Japan Elevator and Escalator Market Assessment, By Type, By Working Mechanism, By Solution, By Application, By Region, Opportunities, and Forecast, FY2018-FY2032F

Japan elevator and escalator market is projected to witness a CAGR of 3.78% during the forecast period FY2025-FY2032, growing from USD 3.02 billion in FY2024 to USD 4.06 billion in FY2032. Japan Elevators and escalators market is growing rapidly due to fast urbanization, infrastructure development, and increasing construction activities. This growth can be attributed to the expansion of the middle class, high disposable incomes, and a governmental objective to develop a comprehensive transport structure. Demand for high-rise residential and corporate buildings increases the demand for innovative vertical transport systems. Technological innovations include smart elevators that integrate IoT features and touchless control systems, influencing market trends. The market is characterized by innovation, sustainability, and user experience enhancement. As cities expand, the construction of high-rise buildings, shopping malls, and public transport facilities necessitates efficient vertical transportation solutions. Escalators and moving walkways are increasingly favored for their ability to facilitate smooth movement in crowded environments, enhancing accessibility for all customers. Central Japan and South Japan are emerging as main urban centers and economic zones and are leading this expansion, with major investments in residential and commercial construction projects. Key players in the market include Otis, KONE, and Schindler, continuously innovating and expanding their product offerings to meet the growing demand.

In December 2024, Fujitec Co., Ltd., announced its plans to launch a new standard elevator model, Ele Glance, in the spring of 2025. A successor to Fujitec's XIOR standard elevator model, Ele Glance is equipped with enhanced capabilities in design, maintenance, and disaster response.

Increasing Demand for Advanced Elevator and Escalator Drive the Market

The demand for new advanced elevators and escalators is growing significantly, driven by a surge in infrastructure projects in Japan. As rapid urbanization continues and high-rise buildings proliferate, the demand for modern vertical transportation solutions becomes more pressing. The government initiatives to develop smart city projects and upgrade transportation require the environment and encourage technological innovations to develop better systems. Furthermore, manufacturers are launching innovative models that incorporate smart technology, energy efficiency, and enhanced safety features to meet the rising expectations of urban populations.

For instance, in September 2022, Hitachi, Ltd. and Hitachi Building Systems Co., Ltd. announced the development of a touchless operating panel, establishing an elevator without physical floor buttons. This newly developed touchless operating panel replaces the floor buttons normally found in an elevator car and enables elevator users to register a destination floor by passing a finger over the floor displayed on the panel (LCD monitor). An infrared sensor detects the finger's position and registers the floor for touchless use of the elevator. The new operating panels have been adopted in elevators in Tokyo Midtown Yaesu.

Commercial Building Construction Fuels the Demand

Commercial building development and construction fuel the demand for elevators and escalators in Japan. Rapid urbanization led to increased construction of high-rise commercial buildings, creating a pressing need for efficient vertical transportation systems. As more people migrate to urban centers, the construction of commercial building solutions becomes essential, with elevators being a critical component of these developments. Additionally, the influx of foreign investment in real estate projects emphasizes the construction of upscale offices and commercial places, further driving the demand for advanced elevator and escalator systems. The companies are committing to enhancing urban infrastructure and promoting sustainable building practices, ensuring that the vertical transportation market thrives alongside commercial building growth.

For instance, in October 2024, Nippon Otis Elevator Co., Ltd. (Nippon Otis) completed a project to modernize 21 elevators and two escalators at Tokyo Metropolitan Bokutoh Hospital in Sumida Ward, Tokyo, Japan. The modernization project upgraded four elevators and two escalators in the "Medical Building" (built in 1986) and 17 elevators in the "Ward Building" (built in 1999), significantly improving the earthquake resistance and overall safety performance of all units.

Elevators Segment Leads the Market

The elevators segment is driving Japan's elevators, escalators, and walkways market, owing to the key factors. The country's rural population migrating to economically viable cities and increased construction of high-rise buildings created a demand for efficient vertical transportation solutions, making elevators indispensable for residential, commercial, and public infrastructure. Technological advancements improve safety, energy efficiency, and user experience, thereby increasing the focus on smart buildings, driving the demand for advanced elevator systems with IoT capabilities. As Japan's economy grows and urban centers develop, the elevators segment is poised to grow and acquire a significant market share, reflecting its critical role in modern urban infrastructure development and consumers' rising expectations for advanced mobility solutions.

For instance, in June 2024 Hitachi, Ltd. and Hitachi Building Systems Co., Ltd. received an order for 173 elevators and escalators for Torch Tower, the highest building in Japan with a height of approximately 390 m above ground level, located in the Tokyo Torch district in front of Tokyo Station's Nihombashi.

Central Japan Dominates the Market

The region with the highest demand for elevators and escalators is central Japan, particularly around Kanto and Chubu. This area is experiencing rapid urbanization leading to a significant increase in the construction of high-rise buildings and commercial centers coupled with major urban development and infrastructure work. Moreover, cities in South Japan including Kansai, Chugoku, Shikoku, and Kyushu & Okinawa are growing significantly, with high-rise buildings and commercial complexes, providing a strong thrust for efficient vertical transportation systems. This trend is supported by the government's modernization of urban infrastructure and smart city initiatives in central Japan.

For instance, in October 2024, Fujitec Co., Ltd. renewed the longest Fujitec escalator in Japan at Tokyo Big Sight (Koto-ku, Tokyo), the largest international exhibition hall in Japan. This escalator is 45 meters long and 22 meters high, equivalent to the height of a six-story building.

Future Market Scenario (FY2025 - FY2032F)

The future market will see a significant rise in the adoption of smart elevators and escalators equipped with IoT technology, enhancing user experience through features like predictive maintenance and real-time monitoring.

Increasing awareness of green building practices will drive demand for energy-efficient vertical transportation solutions, as developers seek to comply with environmental standards and reduce operational costs.

Continued urbanization and infrastructure development will result in a growing number of high-rise buildings, further propelling the need for advanced escalators and elevators in both residential and commercial sectors.

Supportive government policies aimed at modernizing urban infrastructure will create opportunities for market expansion, encouraging investments in advanced vertical transportation systems across the country.

Key Players Landscape and Outlook

The competitive landscape of Japan's elevator and escalator market features a blend of leading international firms and emerging local manufacturers. Major global players like Otis, Schindler, Mitsubishi Electric, and ThyssenKrupp dominate the market, offering a diverse range of advanced products for residential, commercial, and industrial applications. Local companies such as are gaining traction, particularly in the low-rise segment. The market is characterized by intense competition, with firms differentiating themselves through technological innovation, energy efficiency, and enhanced after-sales services. New companies are entering the market owing to the lucrative growth opportunities offered for exponential gains in the upcoming future and established players are forming partnerships to integrate new and better technologies in elevators and escalators.

For instance, in January 2025, Japan Elevator Service Holdings Co., Ltd. opened a new regional head office, in Kita Shinetsu, in Nagano, Japan. The company aims to enhance its service delivery to customers with a strategic move of its head office.