Daikin to boost its compressor production capacity

Osaka: Daikin Industries, a leading air conditioner manufacturer, is adding an AC compressor plant in Thailand. The company is planning to invest around USD49.3 million in the plant and it will manufacture residential air conditioner compressors. The company will build the plant near to existing facility situated in southern province of Rayong. At present, Daikin’s plant produce around 2 million compressors and the plans are to raise up the production to 2.75 million units by year end and till 2018 the production will rise to 3.5 million units.

Daikin will ship the compressors to its air conditioner plants in Malaysia, Thailand, India and will make the finished products available across Southeast Asia. Daikin has a strong presence in Southeast Asia due to the energy saving technology used in air conditioners which helps in controlling the power consumption of households in Southeast Asia. The company considers Southeast Asia and North America as its key market.

According to TechSci Research, Daikin has a competitive edge in Southeast Asia due to the installation services it offers and the technological advancements inculcated in the company’s products. By the year 2020, Daikin has plans to increase its sales by 70% in Vietnam where there is a huge scope for air conditioners as at present less households have air conditioners. Further, by the year 2018 the company will expand its sales by 30% in Asia and Oceania. South Korean companies like LG Electronics are also sharpening their focus on Southeast Asia.  

According to a recent report published by TechSci Research, “Global Air Conditioners Market Forecast & Opportunities, 2020”, global air conditioner market is projected to grow at a CAGR of 8.5% during 2015-20. In addition to the residential segment, growing hospitality and tourism sectors are contributing significantly towards rising demand for air conditioners across the globe. Introduction of energy-efficient air conditioners and air conditioners with in-built air purifiers is expected to boost air conditioner sales in the coming years. Split air conditioners dominated the global air conditioners market over window air conditioners, and this trend is expected to continue during the forecast period. The adoption of window air conditioners, VRF system, chillers and portable air conditioners is also expected to grow over the next five years. Few of the major air conditioner manufacturers with significant global footprint include Gree, Daikin, Toshiba, Carrier, Midea, LG, Panasonic and Trane.