The U.S. Elevator and Escalator Market Size in Volume (Thousand Units) and Value (In Millions) (Installation Base, New Installation Type, Modernization (In Millions), Maintenance (In Millions)

US ELEVATOR AND ESCALATOR MARKET SIZE & OVERVIEW

The U.S. elevator and escalator market by new installations accounted for 37.02 thousand units in 2024 and is expected to reach 43.32 thousand units by 2030, growing at a CAGR of 2.65% during the forecast period. One of the primary market drivers is the country’s rapid urbanization, growth in the construction industry, and infrastructure development, which has led to a surge in the construction of high-rise residential and commercial buildings. These structures require efficient vertical transportation solutions, such as elevators and escalators, thereby propelling the U.S. elevator and escalator market growth.

Recent Developments in the U.S. Elevator and Escalator Market

1. In 2024, ATTA Elevators, a leading elevator and escalator service provider based in Ontario, announced its expansion into the U.S. with an office in St. Louis, Missouri.
2. In April 2025, Schindler Elevator Corporation announced the launch of the Schindler 5000, which is a machine-room-less (MRL) elevator designed for low- to mid-rise offices, hotels, hospitals, and apartment complexes. This model is widely available in the U.S. market.
3. In April 2025, OTIS announced the acquisition of eight of the eleven Urban Elevator locations in the US.

IMPACT OF TARIFF

1. In 2025, the U.S. government imposed a high tariff baseline on China and other countries. In addition to the baseline tariff, the U.S. government also imposed a 25% tariff on all aluminum, steel, & motor parts. In retaliation, several countries also impose tariffs on the United States.
2. The U.S. government announced a temporary pause in tariff hikes, but the situation remains uncertain after 90 days, with a 10% minimum tariff in effect. This trade tension significantly impacts the manufacturer of the U.S. elevator and escalator market, which imports motor parts, lumber, and other raw materials from different countries.
3. The U.S. imports a significant amount of aluminum, copper, and other raw materials from China and other countries such as Canada & Mexico.
4. These added costs are likely to be passed on to U.S. consumers, causing a notable increase in prices of elevators & escalators. As a result, demand for locally manufactured elevators & escalators is expected to grow.
5. Major elevator & escalator rental companies such as Otis, KONE, Schindler & others are importing raw materials & motor parts from China and the Japanese market. The surge in tariff rates is expected to increase the prices of elevators & escalators manufactured by them.
6. However, the countries in the European region stated their priority is to strike a deal with the U.S. that would lead to the removal of the newly imposed U.S. tariff.

KEY HIGHLIGHTS

1. The U.S. elevator market by installed base is expected to reach 1,265.8 thousand units by 2030.
2. Elevators used in the residential sector accounted for the largest share in 2024, despite low purchasing power due to high interest rates. The market is set to recover in 2025, pertaining to high government expenditure on construction projects.
3. The machine roomless traction segment accounted for the largest market share due to its space-saving design, energy efficiency, and ability to support green building initiatives.
4. The U.S. installed base escalators market is expected to reach 64.1 thousand units by 2030.
5. Escalators used in the commercial sector accounted for the largest share in 2024 due to increasing retail projects in the pipeline.
6. The parallel escalators segment accounted for the largest market share in 2024 due to the high construction of commercial buildings.
7. The modernization market of the U.S. elevator and escalator market is expected to reach USD 3.23 billion by 2030.
8. In Q1 2025, the American Society of Civil Engineers (ASCE) forecasted a total of USD 5.4 trillion in public and private infrastructure investments over the decade from 2024 to 2033.
9. In addition, in 2025, the U.S. is witnessing significant developments in Smart City Construction. For instance, the Retired Homer City Generating Station is ready to be transformed into a natural gas-powered data center campus.
10. In March 2025, Amtrak (National Railroad Passenger Corporation) stated that it will increase its expenditure by 50% to reach USD 6 billion in 2025.
11. In April 2025, Ledcor Development initiated the construction of Alara, a USD 107 million apartment complex in San Diego’s Grantville neighborhood. This development will introduce over 200 new residential units, aiming to address the city’s increasing housing demand.

US ELEVATOR AND ESCALATOR MARKET TRENDS

Growing Integration of Artificial Intelligence in Elevator and Escalator Systems

The integration of artificial intelligence (AI) is emerging as a significant trend in the U.S. elevator and escalator market, supporting the modernization of urban infrastructure and the development of smarter buildings. AI-powered technologies improve operational efficiency, enhance passenger safety, and deliver a more reliable user experience across commercial, residential, and public infrastructure facilities. These solutions analyze real-time data collected from sensors installed in elevators and escalators to identify performance irregularities, predict potential equipment failures, and enable proactive maintenance. Predictive maintenance helps reduce unexpected breakdowns, minimize downtime, and extend equipment lifespan. Companies such as KONE and Otis have implemented AI-enabled predictive maintenance solutions, including in the U.S. market, highlighting the growing role of intelligent technologies in vertical transportation systems.

MARKET DRIVERS

New Government Regulations and Technological Advancements Supporting Demand for New Installations

Government regulations, updated safety requirements, and technological advancements are encouraging building owners and infrastructure operators to upgrade existing elevator and escalator systems or invest in new installations. In New York City, a retroactive code required escalator skirt deflectors to be installed by January 1, 2025. These safety components help prevent clothing, footwear, and other objects from becoming trapped between escalator steps and side panels, reducing the risk of passenger accidents. Such regulations increase the need for equipment upgrades and safety-related modernization projects. In addition, aging transportation infrastructure is creating demand for escalator replacement projects. In October 2024, the board at McGhee Tyson Airport awarded KONE a contract worth approximately USD 1.1 million to replace its aging escalators. The replacement work was scheduled to begin with the downward escalator in late 2025, followed by the upward escalator in early 2026. These projects highlight how regulatory compliance, equipment aging, and safety improvements are supporting market demand.

INDUSTRY RESTRAINTS

Housing Affordability Crisis Limiting Residential Construction Activity

The ongoing housing affordability crisis in the U.S. is creating challenges for residential construction and, consequently, limiting demand for elevators and escalators in some segments of the market. Rising home prices and rental costs have made housing less accessible to many households, slowing real estate transactions and delaying certain residential development projects. In January 2025, the median U.S. home price was approximately USD 418,000, representing an increase of around 45% from USD 289,000 five years earlier. High housing costs, combined with elevated mortgage rates that approached 7% in 2025, have discouraged some buyers and sellers, reducing transaction activity and affecting new housing development. In addition, increased property acquisitions by large institutional investors can further limit homeownership opportunities for individual buyers in certain markets. Lower housing starts and delays in residential projects may reduce demand for elevators and escalators, particularly in newly constructed apartment buildings and multi-story residential complexes. These conditions could constrain market growth until housing affordability and residential construction activity improve.

US ELEVATOR AND ESCALATOR MARKET VENDOR LANDSCAPE

1. Schindler, TK Elevators, KONE, OTIS, and Mitsubishi Electric are the top five vendors in the U.S. elevator and escalator market.
2. Other prominent players in the U.S. elevator and escalator market are Fujitec Co., Ltd, Hyundai Elevator Co., Ltd., Delaware Elevator, Inc., Day Elevator & Lift, American Crescent Elevator Corp., Godwin Elevator Company, and others. These leading players continuously innovate to provide state-of-the-art technology, ensuring safety, efficiency, and sustainability.