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Wednesday, December 4, 2013

Competition in Korean elevator industry


The Korean market has been one of the hot spots for elevator companies over the past decade due to a boom in the construction of apartments and high-rise buildings. 

Basically, Kone’s major international competitors, i.e. Otis (Sigma), ThyssenKrupp, Schindler, are present in Korea, among whom Sigma – subsidiary company of Otis Elevator in Korea appeared to be the strongest player.

Hyundai Elevator – South Korea’s leading elevator manufacturing company – is the strongest player in the industry, keeping the largest market share in South Korean elevator manufacture. In 2009, Hyundai Elevator’s market share reached 40% in the first half of the year according to Korean Ministry of Knowledge Economy (MKE) and Korea Elevator Safety Institution (KESI).

Otis Elevator came in the second spot with 19.5% in the first half year, followed by ThyssenKrupp Elevator with 17.5%. The Japan-based company – Mitsubishi Electric ranked fourth with the market share of 6%. Schindler Group came last with 3% market share in the first half of 2009.

Major players in Korean market have made quite a lot effort to raise their market share. Some examples are: Schindler Group has attempted to take over Hyundai Elevator business since 2004 but hasn’t succeeded yet; Otis Elevator, after acquiring and changing LG’s elevator and escalator business into Sigma, kept Sigma and Otis competing with each other as separated brands to increase its market coverage.

Competition can be said the most fierce ever in elevator and escalator industry in Korea.

Sources
The Korea Herald: http://www.koreaherald.com/view.php?ud=20071031000035 (access 28/11/2013)
Hyundai official website: http://www.hyundaielevator.co.kr/eng/about/PR/news/1186968_1881.jsp (access 29/11/2013)

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