AI-Driven Vertical Mobility, Green Building Mandates, and Rapid High-Rise Urbanization Propel Next-Generation Elevator & Escalator Systems Worldwide

NEWARK, DELAWARE / ACCESS Newswire / February 18, 2026 / The global vertical transportation industry is entering a decisive growth cycle, driven by rapid urbanization, high-rise construction, and the integration of intelligent mobility technologies. The Elevators and Escalators Market, valued at USD 79.25 billion in 2025, is projected to surge to USD 157.36 billion by 2035, registering a robust CAGR of 7.1% over the forecast period.

According to the latest industry assessment, vertical mobility is no longer viewed as a passive building utility. Instead, elevators and escalators are evolving into smart, energy-efficient, and digitally connected infrastructure assets central to modern urban development.

Smart Mobility Becomes Core to Urban Infrastructure

Urban density across Asia-Pacific, the Middle East, and Latin America is accelerating demand for high-capacity vertical transportation systems. Governments are investing heavily in smart cities, transit networks, airports, and mixed-use developments, significantly expanding installation volumes.

Modern elevator systems now incorporate:

• AI-based traffic optimization

• IoT-enabled predictive maintenance

• Regenerative drive systems

• Touchless and voice-enabled controls

These innovations are improving uptime, reducing lifecycle costs, and lowering energy consumption-key priorities for commercial developers and infrastructure planners.

Traction Elevators Lead Technological Transformation

The traction elevator segment is projected to dominate with an estimated 40% market share in 2024, primarily due to its energy efficiency and suitability for high-rise buildings.

Unlike hydraulic systems, traction elevators use counterweight mechanisms that significantly reduce energy demand. Their compatibility with smart diagnostics and AI-powered traffic management systems makes them the preferred solution for commercial towers, residential skyscrapers, and transport hubs.

Hydraulic elevators continue to serve mid-rise and cost-sensitive installations, particularly in emerging markets.

Report Scope Snapshot (2025-2035)

Commercial Sector Drives Demand

By end use, the commercial segment is expected to account for approximately 45% of total market share in 2024. Office complexes, shopping centers, hospitals, hotels, and corporate campuses require high-speed, high-capacity mobility systems to manage increasing occupant traffic efficiently.

Developers are increasingly installing elevators with:

• Energy-regenerative braking systems

• IoT-based remote monitoring

• AI-driven traffic flow optimization

• Green building certification compatibility

The push toward sustainability certifications such as LEED, BREEAM, and other regional energy frameworks is further accelerating adoption.

Regional Outlook: Emerging Markets Fuel Expansion

Growth patterns vary across geographies, reflecting differing infrastructure maturity levels and regulatory landscapes.

United States (CAGR 6.4%)

The U.S. market is benefiting from infrastructure modernization, transit hub upgrades, and smart building initiatives. Compliance with ASME A17.1 and ANSI standards continues to shape product innovation, particularly in safety and energy efficiency.

United Kingdom (CAGR 11.0%)

The UK represents one of the fastest-growing markets, driven by high-rise residential projects and sustainability mandates aligned with carbon neutrality targets.

Germany (CAGR 6.6%)

Germany's strict energy performance regulations and compliance with the EU Machinery Directive 2006/42/EC are encouraging adoption of regenerative and AI-enabled systems.

Japan (CAGR 5.7%)

Urban densification and earthquake-resilient elevator technologies are strengthening Japan's position as a technology innovation hub in vertical transport.

India (CAGR 9.4%)

India's Smart Cities Mission and metro rail expansion across Tier-1 and Tier-2 cities are generating strong demand for high-speed elevators and energy-efficient escalators.

Trade and Regulatory Landscape

Global trade flows are shaped by leading exporters such as China, Japan, Germany, and the United States, while emerging economies-including India and Brazil-continue to import advanced systems for infrastructure development.

Compliance remains critical across regions. Elevators and escalators must adhere to international standards including:

• International Organization for Standardization ISO 25745 for energy performance

• American Society of Mechanical Engineers ASME A17.1 safety codes

• European Commission EU Machinery Directive 2006/42/EC

Certification requirements such as CE marking and UL approval remain mandatory for product deployment in regulated markets.

Competitive Landscape: Innovation-Centric Strategies

The market remains highly competitive, led by global giants investing heavily in R&D, modernization services, and digital solutions.

Key industry players include:

• Otis Elevator Company

• KONE Corporation

• Schindler Group

• TK Elevator

• Mitsubishi Electric Corporation

These companies are prioritizing modernization projects, predictive maintenance platforms, and regenerative drive systems to build recurring service revenue models.

Recent financial updates indicate strong modernization order growth, reflecting a global pivot toward upgrading aging infrastructure rather than relying solely on new installations.

Market Challenges: Cost and Economic Cycles

Despite strong momentum, the industry faces challenges:

• High installation and maintenance costs

• Supply chain disruptions and component shortages

• Skilled labor constraints

• Economic slowdowns impacting construction pipelines

Regulatory compliance investments and certification processes also add complexity to market expansion.

The Outlook: Vertical Mobility as a Strategic Asset

By 2035, elevators and escalators will be deeply integrated into the digital backbone of smart cities. AI-enabled predictive maintenance, cloud-based monitoring, and energy-optimized systems will redefine operational efficiency.

As sustainability mandates tighten and urban skylines rise higher, vertical mobility will shift from a mechanical necessity to a strategic enabler of urban productivity and environmental performance.

The global elevators and escalators market stands at the intersection of infrastructure expansion, sustainability innovation, and intelligent automation-positioning it as one of the most critical pillars of next-generation urban development.

For an in-depth analysis of evolving formulation trends and to access the complete strategic outlook for the Elevators and Escalators Market through 2035, Full Report Request: https://www.futuremarketinsights.com/reports/elevator-and-escalator-market

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