In the decades ahead, a much greater portion of the world’s population will live in urban centers, driving investment in infrastructure and real estate development. This will create  demand for products that contribute to clean, safe, energy-  efficient buildings. Our commercial businesses — Otis and UTC Climate, Controls & Security — are well established in the  world’s fastest-growing economies and are moving quickly to further localize manufacturing and distribution networks to capture new opportunities and better serve customers.  Otis’ actions in China are a good example. In the years ahead, China will continue  to be the world’s largest market for new elevator equipment as well as the world’s  fastest-growing service market. In response, Otis businesses have hired and trained  hundreds of new service technicians, and Otis is transitioning its high-rise center of  excellence, global marketing and business development functions to China. 12 40 We also are expanding our presence in India. In 2012, UTC Climate, Controls &  Security formed a joint venture to manufacture and distribute heating, ventilation and  air-conditioning (HvAC) products in the country. This builds on similar joint ventures in  Argentina, Brazil, Chile and Egypt. The company also acquired one of India’s leading  providers of integrated building management systems.  The outlook for our commercial aerospace  businesses is very strong, driven by the need  to replace aging fleets in North America and by  increasing demand across Asia. Over the next 20 years, 30,000 new aircraft are expected to enter service.  United Technologies is at the forefront in developing the next  generation of aircraft to meet this growing demand. This includes  the Boeing 787 Dreamliner, the most advanced commercial  aircraft in its class on the market. UTC Aerospace Systems was  instrumental in the design and launch of this more all-electric  aircraft. As newer aircraft enter service, our acquisition of Goodrich  will allow us to provide greater value to our customers with better,  more integrated products and services at a more competitive price.  Our majority ownership in the IAE International Aero Engines AG  collaboration will drive growth by increasing our share in what is  expected to be a 7,500-engine fleet. IAE already has delivered  more than 5,000 engines, with most of them early in their life cycle.  This represents a strong aftermarket growth opportunity. The  new IAE structure also will allow customers to smoothly transition  to Pratt & Whitney’s new PurePower GTF engine for the Airbus  A320neo aircraft family. 0 2 4 6 8 0 5 10 15 20 25 ELEVATORS (Elevators per 1,000 people) hVAC ($, HvAC spend per capita) COmmERCIAL  REFRIGERATIOn ($, CR spend per capita) U.S. 2.8 38.0 8.0 Europe 11.3 13.0 5.0 China 1.4 7.0 0.3 India 0.2 1.0 0.1 mumbai demonstrates  the powerful force of  urbanization. By 2025, its  population is expected to  reach more than 26 million,  more than double that in 1990. In the years ahead,  similar urbanization will  occur in countries such as  Colombia, Indonesia, mexico,  nigeria and Vietnam, which  have a combined population  of nearly 2 billion people. The V2500 SelectOne turbofan  engine is the most technologically  advanced engine in its class,  delivering best-in-class reliability,  cost of performance and fuel burn. 2012 AnnUAL REPORT |  07 