The global elevator control market size was valued at USD 7,360 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 7.1% from 2022 to 2030. The global elevator control market is expected to grow at a strong rate during the forecast period. The market is driven by the rise in the number of commercial and residential buildings, particularly in emerging economies. The market for elevators is also expected to expand at a higher rate, due to the increasing need to provide efficient people mobility solutions in high-rise constructions.
Global Elevator Control Market: Regional Insights
Among regions, North America is anticipated to witness substantial growth in the global elevator control market during the forecast period. The growth of this region is due to increasing number of residential and commercial buildings integrated with smart and automated technologies in the region. These buildings with the use of IoT, pervasive wireless connectivity, machine learning technologies, and artificial intelligence, are producing data that is useful for improvement of sustainability and efficiency. Thus, the number of such buildings will increase across the region in the near future, which in turn will drive growth of the market.
Asia Pacific is projected to witness strong growth in the global elevator control market during the forecast period, owing to strong presence of multinational companies in the region. These companies offer several opportunities in the developing markets in terms of reduce cost of labor and in terms of infrastructure. Moreover, emerging novel economics and rise in focus on industrialization across the region is also supporting growth of the market during the forecast period.
Figure 1: Global Elevator Control Market Share (%), By Region, 2021
Global Elevator Control Market Drivers:
Increasing implementation of advanced technologies in control systems to boost the market growth
The elevator control systems have witnessed rapid development, with the growing number of high-rise buildings, and the designs of these systems continue to improve. Manufacturers are increasingly implementing advanced technologies in control systems. Moreover, advanced technologies such as IoT, artificial intelligence, and smart sensors, among others are widely adopted, as these technologies help in reduction of energy consumption, control traffic or congestion conveniently and effectively, and in improving the safety of the elevators. Thus, implantation of such technologies in control systems is driving growth of the market.
Growing investment in building infrastructure to propel the market growth
The rise in investment in allied infrastructure to achieve sustainability and it is concerned majorly with the increasing urbanization around the world. For instance, in October 2020, the International Monetary Fund (IMF), suggested member governments to seize the low-interest rate opportunity for investment in infrastructure to boost the recovery from the Covid-19 pandemic and to turn to greener energy. Moreover, increasing number of infrastructure is also driving growth of the global elevator control market during the forecast period.
Global Elevator Control Market Opportunities:
Growing urbanization around the globe is creating growth opportunities in the global elevator control market. For instance, as per the United Nations Department of Economic and Social Affairs data, the rate of urbanization across the globe is likely to increase to 68.4% in 2050 from 53.9% in 2015. Such urban centers have become important drivers for regional and national economic growth. Thus, increasing global urbanization is creating growth opportunities in the market.
Furthermore, advent of Covid-19 pandemic is creating lucrative environment for growth opportunities in the global elevator control market. During the pandemic, several facilities issues priority list, which included the use of elevators. Due to this the adoption of touchless technology in multi-story buildings for stimulating safe physical interaction among visitors in the public spaces of buildings is increasing around the world. Thus, demand for advanced elevator control components and assembly is likely to grow in the future, which in turn will create growth opportunities in the market.
Elevator Control Market Report Coverage
|Base Year:||2021||Market Size in 2021:||US$ 7,360 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2022 to 2030|
|Forecast Period 2022 to 2030 CAGR:||7.1%||2030 Value Projection:||US$ 12,465 Mn|
SICK AG, Hitachi Ltd., Honeywell International Inc., Hyundai Elevator Co. Ltd., Nidec MCE, Toshiba Elevators and Building Systems, Thames Valley Controls, and Mitsubishi Electric
|Restraints & Challenges:||
Global Elevator Control Market Trends:
Rise in modernization of infrastructure is a growing trend
Along with the rise in modernization of infrastructure, the requirement for elevators is becoming necessary in buildings. However, along with the increasing number of elevators in buildings, the number of people who use elevators is also growing significantly. Due to this there is high traffic or congestion, which further increases wait times. Thus, the requirement of integrating these elevators with control systems equipped with technologies such as artificial intelligence, machine learning, and IoT among others to facilitate seamless vertical mobility in buildings. Thus, this trend is likely to boost growth of the market during the forecast period.
