Home Elevators Market - Global Outlook & Forecast 2023-2028

MARKET INSIGHTS

The global home elevators market was valued at USD 7.02 billion in 2022 and is expected to reach USD 10.91 billion by 2028, growing at a CAGR of 7.62%. Elevators are flexible and easy to use, take less time, and make transporting big and bulky items easier. They also benefit children and the elderly who face difficulties while climbing stairs. An elevator installed in a residential area provides convenience and luxury. Home elevators have a variety of appealing features, such as safety, emergency light and alarm, slack chain, battery backup, hoistway and door interlocks, emergency stop switch, upper landing hatch cover with safety sensors, and more, which can be offered to a potential buyer as a benefit.

The growing aging population is one of today's most significant social and demographic transformations. While general mobility is taken care of, vertical mobility or movement between floor levels is often difficult for them as stairs and escalators are not mobility-friendly for this community. Therefore, home elevators are great mobility equipment for this sector, enabling them to travel between floors effectively. Such factors have positively propelled the growth of the home elevator market.

The growing investments and the rapid expansion of the manufacturing sector across the region offer promising growth opportunities to the vendors in the North American home elevators market. The presence of innovative companies in the region is reshaping the technological aspects of the elevator sector. It has also helped bring out the latest equipment to the public domain while developing an early adopter mentality among consumers. The intense market competition and the demand for high-quality goods at competitive prices have compelled elevator manufacturers to offer IoT-based predictive maintenance features. 

MARKET TRENDS & DRIVERS

Rising Demand for Smart Elevators
The advent of smart cities, IoT, and increasingly connected devices have played a key role in transforming the home elevators market. Major manufacturers such as Otis Elevator, Schindler, KONE, and TK Elevator have already unveiled smart elevators that leverage the power of cloud and connected technologies to deliver optimal performance and power efficiency. In addition to better ride quality, IoT-enabled elevators have improved performance, helped to understand the amount of use by evaluating data, and helped in power optimization.

Rising Ageing Population
Globally, every country is experiencing a growth in the older population. The aging population is expected to impact the next generation of product design significantly. Vendors in the home elevators market are investing more in R&D to design products that fulfill the needs of the new cohort. The new product lines are expected to impact the end-user segment, such as labor and financial market, housing, transportation and social protection, and demand for goods and services. Additionally, the prevalence of lifestyle-related diseases, such as obesity and osteoarthritis, are expected to become more prevalent among individuals, thereby increasing their demand for convenient technology, which offers ease and flexibility in moving.

INDUSTRY RESTRAINTS

High Maintenance and Installation Costs
The installation cost is usually included by most of the vendors; however, installation costs widely vary depending on the elevator's location, shaft requirement, type of elevator, and number of floors in the building, among others. Moreover, installation of shaftless elevators is comparatively less expensive than those requiring a shaft, i.e., installation of a shaftless elevator takes around two to three days to install. In contrast, an elevator with a shaft may take up to three to four weeks, amounting to high labor costs.

SEGMENTATION INSIGHTS

INSIGHTS BY TYPE
The traction type segment held the largest global home elevators market share in 2022. Traction elevators use pulleys and ropes to move up and down the elevator car. Compared to hydraulic elevators, traction elevators use less energy, ride smoother, and serve mid to high-rise buildings. Cab traction elevators use a counterweight to offset the occupants' weight. In these elevators, motors do not have to move as much weight, making them more energy-efficient than hydraulic systems. Further, MRL elevators are modern traction lift systems that use electric hoisting machines at the top of the elevator shaft to raise the elevator car. The Machine-Room-Less (MRL) elevators are increasingly popular as they are energy efficient, require less space, and effectively satisfy buildings' travel and speed requirements.

INSIGHTS BY APPLICATION
The global home elevators market by application segments as passengers and freight. The passenger segment is expected to be the largest revenue segment of the global industry. The passenger elevator's major function is to carry people to different floors in a residence. These elevators are easy to fit in any area and require less space. Additional advantages of passenger elevators are that they’re an economical or cost-effective solution for convenience needs. The major parameter describing this type of lift is the load in kg, which is closely linked to the number of people and the cabin's surface.

INSIGHTS BY DOOR SYSTEMS
The automatic segment is expected to be the largest revenue segment of the global home elevators market based on door systems. Automatic doors in elevators are automatically operated using various sensors, such as infrared and photoelectric sensors. Infrared doors work by detecting temperature changes. Automatic units have applications in various places, such as luxury residential housing. Factors such as energy saving, ease of operation, maintaining security, being fast and accurate, cable-free, and others fuel the demand. Heavy government investments in construction and the growth of the residential sectors create future opportunities.

GEOGRAPHICAL ANALYSIS

APAC dominated the global home elevators market in 2022 and is expected to continue its dominance during the forecast period, owing to the growing adoption in the residential sector and the presence of global home elevator manufacturers. In 2022, China, India, and South Korea were the major revenue contributors to the growth of the home elevator market in APAC. In the current scenario, the aging population is one of the major factors influencing the adoption of elevators in various end-user segments. Increasing disposable incomes coupled with the changing lifestyles of consumers, particularly in the developing countries of APAC, is expected to boost the market growth over the forecast period.

Europe is one of the regions that has always been ahead of other regions in terms of development and adoption of the latest technologies. The same applies to the elevator market driven by the region's economic development, growing construction industry, and the increasing penetration of IoT in different sectors. The increasing aging population in the region can be attributed to factors such as a reduction in fertility rates and increased life expectancy. Furthermore, in private residences, consumers are showing a significant desire for the usage of flexible and convenient solutions for mobility. The home elevator market is well known for profoundly being used by the aging and disabled population for vertical mobility.

COMPETITIVE LANDSCAPE

The global home elevator market has a varied structure since each geography has its competitive dynamics and intensity of competition. In today’s scenario, market players emphasize adopting various techniques to enhance the home elevators. The manufacturers emphasize identifying market opportunities and setting certain goals to achieve productivity and efficiency. The present scenario forces vendors to refine their unique value propositions to achieve a strong market presence. Further, key competitive factors in the industry include reliability and quality, product innovation, product support, pricing, warranty, distribution, and financing options.

The home elevator market in the APAC region can be termed as the most competitive due to its high product reach, increasing market demand, and several players competing on a price basis. China is the most lucrative market in APAC, with its growing adoption of home elevators owing to a steady rise in the construction industry. It is also a leader in adopting smart home elevators owing to strengthening safety norms. With highly productive domestic manufacturers and growing exports, the home elevator market's growth in APAC is expected to accelerate in the next few years.

ABOUT THE REPORT

The global home elevators market is provided for the forecast years 2023 to 2028 and the base year 2022. The report includes types, applications, door systems, and geography segments. The report provides a holistic approach to the global home elevators market, enabling customers to analyze the industry thoroughly.