The IoT in Elevators Market is expected to grow from US$ 1514.88 million in 2022 to US$ 2022.13 million by 2028; it is estimated to grow at a CAGR of 4.9% from 2022 to 2028.
According to a report on Sustainable Cities, Human Mobility, and International Migration by the United Nations, the annual migration of people from rural to urban areas is on the rise worldwide. The report suggests that the percentage of the world's population living in cities is expected to increase from 55% in 2018 to 60% by 2030. The United Nations Department of Economic and Social Affairs (UN DESA) predicts that the percentage of the world's population living in urban areas will rise to 68% by 2050, with India, China, and Nigeria experiencing the highest increase in the urban population. India, in particular, is expected to account for 35% of the projected growth of the world's urban population between 2018 and 2050, with China and Nigeria following closely behind with 255 million and 189 million urban dwellers, respectively. As a result, many developing and developed economies are investing in new infrastructure projects to accommodate this trend. Consequently, there will be a growing demand for IoT in elevators in the coming years due to rising urbanization.
The construction industry is experiencing a significant surge in growth globally, driven by rapid urbanization, automation, and improving economic conditions. Real estate developers and construction companies are incorporating advanced technology features, including elevator automation in smart connected buildings to stay competitive. These modern elevators with IoT capabilities are designed to respond intelligently in real-time, communicate with service teams, reduce maintenance costs, and allow passengers to use mobile apps to summon elevators. The increasing adoption of automation in construction is driving the demand for smart and connected elevators, leading to growth in the IoT in elevators market. Companies invested heavily in developing their IoT elevator product and service portfolios and introducing advanced systems. For instance, in collaboration with IBM Watson, KONE Elevator India recently launched the world's first digitally connected elevator class, the KONE DX Class Elevators, and KONE Care 24x7 Connected Services in Pune, India. These initiatives by elevator companies to develop IoT technology are contributing to the expansion of the IoT in elevators market.
The IoT in elevators market is categorized based on component, application, and end-user. On the basis of component, the market is segmented into hardware, software, and services. Based on application, the market is further classified into preventive maintenance, remote monitoring, fault diagnosis and prediction, advanced reporting, and connectivity management. The IoT in elevators market, by end-user, is segmented into residential, commercial, and industrial. By geography, the IoT in elevators market is primarily segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America.
The government of Dubai has launched the 'Smart Dubai 2021 Strategy' to transform the city into a smart, livable, and resilient one through ICT innovations in various key areas. Similarly, Saudi Arabia has also planned to start the smart city project in 10 cities, including Riyadh, Makkah, Jeddah, AI-Madinah, and AI-Ahsa as part of its Vision 2030. In addition, the NEOM Company has announced the development of 'THE LINE,' a 170km linear development of hyper-connected AI-enabled communities powered by 100% clean energy with an investment of US$ 500 million from the government. These initiatives by governments to develop smart cities are expected to drive the growth of the IoT in elevators market.
The International Energy Agency (IEA) predicts a 4% growth in global electricity demand in 2022 due to economic recovery. To promote green sustainability, many governments worldwide are taking strict measures to reduce their carbon footprints, with Europe investing a significant amount in novel energy technologies like solar installations and energy-efficient products and services. Large buildings require predictive analytics, continuous optimization, demand response, automated control, and enterprise integration, while small buildings need historical billing analysis, incentive availability, and educational and retrofit suggestions. Integrating IoT with buildings can automate and control building operations like security, fire and safety, air conditioning, and ventilation, making buildings intelligent. As a result, IoT-based elevators are becoming increasingly popular in intelligent buildings. The government's initiatives and schemes are compelling building construction contractors to use energy-efficient products and services, presenting profitable opportunities for key players in the IoT in elevators market.
OTIS; Schindler Group; KONE Corporation; Hyundai Elevator Co., Ltd.; and Fujitec are among the major companies operating in the Asia Pacific IoT in elevators market. The increasing strategic initiatives and investments in new product developments would propel the growth of the IoT in elevators market in the coming years.
Impact of COVID-19 Pandemic on MEA IoT in Elevators Market
MEA countries such as Turkey, Iran, Iraq, Israel, Saudi Arabia, and the UAE have been significantly affected by the COVID-19 pandemic. Despite the pandemic, these countries are still implementing transformative technologies in various industries, particularly in construction and semiconductor & electronic industries. However, the pandemic has caused a decline in demand for construction equipment and halted construction activities due to government restrictions. The shortage of raw materials has also affected IoT in elevator manufacturers, leading to reduced manufacturing activities that negatively impacted data center, automotive, and telecommunication industries. Additionally, there has been a slowdown in the adoption of IoT devices, AI, and cloud platforms in the construction industry during the first half of the post-2020 pandemic period, hindering the completion of smart cities and smart infrastructure projects. The pandemic has resulted in the closure of production facilities, affecting the business dynamics of these countries.
The IoT in elevators market size has been determined using a combination of primary and secondary sources. The research process began with a thorough secondary research effort using both internal and external sources to obtain qualitative and quantitative information related to the market analysis. This process served the purpose of obtaining a comprehensive overview and market forecast of the IoT in elevators market size across all market segments. To validate the data and gain further analytical insights, multiple primary interviews were conducted with industry participants and commentators. These participants included industry experts, such as VPs, business development managers, and market intelligence managers, as well as external consultants, including valuation experts, research analysts, and key opinion leaders, who specialize in the IoT in elevators market.