Kone: Strategic Shifts to Address Structural Headwinds in China Unveiled at Capital Markets Day
Kone outlined its newly minted group strategy—for the approaching six-year period of 2025-30—at its 2024 capital markets day. Kone’s refreshed strategy strikes us as sensible in light of key changes afoot within the global elevator and escalator market, which include structural headwinds in China’s new elevator equipment market, and aims to best position the wide-moat elevator original equipment manufacturer to benefit from opportunities further afield, which include Southeast Asia. The strategy also seeks to accelerate growth of Kone’s service business, with further increases in the rate of digital enablement of its service portfolio key to driving service portfolio growth. Importantly, Kone also continues to pursue the sizable elevator modernization opportunity that exists given the aging installed base of elevators globally.
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