Kone

"We shape the future of cities" by moving two billion people daily through safe, convenient, and reliable People Flow® solutions for new and existing buildings [1].

Where it wins

• Global scale and installed base: over 60,000 employees across nearly 70 countries, moving 2 billion people daily [1].
• Integrated lifecycle management: covers everything from new building installations to modernization and lifetime service care [1].
• Sustainability leadership: first in the industry to achieve carbon neutral manufacturing units globally [1].
• Strategic consolidation: plans to combine with TKE to create a world-class entity with faster innovation and improved modernization capabilities [1].

Credibility: KONE Corporation homepage and Q1/2026 Interim Report announcement [1].

• Hardware-to-Service shift: Sells durable hardware (elevators/escalators) but generates recurring revenue through long-term service and modernization contracts [1].
• Global scale: Leverages a massive installed base (moving 2 billion people daily) to drive service revenue across 70 countries [1].
• Innovation-led: Uses R&D to create sustainable, smart solutions that differentiate new installations and justify modernization [1].
• Strategic M&A: Plans to combine with TKE to consolidate market share and improve service delivery capabilities [1].

• TKE (ThyssenKrupp Elevator): Primary competitor; KONE plans to combine with them to create a larger entity [1].
• Otis Worldwide: Global competitor in elevator and escalator manufacturing and service [1].
• Schindler: Major player in vertical transportation solutions [1].
• Mitsubishi Electric: Strong presence in Asian and global markets [1].
• Differentiators: KONE's focus on sustainability (carbon-neutral manufacturing) and digital People Flow® solutions [1].

• Urban congestion: Cities need efficient vertical mobility to support growth [1].
• Aging infrastructure: Existing buildings require modernization for safety and efficiency [1].
• Sustainability pressures: Buildings must reduce carbon footprints in manufacturing and operation [1].
• Maintenance reliability: Property owners need dependable, long-term service for critical transport systems [1].

The planned combination with TKE is a defensive and offensive move to consolidate market share against Otis and Schindler, creating a larger entity with greater R&D and service scale. KONE's sustainability leadership (carbon-neutral manufacturing) is a key differentiator that aligns with global ESG mandates, potentially giving it an edge in winning contracts with environmentally conscious developers. The shift from hardware sales to recurring service revenue is critical for stability, but execution risk lies in managing the integration of TKE's service operations. The next signal to watch is the regulatory approval of the TKE merger and the initial combined financial performance, which will validate the synergy thesis.

Accelerate the commercialization of digital People Flow® solutions as a standalone SaaS offering to building owners, creating a new high-margin revenue stream beyond hardware. Expand the "Stations of the future" project into a standardized, replicable product for public transport authorities globally, rather than treating it as a bespoke project. Leverage the TKE merger to cross-sell KONE's sustainability services to TKE's existing customer base, driving immediate revenue growth. Develop a transparent, customer-facing digital dashboard for real-time elevator performance and maintenance predictions, enhancing the lifetime care value proposition.