Insight - Elevators & Stairways 2026
Europe’s vertical transportation market is valued at approximately €20bn and is expected to grow around 6% p.a. despite near-term headwinds in construction. The sector is repositioning around recurring revenue: as new equipment demand weakens - particularly in residential real estate across Europe and in China - large OEMs have been shifting focus toward service, maintenance, and modernization to stabilize earnings and protect margins.
For investors and strategics, the implication is clear: control of the installed base matters more than pure installation volume. Route density (technician efficiency), digital platforms (predictive maintenance), and switching costs created by closed ecosystems are becoming the defining competitive advantages.
Key Takeaways:
The industry has been undergoing a structural shift toward service and maintenance as new equipment demand weakens in both Europe and China.
Residential is the largest segment, followed closely by commercial, while industrial & infrastructure is smaller but currently the fastest-growing.
Aging demographics and a sizable installed base >20 years old are supporting a multi-year modernization cycle across the DACH region.
The Big Four (Otis, KONE, Schindler, TK Elevator) dominate new installations and large service portfolios; together they represent roughly half of the DACH market.
M&A activity is focused on increasing route density to improve technician efficiency and acquiring digital capabilities to strengthen predictive maintenance and customer retention.
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