OTIS Expands Product Offering With New Gen3 Elevator Platform

The primary focus of Otis Worldwide Corporation OTIS has been seeking innovation opportunities and making strategic investments in them to foster its growth. Keeping up with this focal aspect, the Thailand subsidiary of Otis has recently disclosed its Gen3-connected elevator platform in Bangkok.

Appealing Aspects of the Gen3 Elevator

Built upon the breakthrough designs of the Gen2 family of elevators, this new addition houses the Otis ONE IoT digital platform, thus enabling it to proactively communicate by monitoring equipment health and performance round-the-clock in real time. The new innovative elevator model will also ensure the safety of the riders due to the visibility of equipment health through remote intervention from Otis professionals by identifying potential issues or other maintenance requirements.

The availability of machine room and machine room-less options makes it flexible enough to adjust to a wide range of building uses, including residential, commercial, hospitality, medical and industrial.

The combination of various solutions, including Cloud-based APIs, the Otis eView in-car display, compass 360 intelligent dispatching technology and the Otis eCall Plus app, will make advanced passenger experiences possible. Furthermore, the inclusion of the Otis ReGen drive, LED lighting and sleep mode will ensure the reduction of energy usage and the elevator's carbon footprint.

Additionally, the company's signature Ambiance cab design, Otis PURE elevator control panel and the Otis Cab Air Purifier will add a modern touch to the new elevator model, alongside enhancing the health and well-being of its passengers.

Innovation Driving Growth

Otis seems to be on a research and development (R&D) investment spree. It invested $144 million in R&D in 2023. Furthermore, during the first six months of 2024, it invested $75 million in R&D, up 5.6% year over year. The year-over-year increase in R&D investments showcases the company's intent focus on amalgamating recent technologies into its products to stay well-positioned in the market.

As of 2023-end, it had 11 R&D centers and 17 factories across the world, primarily in China, India, Japan, France, Germany, Spain and the United States. These centers are strategically placed to enable the efficient development of engineering solutions. Also, the company's approximately 1,200 global engineers focus intently on digital initiatives, software, design user interfaces, and experience.

Image Source: Zacks Investment Research

Shares of this leading manufacturer of elevators, escalators, and moving walkways have gained 1.2% in the past six months compared with the Zacks Building Products - Miscellaneous industry's 4.2% growth. Although the company's shares have underperformed the industry, it intends to continue innovating and expanding the digital ecosystem and suite of digital solutions to foster its prospects in the upcoming period.

Zacks Rank & Key Picks

Otis currently carries a Zacks Rank #3 (Hold).

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