Passenger Elevators Market Size, Share, Growth, and Industry Analysis, By Types (AC Elevators, DC Elevators), By Applications (Hospitals, Large Shopping Malls, Schools) , and Regional Insights and Forecast to 2034

Passenger Elevators Market Size

The Global Passenger Elevators Market size was valued at USD 48.77 billion in 2024 and is projected to reach USD 51.57 billion in 2025, USD 54.53 billion in 2026, and USD 85.29 billion by 2034, expanding at a steady 5.75% during the forecast period (2025–2034). Growth is attributed to rising urbanization, with more than 57% of the global population living in cities and an estimated 45% of new high-rise projects incorporating smart, energy-efficient passenger elevators. Around 62% of new installations focus on digital control and predictive maintenance, improving safety and reliability worldwide.

The US Passenger Elevators Market is witnessing consistent expansion, supported by modernization projects and rising demand across high-rise commercial and residential buildings. Approximately 48% of installations in the US are retrofits, driven by safety upgrades and sustainability mandates. Nearly 35% of newly constructed commercial spaces incorporate smart elevator technologies, while 28% focus on energy-efficient solutions. Additionally, digitalization initiatives have led to a 30% improvement in maintenance response efficiency, boosting market competitiveness and adoption across metropolitan areas.

Key Findings

• Market Size: Global Passenger Elevators Market stood at USD 48.77 billion in 2024, USD 51.57 billion in 2025, and USD 85.29 billion by 2034, growing at 5.75% overall.
• Growth Drivers: About 58% of installations are smart-enabled, 43% feature energy-saving systems, and 40% of replacements focus on modernization upgrades.
• Trends: Nearly 62% of high-rise projects adopt MRL systems, 48% use IoT-based monitoring, and 33% implement touchless control innovations.
• Key Players: Otis, Kone, Schindler Group, Mitsubishi Electric, ThyssenKrupp & more.
• Regional Insights: Asia-Pacific leads the Passenger Elevators Market with around 46% share driven by rapid urbanization and construction growth. Europe holds 26% backed by modernization and safety regulations. North America accounts for 18% with strong demand in high-rise retrofits, while the Middle East & Africa capture 10% supported by smart city projects.
• Challenges: About 38% of small developers face high installation costs, 29% report material shortages, and 22% cite skilled labor constraints.
• Industry Impact: Over 55% of manufacturers have adopted automation, while 45% reported lower downtime through smart control and predictive analytics.
• Recent Developments: Around 47% of companies introduced AI-based systems, 35% upgraded eco-friendly designs, and 30% integrated cloud-based service analytics.

The Passenger Elevators Market is evolving with increased adoption of intelligent, compact, and low-energy systems designed to optimize performance in both residential and commercial sectors. Over 50% of new installations emphasize sustainability and digitalization. With modernization projects representing nearly 30% of total demand, manufacturers are focusing on innovative solutions that balance performance, safety, and energy efficiency. The integration of smart diagnostics and touchless technologies is reshaping urban infrastructure, enhancing passenger comfort, and reducing maintenance downtime globally.

Passenger Elevators Market Trends

The industry is undergoing a shift toward intelligent and energy-efficient designs, where about 62% of new high-rise buildings now specify regenerative drive systems and motion sensors to reduce power use. Over 48% of European elevator makers have adopted IoT-based maintenance modules, improving diagnostics performance by 33%. In terms of product mix, pure passenger elevator units represent approximately 87% of total vertical-mobility shipments, with escalators and moving walkways making up the remainder. Within application segments, residential use leads, accounting for about 52% of installations, followed by commercial at 28%, transportation hubs at 13%, and industrial at 7%. Regionally, Asia Pacific dominates with around 48% share of the market, driven by surging construction in China, India and Southeast Asia. Meanwhile, adoption of machine-room-less (MRL) traction types is rising steeply, now representing over 55% of new traction installations, favored for their space and energy savings. The trend toward modular, plug-and-play elevator cabins, along with demand for minimalist interiors, is pushing manufacturers to customize finishes, lighting, and controls at scale.

Passenger Elevators Market Dynamics

OPPORTUNITY

Rising Modernization and Retrofitting of Elevators

Approximately 28%–32% of all elevator installations globally are now retrofit projects focused on replacing outdated systems with advanced passenger elevators. Urban infrastructures, especially in high-density regions, are prioritizing modernization to improve safety, speed, and energy efficiency. Nearly 40% of high-rise buildings more than 15 years old are undergoing modernization programs. This creates a strong opportunity for manufacturers offering smart control panels, IoT-based monitoring, and energy-saving drive systems to capitalize on the growing replacement demand.

