Smart Elevator Market –Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Component (Control Systems, Maintenance Systems, Communication Systems), By Installation (Low and Mid-rise, High Rise), By Application (Residential, Commercial, Institutional), By Service (New Installation Services, Modernization Services and Maintenance Services), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 19.72 Billion
CAGR (2026-2031)	10.51%
Fastest Growing Segment	Residential
Largest Market	North America
Market Size (2031)	USD 35.92 Billion

Market Overview

The Global Smart Elevator Market will grow from USD 19.72 Billion in 2025 to USD 35.92 Billion by 2031 at a 10.51% CAGR. Smart elevators are advanced vertical transportation systems that utilize digital connectivity, artificial intelligence, and the Internet of Things to optimize passenger traffic, enhance security, and improve energy efficiency. The global market is primarily propelled by rapid urbanization and the critical need to modernize aging infrastructure, which necessitates intelligent upgrades to handle increased user density effectively. This immense potential for upgrading existing stock is evident in major markets where the installed base is expanding. For instance, according to the China Elevator Association, in 2024, the total number of registered vertical transportation units in China reached 11.32 million, representing a massive foundation for digital modernization opportunities.

However, a significant challenge that could impede market expansion is the complex integration of these systems with legacy building infrastructure and the associated cybersecurity risks. As elevators become more interconnected, they become vulnerable to potential digital threats, which necessitates robust and often expensive security protocols that can deter cost-conscious facility managers from adopting these technologies. This hesitation is further compounded by the high initial investment required to replace or retrofit older mechanical systems with fully digital solutions.

Key Market Drivers

The integration of artificial intelligence (AI) and the Internet of Things (IoT) for predictive maintenance is a transformative driver reshaping the market by shifting service models from reactive repairs to proactive care. By embedding smart sensors and connectivity into vertical transportation systems, manufacturers can monitor equipment performance in real-time, allowing advanced algorithms to predict component failures before they cause system disruptions. This capability not only significantly reduces downtime and maintenance costs for facility managers but also enhances passenger safety and equipment longevity. The scale of this digital adoption is expanding rapidly as major industry players prioritize connectivity in their service portfolios. For instance, according to Otis Elevator Company, January 2025, in the 'Fourth Quarter and Full Year 2024 Results', the company reported that its global maintenance portfolio had reached approximately 1.0 million connected units by the end of 2024, demonstrating the widespread implementation of these intelligent technologies.

Rapid urbanization and the continuous expansion of high-rise infrastructure further propel the global smart elevator market, creating an urgent demand for efficient vertical mobility in densely populated urban centers. As cities grow vertically to accommodate rising populations, the installation of sophisticated elevator systems becomes essential for the functionality of modern skyscrapers and mixed-use complexes. This trend ensures a consistent increase in the active installed base, necessitating both new advanced installations and the modernization of existing units to handle higher traffic volumes. This growth is evident in key markets; according to Elevator World, June 2025, in the article 'Data Reveals China VT Market Trends' citing the China Elevator Association, the Chinese market alone saw a net addition of 902,600 registered vertical transportation units in 2024. This robust demand environment sustains substantial revenue for leading manufacturers; for example, according to Schindler Group, February 2025, in the 'Annual Results 2024', the company secured a total order intake of CHF 11.33 billion for the fiscal year 2024.

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Key Market Challenges

The integration of advanced digital systems with legacy infrastructure and the associated cybersecurity requirements stands as a formidable barrier impeding the expansion of the Global Smart Elevator Market. While new architectural projects can seamlessly incorporate smart technologies, the retrofit sector faces substantial technical hurdles because older mechanical elevators often lack the necessary electronic architecture to interface with IoT sensors or support modern security protocols. This incompatibility necessitates comprehensive, capital-intensive overhauls rather than simple component upgrades, significantly inflating the initial investment. Consequently, facility managers often defer these modernization projects, as the high cost and complexity of transforming analog systems into secure, connected assets outweigh the immediate operational benefits.

The sheer scale of this infrastructural challenge is highlighted by the vast volume of aging units that require such deep modernization to become "smart." According to the European Lift Association, in 2024, the region maintained an existing stock of over 6.7 million lifts, a significant portion of which are legacy systems that cannot support digital connectivity without extensive physical alterations. This massive foundation of outdated equipment creates a bottleneck in the market, as the logistical and financial difficulty of bringing millions of pre-digital units up to modern standards directly slows the adoption rate of smart elevator technologies across established markets.

Key Market Trends

The implementation of energy-regenerative drive technologies is becoming a standard requirement for vertical mobility systems, driven by the rigorous sustainability mandates of green building certifications like LEED. These drives capture energy traditionally dissipated as heat during braking and feed it back into the building’s electrical grid, significantly reducing the operational carbon footprint. Manufacturers are successfully commercializing these eco-efficient platforms to meet regulatory demands in mature markets. This shift is substantiated by recent procurement data; according to TK Elevator, July 2025, in the 'Sustainability Report 2023/2024', the company’s eco-efficient EOX elevator platform accounted for approximately 75% of its total elevator orders in Europe during the final quarter of the fiscal year, highlighting the dominant market preference for energy-saving propulsion systems.

