PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1886945
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1886945
The global residential elevator market is undergoing a robust transformation driven by rapid urbanization, rising real estate investment, lifestyle upgrades, and an aging global population seeking accessibility solutions. According to the latest industry assessment, the residential elevator market was valued at USD 65.14 billion in 2024, supported by growing construction of high-rise apartments, luxury homes, and smart residential complexes across the world. The market is expected to expand further to USD 69.61 billion in 2025, propelled by strong economic recovery and increased residential project launches. By 2032, the market is projected to reach USD 118.67 billion, registering a strong CAGR of 7.9% during the forecast period.
Asia Pacific remained the undisputed leader in 2024, accounting for 51.2% of the global market share, highlighting the region's rising urban density, enhanced affordability, and continuous investment in modern housing infrastructure.
Market Growth Drivers
Urban Expansion and Real Estate Development
Rapid urbanization across developing nations-including India, Indonesia, Malaysia, and Vietnam-is one of the major forces driving elevator adoption in residential buildings. Mega infrastructure investments are reshaping the housing landscape with taller buildings and multi-storey structures becoming more common in Tier-2 and Tier-3 cities.
For instance, Saudi Arabia announced USD 1.3 trillion in infrastructure investments by 2024, significantly boosting the need for residential elevators in high-rise developments.
An aging population is also contributing to demand, as elevators facilitate safer and more convenient mobility in modern homes and multi-residential buildings.
Smart Cities and Technology Integration
Government initiatives toward smart cities and green buildings have accelerated the installation of advanced, energy-efficient, and IoT-integrated elevators. Features such as remote monitoring, AI-driven maintenance alerts, voice assistance, and touchless controls are strengthening adoption.
In 2024, Maharashtra (India) introduced additional FAR incentives for developers constructing green buildings-making elevator-equipped sustainable structures more attractive.
Market Restraints
High Maintenance Costs and Cultural Preferences
Residential elevators require periodic inspections, component replacements, and compliance with safety regulations-all of which increase maintenance expenses. Additionally, cultural preferences in some regions toward standalone homes and low-rise buildings reduce elevator penetration. Traditional living patterns and reluctance toward vertical housing continue to restrain market growth in select markets.
Market Opportunities
Rising Luxury Homes and Eco-Efficient Elevators
The growing demand for luxury apartments, penthouses, villas, and skyscrapers globally presents major opportunities. Innovations such as AI-based safety systems, solar-powered elevators, high-efficiency traction systems, and energy-saving modes are increasingly becoming central to modern home design.
In 2022, TK Elevator launched an "eco-mode" under its EOX elevator system, enhancing energy savings and user safety-signaling a major shift toward sustainable vertical mobility.
By Product Type
Traction elevators with machine room held the dominant share in 2024, supported by their ability to provide smooth, reliable, and durable vertical transportation for high-rise residential buildings.
The launch of Otis Gen3 digital elevators in 2024 further boosted demand, combining machine-room traction design with smart connectivity.
Machine-room-less traction and hydraulic elevators will see moderate growth due to limited innovation and lower load capacities but remain important for mid-rise buildings.
By Installation
New installations accounted for the largest share in 2024, driven by a surge in real estate development and the introduction of modern, AI-enabled elevator systems.
Maintenance and modernization are also rising steadily as aging infrastructure in Europe, North America, and Asia undergo upgrades to comply with safety and energy standards.
By Application
High-rise residential buildings remained the leading application segment in 2024, supported by land scarcity, rising population density, and premium housing demand. Mid-rise and low-rise buildings in developing cities also contributed to growing elevator installations.
Regional Overview
Asia Pacific
The region generated USD 33.35 billion in 2024, driven by rapid urban expansion, affordability improvements, and sustained economic growth. Countries such as India, China, Japan, and Malaysia are witnessing strong demand for luxury homes and AI-enabled elevators.
North America
The region benefits from high disposable income, aging populations, ADA regulations, and demand for smart home integration. The U.S. remained the market leader within North America in 2024.
Europe
Europe is experiencing stable growth fueled by multistoried housing, renovation of old buildings, and adoption of sustainable mobility solutions.
Middle East & Africa
The region continues expanding its residential infrastructure with mega-tall skyscrapers and luxury living developments, boosting elevator installations.
South America
Growing residential infrastructure investment and rising demand for premium living solutions are strengthening market prospects.
Conclusion
With the market rising from USD 65.14 billion in 2024 to USD 69.61 billion in 2025, and projected to reach USD 118.67 billion by 2032, the residential elevator industry is set for sustained growth. Urbanization, luxury living trends, digital transformation, and energy-efficient technologies will continue shaping the global market landscape.
Segmentation By Product Type
By Installation
By Application
By Region