OTIS - Kone: Most Competitive Player In Attractive Elevator Sector
Introduction to the Elevator Industry
The global elevator industry is attractive for many reasons.
The industry has a solid long-term CAGR of about 5% in units (slightly less in value, due to mix shift to emerging markets), driven by structural trends such as urbanization, especially in China. While the level of construction can be volatile, elevators have an ever-expanding installed base:
The expanding installed base generates recurring revenues in maintenance as well as repeat revenues from modernization. Maintenance and modernization service revenues have much higher margins (except in China), and are often carried out by