Italy Elevator Market Set to Reach USD 2.75 Billion by 2030, Fueled by Urban Expansion, Smart Retrofitting, and Regulatory Push

According to Next Move Strategy Consulting, the Italy Elevator Market is projected to grow significantly over the next five years. The is expected to surpass USD 2.75 billion by 2030. This growth, with a compound annual growth rate (CAGR) of 4.7% by 2030, highlights the rising demand for vertical transportation driven by modernization, sustainability initiatives, and urban infrastructure investments.

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Market Outlook

Italy, with one of the largest installed bases of elevators in Europe, is experiencing increasing demand for equipment upgrades and new installations. The majority of existing elevators—over 70%—have been in use for more than 20 years, with a large portion older than 30 years. This aging infrastructure has prompted a nationwide push for modernization, particularly in compliance with European safety and energy efficiency standards.

In 2022, maintenance and service operations represented nearly 68% of the market, while modernization accounted for approximately 32%. The market is further segmented into new installations, retrofit projects, and after-sales services. While new installation volumes are growing moderately, value-driven retrofits and smart upgrades are becoming central to the industry’s evolution.

Key Growth Drivers

Urban Development Projects:
Large-scale urban redevelopment initiatives, such as those in Milan and Rome, are expected to drive demand for new elevator systems. Milan’s redevelopment strategy, which includes the construction of over 30,000 residential units, and Rome’s ongoing Metro Line C expansion are prime examples of projects boosting the market for elevators.

Low Lift Penetration in Residential Buildings:
Italy’s housing sector presents a unique opportunity for elevator installations. Less than 5% of multi-story residential buildings are equipped with elevators. With government-supported incentives and regional programs—such as the Lazio region’s initiative to install 200 elevators in public housing—the residential retrofit segment is poised for growth.

Energy-Efficient and Smart Technologies:
Sustainability is now a core focus, prompting the adoption of smart elevators equipped with regenerative drives, IoT-enabled diagnostics, and automated control systems. These technologies not only reduce operational costs and energy consumption but also improve safety, reliability, and passenger experience.

Government Regulations and Incentives:
Compliance with EU safety mandates, energy performance requirements, and accessibility regulations has made modernization a priority for both private and public infrastructure owners. Various regional and national funding programs are supporting upgrades that meet modern standards.

Market Segmentation

The Italian elevator market is segmented by application (residential, commercial, and industrial), technology (traction, hydraulic, and machine-room-less systems), and service type (installation, maintenance, modernization). Traction systems are the most commonly used, while machine-room-less elevators are gaining popularity in low-rise residential buildings due to their compact design and cost efficiency.

By 2029, new installations are forecasted to reach 13,000 units, up from 12,300 units in 2023. However, the primary growth driver remains the retrofit and modernization of aging elevators, particularly in the residential sector.

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Challenges and Opportunities

Challenges:

• High upfront investment for modernization, particularly in older or heritage buildings
• Technical complexity in integrating modern elevator systems into outdated infrastructures
• Shortage of skilled technicians trained in smart elevator technologies

Opportunities:

• Strong demand for retrofit solutions in residential and public housing
• Increasing adoption of smart elevator technologies with real-time monitoring
• Availability of government grants and tax incentives for green building upgrades
• Training and certification programs for elevator technicians in digital maintenance and compliance

Strategic Recommendations

To capture the market’s potential, industry stakeholders should focus on:

• Developing integrated retrofit packages that combine energy-efficient upgrades with IoT and AI capabilities
• Collaborating with public sector entities to support the deployment of elevators in under-served residential communities
• Offering flexible financing solutions to ease the cost burden for property owners
• Expanding technician training programs to meet the demands of smart system servicing and safety compliance