Simultaneously, the market is witnessing a distinct shift toward modular retrofitting and modernization of legacy units, allowing facility managers to upgrade digital components without the financial burden of full system replacement. This trend effectively counters the barriers of integrating modern connectivity into aging infrastructure by utilizing overlay solutions that digitize mechanical elevators. Major OEMs are capitalizing on this demand by deploying scalable modernization packages that enhance traffic throughput and safety compliance. The commercial impact of this strategic pivot is evident; according to Otis Elevator Company, January 2025, in the 'Fourth Quarter and Full Year 2024 Results', the corporation achieved a year-over-year increase of 18% in modernization orders, underscoring the accelerating investment in upgrading global vertical transportation stocks.

Segmental Insights

The residential sector currently stands as the fastest-growing segment in the global smart elevator market, primarily driven by rapid urbanization and the proliferation of high-rise housing projects. This expansion is accelerated by the increasing integration of elevators with smart home automation systems, which improves resident security and access control. Furthermore, global initiatives promoting energy efficiency compel developers to install automated systems that reduce power consumption in residential buildings. Consequently, the demand for connected vertical transportation solutions continues to rise as modern infrastructure projects prioritize sustainability and digital integration within living spaces.

Regional Insights

North America maintains a dominant position in the global smart elevator market due to the extensive modernization of aging infrastructure and the integration of connected building technologies. The regional market expansion is supported by strict energy efficiency mandates and sustainability goals. Organizations such as the U.S. Green Building Council promote these initiatives through LEED certification, which encourages the adoption of intelligent vertical transportation to reduce power consumption. Furthermore, the recovery of the construction sector fuels the demand for efficient transit solutions, securing the region's position as the primary market contributor.

Recent Developments

• In September 2024, Hitachi and Hitachi Building Systems announced the development of a specialized building IoT solution model designed for small and medium-sized properties. This initiative involved adapting the "BuilMirai" platform, originally created for large-scale structures, to provide a package of digital services suitable for smaller residential and commercial buildings. The new offering enabled smartphone-based management of security access points, facility malfunction monitoring, and security camera imagery analysis. This strategic move aimed to strengthen the companies' green and smart building business by making advanced digital management tools accessible to a broader segment of the real estate market.
• In August 2024, Otis Worldwide Corporation introduced a connected elevator platform that integrated its established flat-belt technology with the Otis ONE IoT digital ecosystem. This solution, marketed as the Gen3 elevator, enabled 24/7 real-time monitoring of equipment health and performance to improve service delivery and uptime. The platform allowed technical professionals to identify potential issues and necessary repair parts remotely before arriving on-site. Furthermore, the system supported seamless integration with building management software and autonomous service robots through cloud-based Application Programming Interfaces, enhancing the overall efficiency of smart building ecosystems.
• In May 2024, Mitsubishi Electric Building Solutions Corporation launched the NEXIEZ-Fit elevator, a new model specifically targeted at low-rise residential buildings in global markets. This product featured an optional integration with M's BRIDGE, the company’s global remote maintenance service that utilized data analytics to monitor equipment performance continuously. The system was designed to detect potential issues proactively, thereby enhancing safety and reducing downtime for building owners. The launch addressed the growing demand for efficient, connected vertical transportation solutions in regions experiencing rapid urbanization, such as the ASEAN and Middle East territories.
• In April 2024, Schindler and Nayar Systems signed a global agreement to jointly enhance the digital connectivity of Schindler's third-party elevator portfolio. This strategic collaboration allowed the company to leverage Nayar's industrial IoT technology to connect non-Schindler units to the cloud, thereby facilitating real-time performance monitoring and alert reception at technical operations centers. To reinforce the long-term nature of this alliance, Schindler acquired a minority equity stake in the Spanish technology provider. The partnership focused on modernizing global elevator fleets and improving operational efficiency through advanced data analytics and remote management capabilities.

Key Market Players

• Hitachi, Ltd.
• TK Elevator GmbH
• Schindler Holding Ltd.
• Otis Worldwide Corporation
• KONE Corporation
• Mitsubishi Electric Corporation
• Fujitec Co., Ltd.
• Hyundai Elevator Co., Ltd.
• Honeywell International, Inc.
• Toshiba Corporation

By Component	By Installation	By Application	By Service	By Region
Control Systems Maintenance Systems Communication Systems	Low and Mid-rise High Rise	Residential Commercial Institutional	New Installation Services Modernization Services Maintenance Services	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Smart Elevator Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Smart Elevator Market, By Component:

• Control Systems
• Maintenance Systems
• Communication Systems

• Smart Elevator Market, By Installation:

• Low and Mid-rise
• High Rise

• Smart Elevator Market, By Application:

• Residential
• Commercial
• Institutional

• Smart Elevator Market, By Service:

• New Installation Services
• Modernization Services
• Maintenance Services

• Smart Elevator Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE