The Elevator Components Market is evolving by growing adoption of energy-efficient products

The elevator components market comprises a wide range of components that aid in smooth and efficient functioning of elevators. Products such as controllers, door equipment, lifting mechanisms, and signal fixtures play a crucial role in passenger and freight transportation within tall residential and commercial buildings. Reliable and advanced components enable smooth ride quality, enhanced safety, and optimized energy efficiency of elevators. Rising needs for accessibility across multifloor structures have catalyzed the demand for technologically sophisticated elevator components in recent years.

The Global Elevator Components Market is estimated to be valued at USD 48.1 Bn in 2024 and is expected to reach USD 118.4 Bn by 2031, growing at a compound annual growth rate (CAGR) of 11.9% from 2024 to 2031.

Key Takeaways

Key players operating in the Elevator Components are Otis Elevator Company, Schindler Group, ThyssenKrupp AG, Kone Corporation, Hitachi Ltd.

Growing urbanization and construction of smart cities across emerging nations have boosted the installation of Elevator Components Market  in residential, commercial, and industrial complexes. Expanding real estate and infrastructure development spending is propelling the demand for elevator components.

Several manufacturers are expanding their geographic footprint through strategic partnerships and acquisitions to leverage growth opportunities in developing markets such as Asia Pacific and Latin America. For instance, Schindler Group acquired direct control of its operations in China in 2021 to strengthen its position in the biggest lifts and escalators market.

Market key trends

One of the key trends within the elevator components market is the growing adoption of energy-efficient products. With escalating energy costs and emphasis on sustainability, manufacturers are focusing on developing components such as drives, motors, and controllers that consume less power. For example, Otis has introduced the Gen2 machine room-less traction elevators featuring permanent magnet gearless machines and motorized roping that provide 30% savings in energy compared to conventional systems.

Another notable trend is the integration of IoT and AI technology. Major players are innovating 'smart elevator' solutions equipped with IoT connectivity, condition monitoring, predictive maintenance, and touchless interactions. For instance, ThyssenKrupp has developed the Multi and MAX platform featuring IoT-enabled components that continuously monitor performance and enable remote diagnostics and service. Such innovations are expected to support the ongoing modernization of existing elevator assets.

Porter's Analysis

Threat of new entrants: The high capital requirement to establish manufacturing facilities and dealership networks pose barriers for new players. Existing players have established brand names and distribution channels.

Bargaining power of buyers: There are several established players in the market supplying quality elevator components. Buyers have fair bargaining power due to availability of substitutes. The after-sales service and installation support determine purchase decisions.

Bargaining power of suppliers: Major components like door panels, elevator cars, and signaling equipment require specialized engineering and process know-how. Established suppliers have strong negotiation power due to their technical expertise and economies of scale.

Threat of new substitutes: Escalators and moving walkways are functional substitutes for short-distance commutation. Advancements in material science may reduce component replacement needs.

Competitive rivalry: Leading players differentiate through technology, customization, and service offerings. Localization strategies and strategic partnerships aid geographic expansion. Pricing pressure exists from low-cost suppliers.

Geographical Regions

The elevator component market is concentrated in Asia Pacific and Europe due to growing construction spending in China, India, and Central and Eastern Europe. Modernization of aging infrastructure also drives the Asian market.

North America, being an early adopter, contributes over 25% currently. Growing high-rise construction in Latin American urban centers makes it the fastest growing regional market over the forecast period. Public investment in metro projectsaugurs well for elevator components demand in Brazil, Mexico, and Colombia.

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 Author Bio:

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)