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    Elevator Modernization Market

    ID: MRFR/ICT/39125-HCR
    100 Pages
    Aarti Dhapte
    October 2025

    Elevator Modernization Market Research Report: By Building Type (Residential, Commercial, Industrial, Institutional), By Elevator Type (Hydraulic Elevators, Traction Elevators, Machine-Room-Less (MRL) Elevators), By Modernization Scope (Full Modernization, Partial Modernization, Minor Modernization), By Service Type (Preventive Maintenance, Reactive Maintenance, Predictive Maintenance), By Control System (Microprocessor-Based Systems, Relay-Based Systems, Solid-State Systems) and By Regional (North America, Europe, South America, Asia Paci...

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    Elevator Modernization Market
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    Elevator Modernization Market Summary

    The Global Elevator Modernization Market is projected to grow from 21.7 USD Billion in 2024 to 39.1 USD Billion by 2035.

    Key Market Trends & Highlights

    Elevator Modernization Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 5.5 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 39.1 USD Billion, indicating robust growth potential.
    • In 2024, the market is valued at 21.7 USD Billion, reflecting a strong foundation for future expansion.
    • Growing adoption of advanced technologies due to increasing safety regulations is a major market driver.

    Market Size & Forecast

    2024 Market Size 21.7 (USD Billion)
    2035 Market Size 39.1 (USD Billion)
    CAGR (2025-2035) 5.5%

    Major Players

    thyssenkrupp Elevator, Schindler Group, Kone, Mitsubishi Electric, LG Elevator, Johnson Controls, Fujitec, Schindler Elevator India, Otis Elevator Company, Hyundai Elevator, KONE Corporation, Schindler Group, Kone China Elevator, Toshiba Elevator and Building Systems Corporation, ThyssenKrupp Elevator, Hitachi Elevator Engineering

    Elevator Modernization Market Trends

    There is a huge scope for firms that deal with components of modernization such as sensors, controllers and drives. Some recent activities include the installation of AI systems that optimize lift functioning, the use of remote-control systems for predictive maintenance and remote access of building systems through the elevator systems.

    The ongoing shift towards energy efficiency and sustainability in urban infrastructure is driving a notable increase in elevator modernization initiatives, as stakeholders seek to enhance operational performance while reducing environmental impact.

    U.S. Department of Energy

    Elevator Modernization Market Drivers

    Increased Focus on Aesthetic Appeal

    The aesthetic appeal of elevators is becoming increasingly important in the Global Elevator Modernization Market Industry. Building owners recognize that modernized elevators can significantly enhance the overall look and feel of a property, attracting tenants and visitors alike. Upgrading elevator interiors with contemporary designs and materials not only improves functionality but also elevates the building's image. This focus on aesthetics is driving modernization projects, as property owners seek to differentiate themselves in competitive markets, thereby contributing to the industry's growth.

    Rising Demand for Energy Efficiency

    The Global Elevator Modernization Market Industry experiences a notable shift towards energy-efficient solutions. As urbanization continues to rise, building owners are increasingly focused on reducing operational costs and environmental impact. Modernizing elevators with energy-efficient technologies can lead to significant energy savings, potentially reducing energy consumption by up to 30 percent. This trend aligns with global sustainability goals, prompting investments in modernization projects. The market is projected to reach 21.7 USD Billion in 2024, reflecting the growing emphasis on energy efficiency in urban infrastructure.

    Regulatory Compliance and Safety Standards

    The Global Elevator Modernization Market Industry is significantly influenced by stringent regulatory compliance and safety standards. Governments worldwide are enforcing regulations that mandate the upgrading of older elevator systems to meet contemporary safety requirements. This regulatory pressure compels building owners to invest in modernization initiatives, ensuring that their elevators comply with the latest safety codes. As a result, the modernization market is likely to see sustained growth, driven by the necessity of adhering to these regulations, which ultimately enhances passenger safety and operational reliability.

    Urbanization and Infrastructure Development

    Urbanization continues to be a driving force behind the Global Elevator Modernization Market Industry. As cities expand and populations grow, the demand for efficient vertical transportation systems increases. Modernizing existing elevators in older buildings is often more cost-effective than new installations, making it a preferred choice for property owners. This trend is expected to contribute to a compound annual growth rate of 5.5 percent from 2025 to 2035, as urban centers prioritize infrastructure development to accommodate rising populations and enhance overall accessibility.

