India Elevator Market Outlook to 2030

India Elevator Market Overview

• The India Elevator Market was valued at USD 4.30 billion in 2023, primarily driven by rapid urbanization, increasing infrastructure development, and a growing number of high-rise buildings. The market includes various elevator types such as passenger, freight, home, and specialized elevators serving sectors like residential, commercial, industrial, and healthcare.
• Major players in the Indian elevator market include KONE India, Otis India, Schindler India, Mitsubishi Electric India, and Johnson Lifts. These companies maintain a strong market presence by offering advanced, energy-efficient elevators and providing robust maintenance services, which ensure the safety and reliability of their products.
• The demand for elevators is particularly high in urban regions like Maharashtra, Karnataka, Tamil Nadu, and the National Capital Region (NCR) due to extensive urbanization, construction of skyscrapers, and growth in commercial and residential real estate. These regions also witness high demand for smart elevators with integrated IoT and AI technologies.
• In July 2023, Otis India launched its latest Gen3 elevator series, designed to enhance energy efficiency and performance. This product is targeted at high-rise buildings and is expected to cater to the increasing demand for smart building solutions. The Gen3 elevator is reported to be up to 50% more energy efficient than traditional elevators, contributing to substantial energy savings and reduced carbon emissions.

India Elevator Market Segmentation

The Indian elevator market is segmented based on type, application, and region.

• By Type: The market is segmented into passenger elevators, freight elevators, home elevators, and service elevators. In 2023, passenger elevators dominated the market with a noteworthy share, driven by the growing number of high-rise residential buildings and commercial complexes across urban areas. Companies like KONE India and Otis India lead this segment with innovative designs and smart features.

• By Application: The market is categorized into residential, commercial, industrial. The residential sector held the largest share in 2023, primarily due to the increase in urban housing projects and smart city initiatives. The commercial sector is also growing, with increased demand from office buildings and malls.

• By Region: The market is divided into North, South, East, and West. In 2023, South India, especially states like Tamil Nadu and Karnataka, led the market due to high infrastructure development and smart city initiatives. The Western region, including Maharashtra, also holds a momentous share due to its rapidly growing urban centers and large real estate projects.

India Elevator Market Competitive Landscape

• KONE India: KONE India to start manufacturing escalators at its Sriperumbudur plant from the first half of 2024, as part of its expansion program. This move supports the "Make in India" initiative, with the company aiming to produce a few hundred escalators for the domestic market annually, targeting airports, metro stations, and shopping malls.
• Otis India: In April 2021, Mitsubishi Electric's subsidiary Mitsubishi Elevator India Private Limited (IMEC) secured a major order to supply 72 elevators, including 37 high-speed models, to the Commerzone Madhapur and Altimus luxury complexes owned by K RAHEJA CORP in Hyderabad and Mumbai, respectively. The elevators feature Mitsubishi Electric's Destination Oriented Allocation System (DOAS) for touchless operation.

India Elevator Market Analysis

Growth Drivers:

• Urbanization and Infrastructure Development: The rapid pace of urbanization and the government's focus on infrastructure projects such as smart cities have driven the demand for elevators. In 2024, the Union Budget allocated USD 120 billion for infrastructure projects, which include residential and commercial buildings that require elevator installations. The Ministry of Housing and Urban Affairs reported that urban infrastructure projects will create substantial opportunities for elevator companies, particularly in the residential and commercial segments.
• Booming Commercial Real Estate Sector: India's commercial real estate sector is expanding rapidly, contributing to elevator market growth. Institutional investments in India's real estate sector have attracted USD 57 billion since 2010, with a substantial portion directed toward office buildings, shopping malls, and mixed-use developments, highlighting investor confidence in the sector's potential. This increase in commercial spaces, particularly in tech hubs like Bengaluru and Hyderabad, directly drives demand for high-capacity, energy-efficient elevators.
• Growth in High-Rise Construction: High-rise construction projects, particularly in cities like Mumbai and Delhi NCR, have seen remarkable growth. In 2023, there were 154 high-rise towers (over 40 floors) completed in the Mumbai Metropolitan Region (MMR). Additionally, there are 207 more high-rise projects projected to be completed between 2024 and 2030, which are currently under various stages of construction. The demand for elevators in these high-rise residential and commercial buildings is vital, as these structures require advanced vertical transportation systems.

Challenges:

• High Maintenance Costs for Modern Elevators: Modern elevators, particularly those equipped with smart technology and energy-efficient systems, come with higher maintenance costs. The upkeep of these advanced systems is a noteworthy concern for small and mid-tier developers, who often find it difficult to manage the expenses within their budget. These costs are particularly challenging in high-rise buildings, where regular maintenance is critical for ensuring operational safety and efficiency.
• Shortage of Skilled Technicians: India faces a substantial shortage of skilled technicians to handle the installation, repair, and maintenance of modern elevator systems. The gap in trained professionals is especially noticeable in Tier-2 and Tier-3 cities, where the demand for elevators is increasing but the availability of qualified technicians is limited. This shortage affects the timely completion of new installations and delays essential maintenance work, which is crucial for the safe operation of high-rise buildings.

Government Initiatives:

• Smart Cities Mission: The Smart Cities Mission, launched in 2015, continues to be a key driver for the elevator market. By 2024, the government had allocated crore USD 28.6 billion for the development of 100 smart cities, with vertical transportation being a critical component of the urban infrastructure. As of June 2024, over majority of these cities had initiated large-scale residential and commercial projects that require elevators, particularly smart elevators integrated with IoT and energy-efficient systems.
• Housing for All by 2022 (Pradhan Mantri Awas Yojana): The National Infrastructure Pipeline (NIP) is a group of social and economic infrastructure projects in India over a period of five years from FY 2020 to FY 2025, with an initial sanctioned amount of USD 1.4 trillion in 2023. The NIP aims to enable a forward outlook on infrastructure projects to create jobs, improve ease of living, and provide equitable access to infrastructure for all, thereby making growth more inclusive.

India Elevator Market Future Outlook

The India Elevator Market is expected to grow exceptionally between the forecasted period, driven by continued urbanization, infrastructure development, and technological advancements in the vertical transportation sector.

Future Market Trends:

• Expansion of Green Building Certifications Driving Elevator Demand By 2028, the India Elevator Market will be influenced by the expansion of green building certifications, such as LEED and IGBC. With the Indian government promoting energy-efficient buildings through subsidies and incentives, developers are increasingly adopting eco-friendly technologies, including energy-efficient elevators.
• Increased Focus on Vertical Transportation in Tier-2 Cities While metropolitan cities like Mumbai and Delhi NCR continue to dominate the elevator market, Tier-2 cities such as Jaipur, Surat, and Chandigarh are expected to see rapid growth in vertical transportation over the next five years. By 2028, the increasing urbanization in these cities, coupled with government initiatives to promote real estate development, will drive the installation of elevators in both residential and commercial projects.