Report Highlights

Smart Elevators in the U.S.: Market Overview

The U.S. smart elevator market was valued at USD 4.1 billion in 2024 and differs from the global norm because it is driven by modernization of the installed base rather than greenfield construction. The country operates more than one million elevators, and a large share of units dates from before 1990, running legacy relay or early microprocessor controls. Retrofit controllers, remote monitoring, and destination dispatch upgrades therefore account for most smart spend, unlike Asia Pacific, where new high-rise construction leads demand.

Market structure is concentrated, with Otis Worldwide, Schindler, KONE, and thyssenkrupp Elevator controlling most new installations and long-term maintenance contracts nationwide. Independent service firms still hold a meaningful share of maintenance work, particularly in older commercial buildings, and they are the main channel through which smart retrofits reach owners. Software-enabled pricing, where connected monitoring is bundled into annual service agreements, is reshaping margins across this structure.

Growth Drivers for Smart Elevators in the U.S.

Accessibility mandates and aging building stock anchor demand. The ADA Standards for Accessible Design (2010) require elevators in multistory public facilities and set emergency communication specifications that connected systems can monitor remotely. Meanwhile, more than 61 million Americans aged 65 and older, according to Census Bureau estimates, are fueling residential demand for aging-in-place elevators in single-family homes and senior housing.

Energy and data requirements add a second pull. ASHRAE 90.1, adopted in many state energy codes, now addresses elevator energy performance, rewarding regenerative drives that return braking energy to the building. Owners also want real-time performance data for ESG reporting, and New York City's Local Law 97 emissions limits push large commercial landlords to track building-wide energy use, including vertical transport.

Market Restraints and Entry Barriers

Certification is the first barrier. ASME A17.1 and CSA B44 safety codes, adopted and amended state by state, require licensed mechanics and jurisdiction-specific acceptance testing before any controller goes live. Cybersecurity adds a second hurdle: connected controllers fall under building IT policies, and owners increasingly demand alignment with NIST SP 800-53 controls before approving installations in hospitals and government facilities.

Incumbents hold structural advantages. Otis and Schindler control proprietary drive and dispatch platforms, so third-party smart controllers face interoperability limits and warranty concerns on existing equipment. Local licensing in New York City and Chicago, plus union labor agreements under the International Union of Elevator Constructors, raise installation costs and extend timelines for new entrants. Price competition is limited because service contracts typically run seven to ten years, locking buyers into incumbent maintenance networks.

Market Opportunities for Smart Elevators in the U.S.

Multifamily retrofits in Texas and Florida offer the nearest entry point. Sun Belt metros have added substantial mid-rise rental stock since 2020, and many of these owners are now reviewing service contracts ahead of controller replacement cycles. Across the U.S. installed base, the addressable retrofit pool for smart controllers is estimated at USD 1.2 billion annually, with multifamily owners representing a significant share of that spend.

Healthcare and senior living represent a premium segment. Hospitals and assisted-living operators in the Northeast and Midwest treat elevator uptime as critical to patient flow, and predictive monitoring subscriptions in this segment can reach USD 1,500 to USD 3,000 per unit annually. Entrants that bundle remote diagnostics with emergency-response integration can win these contracts without competing on hardware price.

Market at a Glance

Leading Market Participants

• Otis Worldwide
• Schindler Group
• KONE Corporation
• thyssenkrupp Elevator
• Mitsubishi Electric
• Fujitec America
• Toshiba Elevator and Building Systems
• Hyundai Elevator
• Motion Control Engineering
• Hollister-Whitney Elevator

Regulatory and Policy Environment

ASME A17.1 / CSA B44, the Safety Code for Elevators and Escalators, forms the baseline and is incorporated into state and municipal building codes through the International Building Code and International Existing Building Code. Enforcement sits with state and city agencies, including the New York City Department of Buildings, the California Division of Occupational Safety and Health, the Illinois Department of Labor under the Elevator Safety and Regulation Act, and the Texas Department of Licensing and Regulation. The ASME code revises on a three-year cycle, so product certifications must track each edition.

Connected controllers also need FCC Part 15 approval for wireless components and must satisfy building cybersecurity policies that reference NIST frameworks. Permit approval for controller alterations typically takes 30 to 60 days in most jurisdictions, and longer in New York City, where Department of Buildings review is required. Federal incentives are indirect: ASHRAE 90.1 compliance and Section 179D deductions of up to USD 5.00 per square foot reward whole-building energy reductions that regenerative elevator drives help achieve.

Long-Term Outlook for Smart Elevators in the U.S.

By 2032, the U.S. smart elevator market is forecast to reach USD 7.6 billion, growing at an 8.0% CAGR from the 2025 base year. Growth will be led by modernization rather than new construction, with cloud-connected controllers and predictive diagnostics becoming standard specifications in service contracts. Legacy controller replacement will remain the largest revenue pool through the forecast period, while Otis, Schindler, and KONE retain dominant positions.

Software and services will drive a rising share of value, as subscription-based monitoring moves from premium add-on to baseline contract element. Regulatory tightening around cybersecurity and energy performance will raise the bar for entrants, favoring firms with NIST-aligned products and documented ASME certification. Independent service firms with cloud-platform partnerships will gain share in mid-market multifamily portfolios in Texas, Florida, and the Northeast.