Elevator Modernization Market
The market for Elevator Modernization was estimated at $17.0 billion in 2024; it is anticipated to increase to $32.8 billion by 2030, with projections indicating growth to around $56.9 billion by 2035.
Report Summary
Market Data
Methodology
Table of Contents
Global Elevator Modernization Market Outlook
Revenue, 2024
$17.0B
Forecast, 2034
$50.9B
CAGR, 2025 - 2034
11.6%
The Elevator Modernization industry revenue is expected to be around $19.0 billion in 2025 and expected to showcase growth with 11.6% CAGR between 2025 and 2034. This new way of thinking has become widely adopted in both business and residential settings due to its ability to enhance comfort and convenience standards, across the board.
Modernizing elevators entails upgrading components like control systems and cabins as well as safety features to meet current standards and regulations effectively while prioritizing reliability improvement along, with energy efficiency enhancements and a more comfortable ride experience.
Market Key Insights
- The Elevator Modernization market is projected to grow from $17.0 billion in 2024 to $50.9 billion in 2034. This represents a CAGR of 11.6%, reflecting rising demand across Energy Efficiency Modernization, Passenger Experience Enhancement and Improved Safety Standards.
- Otis Elevator Co, Schindler Group, Kone Corporation are among the leading players in this market, shaping its competitive landscape.
- U.S. and China are the top markets within the Elevator Modernization market and are expected to observe the growth CAGR of 8.5% to 12.2% between 2024 and 2030.
- Emerging markets including India, UAE and Indonesia are expected to observe highest growth with CAGR ranging between 11.1% to 14.5%.
- Transition like Digital Revolution in Elevator Modernization is expected to add $2 billion to the Elevator Modernization market growth by 2030.
- The Elevator Modernization market is set to add $33.9 billion between 2024 and 2034, with manufacturer targeting Commercial Elevators & Institutional Elevators End User Type projected to gain a larger market share.
- With Rising safety concerns, and Advancements in elevator technologies, Elevator Modernization market to expand 200% between 2024 and 2034.
Opportunities in the Elevator Modernization
Urban areas are expanding rapidly with an increase in rise residential buildings where there is also a notable opportunity for elevator modernization in residential settings that remains untapped at present. The requirement for energy efficient elevators to ensure safety in these densely populated living spaces signifies a potential avenue, for market transformation and expansion.
Growth Opportunities in North America and Europe
In North America's Elevator Modernization sector is seeing growth as urban areas expand rapidly and infrastructure investments increase alongside the construction of more skyscrapers. The market thrives on competition and the integration of state of the art technologies such as AI controlled elevators that drive its expansion. Green initiatives and the demand for energy elevators offer significant opportunities, for industry participants.
In Europe well as other regions around the world have a vibrant Elevator Modernization sector boosted by factors like improved infrastructure and regulations ensuring safety in existing buildings along with an increasing interest in smart building trends. The dynamic market landscape offers chances for businesses involved in Elevator Modernization due to the environment and the rising desire, for environmentally friendly solutions and energy efficient technology.
Market Dynamics and Supply Chain
01
Driver: Rising Safety Concerns, and Stringent Regulatory Standards
The rise in safety worries is also a catalyst for the Elevator Modernization industrys growth. Old elevators present dangers such, as sudden stops and uncontrolled descents; updating these elevators helps reduce these risks and ensures passenger safety. Regulatory agencies around the globe are also implementing guidelines and regulations to guarantee the safety and effectiveness of elevators. This also creates a demand for elevators to be upgraded and adapted to meet evolving standards prompting an increase, in market expansion.
Cutting edge technologies such, as the Internet of Things (IoT) and artificial intelligence (AI) are also transforming the industry by facilitating maintenance and energy efficiency enhancements while enhancing overall effectiveness; consequently spurring the expansion of the Elevator Modernization sector.
02
Restraint: High Replacement Costs
The significant barrier to the advancement of elevator modernization is the expenses involved in upgrading outdated elevator systems which encompass buying new equipment and paying for installation labor alongside considerable downtime affecting buildings during the modernization phase which could deter building owners and managers due to the high costs involved especially when current elevators are operational albeit outdated; this challenge is particularly noticeable in less affluent areas or buildings, with limited budgets.
