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Products: United Technologies Corporation (UTX)

UTC Climate, Controls & Security(UTC Climate, Controls & Security)
UTC Aerospace Systems(UTC Aerospace Systems)
Otis Elevators(Otis Elevators)
Pratt & Whitney Aircraft Engines(Pratt & Whitney Aircraft Engines)

UTC Climate, Controls & Security

What is being offered?

UTC Climate, Controls and Security consists of largely two sub-divisions - UTC Fire & Security and Carrier.

UTC Fire & Security provides a range of security and fire safety products, including fire and intruder alarms, surveillance systems, hazard detection products, life safety systems and firefighting equipment. The company also offers services such as installation and maintenance, monitoring and response services.

Carrier provides heating, ventilation, air conditioning and refrigeration products and services to residential, commercial and industrial customers. The company also provides aftermarket services such as maintenance and repair.

Who is buying?

UTC Fire & Security's customers include governments, building owners and developers, financial institutions, architects and fire consultants. The company sells products and services directly to end consumers as well as through representatives, distributors, dealers and U.S. retail locations.

Carrier sells to residential, commercial and industrial customers through distributors, wholesalers and retailers.

Competitors:

Fire & Safety's principal competitors include ADT Worldwide, Brink's Company, and G4S Plc.

Carrier's principal competitors include LG Electronics, Hitachi, Mistubishi, Kenstar and Panasonic.

What buyers care about:

  1. Cost
  2. Performance
  3. Power consumption
  4. Response time
  5. Ease of operation

UTC Fire and Security's top selling point

  1. Integrated services
  2. Strong brand with proven performance

Global HVAC Equipment Market Size

This refers to the size of the global heating, ventilation and air conditioning equipment market. The principal products of this industry include room air conditioners, central air conditioners, warm furnaces, heat pumps, boilers, and air handlers.

The global HVAC equipment market size was around $67 billion in 2008. This declined to $62 billion in 2009 due to the financial crisis, which lowered sales of HVAC products worldwide. In 2010 the market size recovered to nearly $69 billion on economic recovery. The market size increased steadily to an estimated $84 billion in 2012, $90 billion in 2013, and estimated $95 billion in 2014. It crossed $100 billion in 2015, reaching an estimated $107 billion in 2016. In 2017, the market size rose to $112.4 billion.

Chart: Global HVAC Equipment Market Size

Global Security Equipment Market Size

This refers to the global market for security equipment, which includes alarm systems, surveillance systems, access control systems and tracking systems.

The Global Security Equipment Market Size increased from $62.1 billion in 2008 to $69.6 billion in 2009 according to a report published by Freedonia Group. We estimate the market to have grown steadily to $83.8 billion in 2012, $89.2 billion in 2013, $94.9 billion in 2014, $101 billion in 2015, $107 billion in 2016 and $114 billion in 2017.

Chart: Global Security Equipment Market Size

Global Fire and Life Security Market Size

This refers to the global code-driven fire and safety market. The code here refers to fire and building codes which ensure that adequate safety measures are in place in the event of fires or other such threats. Products in the market include fire detection equipment, fire extinguishers and gas detection equipment.

The Global Fire and Life Security Market Size increased from $6.49 billion in 2009 to an estimated $10.19 billion in 2017.

Chart: Global Fire and Life Security Market Size

UTC's Climate, Controls & Security Market Share

This refers to UTC's Climate, Controls & Security division's share of the global fire safety, security and HVAC equipment market.

UTC's Climate, Controls & Security Market Share declined from 12.1% in 2009 to 7.4% in 2017 due to a variety factors including divestiture of Carrier's certain businesses, and pricing pressures in China and Europe.

Chart: UTC's Climate, Controls & Security Market Share

UTC Aerospace Systems

What is being offered?

UTC Aerospace Systems was created in 2012 with the merger of UTC's Hamilton Sundstrand business with Goodrich. The division provides aerospace parts and equipment and services such as maintenance, overhaul and repair as well as engineering and technical support.

Who is buying?

UTC Aerospace Systems' products are used in commercial, military, and general aviation, as well as military ground vehicle, space and undersea applications. The company sells aerospace products to governments, aircraft manufacturers, aircraft operators and independent distributors.

Competitors:

UTC Aerospace Systems's competitors include companies like Honeywell International, Northrop Grumman and Woodward.

What buyers care about:

  1. Cost
  2. Performance
  3. Durability

UTC Aerospace Systems's top selling point

  1. Strong brand name
  2. Strong durable products

Global Aerospace Parts & Equipment Market Size

The Global Aerospace Parts & Equipment Market Size refers to the market for aircraft parts and equipment excluding engines for both commercial and military aviation. This market also includes spend allocated by NASA for equipment for its space and other aerospace programs.

