U.S. Elevator Modernization & Maintenance Market – By Elevator Type , By Building Size , By Speed , By Component , By Modernization Type , By End User - Opportunity Analysis & Industry Forecast, 2024-2030

U.S. Elevator Modernization & Maintenance Market Overview:

The U.S. Elevator Modernization & Maintenance Market size is estimated to reach $2.2 Billion by 2030, growing at a CAGR of 4.0% during the forecast period 2024-2030. Several factors propel growth within the US elevator modernization and maintenance market. Increasing adoption of elevator maintenance services in commercial buildings is in sync with stringent regulatory requirements and ensures operational efficiency and safety of commercial buildings. Modernization of aging infrastructure is required to meet updated standards, and a focus on energy efficiency and sustainability makes upgrades to eco-friendly systems a priority. Demand for advanced elevator solutions is rising as high-rise constructions are occurring in urban areas. Furthermore, technological advancements, including IoT enabled predictive maintenance and smart control systems boost market growth with a view towards enabling reliability and user experience. The two major trends in the US elevator modernization and maintenance market are smart elevator technologies and energy efficient system trends. IoT, AI and machine learning enabled smart elevators are a transformation in how elevators are operated and maintained. Predictive diagnostics, real time energy monitoring and remote control are made possible by these systems, improving safety and efficiency. The features such as smart access control optimize the passenger route to reduce the passenger travel time and energy consumption. According to Rise Above Elevators, these systems can allocate elevators to passengers based on their destination to eliminate unnecessary stops and can also provide predictive maintenance to alert managers to problems before they cause disruptions. At the same time, buildings are becoming increasingly focused on sustainability, and energy efficient systems are becoming necessary. Regenerative drives, LED lighting and low energy motors are all technologies that fit with green building certifications, and provide eco-friendly solutions that use less power and lower operational costs. These trends, together, meet the market's need for improved, efficient and sustainable elevator solutions. 

Market Snapshot: 

U.S. Elevator Modernization & Maintenance Market - Report Coverage:

The “U.S. Elevator Modernization & Maintenance Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the U.S. Elevator Modernization & Maintenance Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

• The U.S. Elevator Modernization and Maintenance Market was impacted significantly by the COVID 19 pandemic, through supply chain disruption and reduced construction activities. With residential occupancy unchanged and commercial buildings and public spaces seeing lower occupancy rates under the lockdowns, the demand for these modernization projects took a hit during the short interval. Nevertheless, maintenance services had to be continued despite the logistic problems posed by the restrictions to workforce and the corresponding safety protocols. Contactless elevator technologies were slowly integrated into the market as the market adapted to the new safety concerns and strived to stay relevant in a post pandemic environment by also incorporating health focused upgrades like better ventilation systems.
• Russia-Ukraine war had an indirect impact on U.S. Elevator Modernization and Maintenance Market as the war affected global material costs and also created supply chain disruptions. Steel, electronic components were among key materials with price volatility and higher costs of modernization projects. At the same time, economic uncertainties and geopolitical tensions have discouraged investment in the large-scale upgrades in some sectors. Nevertheless, the emphasis on energy efficient solutions, partly as a result of increasing energy costs, has led to modernization initiatives that incorporated sustainable technologies, managing market challenges with emerging opportunities. 

Key Takeaways:

Traction Elevators is the Largest Segment

Traction elevators or electric elevators are the most common type of elevators. These elevators are pulled up by means of rolling steel ropes over a deeply grooved pulley and are usually applied in mid and high-rise buildings. Traction elevators utilize a motor, ropes, drive sheave, and counterweight, eliminating the need of hydraulics. These are used for front openings and also for front and rear opening configurations. The drive sheave is designed to develop traction and these elevators provide unlimited travel. The increasing investment in commercial buildings requires more elevators, surging the demand for traction elevators and in turn, the demand for the elevator maintenance market. For instance, Traction elevators, such as the ones installed by TK Elevator at Carlsbad Caverns National Park in July 2024, exemplify their versatility and reliability in complex and demanding environments. These electric elevators operate using rolling steel ropes over a grooved pulley system, a motor and a counterweight, offering precise and efficient vertical transportation without the need for hydraulics. Their adaptability for front and rear opening configurations and ability to provide unlimited travel make them ideal for both mid and high-rise applications, as well as unique projects like deep subterranean access. Thus, driving the elevator maintenance market growth