03
Opportunity: Green Retrofitting and IoT Integration
The shift towards eco technologies and energy conservation practices offers a significant opportunity for upgrading elevators, with modern features and improvements. Outdated elevator systems can be upgraded with energy motors and advanced controls to not just conserve energy (leading to lower operational expenses) but also improve comfort and efficiency levels. Consumers are becoming more conscious and involved in promoting sustainability efforts; hence this sector is primed for investigation.
Incorporating Internet of Things (IoT) technology into elevator upgrades is becoming a new development in the industry that shows great promise for the future. The IoT has the ability to provide real time monitoring and predictive maintenance services while enhancing efficiency. These functionalities are in demand from building owners and operators due to their potential, for cost savings and service enhancement.
04
Challenge: Lacking Regulatory Support
Regulatory assistance is crucial for the progress of elevator modernization efforts;. Not all areas enforce rules or provide incentives, for upgrading elevators.
Supply Chain Landscape
1
Raw Material Acquisition
Thyssenkrupp AGArcelorMittal
2
Component Manufacturing & Assembly
Otis Elevator CompanyKONE Corporation
3
Distribution & Installation
Schindler GroupFujitec Co.Ltd
4
Maintenance & Upgrade Services
Hitachi Ltd.Mitsubishi Electric Corporation
1
Raw Material Acquisition
Thyssenkrupp AGArcelorMittal
2
Component Manufacturing & Assembly
Otis Elevator CompanyKONE Corporation
3
Distribution & Installation
Schindler GroupFujitec Co.Ltd
4
Maintenance & Upgrade Services
Hitachi Ltd.Mitsubishi Electric Corporation
Use Cases of Elevator Modernization in Energy Efficiency & Passenger Experience Enhancement
Energy Efficiency Modernization : Many buildings opt for elevator upgrades to enhance energy efficiency by modernizing systems which can potentially reduce energy usage up to 60%. Companies like Otis and Schindler are players, in offering these advanced solutions.
Improved Safety Standards : In order to meet the safety standards effectively and ensure passenger safety in elevators has been improved through enhancements such as emergency backup power and communication systems which also simplify maintenance tasks effectively while renowned companies, like KONE and ThyssenkRupp spearhead these advancements.
Passenger Experience Enhancement : When enhancing user interface features in todays elevators, touchless technology and user friendly direction systems are commonly incorporated to enhance the passenger journey. Popular brands, like Mitsubishi Electric and Hitachi excel in this field by offering design choices and cutting edge technology platforms.
Recent Developments
The elevator upgrade sector has seen progress lately due to various factors like technological advancements and changes in regulations and customer demands as well as the aging elevator infrastructure which all play a significant role in shaping the future of this industry in the upcoming years. A major trend in the elevator upgrade sector revolves around the increasing emphasis, on energy efficiency and sustainability.
December 2024 : Otis Worldwide Corporation unveiled a cutting edge AI driven maintenance system, for elevator upgrades that aims to revolutionize the market trends.
October 2024 : Schneider Electric partnered with leading real estate companies to upgrade elevators for energy efficiency purposes and promote sustainability, in the industry.
August 2024 : Thyssenkupp AG has unveiled their cutting edge biometric system for elevator operations to enhance security features, in elevator upgrades and drive progress in the industry.
Impact of Industry Transitions on the Elevator Modernization Market
As a core segment of the Services industry,
the Elevator Modernization market develops in line with broader industry shifts.
Over recent years, transitions such as "Digital Revolution in Elevator Modernization and Growth Through Sustainability Focus have redefined priorities
across the Services sector,
influencing how the Elevator Modernization market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
"Digital Revolution in Elevator Modernization
The adoption of technologies has brought about a significant transformation in the Elevator Modernization industry landscape. Breakthroughs in machine learning, artificial intelligence and IoT have greatly altered the approach, to providing elevator modernization services. These technological advancements support maintenance measures, enhance safety protocols and boost elevator efficiency by detecting potential problems before they lead to system failures. The incorporation of platforms not only improves user satisfaction but also streamlines operational processes driving the market towards digital solutions.
02
Growth Through Sustainability Focus
The elevator modernization market is being influenced by trends such as sustainability efforts and a focus, towards energy efficiency and eco friendliness.