India Elevators and Escalators Market 2030: How Smart Cities Are Driving Growth

Market Outlook

The India Elevators and Escalators Market was valued at USD 1.68 billion in 2023 and is anticipated to project robust growth in the forecast period with a CAGR of 5.79% through 2030. This growth is driven by rapid urbanization, increasing infrastructure development, and the rising demand for high-rise residential and commercial buildings. The government’s focus on smart cities and affordable housing projects, such as the Pradhan Mantri Awas Yojana (PMAY), is further propelling the market. Additionally, the growing adoption of energy-efficient and technologically advanced elevators and escalators is contributing to market expansion. The increasing need for modernization and maintenance services in older buildings is also creating significant opportunities for market players.

Moreover, the rise in disposable income and changing lifestyles are encouraging the construction of luxury residential complexes and shopping malls, which require advanced vertical transportation systems. The commercial sector, including offices, hotels, and hospitals, is also witnessing a surge in demand for elevators and escalators. With the increasing emphasis on safety, convenience, and energy efficiency, manufacturers are introducing innovative solutions such as machine room-less traction elevators and smart escalators. These factors, combined with the growing trend of green buildings, are expected to drive the market forward in the coming years.

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Market Drivers

Urbanization and Infrastructure Development

The India Elevators and Escalators Market is significantly driven by the ongoing wave of urbanization and rapid infrastructure development. As per data from the Ministry of Housing and Urban Affairs, more than 34% of India’s population currently lives in urban areas, a figure projected to rise to 40% by 2030. This urban influx is accelerating the demand for residential complexes, commercial spaces, and public infrastructure, directly influencing the need for vertical transportation solutions such as elevators and escalators. Moreover, the Indian government’s Smart Cities Mission, backed by an investment exceeding USD 30 billion, is playing a crucial role in creating robust infrastructure, thus opening new growth avenues for the market.

Rising Demand in the Construction Sector

India’s thriving construction industry, contributing nearly 9% to the nation’s GDP, is another vital growth driver for the elevators and escalators market. Rapid urban construction, especially in major metropolitan areas such as Mumbai, Delhi, and Bangalore, is fueling the need for reliable and efficient vertical transport systems. High-rise residential buildings, shopping malls, and office complexes are increasingly incorporating elevators and escalators to meet the mobility needs of urban dwellers. As the pace of construction continues to grow, so does the market’s reliance on these systems to ensure seamless movement across multi-level structures.

Technological Advancements and Energy Efficiency

The shift towards technologically advanced and energy-efficient elevators is further propelling market expansion. In particular, machine room-less (MRL) traction elevators are gaining popularity due to their ability to consume 30–40% less energy compared to traditional elevator systems. This innovation is especially appealing in a country like India, where energy efficiency is becoming a key priority for both developers and policymakers. Additionally, the demand for smart elevators equipped with IoT-based controls, automated maintenance systems, and enhanced safety features is on the rise, as building owners seek modern solutions to improve operational efficiency and user experience.

Sustainability and Green Building Initiatives

Sustainability is emerging as a crucial factor influencing the demand for elevators and escalators in India. The increasing focus on green buildings has led to a surge in the adoption of eco-friendly vertical transportation systems. As of recent estimates, over 1,200 projects have been certified by the Indian Green Building Council (IGBC), many of which include installations of energy-efficient and sustainable elevators. These environmentally conscious initiatives align with global efforts to reduce carbon footprints and promote resource conservation, thereby reinforcing the role of elevators and escalators in building a greener, more sustainable urban landscape.

Market Trends Analysis

The India Elevators and Escalators Market is witnessing several notable trends. One of the key trends is the increasing adoption of smart and connected elevators. These elevators are equipped with IoT-enabled sensors and AI-based systems that enhance operational efficiency, reduce downtime, and improve user experience. For instance, predictive maintenance technology is gaining traction, allowing companies to monitor elevator performance in real-time and address issues before they escalate. Another trend is the growing demand for energy-efficient solutions. Manufacturers are focusing on developing elevators and escalators that consume less energy and align with green building standards. For example, regenerative drives in elevators can save up to 30% of energy by converting excess energy into reusable electricity.

The market is also seeing a shift toward machine room-less (MRL) traction elevators, which are gaining popularity due to their space-saving design and energy efficiency. These elevators are increasingly being installed in residential and commercial buildings. Additionally, the rise of modular and prefabricated construction methods is influencing the market, as these methods require efficient vertical transportation systems. The demand for aesthetically pleasing and customizable elevators and escalators is another trend, particularly in luxury residential and commercial projects. Finally, the increasing focus on safety and compliance with international standards is driving innovation in elevator and escalator design and technology.