    Technological Advancements in Elevator Systems

    Technological innovations play a crucial role in driving the Global Elevator Modernization Market Industry. The integration of smart technologies, such as IoT and AI, enhances the functionality and safety of elevators. These advancements enable predictive maintenance, reducing downtime and improving user experience. For instance, smart elevators can optimize travel routes, thereby minimizing wait times. As a result, modernization projects are increasingly incorporating these technologies, which are expected to contribute to the market's growth, projected to reach 39.1 USD Billion by 2035.

    Market Segment Insights

    Elevator Modernization Market Segment Insights

    Elevator Modernization Market Segment Insights

    Elevator Modernization Market Building Type Insights   

    Elevator Modernization Market Building Type Insights   

    As per the  Elevator Modernization Market report, segment insights show that in 2023, the commercial building type segment held the largest revenue share of around 45%. This dominance is attributed to the increasing number of commercial constructions ly and the need for the modernization of elevators in these buildings to enhance safety, efficiency, and aesthetics. Moreover, government regulations and building codes in various countries mandate regular elevator inspections and upgrades, further driving the growth of this segment.

    The residential building type segment is expected to witness significant growth over the forecast period due to the rising demand for elevator modernization in existing residential buildings to improve convenience, safety, and accessibility for residents. Additionally, the growing trend of smart home technologies and the integration of elevators with home automation systems are expected to contribute to the segment's growth. The industrial building type segment is also projected to experience steady growth, driven by the increasing need for elevator modernization in factories, warehouses, and other industrial facilities to enhance productivity, safety, and compliance with industry standards.

    The institutional building type segment, which includes hospitals, schools, and government buildings, is expected to show moderate growth due to the focus on improving accessibility, safety, and energy efficiency in these buildings. Overall, the  Elevator Modernization Market is expected to witness significant growth in the coming years, driven by increasing urbanization, rising demand for modernization in existing buildings, and the growing adoption of smart elevator technologies.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Elevator Modernization Market Elevator Type Insights   

    Elevator Modernization Market Elevator Type Insights   

    The Elevator Type segment plays a crucial role in the  Elevator Modernization Market, and each type exhibits distinct characteristics and growth dynamics. Hydraulic Elevators, Traction Elevators, and Machine-Room-Less (MRL) Elevators are the primary segments within this market. Hydraulic Elevators utilize hydraulic fluid to power their movement, making them ideal for low-rise buildings and applications with limited space. In 2023, the Hydraulic Elevators segment held a significant market share and is projected to grow steadily in the coming years. Traction Elevators, on the other hand, employ a traction system to move the elevator car.

    They are commonly found in mid to high-rise buildings and offer higher speeds and energy efficiency compared to Hydraulic Elevators. The Traction Elevators segment is expected to witness substantial growth in the  Elevator Modernization Market by 2032. Machine-Room-Less (MRL) Elevators have gained popularity in recent years due to their space-saving design and reduced maintenance requirements. These elevators do not require a separate machine room, making them suitable for buildings with limited space or aesthetic considerations. The MRL Elevators segment is anticipated to experience strong growth in the  Elevator Modernization Market, driven by increasing urbanization and the construction of high-rise buildings.

    The  Elevator Modernization Market is expected to grow significantly in the coming years, with a projected market valuation of 33.5 USD Billion by 2032. The rising demand for elevator modernization to enhance safety, efficiency, and aesthetics is a key factor driving the market growth. The adoption of advanced technologies, such as IoT and cloud-based solutions, is also expected to fuel market expansion.

    Elevator Modernization Market Modernization Scope Insights   

    Elevator Modernization Market Modernization Scope Insights   

    The  Elevator Modernization Market is segmented by Modernization Scope into Full Modernization, Partial Modernization, and Minor Modernization. The Full Modernization segment is expected to hold the largest market share in 2023 and is projected to grow at a CAGR of 5.5% from 2024 to 2032. This growth is attributed to the increasing demand for energy-efficient and technologically advanced elevators. The Partial Modernization segment is expected to grow at a CAGR of 5.2% during the forecast period, owing to the growing demand for cost-effective modernization solutions.

    The Minor Modernization segment is expected to grow at a CAGR of 4.8% from 2024 to 2032 due to the increasing demand for minor upgrades and repairs.