Rising focus of market players on strategic acquisitions and collaborations is trending in the market
Key players in the market are focusing on inorganic growth opportunities, which is expected to augment growth of the global elevator control market during the forecast period. For instance, in July 2021, TK Elevator entered into an agreement for acquisition of City Elevator, a provider of elevator service and maintenance in the Metro Vancouver area. This acquisition could help the company to expand its market presence based on the rising requirements of urbanization in the region. Thus, similar activities are likely to support growth of the market over the forecast period.
Global Elevator Control Market Restraints:
High initial investment cost to hamper the market growth
The growth of the global elevator control market is challenged by the high cost of investment required in the elevator control systems. Due to the need for skilled technical consultants for integrating and installing elevator control systems, the total cost of investment in elevator control market increases. Moreover, the cost of manufacturing of these systems is also high, which further reflects on higher actual cost of these systems in the market. Thus, this factor is hampering the market growth. However, due to the introduction of technologies such as gearless motor operations and VF drivers (inverters), the cost of elevator control systems has declined. And this is anticipated to support the market growth.
Slowdown of global economy to challenge growth of the market
The economic indicators and the growth of the construction industry are directly interlinked. Any type of slowdown, a sudden pandemic outbreak, or recession can adversely impact growth of the construction industry, which in turn adversely impacts the demand for elevators. In 2020, due to slowdown of global economy, the smart elevator market was negatively impacted. The investment potentials of several countries was lowered due to the pandemic in major sectors such as construction and infrastructure. This factor is likely to impede growth of the market in the near future.
Figure 2: Global Elevator Control Market Share (%), By Application, 2021
Global Elevator Control Market Segmentation:
The global elevator control market report is segmented into Application and Region.
Based on Application, the market is segmented into Residential and Commercial. Out of which, Residential is expected to dominate the global market over the forecast period and this is attributed to the growing urbanization all over the world, leading to high demand for development of smart buildings and modern living. As per the Population Reference Bureau, in mid-2020, the rate of urbanization across the globe was 56%.
Commercial segment is also expected to witness significant growth in the near future and this is owing to the increasing spending in construction industry around the world. Moreover, the growing trend of development of infrastructure that are energy conserving, in commercial regions is also driving growth of the segment. For instance, as per the World Bank data, the spending of construction industry in likely to increase US$ 17.1 trillion by 2030.
Global Elevator Control Market: Key Developments
In April 2021, Hyundai Elevator Co. Ltd. completed a smart campus having various facilities, including a smart factory that can produce 25,000 units annually, an R&D center, towers for testing ultra-high speed observation elevators, an office building, a welfare building, and a customer care center for real-time monitoring as well as maintenance of the elevators, in the Jinshan Industrial Park in Shanghai, China.
In July 2021, Hyundai Elevator entered into collaboration with Woowa Brothers for the development of products as well as services synchronizing robots and elevators. Under this collaboration, the companies will be focusing on developing services required in different sites such as hotels, apartments, commercial facilities, and offices.
In March 2021, Mitsubishi Electric Corporation revealed that its subsidiary, Mitsubishi Elevator (Thailand) Co. Ltd. (MET), received an order from One Bangkok project. This order primarily consists nearly 250 elevator, which includes 12 double-deck elevators, 28 escalators, in toral 278 units.
In April 2021, Mitsubishi Elevator India Private Limited secured a big order of supplying elevators to the Commerzone Madhapur and Altimus luxury complexes owned by K RAHEJA CORP, who is a prominent developer in India. This major order consists of 72 elevators, which also includes 37 high-speed models.
Global Elevator Control Market: Key Companies Insights
The global elevator control market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.
Some of the key players in the global elevator control market are SICK AG, Hitachi Ltd., Honeywell International Inc., Hyundai Elevator Co. Ltd., Nidec MCE, Toshiba Elevators and Building Systems, Thames Valley Controls, and Mitsubishi Electric
Elevator Control systems are the devices that control the functions and services of an elevator. They use a number of electronic boards, sensors and actuators to regulate the operation of the elevator. The elevator control system includes the load bell, emergency bell, and various buttons.
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