Global Elevators and Escalators Market Outlook, 2031

Market Insights

The global elevators and escalators market has established itself as one of the most resilient and steadily expanding segments within the broader construction and infrastructure industry, driven by rapid urbanization, the proliferation of high-rise buildings, growing aging populations, and increasing investments in smart city development across both mature and emerging economies. China's retrofit program for elder-friendly apartments and India's expanding rail and airport infrastructure are driving volume growth, while Southeast Asia is adding greenfield towers for tourism and data center campuses. China remains the single most dominant country market globally, accounting for the lion's share of new unit installations annually, propelled by large-scale government-backed urbanization programs, the construction of mega-cities, and a national mandate to retrofit older residential buildings with modern elevator systems to serve its growing elderly population. In 2024, China alone accounted for over 700,000 new installations, with India contributing another 150,000 units. Smart city developments such as Japan's Society 5.0 initiative and India's Smart Cities Mission are integrating advanced elevator systems into urban planning, while escalators are widely deployed in metro stations across rapidly expanding transit networks in cities like Jakarta, Hanoi, and Bangkok. In India, government-backed initiatives including the Smart Cities Mission, the Pradhan Mantri Awas Yojana affordable housing scheme, and the ambitious expansion of metro rail networks across tier-1 and tier-2 cities are creating sustained demand for both new elevator installations and escalator deployments. In August 2023, Fujitec India Private Ltd received an order of 538 elevators for large-scale residential housing projects in Gurgaon, with manufacturing and supply from a high-rise elevator manufacturing facility in Chennai.

North America presents a picture of maturity mixed with regulatory dynamism. Modernization drives most spending, with roughly 1.3 million installed units approaching 20 years of service. Strict seismic and ADA updates in California and New York fuel upgrade demand, with North American modernization set to outpace new builds through the forecast horizon. In the United States, the Americans with Disabilities Act mandates elevator accessibility across public and commercial buildings, while local building codes and fire safety regulations enforce periodic maintenance and mandatory upgrades. New York City's skyline transformation integrating smart, destination-dispatch elevators in both legacy skyscrapers and new developments represents the confluence of architectural ambition and regulatory compliance. In April 2025, Schindler Elevator Corporation launched the Schindler 5000, a machine-room-less elevator designed for low- to mid-rise offices, hotels, hospitals, and apartment complexes, now widely available across the U.S. market. Europe, meanwhile, is driven by an aggressive sustainability agenda. Europe is estimated to expand at the fastest growth rate in the elevators and escalators market. Countries such as Germany, France, the UK, Spain, and the Nordics are leading demand as governments and private developers invest in energy-efficient, smart, and accessible building systems. The region's strong commitment to green construction and carbon-neutral goals, under the EU Green Deal and the Energy Performance of Buildings Directive, is adding to the adoption of smart and regenerative elevator technologies integrating IoT, AI-based monitoring, and energy recovery mechanisms. Germany, Europe's largest elevator market, is particularly focused on modernization and sustainability, with historical buildings in Berlin being actively retrofitted with energy-efficient elevator systems. Elevators and escalators in the EU must comply with the EU Machinery Directive 2006/42/EC and ISO 25745, while CE marking validates that products meet safety, quality, and environmental standards.

