Japan Elevator Market Overview, 2029

Beginning in the late 19th century, in 1890 to be precise, the first steam-powered elevator was installed in Japan. In actual fact, it was during the period following the end of World War II that the phenomenal growth of the Japanese elevator market took place, moving with rapid urbanization and building high-rise structures. Companies such as Hitachi, Toshiba, Mitsubishi Electric, and Fujitec became leading companies, resulting in technological development and market dissemination. Elevators find their application in residential, commercial, and public infrastructure-based sectors. In highly populated cities, they are quite essential for vertical travel. Japanese elevators are designed to bear seismic activities and typhoons that occur periodically. Certain high-tech innovations in the market comprise earthquake resistance, energy-efficient systems, and safety mechanisms. Japan comprises a population that is aging at a rapid rate, which has increased the need for home elevators and accessibility solutions. The urban development and infrastructure projects, combined with the emphasis on accessibility issues, have driven the growth of the elevator market in Japan. With the presence of a considerable number of domestic and international companies, the competition in the market is highly intense. However, foreign companies are also attracted by the size and technological advancement of the Japanese market. The market is expected to show further growth but at a moderate rate due to continuous urbanization and replacement of aged infrastructure. There are several challenges faced by the elevator market in Japan. The main challenge in the elevator market of Japan is that, to a great extent, it has already attained saturation, thereby increasing intense competition. The stringent regulatory and high-quality threshold of Japan acts as a deterrent to the entry of new players into the market. Besides, the rapidly aging population base and shrinking workforce expose the country to labor shortages and potential innovative solutions for serving the elderly.

According to the research report, "Japan Elevator Market Overview, 2029," published by Bonafide Research, the Japan elevator market is anticipated to add to more than USD 660 Million by 2024–29. The future of the Japan elevator market holds several promising growth points, driven by both internal and external factors. One of the key areas of growth is the increasing demand for smart and connected elevators. With Japan's advanced technological landscape and the growing adoption of the Internet of Things (IoT), elevators equipped with sensors, data analytics, and predictive maintenance capabilities are expected to become the norm. This trend is further supported by Japan's work culture, which emphasizes efficiency, reliability, and safety, making smart elevators an attractive investment for building owners and managers. Another significant growth driver is the upcoming global events hosted by Japan, such as the World Expo 2025 in Osaka. These events stimulate infrastructure development and urban renewal projects, creating a surge in demand for new and upgraded elevator systems. Additionally, Japan's ongoing efforts to revitalize regional areas and promote tourism will require enhanced accessibility solutions, including elevators, to accommodate visitors and support local economies. The focus on sustainable and green buildings is also expected to propel market growth. As Japan aims to achieve carbon neutrality by 2050, energy-efficient elevators and regenerative drive systems that convert kinetic energy into electrical energy will gain traction. Japanese elevator manufacturers, known for their technological prowess, are well-positioned to capitalize on this trend by offering eco-friendly products that cater to the growing demand for green buildings. Japan's rapidly aging society presents unique opportunities for the elevator market. The increasing need for elderly-friendly infrastructure and barrier-free environments will drive demand for home elevators, low-rise elevators, and other accessibility solutions. Japanese manufacturers can leverage their expertise in precision engineering and user-centric design to develop products tailored to the needs of the elderly population.

Hydraulic elevators operate using a hydraulic system to lift and lower the elevator car. They are commonly used in low-rise buildings (typically up to five stories) due to their cost-effectiveness and simplicity. In Japan, hydraulic elevators are often found in residential buildings and smaller commercial structures. Their design allows for a smooth ride and is particularly advantageous in buildings where space for a machine room is limited. The hydraulic system is reliable and requires less maintenance compared to other types, making it a popular choice for many residential complexes. Traction elevators use ropes and pulleys to lift the elevator car and are suitable for high-rise buildings. They can be further categorized into gear and gearless systems. In Japan, traction elevators are predominantly used in commercial high-rises, office buildings, and hotels, where efficiency and speed are crucial. These elevators are known for their energy efficiency and smooth operation, making them ideal for buildings with heavy passenger traffic. The Kanto region, particularly Tokyo, has a high concentration of traction elevators due to the numerous skyscrapers and commercial spaces. Machine Room-Less traction elevators are an innovative solution that eliminates the need for a separate machine room, allowing for more usable space in the building. They are becoming increasingly popular in Japan, especially in urban areas where space is at a premium. MRL elevators are often installed in mid-rise buildings and are favored for their energy efficiency and lower installation costs. Others category includes various specialized elevators, such as freight elevators, panoramic elevators, and those designed for specific applications like hospitals or industrial use. In Japan, freight elevators are essential in commercial settings, particularly in logistics and manufacturing sectors. Panoramic elevators are often found in tourist attractions and high-end buildings, offering scenic views while transporting passengers.

