In 2006, KONE continued to implement the change that was necessitated by the revised strategy. Systematic implementation of development programs started to produce concrete results. KONE continued to strengthen its customer focus and improve its product and service offering, which took significant steps forward in all market areas.

Extensive measures to raise productivity continued. Among others, the industrialization of modernization, the renewal of a module-based maintenance method and efficient route capacity planning for field operations started to show first results. KONE also continued to optimize its logistics network and centralize its sourcing.

The global elevator and escalator market has changed significantly in the 21st century due to strong growth in China. Over half of the world’s elevators and escalators are currently located in Europe, nearly 20 percent in the U.S. and the rest in Asia and elsewhere in the world. However, it is Asia where new equipment sale are heavily concentrated, with more than 25 percent of new elevators and half of new escalators being installed in China. On the other hand, the growth potential for repairs and modernizations is concentrated in Europe and North America.

Urbanization and economic growth are continuing to increase the demand for new elevators and escalators and the related service in Asia, while economic growth and the need to modernize equipment and cater for aging populations is driving demand along with economic growth in Europe and North America. The industry is also affected by trends towards more efficient space and energy utilization, the use of new technologies, the requirement for better, more versatile services and the tightening of safety norms and regulations.