Expanded Smart Elevator Automation Market Expected to Reach USD 30.3 Billion by 2032
In the realm of urban development, smart elevator automation systems are making a significant impact, particularly in the Asia-Pacific region, Brazil, and countries like the UAE and Saudi Arabia in the Middle East & Africa (MEA).
China is driving growth in the Asia-Pacific region due to large-scale high-rise residential and commercial projects. Meanwhile, Brazil leads in Latin America due to its growing real estate sector. In the MEA, countries like the UAE and Saudi Arabia are integrating smart elevators into high-profile projects.
The integration of IoT, AI, cloud analytics, and energy-efficient control systems is reshaping the market, making elevator systems more dynamic and responsive. These innovations improve efficiency, safety, and passenger experience.
The industrial sector is identified as the fastest-growing end-user segment, with smart elevator systems now incorporating features like predictive maintenance, destination dispatching, touchless access, and real-time monitoring.
Asia-Pacific is projected to have the highest Compound Annual Growth Rate (CAGR) in the Smart Elevator Automation System Market. Europe continues to maintain steady growth, driven by stringent energy-efficiency mandates and green building initiatives. India presents an emerging opportunity due to urban development policies encouraging smart infrastructure investments.
The market is projected to reach USD 30.3 billion by 2032, with a robust 8.6% CAGR from 2024-2032. In 2023, North America held the largest market share, approximately 41%.
Emerging trends such as touchless interfaces, predictive diagnostics, and AI-driven traffic optimization are moving elevator systems from passive infrastructure to dynamic, responsive building components. The transition to smart elevator automation is critical for achieving energy efficiency, reducing downtime, and enhancing occupant experience.
Regarding regional growth momentum: North America currently leads, driven by high urbanization rates, smart building adoption, and mature infrastructure modernization efforts. Asia-Pacific is expected to show strong growth momentum due to rapid urban expansion, increasing smart city projects, and rising real estate investments involving luxury residential and commercial buildings. Europe also represents a significant market, especially due to the need for retrofits and compliance with stringent building codes integrating smart technologies.
Other regions like Latin America and the Middle East & Africa are emerging markets with unique growth opportunities related to urbanization and infrastructure development. Retrofitting and modernization of aging elevator infrastructure, especially in developed regions like Europe and North America, are driving replacement with smart systems.
Notable market participants include Otis Elevator Company, KONE, Schindler, Hitachi, Fujitec, ThyssenKrupp Elevator, and Honeywell, with a focus on R&D, cloud-based management solutions, and AI integration. Urban building retrofits offer a major opportunity, as over 75% of existing elevators globally are over 20 years old and lack connectivity or automation.
Germany, the UK, and France are prioritizing retrofitting of existing buildings to meet sustainability standards, increasing demand for smart elevator automation systems. By component, the Building Management System segment commands the largest share in the market.
In summary, the market is advancing rapidly driven by technology integration, urban infrastructure growth, and modernization demands, with North America leading currently and Asia-Pacific showing the highest future growth potential. The global market is projected to reach between USD 30 billion to over USD 77 billion by 2030-2035, growing at CAGR estimates ranging from 8.4% to 12.7% depending on the forecast horizon and scope. Retrofitted systems, enabled via IoT sensors, reduce energy consumption by 30%-50%.
- The integration of smart elevator automation systems is driving growth in the housing-market and real-estate, particularly in urban development projects within the Asia-Pacific region, Brazil, the UAE, and Saudi Arabia in the Middle East & Africa.
- The industrial sector is investing heavily in smart elevator systems, with the market driven by technology integration, urban infrastructure growth, and modernization demands, as seen in the Asia-Pacific region.
- Data-and-cloud-computing plays a crucial role in the growth of the smart elevator automation market, with market participants like Otis Elevator Company, KONE, and Schindler focusing on R&D, cloud-based management solutions, and AI integration.
- The growth in the smart elevator automation system market is not limited to new construction; it also includes commercial investments in retrofitting existing infrastructure in regions like Europe and North America, driven by a need to reduce energy consumption and enhance passenger experience.