Market Dynamics

Market Drivers



• High-rise building construction: One of the primary drivers of the global **Elevators and Escalators Industry market is the rapid pace of urbanization and the increasing construction of high-rise residential and commercial buildings. As urban populations continue to grow, cities are expanding vertically rather than horizontally due to limited land availability. This has significantly increased the demand for elevators and escalators, which are essential for efficient vertical transportation in modern infrastructure. High-rise residential complexes, office towers, shopping malls, airports, and metro stations rely heavily on these systems to ensure smooth movement of people within buildings. Emerging economies, particularly in Asia and the Middle East, are witnessing large-scale urban development projects and smart city initiatives, further boosting demand for advanced elevator and escalator systems. In addition, governments and private developers are investing heavily in infrastructure development, including airports, railway stations, and commercial hubs, all of which require reliable vertical mobility solutions.
• Increasing investments in infrastructure modernization: another significant driver for the global elevators and escalators market is the growing investment in infrastructure modernization and the development of smart buildings. Many developed countries are upgrading aging building infrastructure by replacing old elevator systems with modern, energy-efficient, and technologically advanced solutions. Modern elevators now incorporate features such as smart controls, destination dispatch systems, touchless operation, and energy-efficient motors, which improve performance and user convenience. The rising adoption of smart building technologies has further accelerated the demand for advanced elevator systems that can integrate with building automation platforms. These intelligent systems help optimize energy usage, improve passenger flow management, and enhance overall building efficiency.
Market Challenges

• High installation and maintenance costs: One of the major challenges affecting the global elevators and escalators market is the high cost associated with installation, maintenance, and modernization of these systems. Elevators and escalators require specialized engineering, advanced mechanical systems, and strict safety compliance, all of which contribute to high upfront installation costs. Large commercial buildings or high-rise towers may require multiple elevator shafts and complex installation procedures, increasing project expenses. In addition to installation costs, these systems also require regular inspection, maintenance, and servicing to ensure safety and operational efficiency. Maintenance includes mechanical repairs, software updates, and replacement of worn components, which can add significant long-term operational costs for building owners and facility managers.
• Safety concerns: Safety and regulatory compliance represent another critical challenge for the global elevators and escalators market. Elevators and escalators are complex mechanical systems that must meet strict safety standards to prevent accidents and ensure reliable operation. Any malfunction or technical failure can pose serious risks to passengers, leading to injuries or operational disruptions. As a result, manufacturers and service providers must comply with various national and international safety regulations related to design, installation, inspection, and maintenance. These regulations can vary significantly between regions, making it difficult for manufacturers to standardize products for global markets. Additionally, building owners must conduct periodic safety inspections and maintain proper documentation to meet regulatory requirements.
Market Trends

• Integration of smart technologies: One of the most important trends in the global elevators and escalators market is the growing integration of smart technologies and Internet of Things (IoT) capabilities. Modern elevator systems are increasingly equipped with sensors, connectivity modules, and digital monitoring systems that allow real-time tracking of performance and maintenance needs. These smart elevators can communicate with building management systems, enabling operators to monitor energy consumption, detect potential malfunctions, and optimize passenger flow. Predictive maintenance powered by IoT technology allows service providers to identify issues before they cause breakdowns, reducing downtime and maintenance costs. In addition, smart elevators can support touchless controls, mobile app integration, and facial recognition access systems, which improve convenience and hygiene for users.
• Growing focus on energy-efficient Solutions: another major trend influencing the global elevators and escalators market is the increasing emphasis on energy efficiency and sustainable building practices. With rising global concerns about energy consumption and environmental impact, manufacturers are developing elevator systems that consume less electricity and support green building initiatives. Modern elevators incorporate technologies such as regenerative drives, energy-efficient motors, LED lighting, and smart power management systems that significantly reduce energy consumption. Regenerative drive systems, for example, capture excess energy generated during elevator operation and feed it back into the building’s power system, improving overall efficiency. These innovations are particularly important for large commercial buildings where elevators operate continuously throughout the day.

Segment Analysis

Elevators are essential in modern infrastructure, enabling efficient vertical transportation in skyscrapers, apartment complexes, office towers, hotels, and mixed-use developments. Countries with dense urban populations such as China, the United States, India, and the United Arab Emirates have witnessed massive demand for elevators due to rapid urbanization and growing investments in smart city projects. The increasing need for efficient space utilization in metropolitan areas has pushed developers to build taller buildings, making elevators a critical component of modern construction. Escalators represent another significant product category, widely used in commercial and public spaces such as shopping malls, airports, metro stations, and railway terminals. Escalators are designed to move large numbers of people quickly and continuously between floors, making them highly effective in locations with heavy pedestrian traffic. Retail centers and transportation hubs particularly rely on escalators to manage crowd flow and enhance passenger convenience. As global tourism and retail infrastructure continue to expand, demand for escalators is steadily increasing, especially in urban commercial developments. Moving walkways, sometimes referred to as travelators, are primarily used in large public facilities where horizontal movement over long distances is required. Airports, convention centers, large shopping complexes, and transportation terminals commonly install moving walkways to assist passengers in covering long distances comfortably. Although the moving walkway segment represents a smaller share of the market compared to elevators and escalators, it plays a vital role in large infrastructure projects where efficient passenger movement is essential.

