The residential elevator market is anticipated to show steady growth during the forecast period.
Residential elevators are vertical transportation machines designed specifically for residential buildings. They are similar to elevators used in commercial buildings but are designed to meet the unique requirements and standards of private homes. These elevators are installed based on inside or outside installation and provide easy access between floors, making mobility easier for homeowners, particularly those with limited mobility or disabilities. The increasing construction activities and technological advancements in elevators are the major driving forces behind the residential elevator market growth.
Market Drivers
Residential elevators are primarily used to provide easy access and mobility for people with physical disabilities or who have trouble climbing stairs. Buildings install these elevators to ensure that all individuals can easily and comfortably travel between the floors. The growing urban population creates a greater demand for housing, prompting the construction of new residential buildings to meet the demand, which has contributed to the residential elevator market growth. For instance, according to the Spring Real Estate Industry Report, in 2020, the number of completed apartments exceeded 300,000 for the first time in 20 years, with a total of 306,000 apartments built, and in 2021, the number of completed buildings increased to 315,000 as well as the number of building permits increased to 384,000 in 2021.
Advancements in elevator technology change residential elevators through the development of compact and space-saving designs and technology to install residential elevators in homes with limited space. This integration enhances convenience, security, and customization options for homeowners, and such elevators are now equipped with emergency stop buttons, sensors to detect obstacles, and backup power supply systems. Market players are investing in innovations to meet the latest trends. For instance, ECE Elevators offers elegant Primus Mini, which suits the delicate nature of the home and fits into the premium space without interfering with the home's artistry. The lift consists of a PMSM gearless machine with a load capacity of 272 kg.
Residential elevators improve the convenience, accessibility, and overall quality of life in condominiums. These innovative lifting systems provide numerous benefits to both residents and building management and allow people with mobility issues, the elderly, or those carrying heavy items to easily navigate different floors without making a physical effort. The urbanization trend and limited land availability in many cities have led to an increase in demand for housing options that maximize space efficiency, resulting in the establishment of condominiums, which is driving the residential elevator market expansion. For instance, in March 2023, Greenwich Village opened its first new condo building with the Keller, a complete redevelopment of the former Keller Hotel.
North America is expected to account for a significant share of the residential elevator market due to the increasing multi-unit construction in the major regional economies, namely the USA and Canada. For instance, according to the report of the U.S. Census Bureau, till September 2023, the value of multi-family unit construction stood at US$135,491 million. Additionally, according to Statistics Canada data, in September 2023, multi-unit construction increased 8.2% to $6.6 billion with all provinces reporting gains.
Market Restraints
Residential elevators are expensive and require proper installation, maintenance, and operation. The expense of purchasing and installing an elevator system can be prohibitive for many homeowners, particularly in regions with a lower average income. This may limit the adoption of residential elevators and may hinder market growth.
Market Developments
Company Products
Segmentation