95-year-old Daikin maintains leadership in Thailand’s 60-billion-baht air-conditioning market

95-year-old Daikin maintains leadership in Thailand’s 60-billion-baht air-conditioning market

introduces innovative Magnetic Bearing Chillers in Thailand to capture 30% stake of commercial segment, expecting sales exceeding 16 billion baht

Marking 95 years in business, Daikin reaffirms its leadership in intelligent and innovative air conditioning with the launch of Magnetic Bearing Chiller which uses the same innovation as Thailand’s first bullet train. The newly-introduced product demonstrates the company’s ambition to penetrate the country’s commercial segment. After Siam Daikin Sales Co.’s total revenue has exceeded the targets for three consecutive years, the company expects to see more than 16 billion baht in 2020 thanks largely to quality products and expertise covering all market segments and good and reliable after-sale services.

Mr. Akihisa Yokoyama, President of Siam Daikin Sales Co., Ltd. leader in intelligent and innovative air-conditioning market, said: “Daikin which is an expert in air-conditioning systemS from Japan has been in the business for 95 years. Established in 1924, the company has manufacturing plants in over 150 countries around the world. It currently employs over 76,484 staff in 292 headquarters and subsidiaries around the world. Daikin recorded 1.20 million yen or approximately 335.19 billion baht turnover in 2009, and we foresee the sales growing to 2.2 billion yen or around 615.94 billion baht in 2019.”

With continuous efforts to search for the latest cooling innovations, the company produced more than 6.6 million air-conditioners in 2017. It has a capacity to produce as many as 13 air-conditioners per minute. During the past 10 years, the company has invested as much as 401 billion yen (approximately 115 billion) in R&D; making it obtain over 20,000 patents. Of all patents, 180 are the air-conditioners that use R-32 refrigerant. Meanwhile, more than 83 percent of Daikin’s buildings around the globe are green buildings that can reduce greenhouse gas by more than 54 million tons – equivalent to growing over 6.1 billion trees and reducing greenhouse gas from the fuel consumption of up to 44 million vehicles.

“On our 95th anniversary, Daikin is still determined to be the leader in intelligent and innovating cooling system who cares about the environment. We provide consumers with alternatives – energy-saving air-conditioners with low maintenance cost. With its advanced technology, Daikin has earned trust from consumers around the world, and the company is very proud of that. The company will never stop developing innovative products to respond to the consumer needs. We expect that this 2019 fiscal year, ending next March, will see our turnover grow by 15 per cent of last year’s sale worth 14.2 billion.”

“The launch of Magnetic Bearing Chillers will enable Daikin to create new experiences for commercial customers. Together with Inverter technology that makes 

Daikin the leader in residential air-conditioning market, the company will remain dominant in Thailand’s overall air-conditioning market worth 60 billion baht with a market share of around 28 percent,” said Yokoyama.

On Daikin’s strategy, Mr. Yokoyama added that: “Our management is young-blood generation and they emphasise sales and services. Next year will see Daikin focus on the commercial segment with VRV – MAX air-conditioners as the spearhead that provides intelligent technology to respond to the needs of customers looking for energy-saving quality. This will be unprecedented for this type of air-cons. The VRV - MAX will be the system that helps extend the lifespan with lightweight zinc aluminium magnesium alloy material that has a high technology coating. It offers users maximum efficiency, durability and prevents corrosion even in harsh climates as well as saving electricity consumption by up to 25 percent. It comes with a 5-year warranty called Worry Free Program.”

As for large-scale air-conditioners, Daikin has just launched Magnetic Bearing Chillers with the most effective cooling system to-date, sharing mechanisms with the likes of Japanese bullet trains based on magnetic field technology. The axis of rotation is floating in the air, reducing friction and saving energy consumption. It provides quiet operation with oil-free design, so there is no need for oil management systems to effectively improve the compressor. Daikin is the first air conditioner in Thailand to develop a Magnetic Bearing Chiller system for use with large air conditioners with sizes of 1.2 to 14.4 million BTU or 1,200 tons of cooling, which is considered very large. The main target groups include big buildings, shopping malls, 5-star hotels and large hospital chains.

“Daikin customers are both residential and commercial. Since 2017, large-sized buildings in the commercial segment have grown three-fold each year, and in 2018 sales reached 12 billion baht, giving Daikin the opportunity to develop technology to cope with the rising market demand. Daikin has offered air conditioners that are worthwhile, save energy and reduce maintenance costs. The customers can regain investment in the air-conditioners within 3-5 years," said Mr. Akihisa.

For residential or “Room Air” market, Daykin is going to introduce “Room Air” (Big Wall) next year. The new product – Room Air inverter with up to 36,000 BTU – will be unprecedented as it will be the first on the market. The company has been widely accepted for its intelligent and high-efficiency cooling system with energy-saving benefit. The units can also connect to Smart Home Kit and Home Automatic with a WiFi adaptor accessory that comes with all Daikin Room Air units.

The latest development saw Daikin partner the Department of Environmental Engineering King Mongkut's University of Technology Thonburi to develop high-efficiency particulate air filters. The institute then tested Daikin with the filter designed to deal with PM2.5 in a 26-cubic-meter room. The result was satisfactory: Daikin and the newly developed air filter reduced PM2.5 from very dangerous to safe level  within 190 minutes. This makes Daikin the first air-conditioning company to test such a product with the high recognition institute. Daikin plans to include PM2.5 air filters in every model that is launched in 2020. Daikin is also the first to use inverter technology which meets the requirements of the new energy-saving label 5 of the Electricity Generating Authority and responds to consumers’ needs.

The trend of air-conditioning still emphasises good health, good design and durability. It also requires promotional campaigns once in a while such as adding anti-mould and odour prevention systems, and extended circuit board life to prevent power surge. All are to cover variable requirements. Daikin has also developed an air purifier with high technology Active Plasma Ion and streamer that can inhibit both external and internal germs. Supplemented by electrostatic dust filters, it can capture up to 99 percent of small dust 0.1 to 2.5 microns and grinds the carbon filter to eliminate odours with PM 2.5 dust sensor and large dust to provide to those who want to take care of their health as well.

“As for Daikin’s after-sales services, it has added an application so that it can step up the services which match the lifestyles of new generations. Customers can rest assured that they will have convenient access to the services. More than 500 well-trained engineers and technicians are in the after-sales team to provide customers with expertise in air-conditioning. This is in accordance with the so-called Daikin Way that has enabled Daikin to grow and succeed throughout 95 years in the business. We take pride in this and pass on the DNA of Daikin Service Pride to every technician in the team. We strongly believe pride in our product delivers quality services to customers. With smart and innovative technology, Daikin provides high quality products and expertise to serve the demands of all segments of customers. That’s why Daikin still dominates the market with about 28 percent of the total air-conditioning market worth 60 billion baht.”

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