Elevator giant Otis is to build the world's tallest above-ground test tower in Shanghai, as it works to keep pace with China's burgeoning appetite for skyscraper construction.

The tower will be part of the company's new global research and development facilities in the city, which are expected to be operational by the end of 2018.

At a projected height of around 270 meters, the tower's innovative design will use a flexible configuration that can easily be adapted to accommodate new components and systems as they evolve, said Otis President Philippe Delpech.

Together with the R&D facility, the tower will support development of new technologies used in elevators being designed for various market segments, he said, delivering higher efficiency and smaller footprints, as well as industry-leading safety, comfort and convenience for passengers.

"Building our new test tower and R&D Center in Shanghai underscores our continuous commitment to satisfy customers in China and around the world," said Delpech.

"As the industry leader that introduced safe-elevator technology, this is a strong example of how we are investing to accelerate innovation and technology development for our next generation of elevators and service."

China's ongoing urbanization process calls for the building of a huge number of high-rise structures, which rely on high-quality elevators.

The country produced 760,000 elevators in 2015, 6 percent more than the previous year, and there are now believed to be 4.25 million elevators nationwide, according to latest data from the General Administration of Quality Supervision, Inspection and Quarantine, and the China Elevator Association.

After a decade of 20 percent annual growth, China's elevator market grew about 10 percent in 2014, but Zhang Lexiang, the association's secretary-general, expects the ongoing hunger for more high-rise construction to reignite demand.

Of the 106 buildings taller than 200 meters completed last year globally, 62 were in China. And six out of the top 10 skyscrapers in the world nearing completion in 2016 are in China, according to a report from the Council on Tall Buildings and Urban Habitat.

Shanghai's Lujiazui district, the nation's financial hub, features 235 buildings considered high-rises, and its skyline is still expanding.