Maintenance and repair services represent the largest and most consistent segment globally because elevators and escalators require continuous monitoring and servicing to ensure safe and efficient operation. Once installed, these systems must undergo regular inspections, component replacements, and technical servicing to meet safety standards and maintain reliability. Building owners and facility managers rely on maintenance contracts with service providers to ensure smooth operation and prevent unexpected breakdowns. As the global installed base of elevators and escalators continues to grow, the demand for maintenance services increases proportionally. In large cities where buildings operate around the clock, reliable maintenance services are essential to avoid disruptions in daily operations. New equipment installation represents another major service segment driven by the construction of new buildings and infrastructure projects. Rapid urbanization, particularly in developing economies, has created significant demand for the installation of elevators and escalators in residential complexes, office buildings, shopping malls, airports, and transportation systems. Large-scale infrastructure projects and smart city initiatives are further accelerating the need for modern vertical transportation systems in both developed and emerging markets. Modernization services are gaining importance as many older buildings across developed countries operate with outdated elevator systems. Modernization involves upgrading existing equipment with advanced technologies such as energy-efficient motors, digital control systems, and improved safety features. Building owners often choose modernization instead of complete replacement to enhance performance while reducing costs. This trend is particularly strong in North America and Europe, where a large number of aging buildings require system upgrades.

Traction elevators operate using steel ropes or belts connected to a motor-driven pulley system that lifts and lowers the elevator car. These systems are highly efficient and capable of operating at higher speeds, making them ideal for tall buildings such as office towers, hotels, and residential skyscrapers. In major urban centers across Asia, North America, and Europe, traction elevators are the preferred technology for modern high-rise construction projects. Machine room-less traction elevators represent one of the fastest-growing technologies in the market. Unlike traditional traction elevators, MRL systems eliminate the need for a separate machine room by placing the motor within the elevator shaft itself. This design reduces the amount of building space required for installation, making it particularly attractive for mid-rise residential and commercial buildings where space optimization is important. MRL elevators also offer improved energy efficiency and lower installation costs, which has accelerated their adoption in both new construction and modernization projects. Hydraulic elevators are another widely used technology, particularly in low-rise buildings such as small office buildings, residential apartments, and institutional facilities. Hydraulic systems operate using fluid-driven pistons that raise and lower the elevator car. These elevators are relatively simple in design and cost-effective for buildings with fewer floors. However, they are generally slower and less energy efficient compared to traction systems, which limits their use in taller buildings. As global construction trends shift toward taller structures, traction and MRL traction technologies continue to dominate the market due to their performance advantages.

The residential sector represents the leading application globally, driven by the rapid expansion of urban housing and high-rise apartment developments. As cities become more densely populated, residential buildings are increasingly constructed with multiple floors to accommodate growing populations. Elevators are therefore essential for providing convenient access to apartments and improving living standards for residents. Countries experiencing rapid urban population growth, particularly in Asia-Pacific, have seen significant demand for residential elevator installations. The commercial segment is another major application area and includes office buildings, shopping malls, hotels, and entertainment complexes. Commercial buildings require multiple elevators and escalators to handle large volumes of daily visitors and employees. Escalators are particularly common in retail environments because they enable smooth movement of customers between different floors. As the global retail and hospitality industries continue to expand, demand for vertical transportation solutions in commercial properties remains strong. Institutional applications include facilities such as hospitals, universities, and government buildings. Elevators in these settings often require specialized features such as larger cabins for medical equipment, accessibility for disabled individuals, and advanced safety systems. Hospitals in particular rely heavily on elevators for transporting patients, staff, and medical equipment efficiently. Infrastructure applications include transportation hubs such as airports, metro stations, railway terminals, and public transit systems. These facilities require both elevators and escalators to manage large passenger flows and ensure accessibility for travelers.

