Martin Placek
Research expert covering transportation and electronics
Otis Worldwide - statistics & facts
Elevators are an essential component of modern life, enabling humans to build increasingly taller buildings that can be accessed by all. Until Otis Elevator Company introduced the first passenger safety elevator in 1852, the height of buildings was constrained by how many stairs a human could climb, typically seven to eight floors. Elisha Otis' invention revolutionized the possibilities of urbanization across the globe, making Otis the largest company in the market for elevators as well as for other types of vertical or horizontal transportation mechanisms. In 1976, the company was acquired by United Technologies Corporation (UTC), strengthening its global leadership as an elevator manufacturer. After the UTC-Raytheon Technologies merger in 2020, Otis spun off as an independent company and took the name Otis Worldwide Corporation. With the arrival of new competitors, the global market for vertical transportation technologies is constantly expanding: over the last two decades, the number of new elevators and escalators installed worldwide has grown consistently year-over-year. The total number more than tripled between 2001 and 2023, reaching roughly one million installations by 2023.
Business performance
From 2009 to 2023, net sales of Otis averaged around 12.7 billion U.S. dollars, with an upward trend toward 14.2 billion U.S. dollars in 2023. The net sales of Otis Worldwide Corporation divide into two main business segments: new equipment and equipment services. During the 2023 fiscal year, the company reported nearly 8.4 billion U.S. dollars in net sales from its service segment. Over the last decade, Otis has reported an initially fluctuating then downward-trending annual operating profit, which continued with the onset of the COVID-19 pandemic. However, during the 2023 fiscal year, the company reported an annual operating profit of over two billion U.S. dollars - a significant recovery from that reported in 2020. During the same fiscal year, Otis invested roughly 144 million U.S. dollars in research and development in order to remain competitive on a global level.Market competitors
The leading companies include Otis, Mitsubishi Electric, Schindler, and KONE. KONE’s revenue increased rapidly during the last two decades: between 2007 and 2022, the company more than doubled its revenue flows, reaching over 10.9 billion euros in 2023. Schindler experienced an increasing revenue flow until the global financial crisis (GFC) of 2008, reaching its apex of 14 billion Swiss francs in 2008. Yet, in the aftermath of GFC 2008, the company’s revenue plummeted, down by six billion Swiss francs. As of 2023, the company has not managed to fully recover its revenue flows.Outlook
In a world of increasing urbanization, elevators and other vertical or horizontal transportation systems and equipment are becoming more crucial. The growth trajectory of the elevator market is expected to follow a steady path: the global demand for elevators was projected at 85.2 billion U.S. dollars in 2023 and by 2028, the worldwide market for elevators is projected to reach over 110.5 billion U.S. dollars.
