EIB Backs KONE with €250M to Drive Next-Generation Elevator and Smart Building Technologies

As cities grow vertically and populations concentrate in urban centres, efficient movement within buildings is becoming as critical as transportation between them.

The European Investment Bank (EIB) has approved a €250 million financing package for Finnish engineering giant KONE, marking a major investment in the future of smart urban mobility and energy-efficient building systems across Europe.

The funding will support KONE's research, development and innovation (RDI) programme from 2026 to 2029, accelerating the development of next-generation elevators, escalators, and intelligent digital solutions designed to optimise the movement of people in increasingly dense and complex urban environments.

Reinventing Mobility Inside Modern Cities

As cities grow vertically and populations concentrate in urban centres, efficient movement within buildings is becoming as critical as transportation between them. The EIB-backed programme will focus on:

• Advanced elevators, escalators, and auto-walk systems

• AI-driven and digital solutions to manage people flow in real time

• Enhanced safety and performance technologies

• Significant improvements in energy efficiency

"Smart, safe and energy-efficient mobility within buildings is an essential part of sustainable cities," said EIB Vice-President Karl Nehammer. "This investment strengthens Europe's leadership in advanced building systems while supporting high-skilled jobs."

Digitalisation Meets Sustainability

KONE's innovation strategy reflects a broader shift toward intelligent infrastructure, where digital tools are used to improve building performance and user experience.

The company aims to leverage:

• Data analytics and AI for predictive maintenance and traffic optimisation

• Smart systems that reduce waiting times and congestion

• Technologies that cut energy consumption across building lifecycles

"This programme supports our ambition to create smarter, more sustainable people flow," said Johannes Rastas, KONE's Senior Vice President for Research and Development. "Innovation and digitalisation are key to improving urban mobility and ensuring long-term efficiency."

Strengthening Europe's Industrial and Innovation Base

The project will be carried out primarily in Finland, with additional research activities in Italy, reinforcing Europe's high-tech manufacturing and engineering ecosystem.

KONE—headquartered in Espoo—is one of the world's leading elevator and escalator companies, reporting €11.2 billion in revenue in 2025 and operating globally across installation, maintenance, and modernization services.

The investment is expected to:

• Sustain and create high-skilled engineering and R&D jobs

• Strengthen Europe's industrial competitiveness

• Advance technologies that contribute to greener buildings

Part of the EU's TechEU Strategy

The financing falls under the EIB's TechEU initiative, which aims to support European companies developing cutting-edge technologies in sectors critical to future growth.

TechEU focuses on:

• Boosting innovation and digital transformation

• Enhancing technological sovereignty

• Supporting industries linked to sustainability and climate goals

Buildings at the Heart of Climate Goals

Buildings account for nearly 40% of energy consumption in Europe, making energy-efficient infrastructure a cornerstone of the EU's climate strategy.

By improving the efficiency of elevator and mobility systems—often one of the largest energy users in high-rise buildings—KONE's innovations could play a significant role in reducing emissions and operational costs.

A Growing Market Opportunity

The global market for smart building technologies is expanding rapidly, driven by:

• Urbanisation and population growth

• Demand for sustainable infrastructure

• Integration of digital and IoT technologies

Analysts say investments like this position European companies to compete globally in a sector expected to be worth hundreds of billions of euros in the coming decade.

Looking Ahead

With cities becoming smarter and more connected, the way people move within buildings is emerging as a critical frontier in urban innovation.

The EIB-KONE partnership signals a strategic bet on that future—combining engineering excellence, digital transformation, and sustainability to redefine mobility in the cities of tomorrow.