Elevator Market Set to Reach $129.13 Billion by 2031, Driven by Urbanization and Smart Building Adoption

United States of America – February 24, 2026 – According to The Insight Partners, the global elevator market is on a robust and sustained upward trajectory, projected to grow from US$ 76.29 billion in 2023 to US$ 129.13 billion by 2031, registering a compound annual growth rate (CAGR) of 6.8% during the 2023–2031 forecast period. According to a forthcoming research report by The Insight Partners, this impressive expansion is being driven by the rapid growth of the global construction industry, the accelerating adoption of smart elevator technology powered by IoT and AI, the worldwide push toward green building standards, and the growing need for accessible vertical transportation solutions in an increasingly aging and urbanizing global population. As cities rise taller and urban populations swell, elevators are transitioning from a building amenity to a fundamental infrastructure requirement that shapes how modern residential, commercial, and industrial spaces are designed and experienced.

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Understanding the Elevator Market

Elevators are vertical transport systems housed in platform shafts, designed to move people and goods between levels and floors of multi-storey structures. Operated primarily by electric motors that power either traction cables with counterweight systems or hydraulic fluid pumps, elevators have evolved considerably beyond their traditional function as basic vertical conveyances. Modern elevator systems integrate advanced electronics, connectivity, predictive maintenance algorithms, energy recovery capabilities, and user-friendly interface technologies that make them intelligent, efficient, and deeply integrated components of contemporary building infrastructure. In addition to serving the daily mobility needs of occupants, elevators play a critical role in regulatory compliance — particularly accessibility legislation requiring wheelchair access in public and commercial buildings — and in construction-phase logistics for moving materials and personnel across multi-storey build sites.

Key Market Drivers

The most significant driver of elevator market growth is the expanding global construction industry. The world's population continues to grow steadily, supported by rising living standards, extended life expectancy, declining mortality rates, and advances in medical care — trends that collectively drive strong and sustained demand for new residential, commercial, and institutional buildings worldwide. The United Nations projects that global urbanization will add approximately 2.5 billion people to the world's cities by 2050, a demographic transformation that will require an enormous volume of new construction across housing, healthcare, hospitality, education, and commercial sectors. Each of these building types demands elevator installations to serve occupants across multiple floors — a direct and proportional relationship between construction activity and elevator demand that underpins the market's long-term growth outlook.

Market Segmentation

By type, the elevator market is divided into hydraulic, traction, and machine room-less (MRL) traction elevators. Traction elevators — which use steel cables and counterweights driven by electric motors to move the elevator car — are the most widely deployed type in mid- to high-rise commercial and residential buildings, valued for their speed, smooth ride quality, and suitability for tall buildings. Machine room-less traction elevators, which eliminate the need for a dedicated machine room above the elevator shaft by integrating the drive machinery directly into the shaft, are growing rapidly in popularity due to their space efficiency, lower installation costs, and improved energy efficiency relative to traditional traction systems. Hydraulic elevators serve lower-rise applications and are particularly common in residential settings and buildings of two to five stories.

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Regional Landscape

Asia-Pacific dominates the global elevator market and is projected to maintain its leading position through 2031, underpinned by the extraordinary scale and pace of construction activity across China, India, Japan, South Korea, and Southeast Asian nations. China alone accounts for a substantial share of global elevator installations annually, driven by the country's massive urbanization program and the continued construction of residential, commercial, and infrastructure projects across its rapidly expanding cities. India is an emerging high-growth market as its cities expand, its middle class grows, and construction activity accelerates across residential housing, commercial real estate, and public infrastructure development.

Competitive Landscape and Recent Developments

Key players in the global elevator market include Schindler, TK Elevator, KONE Corporation, Hitachi, Hyundai Elevator, Toshiba Group, Mitsubishi Electric, Aritco Lift, EMAK, Fujitec, Sigma Elevator Company, and Schumacher Elevator Company. These companies compete across technological innovation, global service network coverage, energy efficiency performance, smart connectivity capabilities, and lifecycle cost competitiveness.

Two significant recent developments highlight the industry's innovation momentum. TK Elevator launched its EOX eco-efficient elevator platform in North America in May 2023, an engineered solution for two- to ten-story buildings featuring a space-saving design, advanced technologies, and reduced installation lead times that addresses the growing commercial market segment for mid-rise building elevator solutions. Earlier, in November 2022, TK Elevator launched a set of open Application Programming Interfaces (APIs) for its connected elevator portfolio — enabling elevators, buildings, and residents to be linked through digital interfaces that allow operators to automate building management processes and empower end-users to control elevator functions directly through mobile applications, marking a significant step in the integration of elevators into the broader smart building ecosystem.

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Conclusion

The elevator market stands at the convergence of global urbanization, aging demographics, construction industry expansion, and smart building technology adoption — four of the most powerful structural trends reshaping the built environment worldwide. With a projected market value of $129.13 billion by 2031 and a steady CAGR of 6.8%, the elevator industry offers compelling opportunities for manufacturers, service providers, and technology innovators committed to elevating the future of vertical mobility in an increasingly urban, accessible, and intelligent world.

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