Urbanization drives Otis growth in China, world’s largest elevator market

April 27, 2021
SHANGHAI

Otis Electric, a subsidiary of Otis in China, was selected in March to supply 284 elevators and escalators for the new Line 3 of the Hangzhou Metro, bringing the number of units Otis has provided the city’s metro system to more than 1,100 across five lines since 2008.

With its economy on the rebound, China is stepping up its drive toward intelligent urbanization – with Otis playing a vital role as a trusted supplier to the country’s leading developers, builders and state agencies.

We are supplying elevators and escalators for some of the most ambitious projects now underway across the country, including a vast new metropolis southwest of Beijing, the tallest building in Western China, and several metro expansions in Chinese cities.

Otis formed its first joint venture in China in 1984. Today we have more than 15,000 colleagues in China, including 8,000 field professionals, and maintain more than 650 branches. Otis China has led the way in launching smart, connected products and services. We were the first elevator company in China to equip our mechanics with smartphones – a key component of our global digital service strategy. And in 2018, we chose China to introduce our new digital service platform, powered by the Internet of Things.

“Urbanization has brought massive economic and social benefits to the country – and Otis is proud of the role we have played over nearly 40 years,” said Perry Zheng, President, Otis China. “We look forward to continuing to support urban infrastructure as China pursues its vision for smart, sustainable, people-focused cities.”

Approximately 875 million people, or about 60% of China’s population, live in cities today. That number is projected to approach 1.1 billion people and 80% of China’s population by 2050, according to the latest estimates by the United Nations. Urbanization has fueled growth across China’s construction industry, including the elevator market: China is the world’s largest new equipment market, accounting for around 60% of units sold each year.

Here are recent major projects for which Otis has been selected to provide elevators and escalators:

Xiong’an New Area

Covering 1,700 square kilometers (656 square miles), the Xiong’an New Area near Beijing, was named a state-level economic zone in 2017. More than 1,000 Otis elevators and escalators have already been ordered in support of projects in the area that will be a new home to administrative services and residential communities being relocated from Beijing.

Silk Road Pearl Tower

At 448 meters (1,470 feet), the Silk Road Pearl Tower will redefine Yinchuan’s skyline – serving as a major tourist attraction and a functioning broadcasting facility. Otis is providing 75 elevators and escalators, including six high-speed double-deck SkyRise elevators.

Located in northwest China, Yinchuan is central to China’s Belt and Road initiative, a massive infrastructure project that stretches from East Asia to Europe – and reminiscent of the ancient Silk Road that gives the tower its name.

The Silk Road Pearl Tower will become the tallest building in Western China and the third tallest in the country when completed. China’s two tallest broadcasting towers, the 600-meter Guangzhou Canton Tower and 468-meter-high Shanghai Oriental Pearl Tower, also feature Otis equipment.

Metro Systems

To support the country’s continued urbanization, China hopes to expand its public transport network, already the world’s second largest, by one-third over the next 15 years. Otis is playing a critical role by providing the elevators and escalators that passengers need to reach the train platforms from street level quickly and safely. These awards help strengthen Otis’ leading position in China’s dynamic infrastructure segment.

Hangzhou Metro Expansion

Otis Electric, a subsidiary of Otis in China, was selected in March to supply 284 elevators and escalators for the new Line 3 of the Hangzhou Metro, bringing the number of units Otis has provided the city’s metro system to more than 1,100 across five lines since 2008. One of China’s seven capitals, Hangzhou today is an important manufacturing base and logistics hub for coastal China.

Chongqing Metro System

Otis will also modernize 119 elevators and escalators for Line 2 of the rapidly expanding Chongqing Metro network, a long-time customer of ours. Otis units are currently in place on several Chongqing lines and last year, we won a contract for more than 200 escalators and six moving walkways for Line 9.

With an urban population of 18 million, Chongqing (shown above) is a mega-city in southwest China and urban mobility is a main focus for its planners. Chongqing is also one of China’s smartest cities – and fast becoming a center of the country’s robot industry.

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