VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Friday, January 2, 2026
KONE Oyj
KNEBV · Nasdaq Helsinki
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
KONE Oyj is a global elevator, escalator and automatic door OEM with a large recurring Service and Modernization base. The strongest moats sit in the aftermarket: a large service base, dense field service organization, and growing connected/digital services that increase stickiness. New Building Solutions is more cyclical and price-competitive, but benefits from engineering scale and advance-payment/negative working capital dynamics. Modernization leverages service relationships and operational processes to address an aging installed base and rising safety and sustainability requirements.
Primary segment
New Building Solutions
Market structure
Oligopoly
Market share
—
HHI: —
Coverage
3 segments · 10 tags
Updated 2026-01-02
Segments
New Building Solutions
Elevator, escalator and automatic building door new equipment (new installations)
Revenue
40.6%
Structure
Oligopoly
Pricing
weak
Share
—
Peers
Service (maintenance & repairs)
Elevator and escalator maintenance & repair services
Revenue
40.6%
Structure
Competitive
Pricing
moderate
Share
—
Peers
Modernization
Elevator and escalator modernization/retrofit projects
Revenue
18.8%
Structure
Competitive
Pricing
moderate
Share
—
Peers
Moat Claims
New Building Solutions
Elevator, escalator and automatic building door new equipment (new installations)
Revenue share derived from 2024 sales by business in the KONE Annual Review 2024.
Capex Knowhow Scale
Supply
Capex Knowhow Scale
Strength
Durability
Confidence
Evidence
Sustained R&D and global manufacturing footprint support product performance, regulatory compliance, and execution in complex projects.
Erosion risks
- Component standardization reduces differentiation
- Supplier innovation commoditizes OEM advantage
- Technology parity among global peers
Leading indicators
- R&D spend as % of sales
- Product launch cadence
- Major projects win rate
Counterarguments
- Large peers have comparable R&D and manufacturing scale
- Price competition can overwhelm technical differentiation in standard projects
Negative Working Capital
Financial
Negative Working Capital
Strength
Durability
Confidence
Evidence
Project contracts can include advance payments and contract liabilities, creating a working-capital funding benefit versus pay-as-you-go models.
Erosion risks
- Customer payment terms move later in the project cycle
- Higher cancellations/refunds reduce contract liabilities
- Higher inventory requirements offset advance payments
Leading indicators
- Net working capital trend
- Contract liabilities balance
- Order cancellations
Counterarguments
- Advance payments are common across major elevator OEMs
- Benefit can shrink when markets weaken and customers demand tighter terms
Service (maintenance & repairs)
Elevator and escalator maintenance & repair services
Revenue share derived from 2024 sales by business in the KONE Annual Review 2024.
Installed Base Consumables
Demand
Installed Base Consumables
Strength
Durability
Confidence
Evidence
Large installed service base drives recurring maintenance revenue, spare parts pull-through, and modernization opportunities.
Erosion risks
- Independent service providers win maintenance tenders
- Open monitoring/parts ecosystems reduce OEM advantage
- In-house maintenance by large property owners
Leading indicators
- Service base units growth
- Contract renewal/retention rate
- Net new service contracts won/lost
Counterarguments
- Maintenance contracts are often re-tendered and can be switched
- OEM does not have contractual exclusivity on many sites
Switching Costs General
Demand
Switching Costs General
Strength
Durability
Confidence
Evidence
Maintenance is safety-critical and relationship-driven; reliability requirements and service history can raise switching friction.
Erosion risks
- Aggressive price undercutting by competitors
- Standardized parts reduce dependence on OEM
- Regulatory changes enabling easier multi-provider servicing
Leading indicators
- Retention/churn rate
- Price increase acceptance rates
- Share of multi-year vs annual contracts
Counterarguments
- Customers can switch providers, especially in low-rise/standardized equipment
- Competitive bidding can reduce renewal pricing
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength
Durability
Confidence
Evidence
Connected services and remote monitoring create data-driven maintenance workflows that can increase customer stickiness and upsell opportunities.
