Elevators And Escalators Market Size, Share, Opportunities, And Trends By Technology (Hydraulic, Traction, Machine-Room-Less), By End User (Residential Sector, Commercial Sector, Industrial Sector), And Geography - Forecasts From 2025 To 2030

Description

The Elevators And Escalators Market is anticipated to surge from USD 102.467 billion in 2025 to USD 137.253 billion by 2030, driven by a 6.02% CAGR.

Elevators And Escalators Market Key Highlights

• Infrastructure development and high-rise commercial/residential building construction, particularly in the Asia-Pacific region, directly translate into high-volume new installation demand for elevators and escalators.
• Aging building stock in mature markets like North America and Europe, coupled with stricter compliance mandates for enhanced safety and accessibility, accelerates demand for modernization services.
• The integration of IoT, AI-driven predictive maintenance (e.g., Otis's digital service solutions), and destination control systems is creating a distinct demand segment for high-efficiency, space-saving, and 'smart' vertical transport solutions in high-density urban centers.
• The long lifecycle of installed units ensures that the Service segment, comprising Maintenance & Repair, consistently dominates the market by revenue, offering stable, recurring income streams independent of new construction cycles.
• Government and municipal initiatives focused on installing elevators in existing, older low-rise residential buildings—particularly evident in China's urban renewal policies—are generating a new, significant retrofit demand segment.

The global elevators and escalators market is fundamentally tied to the lifecycle of the built environment, exhibiting a dual demand structure: high-volume new installations driven by global urbanization and infrastructure investment, and stable, high-margin service revenue derived from the vast installed base. Geographically, the market's center of gravity has shifted to Asia-Pacific, where rapid vertical urban expansion dictates a continuous need for vertical transport in commercial and mass transit projects. Concurrently, technological disruption is pivoting the value proposition from mere transportation to integrated People Flow management, leveraging digital solutions for energy optimization, security, and predictive maintenance. This strategic pivot ensures that major industry players capture value across the entire equipment lifecycle, mitigating volatility inherent in new construction markets.

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Elevators And Escalators Market Analysis

Growth Drivers

Rapid urbanization and the corresponding surge in high-rise and supertall building construction directly propel new installation demand. As cities expand vertically to accommodate population growth and manage soaring land costs, the complexity and speed requirements of vertical mobility escalate. This trend generates high demand not just for standard elevators but also for high-speed, gearless traction systems, exemplified by projects like the equipping of Jeddah Tower. Furthermore, government initiatives like India's Smart Cities Mission and large-scale public infrastructure spending on metro rail networks, airports, and commercial parks mandate the inclusion of escalators and moving walks, creating non-cyclical new equipment demand.

The global focus on energy efficiency and sustainable building design creates a direct demand for advanced products. Since elevators and escalators account for a measurable portion of a building's total energy consumption, regulations and green building certifications (e.g., LEED, BREEAM) drive building owners to adopt systems with regenerative drives and smart control technologies. This technological transition effectively renders older, less efficient units obsolete, translating into increased demand for modernization and new equipment that meet best-in-class energy standards.

Challenges and Opportunities

A primary market challenge is the volatility and escalating cost of key raw materials, specifically steel and copper. Elevators and escalators are capital equipment with a high reliance on fabricated metal components and wiring. Price fluctuations in these global commodities directly compress manufacturing margins and increase the final cost of both new units and modernization projects. This cost pressure acts as a constraint, potentially delaying investment decisions for non-critical new installations.

The significant opportunity lies in the burgeoning modernization segment, especially in mature markets. North America and Europe possess extensive installed bases, many units of which are now reaching 15-20 years of service, necessitating upgrades to comply with new safety and accessibility standards, such as updated ASME A17 codes. This regulatory imperative converts older installations into mandatory modernization projects, directly boosting demand for replacement components, digital control systems, and refurbishment services. Furthermore, China's urban renewal policies that incentivize the retrofitting of elevators in existing low-rise residential buildings generate an entirely new, policy-backed, high-volume demand stream specifically within the residential End-User segment.

Raw Material and Pricing Analysis

The elevator and escalator market is a physical product segment highly exposed to the global pricing dynamics of base metals, primarily steel and copper. Steel, used extensively in the car frame, guide rails, counterweights, and structural components, dictates a substantial portion of the hardware's bill of materials. Copper, critical for motors, wiring, and control circuits, impacts both manufacturing cost and the overall unit price. Escalating global steel and copper prices put persistent upward pressure on the pricing of new equipment and modernization kits. This cost increase is often passed through to the buyer, which is reflected in the steady, albeit moderate, price growth observed in the maintenance and installation service market.

