The Hustle
July 17, 2026
The $134 Billion Elevator Industry: How Maintenance Contracts Drive Profits
TL;DR
Elevator companies like Otis generate massive revenues not from selling elevators, but from long-term maintenance contracts—a business model that began with the Eiffel Tower in 1889 and now drives a $134 billion industry.
Key Takeaways
- 1Otis installed the first elevators at the Eiffel Tower in 1889 and created the world's first elevator maintenance contract
- 2The elevator industry generates far more revenue from servicing and maintenance than from manufacturing and selling new equipment
- 3In 2025, Otis made 10 times more money on servicing than on selling new equipment
- 4Only about five major companies dominate the global elevator and escalator market today
- 5Competition for lucrative maintenance contracts has intensified as the industry grows
Notable Quotes
“They make billions of dollars every year, and they don't make that much money from selling them, but from maintaining them.”
“in 2025, Otis made 10 times more money on servicing than in selling new equipment”
Chapters
1. The Eiffel Tower's Elevators: The Origin Story
The Eiffel Tower opened in 1889 with state-of-the-art elevators that were the highest in the world at the time. Otis, an American company, built two of these elevators and afterward created the first-ever maintenance contract for elevators, laying the foundation for a new business model.
2. The $134 Billion Industry Built on Maintenance
Today's elevator industry is dominated by approximately five major companies that generate billions annually. The key to their profitability is not equipment sales but maintenance contracts, which provide recurring, long-term revenue streams.
3. Otis's Revenue Model: The 10-to-1 Advantage
Otis exemplifies the industry's service-focused economics, earning 10 times more revenue from servicing existing elevators than from selling new equipment in 2025, demonstrating the superiority of the maintenance contract business model.
Key People & Entities
- Otis
- American elevator and escalator company that created the first maintenance contract model in 1889 and remains a major industry player
Glossary
- Maintenance Contract
- A recurring agreement for a company to service and maintain equipment over time, generating ongoing revenue
- Escalators
- Moving staircases that transport people between different levels, similar to elevators in function and market structure