The Global Aerospace Parts & Equipment Market Size was approximately $60.8 billion in 2009. It fell to $59.7 billion in 2010, but increased to an estimated $91.1 billion by 2017.

Chart: Global Aerospace Parts & Equipment Market Size

UTC Aerospace Systems Market Share

This refers to UTC Aerospace Systems' share of the global aerospace parts and equipment market. This market consists of aircraft parts and equipment and NASA's contracts for space and aerospace systems.

UTC Aerospace Systems Market Share (%) rose steadily from 9.1% in 2009 to 9.9% in 2011. It jumped to 12.3% in 2012 and 18.1% in 2013 and 18.2% in 2014 driven by the incorporation of Goodrich sales July 2012 onward. Market share remained around 18% in 2014 but declined to 17% in 2015. In 2016, the figure fell further to 16.4%, and to 15.7% in 2017.

Chart: UTC Aerospace Systems Market Share

Otis Elevators

What is being offered?

Otis manufactures elevators, escalators and moving walkways and provides services such as maintenance, repairs, upgrades and modernization.

Who is buying?

Otis serves customers in the commercial and residential property industries. The company sells directly to end customers and to a small extent through sales representatives and distributors.

Competitors:

Otis competes against players like ThyssenKrupp Elevator AG, Schindler Holding AG Ltd and Kone Corporation.

What buyers care about:

  1. Innovation
  2. Performance and reliability
  3. Cost

Otis's top selling point

  1. Strong brand and market position
  2. Good range of aftermarket services

Global Elevator and Escalator Market Size

This represents the global escalator and elevator market which is also referred to as the E+E market. There are three main segments of this market namely new equipment installation, modernization of old units and maintenance of existing units. Elevators constitute around 95% of this market with the remaining constituted by escalators and moving walkways.

The global elevator and escalator market was around $56 billion in 2008 according to a report by Koncept Analytics. It declined to an estimated $51 billion in 2009, due to the global financial crisis which severely impacted demand for new equipment installations, but it recovered to an estimated $62 billion in 2012, $65 billion in 2013, $68 billion in 2014, $71.3 billion in 2015 and $74.7 billion driven by steady growth in the global construction market. In 2017, the market grew to $78.2 billion.

Chart: Global Elevator and Escalator Market Size

Otis' Elevator and Escalator Market Share

This refers to Otis' share of the global elevator and escalator market.

Otis' Elevator and Escalator Market Share has steadily declined from 22.9% in 2009 to 15.5% in 2017 due to severe price competition from regional manufacturers in some key markets, particularly China.

Chart: Otis' Elevator and Escalator Market Share

Pratt & Whitney Aircraft Engines

What is being offered?

Pratt & Whitney supplies aircraft engines for the commercial, military, business and general aviation markets. The company also provides maintenance, repair and overhaul services, and sells spare parts.

Who is buying?

Pratt & Whitney's customers include aircraft manufacturers, airlines, leasing companies, space launch vehicle providers and governments.

Competitors:

The company competes primarily with companies such as GE Aviation and Rolls Royce.

What buyers care about:

  1. Innovation (technologically advanced products with cutting edge features)
  2. Performance

Pratt and Whitney's top selling point

  1. Strong brand with proven track record
  2. Innovative products, with many of them first to market

Aircraft Maintenance, Repair and Overhaul Market Size

This refers to the Maintenance, Repair and Overhaul market which handles the maintenance and repair of aircrafts. MRO activities consist primarily of airframe maintenance, engine and component work as well as line maintenance.

According to a report by consulting firm IMAP, the worldwide airline MRO market was valued at $44 billion in 2009, and declined to $42 billion in 2010. We estimate the market size to have grown to $56.6 billion by the end of 2017.

Chart: Aircraft Maintenance, Repair and Overhaul Market Size

Global Aviations Engin Market Size

This refers to the global market for aviation engines used in commercial and military aircraft.

According to Forecast International, the market for commercial aircraft engines was $21 billion and that for military aircraft engines was $5.5 billion in 2010. We estimate this market - commercial as well as military engine - to have increased to $27.4 billion in 2011, $28.8 billion in 2012, $30.7 billion in 2013, and $32.5 billion in 2014. In 2015, the estimated figure rose further to $34.5 billion. In 2016, the figure stood at $36.5 billion. In 2017, it rose to $38.7 billion.

Chart: Global Aviations Engin Market Size

Pratt & Whitney's Aviation Engine Market Share

This refers to Pratt and Whitney's share of global aviation engine market, which includes both delivery of new engines and maintenance/repair/overhaul of in-fleet engines.

Pratt & Whitney's Aviation Engine Market Share rose steadily from 17.3% in 2009 to 19.1% in 2011. However, the figure has declined continuously since then and it now stands at 16.6% in 2017. This was mostly due to increased sales from competitors such as CFM International.

Chart: Pratt & Whitney's Aviation Engine Market Share