The controllers represent the most extensively modernized element in elevator upgrades, contributing significantly to the market with a share of 36.6% in 2016. In contrast, signaling fixtures are expected to experience the highest growth rate of 5.1%. This trend can be attributed to the pivotal role controllers play as the "brain" of the elevator system, managing speed, leveling, and overall operational smoothness. Signaling fixtures, which indicate the elevator's direction and floor level, tend to wear out more quickly, necessitating frequent replacements. Consequently, the market for both controllers and signaling fixtures is projected to expand considerably during the forecast period from 2017 to 2025.
One notable trend emerging in the elevator modernization sector is the adoption of destination-based elevators, particularly in commercial settings such as office buildings and shopping malls. These elevators are designed to minimize congestion around elevator doors during peak usage times. Additionally, the integration of Internet of Things (IoT) technology into elevator systems will enable better data collection and analysis, allowing operators and manufacturers to respond swiftly to any operational issues. Such advancements are expected to further stimulate demand in the elevator modernization market in the years ahead.
Our analysis categorizes the elevator modernization market based on type, component, and end-user. The type segment includes traction and hydraulic elevators. The component segment is divided into power units, cabin enclosures, controllers, signaling fixtures, door equipment, and other related components. The end-user segment encompasses various sectors, including industrial, residential, institutional, marine, commercial, and others. Geographically, the market is examined across North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).
Forecasts indicate that the global elevator modernization market will grow at a compound annual growth rate (CAGR) of 3.8% from 2017 to 2025, reaching an estimated value of US$ 14,386.2 million by 2025. This growth is largely driven by the increasing demand for efficient and smooth mobility solutions within buildings, a trend fueled by urbanization. Additionally, heightened safety concerns regarding elevators in high-rise structures are contributing to the market's expansion.
In terms of geography, Europe held the largest market share in 2016, primarily due to a surge in renovation projects across the region. Various governments are actively promoting the refurbishment of older buildings to accommodate high-rise structures, driven by safety considerations and the desire to attract foreign tourism and businesses. These reconstruction efforts are also motivated by initiatives aimed at creating safer, more sustainable infrastructure while reducing the costs associated with new construction. Such factors are expected to further enhance the demand for elevator modernization in Europe.
Key players in the global elevator modernization market include prominent companies such as United Technologies Corporation, KONE Corporation, Schindler Holding Ltd., ThyssenKrupp AG, Fujitec Co. Ltd., and Hitachi Ltd. Other significant market participants include Electra Elevators, Hyundai Elevators Co. Ltd., Mitsubishi Electric Corporation, and Toshiba International Corporation. These companies are at the forefront of innovation and modernization in the elevator industry, contributing to the overall growth and development of the market.