a building, making them popular in shopping malls, transit stations, and airports. The escalation in retail and commercial sectors, coupled with the rising construction of transport infrastructures like airports and metro stations, is driving high demand for escalators. Additionally, manufacturers are increasingly focusing on creating energy-efficient designs and incorporating safety features such as sensors and emergency stop buttons, which are enhancing their appeal. The growing emphasis on accessibility in public spaces also supports the market for escalators, as they cater to individuals requiring assistance due to mobility issues.

Electric Moving Walkways:

Electric moving walkways, or travelators, are gaining popularity in large public spaces such as airports and exhibition centers, where they provide a convenient means of transportation over longer distances. These systems are particularly beneficial in enhancing pedestrian flow and reducing travel time between terminals or sections of a building. With the rise in air travel and international tourism, the demand for moving walkways is expected to rise significantly. Additionally, advancements in technology are enabling the development of faster and more energy-efficient moving walkways, making them an attractive option for modern infrastructures. Furthermore, as urban areas expand and public spaces become increasingly crowded, the need for innovative solutions to manage pedestrian traffic will further bolster the market for electric moving walkways.

By Application

Residential Buildings:

The residential building segment is a vital driver of the electric elevator and escalator market, as more homeowners are investing in elevators for convenience and accessibility, especially in multi-story homes. The desire for luxury and comfort in residential properties has led to the increasing installation of elevators, making them a compelling addition to modern homes. Home elevators not only enhance accessibility for individuals with mobility challenges but also add value to properties, making them more marketable. Moreover, advancements in design and technology have led to smaller, more efficient residential elevators that require minimal space, further stimulating demand within this segment. As urban living spaces continue to evolve, the integration of elevators in residential designs will remain a key trend in the coming years.

Commercial Buildings:

In the commercial building sector, electric elevators and escalators are crucial for enhancing operational efficiency and ensuring smooth vertical transportation. With the growth of urban centers and the increasing number of retail, office, and hospitality establishments, the demand for reliable and high-capacity elevator systems is on the rise. Elevator systems in commercial buildings are required to accommodate high foot traffic, which necessitates advanced technologies that ensure speed, safety, and reliability. The evolution of smart buildings, coupled with the integration of IoT technologies, is further revolutionizing the commercial sectorÔÇÖs approach to elevator and escalator management, leading to improved user experiences through features like real-time monitoring and predictive maintenance.

Industrial Buildings:

Electric elevators and escalators are crucial in industrial buildings, where they are designed to transport goods and materials efficiently. The demand for heavy-duty elevators that can handle significant loads and operate in demanding environments is growing as industries continue to expand. Elevators in warehouses and manufacturing facilities must be robust, reliable, and energy-efficient to improve productivity and reduce operational costs. Furthermore, the shift towards automation and modern manufacturing processes is increasing the need for advanced vertical transportation solutions that can integrate seamlessly with automated systems. As industries evolve, the ongoing investment in infrastructure and automation will drive the adoption of electric elevators and escalators in industrial buildings.

Institutional Buildings:

Institutional buildings, including schools, hospitals, and government facilities, are significant markets for electric elevators and escalators. These buildings require vertical transportation solutions that meet strict safety and accessibility standards, ensuring that all individuals, including those with disabilities, can navigate the premises with ease. The increasing focus on inclusivity and compliance with regulations, such as the Americans with Disabilities Act (ADA), is leading to higher demand for elevators and escalators in institutional setups. Technological advancements are also playing a role in the design of these systems, as smart elevators equipped with advanced safety features and user-friendly controls become commonplace. Moreover, the growing trend of renovating older institutional buildings to improve safety and accessibility is likely to further stimulate the market.

Others:

This category encompasses various applications of electric elevators and escalators in sectors such as hospitality, leisure, and transportation hubs. These systems are increasingly being integrated into hotels, shopping center complexes, and recreational facilities to streamline access and improve customer experiences. The hospitality industry, in particular, relies heavily on elevators and escalators to accommodate guests' needs comfortably; features like panoramic elevators are becoming popular for enhancing aesthetics and providing scenic views. Similarly, in public transportation facilities like airports and train stations, escalators and moving walkways are essential for managing high volumes of passengers. As more sectors recognize the importance of seamless vertical transportation solutions, the demand for electric elevators and escalators will continue to grow across these diverse applications.