    Elevator Modernization Market Service Type Insights   

    Elevator Modernization Market Service Type Insights   

    The  Elevator Modernization Market is segmented by Service Type into Preventive Maintenance, Reactive Maintenance, and Predictive Maintenance. Among these, Preventive Maintenance holds the largest market share. This is primarily due to the growing awareness of the importance of regular maintenance to extend the lifespan of elevators and ensure their optimal performance. Preventive Maintenance involves scheduled inspections and servicing of elevators to identify and address potential issues before they escalate into major problems. This proactive approach helps prevent costly breakdowns and downtime, ensuring the safety and reliability of elevators.

    Reactive Maintenance, on the other hand, involves repairing elevators only when they break down. This approach is less effective as it can lead to unexpected downtime and increased repair costs. However, it is still commonly used in some cases, particularly for older elevators or those with limited budgets. Predictive Maintenance is gaining traction as a more advanced approach to elevator maintenance. It involves using sensors and data analytics to monitor elevator performance and predict potential failures. This allows for timely interventions and targeted maintenance, reducing the risk of unplanned breakdowns and improving elevator uptime.

    As a result, the demand for Predictive Maintenance services is expected to grow significantly in the coming years.

    Elevator Modernization Market Control System Insights   

    Elevator Modernization Market Control System Insights   

    The control system segment is expected to witness significant growth in the coming years. Revenue is projected to reach USD 5.2 billion by 2024, representing a CAGR of 5.8% during the forecast period. The growth can be attributed to the increasing demand for energy-efficient and reliable elevators. Microprocessor-based systems are expected to dominate the market, accounting for over 55% of the total revenue by 2024. Relay-based systems are expected to decline in popularity due to their lower efficiency and reliability. Solid-state systems are expected to gain traction owing to their superior performance and durability.

    Get more detailed insights about Elevator Modernization Market

    Regional Insights

    Regionally, North America is anticipated to dominate the market with a 36.8% share in 2023 due to the presence of a large number of aging elevators and stringent safety regulations. Europe is projected to hold the second-largest market share, followed by APAC, South America, and MEA. The APAC region is expected to witness significant growth during the forecast period, driven by rapid urbanization and increasing investments in infrastructure development.

    Elevator Modernization Market Regional Insights

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Key Players and Competitive Insights

    Major players in the Elevator Modernization Market industry are continuously striving to maintain their dominance and stay ahead of the competition. Leading Elevator Modernization Market players are focusing on strategic partnerships, technological advancements, and collaborations to gain an edge over their competitors. The Elevator Modernization Market development is driven by the increasing demand for energy-efficient and safe elevators. These strategic initiatives are expected to contribute significantly to the Elevator Modernization Market Competitive Landscape. One of the key Elevator Modernization Market players is thyssenkrupp Elevator.

    The company offers a wide range of modernization solutions to meet the needs of different customers. thyssenkrupp Elevator has a strong focus on innovation and research and development. Another major player is Schindler Group. The company provides a comprehensive portfolio of modernization solutions and has a presence in various markets across the globe. Schindler Group places a strong emphasis on customer satisfaction and service excellence. A third major player in Elevator Modernization Market is Kone. The company offers a variety of modernization solutions tailored to the specific needs of different types of buildings.

    Kone is committed to providing sustainable and energy-efficient solutions.

    Key Companies in the Elevator Modernization Market market include

    Industry Developments

    The  elevator modernization market is poised to witness substantial growth, driven by factors such as increasing urbanization, rising demand for energy-efficient solutions, and growing safety concerns. In 2023, the market was valued at approximately USD 21.11 billion, and it is projected to reach USD 33.5 billion by 2032, exhibiting a CAGR of 5.26%. Recent developments in the market include the launch of advanced elevator technologies, such as destination control systems and mobile applications for remote monitoring. Additionally, governments worldwide are implementing regulations to enhance elevator safety and accessibility, further propelling market expansion.

    Key players in the industry are focusing on strategic partnerships, acquisitions, and product innovations to strengthen their market position.

    Future Outlook

    Elevator Modernization Market Future Outlook

    The Elevator Modernization Market is projected to grow at a 5.5% CAGR from 2024 to 2035, driven by urbanization, technological advancements, and sustainability initiatives.

    New opportunities lie in:

    • Invest in IoT-enabled elevator systems to enhance operational efficiency.
    • Develop eco-friendly modernization solutions to meet regulatory demands.
    • Leverage AI for predictive maintenance services to reduce downtime.

    By 2035, the market is expected to exhibit robust growth, reflecting evolving consumer needs and technological advancements.