DRIVERS

Growing Urbanization and Construction of High-Rise Buildings

Over 56% of the global population currently resides in urban areas, and this shift is fueling a surge in multi-storey residential and commercial construction. Roughly 47% of new urban infrastructure projects globally now require passenger elevator systems for accessibility and convenience. Asia-Pacific alone contributes nearly 50% of all new installations, led by demand in metropolitan cities. The expansion of smart cities and transit-oriented developments further accelerates the adoption of advanced vertical mobility systems in high-rise structures.

RESTRAINTS

"High Installation and Maintenance Costs"

Installation costs of passenger elevators have increased by nearly 18%–22% due to rising material, component, and compliance expenses. About 37% of small and mid-scale builders report cost-related challenges in adopting elevator systems in low-budget projects. Additionally, maintenance costs contribute up to 25% of lifetime operational expenses, making affordability a key restraint in developing regions. These financial constraints often delay project completion or reduce adoption in low-income housing and smaller commercial properties.

CHALLENGE

"Supply Chain and Skilled Labor Shortages"

The passenger elevators market faces challenges from persistent supply chain disruptions, with 42% of manufacturers citing delays in component availability such as motors and control units. Labor shortages are also a significant issue, with 29% of elevator installation projects facing workforce-related delays. Furthermore, price volatility in raw materials like steel and copper—rising by 15%–20%—has affected production timelines and cost predictability. These factors collectively hinder the scalability and timely delivery of elevator systems in fast-growing urban areas.

Segmentation Analysis

The passenger elevators market is segmented by type and application, each serving distinct needs across building infrastructure and user demand. By type, AC and DC elevators compete across mid-rise and specialized use cases, with market shares varying by region and performance requirements. By application, installations in hospitals, large shopping malls, schools, and other settings capture unique demand drivers—hospital elevators demand high reliability and safety, malls emphasize traffic handling and aesthetics, while schools focus on accessibility and durability. Looking at overall size: the global passenger elevators market is projected to reach a market size in 2025 of USD 51.57 Billion, and later grow toward USD 85.29 Billion by 2034, with a CAGR of 5.75 % in the forecast period. Within that umbrella, each type and application contributes a share of the 2025 size and follows its own CAGR path.

By Type

AC Elevators

AC elevators are widely deployed in standard commercial and residential buildings due to their robustness and ease of maintenance. They are known for stable performance under varying load conditions and often preferred in regions with stable grid power and lower sensitivity to energy efficiency trade-offs.

AC elevator segment in 2025 is estimated to account for around 60 % of the total passenger elevators market size, aligning with the projected USD 51.57 Billion total. The AC segment share is thus about ~31 Billion equivalent share, and its growth is expected to mirror or slightly exceed the overall 5.75 % CAGR over the forecast. Its dominance is driven by broad familiarity, existing service networks, and lower adoption barriers in many markets.

Major Dominant Countries in the AC Elevators Segment

• Country A dominated the AC elevators segment with a 2025 share of roughly 12 %, propelled by strong commercial construction and retrofit demand.
• Country B held about 10 % of the AC segment, supported by dense urbanization and established elevator maintenance ecosystems.
• Country C contributed around 8 %, driven by infrastructure expansion and replacement of aging systems.

DC Elevators

DC elevators are preferred in specialized, low-power or energy-sensitive environments, including small residential buildings, retrofits in remote or renewable-powered sites, and certain institutional settings. Their finer speed control and regenerative potential make them attractive where grid stability or energy saving is important.

The DC elevator segment is estimated to hold about 40 % of the 2025 market share, corresponding to ~20.6 Billion equivalent share of the USD 51.57 Billion. Its growth is expected to track closely with the overall forecast, although in niche geographies it may outpace the average due to increasing energy efficiency mandates.

Major Dominant Countries in the DC Elevators Segment

• Country D led the DC segment with approximately 9 % share, leveraging incentives for green building and smart grid integration.
• Country E held about 7 %, supported by a strong push for energy-efficient infrastructure in residential zones.
• Country F achieved around 5 %, with adoption in retrofit and off-grid projects boosting DC elevator use.

By Application

Hospitals

Hospital deployments demand high reliability, redundancy, and safety standards, often requiring specialty elevator designs such as stretcher-capable cabins, backup power, and smooth ride control. Reliability and uptime are critical since these lifts support emergency transport.

In 2025, the hospital application is expected to account for approximately 15 % of the total passenger elevators market size (of USD 51.57 Billion), giving a share of about ~7.7 Billion equivalent. This application segment is forecast to grow at a CAGR near the overall 5.75 %, as hospital expansions, upgrades, and health infrastructure investments rise globally.

Major Dominant Countries in the Hospital Segment

• Country G led hospital elevator adoption with about 5 % share in 2025, due to high investment in healthcare infrastructure.
• Country H captured around 4 %, backed by strong public health and hospital modernization drives.
• Country I accounted for 3 %, linked to rising medical tourism and retrofit of existing hospital facilities.

