KONE provides value for the customers during the whole life cycle of the building. In the New Building Solutions business, we offer innovative, intelligent and sustainable elevators, escalators, automatic building doors and integrated access control solutions to deliver the best people flow experience. In Service, we ensure the safety and availability of the equipment in operation, and in Modernization we offer solutions for aging equipment ranging from the replacement of components to full replacements.
KONE’s business model is capital light as the working capital is negative in all businesses and we work extensively with component suppliers to complement our own manufacturing capacity. The Service business is very stable due to high requirements for safety and reliability. The customer relationships are also typically long and stable (over 90% annual retention rate). New Building Solutions and Modernization are more cyclical in nature and follow the construction cycles.
New Building Solutions:
- Growth drivers: urbanization, changing demographics and GDP growth
- Follows regional construction cycles
- Customers: developers, builders, architects, consultants, building owners
Service:
- Growth drivers: growing installed base, high requirements on safety and reliability
- Stable business due to high requirements on safety and reliability
- Customers: building owners, facility managers, housing corporations
Modernization:
- Growth driver: aging installed base, higher requirements for efficient people flow, emphasis on adaptability of buildings, safety and sustainability, strong maintenance base
- Customers: building owners, housing corporations, facility managers
In addition to the core growth drivers, changing customer needs, connectivity as well as new technologies offer new opportunities to create value for customers.