    Market Segmentation

    Elevator Modernization Market Regional Outlook

    • North America
    • Europe
    • South America
    • Asia Pacific
    • Middle East and Africa

    Elevator Modernization Market Service Type Outlook

    • Preventive Maintenance
    • Reactive Maintenance
    • Predictive Maintenance
    • Elevator Modernization Market Control System Outlook Microprocessor-Based Systems

    Elevator Modernization Market Building Type Outlook

    • Residential
    • Commercial
    • Industrial
    • Institutional
    • Elevator Modernization Market Elevator Type Outlook Hydraulic Elevators

    Elevator Modernization Market Elevator Type Outlook

    • Hydraulic Elevators
    • Traction Elevators
    • Machine-Room-Less (MRL) Elevators
    • Elevator Modernization Market Modernization Scope Outlook Full Modernization

    Elevator Modernization Market Control System Outlook

    • Microprocessor-Based Systems
    • Relay-Based Systems
    • Solid-State Systems
    • Elevator Modernization Market Regional Outlook North America

    Elevator Modernization Market Modernization Scope Outlook

    • Full Modernization
    • Partial Modernization
    • Minor Modernization
    • Elevator Modernization Market Service Type Outlook Preventive Maintenance

    Report Scope

    Elevator Modernization Market Report Scope
    Report Attribute/Metric Details
    Market Size 2022 20.06(USD Billion)
    Market Size 2023 21.11(USD Billion)
    Market Size 2032 33.5(USD Billion)
    Compound Annual Growth Rate (CAGR) 5.26% (2024 - 2032)
    Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    Base Year 2023
    Market Forecast Period 2024 - 2032
    Historical Data 2019 - 2023
    Market Forecast Units USD Billion
    Key Companies Profiled Mitsubishi Electric, LG Elevator, Johnson Controls, Fujitec, Schindler Elevator India, Otis Elevator Company, Hyundai Elevator, KONE Corporation, Schindler Group, Kone China Elevator, Toshiba Elevator and Building Systems Corporation, ThyssenKrupp Elevator, Hitachi Elevator Engineering.    
    Segments Covered Building Type, Elevator Type, Modernization Scope, Service Type, Control System, Regional.    
    Key Market Opportunities Digital Upgrades Sustainability Enhancements Smart Building Integration Remote Monitoring and Predictive Maintenance Safety Modernizations
    Key Market Dynamics Aging Building Infrastructure Government Regulations Technological Advancements Increasing Energy Efficiency Growing Adoption of Smart Elevators
    Countries Covered North America, Europe, APAC, South America, MEA
     

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    FAQs

    What is the current market size of the Elevator Modernization Market?

    The Elevator Modernization Market is currently valued at USD 21.11 billion in 2023.

    What is the expected market size of the Elevator Modernization Market in 2032?

    The Elevator Modernization Market is expected to reach USD 33.5 billion by 2032, growing at a CAGR of 5.26% from 2024 to 2032.

    What are the key factors driving the growth of the Elevator Modernization Market?

    The key factors driving the growth of the Elevator Modernization Market include increasing demand for energy-efficient and safe elevators, rising urbanization, and growing infrastructure spending.

    What are the major applications of Elevator Modernization?

    Elevator Modernization is primarily used in commercial buildings, residential buildings, and public infrastructure.

    Who are the key competitors in the Elevator Modernization Market?

    The key competitors in the Elevator Modernization Market include Otis Elevator Company, Schindler Group, KONE Corporation, Mitsubishi Electric Corporation, and Hyundai Elevator.

    What are the key trends shaping the Elevator Modernization Market?

    The key trends shaping the Elevator Modernization Market include the adoption of smart technologies, increasing focus on safety and accessibility, and growing demand for customized solutions.

    What are the major challenges faced by the Elevator Modernization Market?

    The major challenges faced by the Elevator Modernization Market include high installation and maintenance costs, lack of skilled labor, and stringent regulatory requirements.

    What is the regional outlook of the Elevator Modernization Market?

    The Asia-Pacific region is expected to dominate the Elevator Modernization Market, followed by North America and Europe.

    What is the impact of COVID-19 on the Elevator Modernization Market?

    The COVID-19 pandemic had a negative impact on the Elevator Modernization Market due to lockdowns and supply chain disruptions.

    What are the key opportunities for growth in the Elevator Modernization Market?

    The key opportunities for growth in the Elevator Modernization Market include the increasing demand for energy-efficient and smart elevators, government initiatives to promote modernization, and growing investments in infrastructure.

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