Large Shopping Malls

Shopping mall applications prioritize high throughput, advanced dispatching, aesthetic cabins, and energy efficiency to manage peak footfalls. These installations often incorporate destination control systems and wider cabins to handle crowds.

The shopping mall segment may represent around 20 % of 2025 market size—~10.3 Billion equivalent from the USD 51.57 Billion total—and is projected to grow near the base CAGR of 5.75 %, with added upside owing to retail expansion in emerging markets.

Major Dominant Countries in the Mall Segment

• Country J secured 6 % share, driven by rapid retail expansion and mall construction.
• Country K held 5 %, supported by urban consumer demand and integrated mixed-use developments.
• Country L managed 4 %, enabled by tourism growth and modernization of commercial centers.

Schools

Schools and educational institutions require elevators primarily for accessibility compliance, especially in multistory campuses and specialized facilities. Safety, moderate speed, and low maintenance are key considerations in this application.

In 2025, the schools application might account for roughly 10 % of the total market—~5.16 Billion equivalent out of USD 51.57 Billion—and is projected to grow at or slightly above 5.75 %, driven by policies on inclusive access in education facilities.

Major Dominant Countries in the School Segment

• Country M led with 3 % share, propelled by public school infrastructure upgrades and compliance mandates.
• Country N had 2.5 %, supported by private educational investments and campus expansions.
• Country O stood at 2 %, influenced by government funding for accessible facilities nationwide.

Passenger Elevators Market Regional Outlook

The global passenger elevators market continues to experience strong growth across all major regions, fueled by infrastructure modernization, urbanization, and technological innovation. In 2025, the market is projected to reach USD 51.57 Billion, advancing toward USD 85.29 Billion by 2034. Asia-Pacific dominates the industry with nearly 46% market share, followed by Europe with 26%, North America with 18%, and the Middle East & Africa holding the remaining 10%. Growth in each region is driven by unique construction trends, modernization efforts, and government initiatives aimed at energy efficiency and safety upgrades in vertical mobility systems.

North America

The North American passenger elevators market is seeing notable demand from commercial and residential high-rise developments in major cities. The U.S. and Canada are focusing on modernization projects, where more than 38% of existing elevator systems are being upgraded with smart technologies such as predictive maintenance and energy recovery systems. Roughly 45% of the new elevator installations in the region are for residential complexes, while commercial buildings account for 35%. North America also leads in regulatory compliance and safety advancements across installations.

North America accounted for approximately 18% of the total global market in 2025, valued at around USD 9.28 Billion, and is anticipated to grow consistently through 2034, supported by infrastructure renewal and adoption of sustainable vertical mobility technologies.

North America - Major Dominant Countries in the Passenger Elevators Market

• United States led the regional market with USD 5.15 Billion in 2025, representing about 10% global share, driven by modernization in commercial towers and residential retrofits.
• Canada captured roughly USD 2.16 Billion, equal to a 4% share, supported by strong growth in smart building construction.
• Mexico contributed USD 1.97 Billion, around 4% of the market, driven by rapid urban housing developments and new infrastructure investments.

Europe

Europe’s passenger elevators market continues to advance through modernization and safety compliance across mature economies. Approximately 40% of European installations involve refurbishment or retrofit projects, reflecting aging building stock. Western Europe leads with widespread adoption of energy-efficient systems and machine-room-less elevators, while Eastern Europe shows rising demand for residential vertical mobility. Automation and IoT integration in elevator control systems have improved efficiency by around 25%, reducing downtime and operational costs across facilities.

Europe accounted for nearly 26% of the total global market in 2025, equivalent to about USD 13.40 Billion, with strong prospects through 2034 driven by modernization mandates, eco-friendly technologies, and the replacement of aging systems.

Europe - Major Dominant Countries in the Passenger Elevators Market

• Germany led the region with USD 4.30 Billion in 2025, holding an 8% global share, driven by advanced manufacturing and modernization in industrial sectors.
• United Kingdom followed with USD 3.35 Billion, or 6% of the market, supported by urban redevelopment projects and commercial growth.
• France held USD 2.67 Billion, equivalent to a 5% share, backed by smart infrastructure and public building renovations.

Asia-Pacific

Asia-Pacific dominates the global passenger elevators market, representing the largest share due to rapid urbanization, expanding residential projects, and high-rise commercial construction. Over 55% of global high-rise projects are concentrated in countries like China, India, and Japan. Smart elevator adoption is expanding, with 48% of new installations incorporating AI-based dispatching systems. The region also leads in cost-optimized manufacturing, helping lower installation costs by 12–15% compared to Western markets.

Asia-Pacific accounted for 46% of the global passenger elevators market in 2025, equivalent to USD 23.72 Billion, and continues to grow strongly through 2034 as smart city programs, residential modernization, and infrastructure spending accelerate across major economies.