Regional Analysis

North America represents a mature market driven by modern urban infrastructure, the construction of high-rise residential and commercial buildings, and a strong focus on smart building technologies. The United States and Canada are leading contributors, with high demand for energy-efficient, machine room-less (MRL) elevators and advanced traction systems. The region is also seeing growth in modernization and maintenance services, as a large portion of existing elevator systems in older buildings requires upgrades to meet current safety and efficiency standards. Europe is another well-established market with steady growth, fueled by stringent safety and environmental regulations, the adoption of green building standards, and widespread urbanization. Germany, France, Italy, and the UK are major players, with strong investments in both commercial and residential vertical transportation systems. Elevators, particularly traction and MRL systems, dominate the market, while escalators are increasingly installed in metro stations, airports, and commercial complexes. The growing focus on energy-efficient and smart elevators has led to widespread modernization projects, making Europe a key region for technologically advanced solutions. The Asia Pacific market is the fastest-growing region globally due to rapid urbanization, industrialization, and massive investments in high-rise residential and commercial construction. China, India, Japan, and South Korea lead the market, with elevators being the most demanded product type. Escalators and moving walkways are also expanding in transportation infrastructure, including airports, metro networks, and railway stations. The rising middle class, expanding retail sector, and government-supported infrastructure projects are major growth drivers, making Asia Pacific the largest and most dynamic market worldwide. In South America, countries such as Brazil and Argentina are witnessing gradual market growth, mainly in residential and commercial applications. Urbanization and modernization of existing buildings are driving demand for elevators and escalators, although economic fluctuations and limited technological infrastructure sometimes slow adoption. The Middle East and Africa region represents an emerging market fueled by rapid urban development, smart city projects, and large-scale infrastructure investments in countries like the UAE, Saudi Arabia, and South Africa. Elevators dominate high-rise residential and commercial construction, while escalators and moving walkways are increasingly used in airports, metro systems, and shopping complexes.

Key Developments

• May 2025 : Hyundai Elevator and Samsung C&T signed an MOU to develop third-generation modular elevator technology for skyscrapers up to 500 meters tall. The modular system, over 70% prefabricated, aims to reduce construction time, improve safety, and lead the off-site construction trend.
• November 2024 : Otis Electric, Otis’s subsidiary, launched a new smart elevator designed for both new construction and modernization projects, featuring advanced digital technologies to enhance building mobility and efficiency.
• November 2024 : Hitachi’s Taiwan subsidiary secured its largest-ever order for 147 elevators and escalators to be installed across 13 stations in the second phase of the Taipei MRT Wanda-Zhonghe-Shulin Line, scheduled for completion in 2031.
• August 2024 : Schindler Olayan secured a significant contract to equip The Avenues, which will be the largest commercial mall in the Middle East. This contract includes the installation of 293 units, consisting of 135 elevators, 150 escalators, and 8 moving walkways. All of these units will be cloud-connected, allowing for 24/7 monitoring through Schindler’s ActionBoard.
• May 2024 : KONE acquired Orbitz Elevators’ service business in Australia and all operations in New Zealand, strengthening KONE’s position in the South Pacific with a skilled team and an expanded customer portfol.
• March 2024: Otis Worldwide Corporation received an order for the modernization of 34 elevators in Burj Khalifa based in the U.A.E. The Burj Khalifa is the world’s tallest building. The company got a maintenance and modernization contract for ten years.
• October 2023: TK Elevator GmbH launched the new EXO Renew Series of elevators for low-rise and high-rise residential buildings. It is versatile, designed for using 100% green electricity and requires 28% less energy compared to other models.