Erosion risks
- Cybersecurity incidents reduce trust in connected services
- Third-party IoT retrofits/analytics platforms disintermediate OEM
- Data privacy regulation limits data use
Leading indicators
- Connected units as % of service base
- Connected-services attach rate at contract renewal
- Digital service gross margin trend
Counterarguments
- Connectivity can be retrofitted by third parties
- Lock-in may be limited if monitoring data is portable
Service Field Network
Supply
Service Field Network
Strength
Durability
Confidence
Evidence
A large field workforce and local route density improve response time and efficiency in maintenance and call-outs.
Erosion risks
- Labor shortages and wage inflation
- Lower route density in fragmented geographies
- Independent players matching response times in dense cities
Leading indicators
- Technician attrition rate
- Response times / callback rates
- Service margin trend
Counterarguments
- Local independents can build dense networks city-by-city
- Network advantage can erode if service quality slips
Modernization
Elevator and escalator modernization/retrofit projects
Revenue share derived from 2024 sales by business in the KONE Annual Review 2024.
Installed Base Consumables
Demand
Installed Base Consumables
Strength
Durability
Confidence
Evidence
Modernization pipeline is supported by an aging installed base and by service relationships that surface upgrade needs and generate leads.
Erosion risks
- Owners defer upgrades during downturns
- Independent modernizers win projects on price
- Regulatory/code changes increase rework costs
Leading indicators
- Modernization order growth
- Modernization wins from own service base
- Installed-base age profile in key markets
Counterarguments
- Modernization is project-bid and competitive; installed base does not guarantee wins
- Component suppliers and local contractors can offer alternative modernization packages
Operational Excellence
Supply
Operational Excellence
Strength
Durability
Confidence
Evidence
Standardized processes and modular offerings can reduce downtime and improve project execution efficiency in partial modernizations.
Erosion risks
- Execution issues causing downtime or callbacks
- Supply chain disruptions delay projects
- Technology upgrades become commoditized
Leading indicators
- Project cycle time
- Modernization gross margin
- Warranty and callback rates
Counterarguments
- Peers can copy modular offerings and processes
- Customer procurement may prioritize lowest bid over execution quality
Compliance Advantage
Legal
Compliance Advantage
Strength
Durability
Confidence
Evidence
Modernization is often triggered by evolving safety, accessibility, and energy-efficiency requirements; codes/standards expertise can help navigate compliance.
Erosion risks
- Regulatory changes that standardize requirements across vendors
- Compliance costs rise faster than pricing
- Third-party certification reduces differentiation
Leading indicators
- Share of modernization tied to regulatory upgrades
- Certification and audit outcomes
- Energy-efficiency upgrade attach rates
Counterarguments
- Competitors also maintain codes/standards expertise
- Compliance is a requirement, not always a differentiator
Evidence
R&D spend 1.8% of sales
Company-reported R&D intensity and engineering scale support knowhow/scale in new equipment.
KONE describes negative working capital and operating with advance payments across businesses.
Defines advance payments and deferred revenue in new equipment contracts, consistent with negative working-capital dynamics.
well over 1.7 million units
KONE reports a very large service base, which underpins recurring service economics.
>90% annual retention rate
KONE cites long and stable customer relationships with high retention, consistent with switching friction.
Showing 5 of 9 sources.
Risks & Indicators
Erosion risks
- Component standardization reduces differentiation
- Supplier innovation commoditizes OEM advantage
- Technology parity among global peers
- Customer payment terms move later in the project cycle
- Higher cancellations/refunds reduce contract liabilities
- Higher inventory requirements offset advance payments
Leading indicators
- R&D spend as % of sales
- Product launch cadence
- Major projects win rate
- Net working capital trend
- Contract liabilities balance
- Order cancellations
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.