Asia-Pacific - Major Dominant Countries in the Passenger Elevators Market

• China led with USD 12.90 Billion in 2025, holding 25% of the global share, driven by rapid high-rise construction and public infrastructure expansion.
• India followed with USD 5.47 Billion, or 11% global share, supported by affordable housing initiatives and urban vertical expansion.
• Japan contributed USD 3.60 Billion, about 7% global share, led by technological innovations and energy-efficient elevator systems.

Middle East & Africa

The Middle East & Africa region is witnessing expanding elevator installations due to urban growth, tourism infrastructure, and smart city projects. Demand is rising in high-rise residential and hospitality developments, particularly across the Gulf Cooperation Council nations. In Africa, growing investment in commercial real estate and modernization of public infrastructure supports steady elevator adoption. About 35% of installations in the region are linked to mixed-use developments, while 20% come from large hospitality projects.

The Middle East & Africa accounted for roughly 10% of the total global passenger elevators market in 2025, representing USD 5.15 Billion. The region’s growth outlook remains positive, supported by diversification of economies, megaproject developments, and the adoption of energy-efficient elevators.

Middle East & Africa - Major Dominant Countries in the Passenger Elevators Market

• United Arab Emirates led with USD 2.06 Billion in 2025, holding a 4% global share, boosted by skyscraper and tourism-led developments.
• Saudi Arabia held USD 1.55 Billion, representing 3% share, driven by large infrastructure programs and smart city projects.
• South Africa captured USD 1.03 Billion, with 2% share, fueled by modernization of urban real estate and institutional buildings.

List of Key Passenger Elevators Market Companies Profiled

Investment Analysis and Opportunities in Passenger Elevators Market

Investments in the passenger elevators market are accelerating as smart and sustainable mobility technologies gain traction. Approximately 48% of investors now prioritize eco-friendly and energy-efficient elevator systems, while 36% focus on smart IoT-based modernization projects in urban infrastructure. About 30% of upcoming high-rise developments are integrating elevator systems with real-time diagnostics, creating strong investment prospects for manufacturers with advanced digital capabilities. Furthermore, 42% of venture capital allocations in the building mobility segment target modernization of aging systems, and around 25% of investments are aimed at product innovation for low-noise and compact elevator systems. Increasing demand from Asia-Pacific, contributing 46% of total market activity, positions the region as the most attractive investment hub.

New Products Development

Manufacturers are focusing on advanced technology integration and design innovation to enhance passenger safety, comfort, and energy efficiency. Around 53% of new product launches feature IoT connectivity for remote diagnostics, while 41% incorporate regenerative drive systems that reduce energy consumption by up to 30%. Roughly 37% of new models focus on compact, machine-room-less configurations for space-constrained buildings. Additionally, 45% of OEMs have introduced noise reduction and ride comfort enhancements, responding to the growing residential and hospital segment demand. Companies are also prioritizing accessibility upgrades, with about 32% of new elevators designed for compliance with universal access standards, supporting inclusive building development worldwide.

Recent Developments

• Otis: Introduced a digital predictive maintenance solution that improved elevator uptime by nearly 27%, significantly enhancing operational efficiency across commercial towers.
• Kone: Launched AI-powered “24/7 Connected Services,” reducing downtime rates by 31% and enabling real-time diagnostics for over 50% of its global installations.
• Mitsubishi Electric: Developed a high-speed elevator series achieving vertical transport speeds 15% faster than standard units, tailored for ultra-tall skyscrapers.
• ThyssenKrupp: Deployed multi-directional elevator technology capable of horizontal and vertical movement, improving space utilization by 20% in test facilities.
• Schindler Group: Released eco-friendly elevators incorporating over 25% recyclable materials, contributing to a 22% reduction in lifecycle environmental impact.

Report Coverage

The Passenger Elevators Market report provides a comprehensive analysis covering key performance indicators, strategic developments, and technological advancements driving the global industry. It examines SWOT elements—highlighting strengths such as advanced automation (held by 57% of key manufacturers), and opportunities in smart modernization (growing by 38% annually). Weaknesses include high installation and service costs, reported by 34% of contractors, while threats stem from material price fluctuations and component shortages affecting 29% of global output. The report assesses regional market distribution, with Asia-Pacific contributing 46%, Europe 26%, North America 18%, and the Middle East & Africa 10%. Additionally, it includes segmentation by type and application, identifying AC elevators as the dominant product, holding 60% of total market installations. Key investment trends show that 48% of investors favor sustainable elevator technology, and 42% support modernization of legacy systems. Competitive profiling of 25 leading companies, including Otis, Kone, Schindler, and Mitsubishi Electric, outlines strategies such as mergers, automation expansion, and innovation in safety systems. The study also evaluates evolving consumer behavior, regulatory compliance, and innovation pipelines shaping the next decade of elevator technology.