Supply Chain Analysis

The global supply chain is characterized by a high degree of integration and specialization among a few large multinational manufacturers. Key production hubs are concentrated in Asia, particularly China and India, which serve both local and export markets, and to a lesser extent, parts of Europe. Logistical complexity is substantial, given the large size and weight of components (e.g., steel guide rails, machine room equipment). The final assembly often occurs at the installation site, making on-time, coordinated delivery of various sub-systems—traction machines, control panels, car interiors, and door systems—a critical dependency.

Government Regulations

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Elevators And Escalators Market In-Depth Segment Analysis

By Type: Traction Elevators

The demand for traction elevators, which utilize ropes or belts and a counterweight system driven by a machine, is fundamentally propelled by the global trend toward high-rise and supertall construction. Unlike hydraulic systems, traction elevators offer the necessary speed, vertical travel distance, and energy efficiency required for buildings exceeding four or five stories. The increased adoption of gearless permanent magnet synchronous motor (PMSM) technology directly reduces power consumption and eliminates the need for a machine room, optimizing building design and reducing operating costs. This efficiency is a primary demand driver in the Commercial and Industrial segments, where vertical speed and energy cost are critical operational metrics. Furthermore, the capacity and smooth ride provided by advanced traction systems make them the default choice for premium Residential and Commercial projects, securing their dominance in the new installation market.

By End-User: Commercial

Demand within the Commercial End-User segment is directly linked to capital expenditure in three key sub-sectors: high-density office towers, retail complexes (shopping malls), and hospitality (hotels). The commercial environment dictates high-traffic, high-reliability, and aesthetic requirements. New construction in this sector drives demand for integrated people flow management, including destination dispatch systems and high-speed units, optimizing traffic flow and tenant experience. Escalator demand is intrinsically tied to retail and mass transit facilities, where large volumes of people need to be moved between levels continuously. Crucially, the modernization cycle is shorter in this segment due to the competitive need to maintain Class-A building status, requiring frequent upgrades to features like touchless controls and digital displays, thereby providing a stable, high-value demand for the Service segment.

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Elevators And Escalators Market Geographical Analysis

US Market Analysis (North America)

The US market is mature, characterized by a lower rate of new high-rise construction compared to Asia-Pacific, placing significant demand focus on the Service and Modernization segments. Key demand drivers are regulatory compliance with updated ASME A17.1 standards and the vast installed base of aging equipment. Compliance with evolving accessibility mandates (ADA) also compels building owners to modernize older systems with new controls and safety features, converting non-discretionary regulatory need into direct service demand. Infrastructure spending on public transit and large airport modernization projects provides a predictable, high-value, non-cyclical demand stream for new escalators and moving walks.

Brazil Market Analysis (South America)

Demand in Brazil's market is highly sensitive to the nation's construction and economic cycles. Major cities like São Paulo and Rio de Janeiro generate demand from mid-to-high-rise residential development, spurred by urbanization. The construction of new commercial and mixed-use towers, often driven by foreign direct investment in real estate, catalyzes new installation orders. A significant local demand factor is the need for reliable power and robust service, given the challenges of local infrastructure, which creates a competitive advantage for international manufacturers who can offer superior maintenance contracts and advanced monitoring systems.

German Market Analysis (Europe)

The German market is technologically advanced and heavily regulated, with a strong emphasis on energy efficiency and safety as governed by EU Directives. New construction focuses on sustainable, 'Green Building' certifications, which mandate the use of highly efficient gearless elevators and smart control systems. The primary demand engine, however, is the modernization market, as the installed base requires regular, high-specification upgrades to comply with strict national safety codes and the EU's Lifts Directive, ensuring a sustained, high-value demand for premium components and maintenance services.

UAE Market Analysis (Middle East & Africa)

The UAE market is dominated by mega-project development, including ultra-high-rise buildings, extensive residential complexes, and ambitious transportation hubs. Demand is characterized by a need for high-speed, high-capacity, and technically complex elevator solutions. This concentration of supertall projects, like the equipping of Jeddah Tower, creates intermittent but extremely high-value demand for new installations, making this market sensitive to large-scale project timelines and government infrastructure spending plans. The extreme climate also necessitates specialized equipment and high-frequency, reliable maintenance services.

Chinese Market Analysis (Asia-Pacific)

China represents the single largest new installation market globally, driven by continuous rapid urbanization and massive infrastructure investment in high-speed rail, metro networks, and city expansion. A critical, distinct local demand driver is the nationwide policy to install elevators in millions of existing multi-story, older residential units. This policy transforms a previously untapped segment into a policy-mandated retrofit opportunity, generating high-volume, decentralized demand for low-to-mid-speed new equipment and associated installation services in the Residential segment.