Market Challenges Analysis

Despite its growth potential, the India Elevators and Escalators Market faces several challenges. One of the primary challenges is the high initial cost of installation, particularly for advanced and energy-efficient systems. This can deter small and medium-sized developers from investing in modern vertical transportation solutions. Additionally, the lack of skilled technicians and maintenance personnel is a significant hurdle. Proper installation and regular maintenance are crucial for the safe and efficient operation of elevators and escalators, and the shortage of trained professionals can lead to operational issues and safety concerns.

Another challenge is the fragmented nature of the market, with numerous small and unorganized players offering low-cost, substandard products. This not only affects the overall quality of elevators and escalators but also poses safety risks. Furthermore, the slow pace of infrastructure development in rural and semi-urban areas limits market growth. While urban centers are witnessing rapid construction activities, rural areas still lag behind, reducing the overall demand for elevators and escalators. Lastly, regulatory hurdles and delays in obtaining approvals for construction projects can also impede market growth.

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Segmentations

India Elevators and Escalators Market, By Type:

Elevator
Escalator
Moving Walkways

India Elevators and Escalators Market, By Elevator Door Type:

Automatic
Manual

India Elevators and Escalators Market, By Elevator Technology:

Traction
Machine Room-Less Traction
Hydraulic

India Elevators and Escalators Market, By Service:

Modernization and Maintenance & Repair
New Installation

India Elevators and Escalators Market, By End User:

Residential
Commercial
Infrastructural
Institutional
Others

Regional Analysis

The India Elevators and Escalators Market is segmented into North, South, East, West, and Central India, with each region exhibiting unique growth dynamics. The southern region, particularly cities like Bangalore, Chennai, and Hyderabad, dominates the market due to rapid urbanization and the presence of IT hubs and commercial complexes. Bangalore alone accounts for over 20% of the total demand for elevators and escalators in the region. The western region, led by Mumbai and Pune, is another significant contributor, driven by the construction of high-rise residential buildings and commercial spaces. Mumbai’s real estate market, valued at over USD 20 billion, is a major driver of demand.

The northern region, including Delhi-NCR, is witnessing steady growth due to infrastructure development and government initiatives like the Delhi-Mumbai Industrial Corridor. The eastern region, though relatively underdeveloped, is catching up with projects like the Kolkata Metro expansion and the development of smart cities in states like West Bengal and Odisha. The central region, including cities like Bhopal and Indore, is also showing potential, with increasing investments in residential and institutional infrastructure. Overall, the market is highly concentrated in urban areas, but rural and semi-urban regions are expected to witness gradual growth in the coming years.

Primary Catalysts and Hindrances

Catalysts:

Rapid urbanization and infrastructure development.
Government initiatives like smart cities and affordable housing.
Increasing demand for energy-efficient and smart elevators.
Growth in the construction of high-rise buildings.
Rising disposable income and changing lifestyles.

Hindrances:

High initial installation costs.
Lack of skilled technicians and maintenance personnel.
Fragmented market with unorganized players.
Slow infrastructure development in rural areas.
Regulatory hurdles and approval delays.

Key Players Analysis

KONE Elevator India Private Limited
Johnson Lifts India Private Limited
Schindler India Pvt. Ltd.
OTIS Elevator Company (India) Ltd.
ThyssenKrupp Elevator (India) Pvt. Ltd.
Mitsubishi Elevator India Pvt. Ltd.
Fujitec India Pvt. Ltd.
Escon Pvt Ltd.
Hitachi Lift India Pvt. Ltd.
Blue Star Elevator Pvt. Ltd.

The India Elevators and Escalators Market is highly competitive, with both global and domestic players vying for market share. Companies like OTIS, KONE, and Schindler dominate the market due to their strong brand reputation, extensive product portfolio, and focus on innovation. For instance, OTIS has introduced Gen2 elevators, which are energy-efficient and require minimal maintenance. Domestic players like Johnson Lifts and Blue Star Elevator are also gaining traction by offering cost-effective solutions tailored to local needs. The market is witnessing increased collaboration between manufacturers and construction companies to provide integrated vertical transportation solutions. Additionally, companies are investing in R&D to develop smart and sustainable elevators and escalators, further intensifying competition.

Future Outlook in 10 Pointers