KONE Corporation Market Research Report

Background

Company Overview

Founded in 1910 in Finland, KONE Corporation has evolved into a global leader in the elevator and escalator industry. The company's mission is to improve the flow of urban life by providing elevators, escalators, and automatic building doors, along with maintenance and modernization solutions that add value throughout a building's lifecycle. KONE operates in over 60 countries, serving approximately 600,000 customers, including builders, building owners, facility managers, developers, architects, authorities, and consultants. With a workforce exceeding 60,000 employees, KONE's products and services are integral to urban infrastructure worldwide.

Key Strategic Focus

Core Objectives and Specializations

KONE's strategic focus centers on enhancing urban mobility through innovative and sustainable solutions. The company specializes in designing, manufacturing, installing, and servicing elevators, escalators, and automatic building doors. Key technologies include the KONE MonoSpace® machine-room-less elevator and the KONE UltraRope® hoisting technology, which enables elevator travel heights of up to one kilometer. KONE targets diverse markets, including residential, commercial, and infrastructure projects, aiming to improve people flow in urban environments.

Financials and Funding

Financial Performance

In 2024, KONE reported annual net sales of €11.1 billion. The company's elevator and escalator maintenance base exceeded 1.7 million units, reflecting its strong market presence and customer trust.

Pipeline Development

Product Innovations and Developments

KONE continues to innovate with products like the KONE DX Class elevators, which feature built-in digital connectivity as standard, enhancing user experience through advanced design and technology integration. The company also focuses on sustainable solutions, such as the KONE Care™ DX, the first carbon-neutral maintenance service in the elevator industry, introduced in 2021.

Technological Platform and Innovation

Proprietary Technologies and Scientific Methodologies

KONE MonoSpace® Elevator: Introduced in 1996, this was the world's first machine-room-less elevator, powered by the KONE EcoDisc® hoisting machine, setting a new industry standard for efficiency and environmental friendliness.

KONE UltraRope®: Launched in 2013, this superlight hoisting rope with a carbon fiber core enables elevator travel heights of up to one kilometer, offering unparalleled eco-efficiency and durability.

KONE People Flow Intelligence: A suite of equipment and software introduced in 2013, aimed at optimizing the movement of people within buildings through smart technologies.

Leadership Team

Executive Profiles

Antti Herlin: Chairman of the Board since 2003, representing the fourth generation of the Herlin family, which has been involved with KONE since 1924.

Philippe Delorme: Appointed President and CEO as of January 1, 2024. Delorme brings extensive experience in technology and sustainability, having held various leadership roles in international companies.

Leadership Changes

Recent Appointments

In October 2023, Philippe Delorme was appointed as the new President and CEO of KONE Corporation, effective January 1, 2024. He succeeded Henrik Ehrnrooth, who had served as CEO since 2014.

Competitor Profile

Market Insights and Dynamics

The global elevator and escalator market is characterized by rapid urbanization and increasing demand for efficient vertical transportation solutions. Key trends include the integration of digital technologies, emphasis on energy efficiency, and the need for modernization of aging infrastructure.

Competitor Analysis

Otis Elevator Company: A major competitor, Otis specializes in manufacturing and installing elevators and escalators, with a strong global presence.

Schindler Group: Another significant player, Schindler offers elevators, escalators, and moving walkways, focusing on innovation and sustainability.

Strategic Collaborations and Partnerships

Key Alliances

KONE has engaged in strategic partnerships to enhance its technological capabilities and market reach. Notably, in 2016, KONE announced an agreement with IBM to use the Watson Internet of Things Cloud Platform to collect and store equipment data, build applications, and develop new solutions, aiming to connect its global maintenance base to cloud-based services.

Operational Insights

Competitive Advantages

KONE's competitive advantages include its strong focus on innovation, exemplified by products like the KONE MonoSpace® and UltraRope®. The company's commitment to sustainability, with initiatives like carbon-neutral maintenance services, positions it favorably in an increasingly eco-conscious market. Additionally, KONE's extensive global presence and comprehensive service offerings provide a robust platform for continued growth.

Strategic Opportunities and Future Directions

Roadmap and Expansion Plans

KONE's strategy for 2025-2030, titled 'Rise: Rise to Lead,' focuses on leadership in three areas: being the number one choice for employees and customers, leading in innovation and sustainability, and achieving growth and profitability. The company aims to leverage its strengths to shape the future of cities by enabling safe, sustainable, and effortless people flow.