The new equipment segment is thriving, driven by Japan's ongoing urbanization and the construction of high-rise buildings, particularly in metropolitan areas like Tokyo and Osaka. The demand for advanced elevator systems, especially traction elevators, is notable in these regions due to their efficiency and speed, catering to the needs of densely populated urban environments. Compared to other countries, Japan's focus on integrating smart technologies and energy-efficient designs into new installations sets it apart, ensuring that new elevators not only meet operational demands but also adhere to stringent safety and environmental regulations. Maintenance is a significant aspect of the elevator business in Japan, accounting for about 80% of the market share through manufacturer-affiliated subsidiaries. This segment is critical due to the high number of existing elevators and escalators requiring regular upkeep to ensure safety and functionality. The Japanese market emphasizes preventive maintenance, often utilizing advanced technologies for remote monitoring and predictive maintenance. This proactive approach enhances safety and reliability, distinguishing Japan from other countries where maintenance practices may not be as technologically advanced or standardized. The others segment includes modernization and specialized elevator services, such as freight and service elevators. This segment is growing as building owners seek to upgrade existing systems to improve efficiency and comply with modern safety standards. Japan's commitment to innovation, particularly in retrofitting older systems with new technologies, positions it as a leader in modernization efforts compared to other markets. The focus on enhancing user experience and operational efficiency through modernization reflects Japan's broader commitment to technological advancement in vertical transportation solutions.

In Japan, residential elevators are increasingly popular due to the aging population and the need for accessibility in multi-story homes. These elevators are typically compact and designed to fit in limited spaces, often utilizing machine room-less (MRL) technology. They are commonly found in new apartment complexes and private homes, particularly in urban areas where space is at a premium. The demand for residential elevators is particularly strong in metropolitan regions like Tokyo and Osaka, where high-rise living is common. Compared to other countries, Japan's focus on compact design and advanced technology in residential elevators is notable, catering to both aesthetic and functional needs. Commercial elevators dominate the market, especially in high-rise buildings, office complexes, and shopping malls. Traction elevators are the most commonly used type in this sector due to their speed and efficiency, making them ideal for handling high volumes of traffic in busy commercial environments. Major cities, particularly in the Kanto region, see significant installations of commercial elevators as businesses expand and new developments arise. Japan's commercial elevator market is distinguished by its integration of advanced technologies, such as smart systems and energy-efficient designs, which enhance user experience and operational efficiency compared to other global markets. Industrial elevators, including freight and service elevators, are essential for warehouses, manufacturing facilities, and logistics centers. These elevators are designed to handle heavy loads and often feature robust construction to withstand rigorous use. In Japan, industrial elevators are primarily used in regions with a high concentration of manufacturing and logistics operations, such as the Chubu and Kansai regions. The focus on automation and efficiency in industrial settings in Japan surpasses that of many other countries, driven by the need for productivity and safety in operations.



COVID-19 impacts:
The elevator and escalator business has been significantly damaged in recent years as a result of lockdowns implemented in Japan due to the COVID-19 pandemic outbreak in December 2019. The COVID-19 epidemic has hindered the construction industry's expansion in recent years, generating delays that can be ascribed to various damaged supply chains. The elevator and escalator manufacturers, as well as the overall construction industry, are expected to face a number of challenges as most commercial projects are likely to be left incomplete or delayed due to supply chain disruptions, cash flow constraints, workforce unavailability, and production shutdowns. The demand for elevators and escalators is expected to rise in the coming years as various governments of Japan prepare to gradually lift the lockdowns. As the lockdowns progressively cease, the construction sector is expected to increase. As commercial developments resume throughout the world, demand for elevators and escalators is expected to rise in the upcoming years.

Considered in this report
• Geography: Japan
• Historic Year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Japan Elevator & Escalator Market with its value and forecast along with its segments
• Application wise tire industry distribution
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type:
• Hydraulic
• Traction
• Machine Room-Less Traction
• Others

By Business:
• New Equipment
• Maintenance
• Others (Modernization)

By Application:
• Residential
• Commercial
• Industrial

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to elevator & escalator industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.