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Elevators And Escalators Market Competitive Environment and Analysis

The competitive landscape is an oligopoly dominated by four major multinational corporations: Otis Worldwide Corporation, KONE Corporation, and Schindler Group. These companies compete fiercely on technology, service coverage, and pricing, with their strategic positioning centered on leveraging their extensive installed base for high-margin service revenue. Local and regional players primarily compete on price in the new installation segment for low-to-mid-rise buildings.

Elevators And Escalators Market Company Profiles

• Otis Worldwide Corporation: Otis is strategically positioned as a global leader in the Service segment, which is supported by its extensive installed elevator and escalator base worldwide. Its core strength lies in its digital and service offerings.

• Kone Corporation: Kone's strategic positioning is rooted in technological leadership, particularly for high-rise buildings and advanced People Flow solutions. The company develops and markets the unique UltraRope hoisting technology for high-rise applications, enabling lighter weight and greater travel distance.

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Elevators And Escalators Market Recent Development

• In April 2025, Mitsubishi Electric announced the acquisition of Irish elevator company Ascension Lifts, a move that expands Mitsubishi Electric's footprint and service capabilities in Ireland and the surrounding region. This brings Ascension's local installation, maintenance, and customer support operations into Mitsubishi Electric's global elevator & escalator business, strengthening regional service coverage.

• In April 2025, Schindler launched the Schindler 5000 machine-room-less (MRL) elevator in North America. It is a low- to mid-rise traction elevator designed for offices, hotels, hospitals, apartments, and similar buildings that combines space-saving MRL architecture with Schindler's digital features, energy-efficient drive technology, and configurable interior/appearance choices to suit commercial and residential installations.

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Elevators And Escalators Market Segmentation

• By Type
  • Elevators
    • Hydraulic Elevators
    • Traction Elevators
  • Escalators
    • Parallel Escalators
    • Curved Escalators
    • Others
• By Service
  • New Installation
  • Maintenance & Repair
• By End-User
  • Residential
  • Commercial
  • Industrial
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Indonesia
    • Thailand
    • Taiwan
    • Others

Table Of Contents

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter's Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. ELEVATORS AND ESCALATORS MARKET BY TYPE

5.1. Introduction

5.2. Elevators

5.2.1. Hydraulic Elevators

5.2.2. Traction Elevators

5.3. Escalators

5.3.1. Parallel Escalators

5.3.2. Curved Escalators

5.3.3. Others

6. ELEVATORS AND ESCALATORS MARKET BY SERVICE

6.1. Introduction

6.2. New Installation

6.3. Maintenance & Repair

7. ELEVATORS AND ESCALATORS MARKET BY END USER

7.1. Introduction

7.2. Residential

7.3. Commercial

7.4. Industrial

8. ELEVATORS AND ESCALATORS MARKET BY GEOGRAPHY

8.1. Introduction

8.2. North America

8.2.1. By Type

8.2.2. By Service

8.2.3. By End-User

8.2.4. By Country

8.2.4.1. United States

8.2.4.2. Canada

8.2.4.3. Mexico

8.3. South America

8.3.1. By Type

8.3.2. By Service

8.3.3. By End-User

8.3.4. By Country

8.3.4.1. Brazil

8.3.4.2. Argentina

8.3.4.3. Others

8.4. Europe

8.4.1. By Type

8.4.2. By Service

8.4.3. By End-User

8.4.4. By Country

8.4.4.1. United Kingdom

8.4.4.2. Germany

8.4.4.3. France

8.4.4.4. Spain

8.4.4.5. Others

8.5. Middle East and Africa

8.5.1. By Type

8.5.2. By Service

8.5.3. By End-User

8.5.4. By Country

8.5.4.1. Saudi Arabia

8.5.4.2. UAE

8.5.4.3. Others

8.6. Asia Pacific

8.6.1. By Type

8.6.2. By Service

8.6.3. By End-User

8.6.4. By Country

8.6.4.1. China

8.6.4.2. India

8.6.4.3. Japan

8.6.4.4. South Korea

8.6.4.5. Indonesia

8.6.4.6. Thailand

8.6.4.7. Taiwan

8.6.4.8. Others

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Market Share Analysis

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Competitive Dashboard

10. COMPANY PROFILES

10.1. Schindler Holding Ltd.

10.2. Kone Corporation

10.3. Mitsubishi Electric Corporation

10.4. Toshiba Corporation

10.5. Hitachi Ltd.

10.6. Kleemann Hellas SA.

10.7. Fujitec Co., Ltd.

10.8. Hyundai Group

10.9. TK Elevator GmbH

10.10. Otis Worldwide Corporation

11. RESEARCH METHODOLOGY

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

Schindler Holding Ltd.

Kone Corporation

Mitsubishi Electric Corporation

Toshiba Corporation

Hitachi Ltd. 

Kleemann Hellas SA.

Fujitec Co., Ltd. 

Hyundai Group

TK Elevator GmbH

Otis Worldwide Corporation

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