By Distribution Channel

Direct Sales:

Direct sales channels are pivotal for the electric elevator and escalator market, as they allow manufacturers to establish a direct relationship with consumers and provide tailored solutions to meet specific needs. This channel enables companies to effectively communicate their product offerings and maintain control over pricing and service quality. By engaging directly with customers, manufacturers can also gather valuable feedback that informs product development and enhances customer satisfaction. Furthermore, direct sales often include comprehensive after-sales services and maintenance contracts, which are crucial for ensuring the long-term performance and reliability of elevator and escalator systems. As companies strive to improve customer relations and service standards, the importance of direct sales channels will continue to grow in the market.

Indirect Sales:

Indirect sales channels play a significant role in the distribution of electric elevators and escalators, allowing manufacturers to reach a broader customer base through partnerships with distributors, contractors, and retailers. This approach enables companies to leverage the established networks and expertise of their partners, facilitating access to diverse markets that might be challenging to penetrate independently. The indirect sales model is particularly advantageous in regions where local regulations and requirements must be navigated, as local distributors often possess vital insights and connections. Moreover, indirect sales channels can enhance brand visibility and market penetration, ultimately contributing to increased sales volumes. As the market continues to expand, the role of indirect sales channels in facilitating greater access to electric elevators and escalators will remain crucial.

By Technology

Traction:

Traction elevators are widely recognized for their efficiency and ability to transport passengers smoothly over multiple floors. Utilizing a system of ropes and pulleys, these elevators are designed to provide high-speed travel while consuming less energy compared to traditional systems. The demand for traction elevators is on the rise, particularly in mid to high-rise buildings, due to their advanced technology, which allows for more precise control and improved ride quality. Furthermore, innovations in traction systems, such as machine-room-less designs, are enhancing the appeal of these elevators, making them suitable for various applications. As energy efficiency and user comfort become increasingly prioritized in modern construction, traction elevators are poised for substantial growth in the market.

Hydraulic:

Hydraulic elevators are another significant segment of the electric elevator market, particularly in low-rise buildings where they offer superior performance and reliability. These systems use hydraulic fluid to lift and lower the car, making them ideal for applications requiring heavy loads and slower travel speeds. The simplicity of hydraulic systems allows for easier installation and maintenance, which is a considerable advantage in residential and commercial buildings. However, as sustainability becomes a more pressing concern, the hydraulic elevator segment is also evolving, with manufacturers focusing on improving energy efficiency and reducing the environmental impact associated with hydraulic fluids. The ongoing innovation in hydraulic technology is likely to keep this segment relevant and competitive in the growing market.

Machine Room-Less:

Machine room-less (MRL) elevators are gaining traction in the market due to their space-saving designs and energy-efficient operation. Unlike traditional elevators, MRL systems integrate the motor into the hoistway, eliminating the need for a separate machine room, which allows for more flexible design options in modern buildings. The growing emphasis on maximizing usable space in urban developments is driving the demand for MRL elevators, making them particularly appealing for residential and commercial applications. Moreover, their advanced technologies contribute to lower energy consumption, aligning with the increased focus on sustainability in construction. As the industry shifts toward more compact and efficient solutions, MRL elevators are expected to see continued growth and adoption.

By Region

The North American electric elevator and escalator market is projected to witness significant growth, bolstered by the increasing construction of high-rise buildings and commercial complexes. The region is expected to reach approximately USD 30 billion by 2035, growing at a CAGR of around 5.5% during the forecast period. The United States leads the market, driven by the need for modern vertical transportation systems in urban areas, coupled with ongoing technological innovations. Additionally, the stringent regulations regarding safety and accessibility in public and commercial spaces are further propelling investments in advanced elevator and escalator systems. The integration of smart technologies in new buildings is also contributing to the growing demand for electric elevators and escalators in this region.

In Europe, the electric elevator and escalator market is anticipated to reach around USD 25 billion by 2035, with a CAGR of approximately 6% during the same period. The growth in this region is fueled by a growing focus on enhancing building safety, accessibility, and energy efficiency. Countries such as Germany, France, and the United Kingdom are leading the adoption of innovative vertical transportation solutions, driven by the increasing number of construction projects and renovations of existing infrastructures. Moreover, the European market is characterized by a strong emphasis on sustainability and eco-friendly technologies, resulting in rising demand for energy-efficient elevators and escalators. As the region continues to modernize its urban landscapes, the market for these systems is set to expand significantly.

Opportunities

The electric elevator and escalator market is poised to capitalize on a wealth of opportunities stemming from advancements in technology and changing consumer preferences. One notable opportunity is the rising demand for smart elevators that incorporate Internet of Things (IoT) features, enabling predictive maintenance, real-time monitoring, and enhanced user experiences. As urbanization continues to drive the construction of high-rise buildings, the need for efficient vertical transportation systems that align with modern technology trends becomes increasingly pronounced. Moreover, the integration of sustainability practices and energy-efficient designs will not only improve operational costs but also resonate with environmentally conscious consumers. Companies that effectively leverage these technological advancements are likely to gain a competitive edge and capture a larger share of the market.

Another promising opportunity lies in the growing focus on retrofitting and modernizing existing elevators and escalators to meet contemporary safety and accessibility standards. Many older buildings require upgrades to enhance compliance with evolving regulations and improve user experience. This trend presents a lucrative market for service providers and manufacturers specializing in modernization solutions, as building owners seek to enhance the value and safety of their properties. Furthermore, as cities invest in infrastructure developments to accommodate increasing populations and urban growth, the electric elevator and escalator market stands to benefit significantly. Capitalizing on these modernization efforts can lead to long-term partnerships and sustained revenue growth for companies within the industry.

Threats

The electric elevator and escalator market faces several threats that could impact its growth trajectory. One primary concern is the increasing competition from emerging players who offer low-cost alternatives, which can undermine the pricing strategies of established companies. As new entrants leverage cost-effective manufacturing techniques and innovative business models, they may disrupt traditional market dynamics, leading to price wars and reduced profit margins. Furthermore, the rapid pace of technological advancements means that established companies must continually invest in research and development to maintain their market position. Falling behind in the adoption of new technologies or failing to innovate could result in a loss of market share to more agile competitors.

Additionally, regulatory challenges and compliance with safety standards can pose significant hurdles for companies operating in the electric elevator and escalator market. As safety regulations evolve, manufacturers may need to invest considerable resources to ensure their products meet stringent requirements, which could lead to increased operational costs. Moreover, fluctuations in raw material prices can affect production costs, which may then be passed on to consumers. Economic uncertainties and downturns in the construction industry can also impact demand for elevators and escalators, as new projects may be put on hold. Addressing these threats will require strategic planning, continuous innovation, and proactive risk management to navigate the evolving landscape of the industry successfully.

Competitor Outlook

• Otis Elevator Company
• Thyssenkrupp AG
• KONE Corporation
• Schindler Group
• Hitachi Ltd.
• Siemens AG
• Mitsubishi Electric Corporation
• Toshiba Corporation
• Stannah Lifts Holdings Ltd.
• Johnson Lifts Pvt. Ltd.
• Hyundai Elevator Co., Ltd.
• Fujitec Co., Ltd.
• Schneider Electric
• Carrier Global Corporation
• ALIMAK Group AB

The competitive landscape of the electric elevator and escalator market is characterized by the presence of several prominent players actively engaged in innovation and expansion strategies to maintain their market share. Established companies like Otis Elevator Company and Thyssenkrupp AG lead the industry, leveraging their extensive experience and technological advancements to deliver high-quality products. These companies invest significantly in research and development to enhance their offerings, focusing on energy efficiency, safety features, and smart technologies. Moreover, strategic partnerships and collaborations with construction firms often allow these players to secure major contracts for large-scale projects, further solidifying their position in the market.

New entrants and regional players are also making their mark in the electric elevator and escalator market, introducing innovative solutions and competitive pricing strategies. For instance, companies such as Johnson Lifts Pvt. Ltd. and Stannah Lifts Holdings Ltd. are gaining traction by offering customized solutions tailored to specific customer needs. These companies focus on customer service, providing comprehensive maintenance and support services that enhance customer satisfaction and loyalty. The evolving market dynamics have spurred competition, pushing companies to differentiate themselves through product innovation, customer-centric approaches, and sustainability initiatives. As a result, the competitive landscape will continue to evolve as companies strive to adapt to changing market conditions and consumer demands.

Notable companies such as KONE Corporation and Schindler Group prioritize sustainability and energy-efficient solutions, aligning with the increasing focus on environmental responsibility in construction practices. Both firms are investing in developing eco-friendly elevator systems that minimize energy consumption and reduce greenhouse gas emissions. Additionally, firms like Mitsubishi Electric Corporation and Hitachi Ltd. are enhancing their technological capabilities by integrating IoT features and smart systems into their elevator and escalator products. These innovations not only improve operational efficiency but also provide users with a more seamless experience. As the market matures, companies that emphasize sustainability, technological advancements, and strategic partnerships will emerge as leaders in the electric elevator and escalator market.