The IoT in Elevators Market is projected to expand from US$ 1514.88 million in 2022 to US$ 2022.13 million by 2028, reflecting a compound annual growth rate (CAGR) of 4.9% during this period.
A report by the United Nations on Sustainable Cities, Human Mobility, and International Migration indicates a global trend of increasing migration from rural to urban areas. It forecasts that the urban population will rise from 55% in 2018 to 60% by 2030. Furthermore, the United Nations Department of Economic and Social Affairs (UN DESA) anticipates that by 2050, 68% of the global population will reside in urban settings, with India, China, and Nigeria experiencing the most significant growth. Notably, India is expected to contribute to 35% of the global urban population increase from 2018 to 2050, while China and Nigeria will add 255 million and 189 million urban residents, respectively. This urbanization trend is prompting both developing and developed nations to invest in new infrastructure projects, thereby increasing the demand for IoT solutions in elevators.
The global construction sector is witnessing remarkable growth, fueled by rapid urbanization, automation, and favorable economic conditions. Real estate developers and construction firms are integrating advanced technologies, including elevator automation in smart buildings, to maintain a competitive edge. These modern elevators equipped with IoT capabilities are designed to operate intelligently in real-time, communicate with service teams, lower maintenance expenses, and enable passengers to call elevators via mobile applications. The rising trend of automation in construction is significantly boosting the demand for smart and connected elevators, which in turn is propelling the IoT in elevators market. Companies are heavily investing in enhancing their IoT elevator offerings and launching innovative systems. For example, KONE Elevator India, in partnership with IBM Watson, has introduced the KONE DX Class Elevators and KONE Care 24x7 Connected Services in Pune, marking a significant advancement in IoT elevator technology.
The IoT in elevators market is segmented by component, application, and end-user. In terms of components, the market includes hardware, software, and services. Applications are categorized into preventive maintenance, remote monitoring, fault diagnosis and prediction, advanced reporting, and connectivity management. The end-user segmentation comprises residential, commercial, and industrial sectors. Geographically, the market is divided into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America.
Dubai's government has initiated the 'Smart Dubai 2021 Strategy' aimed at transforming the city into a smart, livable, and resilient urban area through ICT innovations across various sectors. Similarly, Saudi Arabia is launching smart city projects in ten cities, including Riyadh, Makkah, and Jeddah, as part of its Vision 2030 initiative. Additionally, the NEOM Company is developing 'THE LINE,' a 170km linear project of hyper-connected AI-enabled communities powered entirely by clean energy, with a government investment of US$ 500 million. These governmental efforts to create smart cities are anticipated to significantly boost the IoT in elevators market.
The International Energy Agency (IEA) forecasts a 4% increase in global electricity demand in 2022, driven by economic recovery. To foster green sustainability, numerous governments are implementing stringent measures to minimize carbon emissions, with Europe making substantial investments in innovative energy technologies such as solar energy and energy-efficient products. Large buildings require predictive analytics, continuous optimization, demand response, automated control, and enterprise integration, while smaller buildings benefit from historical billing analysis and retrofit suggestions. The integration of IoT in buildings can automate operations such as security, fire safety, air conditioning, and ventilation, enhancing building intelligence. Consequently, IoT-enabled elevators are gaining traction in smart buildings. Government initiatives are encouraging construction contractors to adopt energy-efficient solutions, creating lucrative opportunities for key players in the IoT in elevators market.
Key players in the Asia Pacific IoT in elevators market include OTIS, Schindler Group, KONE Corporation, Hyundai Elevator Co., Ltd., and Fujitec. The ongoing strategic initiatives and investments in product development are expected to drive the growth of the IoT in elevators market in the near future.
Impact of COVID-19 Pandemic on MEA IoT in Elevators Market
Countries in the MEA region, including Turkey, Iran, Iraq, Israel, Saudi Arabia, and the UAE, have faced significant challenges due to the COVID-19 pandemic. Despite these challenges, these nations continue to adopt transformative technologies across various sectors, particularly in construction and electronics. However, the pandemic has led to a decline in demand for construction equipment and has stalled construction activities due to government restrictions. Additionally, raw material shortages have impacted IoT elevator manufacturers, resulting in decreased production activities that have adversely affected sectors such as data centers, automotive, and telecommunications. The pandemic has also slowed the adoption of IoT devices, AI, and cloud platforms in construction during the initial post-2020 period, hindering the progress of smart city and infrastructure projects. The closure of production facilities has further disrupted business operations in these countries.
The size of the IoT in elevators market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data relevant to market analysis. This approach provided a comprehensive overview and forecast of the IoT in elevators market across all segments. To validate the findings and gain deeper analytical insights, multiple primary interviews were conducted with industry stakeholders, including VPs, business development managers, and market intelligence professionals, as well as external consultants specializing in the IoT in elevators market.