Otis pledges further investment in a digital future

US-based elevator maker Otis says it is dedicated to enhancing research and development efforts in China to serve both local and international markets.

Sally Loh, president of Otis China, said it will continue to invest in the R&D field in the wake of the latest digital trend and is seeking further adoption of personalized AI solutions.

"We see growing opportunities with the ongoing urban renewal process and also the digitization trend and we remain focused on the innovation for the modernization solutions for elevators and escalators," she said in an interview on Monday.

Among around 10 million escalators and elevators currently in use in China, about 1 million units have been in use for over 15 years and the number requiring renovation and upgrading is expected to grow at double digits in the coming years, according to the company.

"We'll continue our investment to enhancing the innovation capabilities in the digitization area and we believe we have selected Shanghai as the right place for our global R&D center thanks to its open and pro-business environment," she added.

Shanghai has around 350,000 elevators and escalators currently in use and is a crucial market.

The elevator and escalator manufacturing, installation and service company already has a complete supply chain in China with four manufacturing sites.

In 2023 it received certification from the Shanghai government for its global R&D center, an indication of the richness of the talent pool available in the city. It now has over 400 research and development staff, and over 100 staff are dedicated to digital solutions.

The government's push for large equipment renewal has been an important boost for the industry sector, Loh added.

Internet of Things modules have been deployed to allow tracking and predictions of elevators' operation status and offer precautionary warnings for repair and maintenance staff.

For example, its local R&D team has came up with a customer experience portal to allow easier access for the real time operation status and track repair progress.