Elevator Modernization Market Report | Size and Share Analysis

Elevator Modernization Market to 2025 - Global Analysis and Forecasts by Type (Hydraulic and Traction); Component (Power Units, Cabin Enclosures, Controllers, Signalling Fixtures, Door Equipment and Others); and End User (Industrial, Residential Building, Institutional, Marine, Commercial and Others)

Publication Month : Dec 2017

  • Report Code : TIPTE100000619
  • Category : Electronics and Semiconductor
  • Status : Published
  • No. of Pages : 196
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The elevator modernization market was valued at US$ 10,640.0 million in 2017 and is projected to reach US$ 14,386.2 million by 2025; it is expected to grow at a CAGR of 3.8% during 2018–2025.


The 21st century has witnessed huge influx of population in the urban cities of developed and developing economies in search of better life. Higher standards of living, higher job opportunities, access to modern amenities and services are the few major factors that have contributed in the migration of rural population to the urban areas around the world. Developing economies witnessed a steady growth in the post-recession era and thus there was rise in the disposable incomes by consumers. As per the data from World Bank, currently 54% of the entire globe’s population resides in the urban areas while the remaining percentages are still residing in the rural areas. Hence, close to 4 billion of the world’s population houses in the urban areas piling up pressure on the infrastructures in the urban areas. As a result, density of population in these areas has reached unprecedented levels.

As urbanization has increased, there have been increasing demands for housing and infrastructure from the consumer segment. Also, the legacy and existing vertical transportation systems used in the commercial buildings, offices, malls and other public places have proven to be incapable of handling the current capacities. As a result, individuals have been facing longer waiting times in queues in the lobbies of commercial and public buildings. In a fast-moving era, waiting times is not desirable by any individual and results in losses for the person. Thus, the demand for a smoother, efficient and quicker vertical transportation system have led to modernization of elevators driving its adoptions. 

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Lucrative Regions for Elevator Modernization Market
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Market Insights–Elevator Modernization Market

Ageing Urban Infrastructure and Ageing Global Population Driving Elevator Replacement with Latest Technology

The global population in the year 2000 constituted of 11% people older than 60 years and the rate is expected to increase. As per the statistics, the percentage of old population would be doubled by the year 2050 and amount to 22% of the entire world population. This demographic change has increased the importance of accessibility in the buildings. Such changes present a challenge for town-planners, architects and the government regarding the urban infrastructure and accessibility in the buildings. Also, the era has changed when older generation preferred to stay at places offering fewer amenities and live a secluded life. The current older generation thinks of being rather more proactive and prefers staying in the same environment as the current youth. This integration has led building owners to look for good solutions for accessibility in the buildings. Apart from this, the urban infrastructure is also ageing in major cities of the world especially in North America and Europe. A large portion of the existing infrastructure is close to or more than 25 years old. In such a time frame, any kind of equipment wears down performance wise. Modern equipment in the old architecture adds value to the building and its owners. Also, it retains the heritage of the building upgrading it with the latest technology. Thus, the emotional aesthetics attached with any old building is maintained while the performance of vertical transportation system in it is upgraded.

Type Segment Insights

Based on type, the elevator modernization market is segmented into hydraulic and traction. Depending upon the factors such as type of building, number of floors, budget, and the level of modernization required in the elevator, decides the type of elevator required in the building. Both, Hydraulic and Traction elevators, have to carry people or various items to the different floors of the building and each elevator has a weight capacity. Modernization, partial or full, of these elevators are needed due to load carrying capacity shortages, long wait times due to slow speed, high power consumption, wear and tear of components, and new regulations. Both the elevator type has their advantages and disadvantages depending upon their usage.

Component Segment Insights

Based on vehicle type, the elevator modernization market is bifurcated into power units, cabin enclosures, controllers, signalling fixtures, door equipment and others. As the reconstructions in buildings, airports, and other infrastructure works is increasing, the demand for the modernization of the elevators is increasing. Several factors affect the modernization of the elevators, such as safety, convenience, increasing traffic, and others. Therefore, either the whole or the components of the elevator system are changed in order to meet the need of the client.

End User Segment Insights

Based on end users, the elevator modernization market is bifurcated into industrial, residential building, institutional, marine, commercial and others. Different building structure demands different elevator model. The elevator designs are tailor made and not generic in nature. The modernization of elevators depends upon the age of installed elevator, and as the need of the building. Elevators those are 15-20 years old requires modernization as maintenance may not be effective enough. Period of 1990s had seen a substantial growth in new development of commercial as well as residential building across all the countries. Most of the building today are upgrading and modernizing building infrastructure as per the requirement of the building type. The elevator traffic has changed as it was been before and the new government regulations demand the need to modernize the existing elevators.

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Elevator Modernization Market: Strategic Insights

elevator-modernization-market
Market Size Value inUS$ 10,640.0 Million in 2017
Market Size Value byUS$ 14,386.2 Million by 2025
Growth rateCAGR of 3.8% from 2018-2025
Forecast Period2018-2025
Base Year2018
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The market players focus on new product innovations and developments by integrating advanced technologies and features in their products to compete with the competitors.

2017:Otis’ connected IoT systems enable intelligent and predictive service to address maintenance issues before they occur. After receiving “health reports” from every elevator, the system will diagnose and determine the parts that need to be replaced. This information is then relayed to the OTISLINE customer service center automatically so that technicians can prepare the necessary tools and parts before servicing customers.
2017:The Company announced the implementation of 26 new elevators and escalators at the new Rinascente department store at Piazza del Tritone in Rome. These elevators will help to carry up to 90,000 people per hour.
2017:The Company announced the development in the existing elevator with the concept for its net-zero energy solution at Energy Efficiency Global Forum 2017. This concept is implemented via modernization, producing net-energy positive systems without replacing the entire elevator.

The Global Elevator Modernization Market has been Segmented as Follows:

Elevator Modernization Market – By Type

  • Hydraulic
  • Traction

Elevator Modernization Market – By Component

  • Power Units
  • Cabin Enclosures
  • Controllers
  • Signaling Fixtures
  • Door Equipment
  • Others

Elevator Modernization Market – By End-User

  • Industrial
  • Residential Building
  • Institutional
  • Marine
  • Commercial
  • Other

Elevator Modernization Market – by Geography

  • North America

    • US
    • Canada
    • Mexico
  • Europe

    • France
    • Germany
    • Italy
    • UK
    • Russia
    • Rest of Europe
  • Asia Pacific (APAC)

    • China
    • India
    • South Korea
    • Japan
    • Rest of APAC
  • Middle East & Africa (MEA)

    • South Africa
    • Rest of MEA
  • South America (SAM)

    • Brazil
    • Argentina
    • Rest of SAM  

Elevator Modernization Market – Companies Profiles

  • United Technologies Corporation
  • KONE Corporation
  • Schindler Holding Ltd.
  • ThyssenKrupp AG
  • Fujitec Co Ltd.
  • Hitachi Ltd.
  • Electra Elevators
  • Hyundai Elevator Co., Ltd
  • Mitsubishi Electric Corporation
  • Toshiba International Corporation
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Type ; Component ; and End User

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina

The List of Companies

1. KONE Corporation
2. United Technologies Corporation
3. Siemens AG
4. Schindler Holding Ltd.
5. Mitsubishi Electric Corporation
6. thyssenKrupp AG
7. Fujitec Co., Ltd.
8. Hitachi, Ltd.
9. HYUNDAIELEVATOR CO., LTD.
10. TOSHIBA CORPORATION.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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