Motor is the Largest Segment

The elevator motor produces a turning force that is transmitted to the rope winding drum to wind or unwind the rope for the elevator movement. There are three types of elevator motors namely, AC/DC motors, diesel/gasoline-powered motors and pneumatic/hydraulic motors. DC traction elevators are the most common elevator drives in high-rise buildings, in the form of motor-generator sets and DC hoist motors, it provides good speed control and a safe ride. AC motors or squirrel cage motors are extensively used in elevator services and it exhibits up to 20 HP. It is being extensively opted due to its simplicity and since it requires a simple form of controller. The rising growth in the building and construction industry is driving the demand for motors, to be used in the elevators of these buildings. For instance, as per the U.S. Census Bureau, construction spending in April 2024 increased by 10% compared to April 2023, with the non-residential sector showing a 12% rise, including an 8% boost in private and 17% in public projects. Sectors like manufacturing (17%) and power (15%) witnessed significant growth, fueling demand for elevators in these developments. Additionally, the 16% growth in education and highway construction projects further emphasizes the need for reliable elevator motors to meet the demands of modern infrastructure. Thus, with the growth of the new residential building projects, the elevator maintenance market is estimated to rise in the forecast period.

Full Modernization Contract represent the Largest Segment

A full Modernization contract is written to permit an elevator service company to take complete authority for the identified elevator equipment in the Modernization agreement. This contract is an insurance policy and allows to budget total annual spending, and reduce concerns related to the elevator liability and exposure to claims in the event of mishaps. The Modernization contractor takes all the responsibility and decides the number of service visits needed to keep the elevator system in safe operational condition. According to Southern Elevator, full modernization contracts typically last from 7 to 25 years, with longer contracts being better priced and offering protection against inflation. While these contracts guarantee consistent Modernization and system reliability, or else clients may end up spending more on repair costs and be unhappy with the hired contractor, early termination of the contract is also hardly ever an option. It’s essential to have clear terms around the frequency of modernization, as otherwise even with regular billing there is a lot of problems. Keeping a logbook also confirms that services for instance match with a contract term or specification for a better purpose of transparency and accountability. In the end, these contracts increase safety, extend equipment life, and reduce unexpected costs.

Growing Adoption of Elevator Maintenance Services in Commercial Buildings to Boost the Market

Periodic maintenance of elevators in commercial sectors plays a significant role in maximizing elevator life, keeping elevators modern, identifying potential problems, preventing bigger issues while cutting down costs for repair or replacements, along with offering safe and smooth elevator operations. Hence, there has been an increasing adoption of elevator maintenance services in commercial sectors, which in turn, is fueling the market growth. According to the U.S. Bureau of Labor Statistics, the employment of elevator and escalator installers and repairers is projected to grow by 6% from 2023 to 2033, outpacing the average for all occupations. Approximately 2,200 job openings are expected annually during this period, driven by workforce transitions such as retirements or career changes. This steady demand for skilled professionals highlights the critical need for elevator maintenance services. Thus, such increasing adoption of elevator maintenance services in commercial sectors to ensure reliable, faster, and efficient functioning of elevators is accelerating the growth of the elevator maintenance market.

High Maintenance Costs to Hamper the growth

Elevator maintenance plays a significant role in extending the life of the elevator equipment while ensuring safe and reliable operational efficiency. Maintenance plans include periodic checkups for the system and offer a proactive way of identifying potential problems that can later become serious issues. However, elevator maintenance plans are usually associated with high costs that act as a limiting factor for the growth of the market. For instance, preventive maintenance contracts for elevators in small buildings usually cost between US$3,500 and US$5,000 per year, while it costs between US$ 8,000 and US$ 10,000 per year in the case of elevators in high-rise buildings. The exact costs of a yearly preventive maintenance plan depend on multiple factors such as the number of elevators, along with the type of elevator equipment and systems. 

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Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships, and collaborations are key strategies adopted by players in the U.S. Elevator Modernization & Maintenance Market. The top 10 companies in this industry are listed below:

1. Otis Elevator Company
2. Schindler Group
3. KONE Corporation
4. Thyssenkrupp Elevator
5. Mitsubishi Electric
6. Fujitec
7. Hyundai Elevator
8. AVT Beckett
9. Delta Elevator
10. Mid-American Elevator

Scope of the Report: 

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