CDF Voice | Judy Marks, Chair, Chief Executive Officer and President of Otis Worldwide Corporation

Ni hao! I am Judy Marks, Chair, Chief Executive Officer and President of Otis Worldwide Corporation. Otis is the world's leading company for elevator and escalator manufacturing, installation and service. We are proud of our more than 170-year legacy, which began when our founder Elisha Otis invented the elevator safety brake that gave rise to the modern city – changing how we live, how cities are built and how the world moves.

Otis formally established our business in China in Tianjin more than 40 years ago, in 1984. And even before that time, we had been a witness and contributor to China's urbanization and infrastructure development. Over the years, we have consistently provided safe and digitally advanced elevators and escalators and high-quality services to customers and passengers around the country. Today, China continues to be an important market for Otis, and we maintain our commitment to growing and evolving in step with the country. Currently, China is the leading elevator producer worldwide, accounting for more than 60% of global production. It stands as the largest single market for our industry's new elevator installations and for its service installed base, which presents an attractive opportunity for sustain servicing of that equipment. And with many elevators and escalators, installed during the construction boom more than a decade ago, needing upgrades and refurbishment, we are actively responding to this demand dynamic, that is driving the need for expertise, and upgrade packages across the fast growing markets for equipment modernization or refurbishment in addition to service.

I agree with President Xi on the necessity to accelerate the "Building of Resilient Cities" in China, of which, elevator modernization is a part. Recently, the number of in-service elevators in China surpassed 9 million units – the largest single country installed base in the world. Many of these elevators installed in the early 2000s are now aged and they are ready for required technology upgrades, new aesthetics or full refurbishment. And as urbanization rates in China have continuously accelerated since 2008, the number of in-service elevators has increasingly grown by approximately 1.5 million units year over year. This means that in 2024, the number of elevators in China that reached their aging replacement period, which is 15+ years or older, was nearly 1 million – with expectations for more growth through the end of this decade.

Therefore, it's important to support the Chinese government efforts focused on large-scale equipment renewal actions, and we believe elevator and escalator modernization is a critical part of that national strategy. Notably, the renovation of aging residential elevators and escalators will help mitigate and prevent safety risks and ensure greater efficiency and operational quality for customers and passengers. These equipment renewals and modernizations will make buildings more energy efficient as we work to meet ambitious emission targets, like China's goal of carbon peak by 2030 and carbon neutrality by 2060.

So, as part of our modernization efforts, at Otis, we are focusing on leveraging digitalization; energy-efficient technologies; and updating equipment with intelligent, connected and reliable systems. Our Otis ONE® IoT digital Service platform leverages AI to analyze elevator performance data to enable predictive maintenance. Technologies like this help us to meet the current needs and future expectations of building owners and tenants, and to comply with new government standards. We are also doing our part to reduce carbon emissions with innovative and highly efficient solutions achieved through equipment modernization and building renovation that align with China's green, low-carbon and digital-transformation programs and further contribute to healthy, high-density urban living.

In closing, I want to thank you for the invitation to participate in my now 3rd China Development Forum. Each year in attendance offers new opportunities and allows me to meet with officials, delegates, customers and partners to share updates about our work and discuss how Otis can further support China's urban development plans. Last year, it was inspiring for me to hear Premier Li’s ambitious goal to open a 5 trillion RMB market for equipment renovations. I hope to learn about similar new policies at this year’s forum. We remain committed to investing here – in modernization, infrastructure, manufacturing, digitalization – and across our teams and business. CDF serves as a platform to strengthen our confidence and our connections within the Chinese market. This includes our adherence to the "in China for China and the World" strategy. Congratulations on an exciting CDF 2025. We look forward to our ongoing joint success.

Download attachments: