Key Technology

2003 Reluctance DC technology wins

advanced, however, in order to further inverter market share is expected to
Expanding Air Conditioner Market Share In and Outside Japan
National Commendation for Invention in
expand sales of dedicated cooling rise, there are still issues to conquer, Japan.
inverters for the Asian market as well including the development of lower- 2004 UX Series ultra-slim room air
As of April, 2015
as inverter air conditioners for North cost machines for low-income regions. conditioner is launched; ZEAS-AC multi-
March share in Japan (company transition) Daikin air conditioner sales by region America. Other issues include the scarcity of function air conditioner for convenience
stores is launched (Minister Prize of
(1,000 units) % 100 million yen In Japan, inverters have solidified raw materials, differing electric power
1,200 50
20,000 18,600 Economic, Trade and Industry of Energy
their reputation for high efficiency and infrastructures in each locality, and
Actual industry sales
44.8 45.1
44.2 43.4
43.0 43.6
Conservation Grand Prize for excellent
Daikin share 43.6
1.000 42.4 42.7 42.3 Other 660
41.4 42.0 41.6 17,109
40.1 41.0 United States
superior energy saving performance. establishing maintenance structures.
39.8
800
35.8
40 Asia and Oceania 15,972 585 energy conservation equipment)
China
Today, all room air conditioners in To solve these issues, Ohyama and his
35.0
33.4 16,000 Europe 553 5,100
600 32.3 32.4
Japan
400
29.9
30 3,633
4,407 Japan are equipped with inverters. members are focusing their R&D on UX Series has won
many fans with its
200 11,200 The technology has also spread to low-cost inverters and inverter intel- stylish design
12,000 10,046 10,414 2,890
0 20 9,086 250 318
426
1,036
2,213 2,541 lighting, hybrid cars, and many other ligence.
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 plan

Commercial share
250 897 943
1,719 fields. Globally, however, inverter air As Daikin expands its global 2005 Daikin enters U.S. air condi-
(1,000 units) 859 1,494 1,457 2,875 3,300
10,000
Actual industry sales
19.1
19.8 20.0
% 8,000 1,223
2,073
3,170
conditioners account for less than presence, it will also continue to find tioning market; Daikin Air-Conditioning
Daikin share 18.0 17.3 18.3 18.2 18.0 18.4 18.3 20 1,621 1,875
50% of the total market share. While new ways of advancing Japans
17.9 17.5
1,300
8,000
14.8
17.0
2,322 2,271 2,450 America is established
2,138 1,935 1,830
6,000
10.8
11.8
12.8 15
4,000
2,206 technological strengths. Anyone can 2008 Daikin concludes production
9.0 9.1
10 solve one problem if they pursue only agreement with Chinas Gree Electric
4,000 7.3 7.7
3,646 3,886 4,115 4,377 4,134 4,200
6.7 3,248 Appliances on inverter air conditioner
that, notes Ohyama. Weve gotten
production outsourcing
2,000 5
0
2009 2010 2011 2012 2013 2014 2015 plan FY this far by using one technology to
0 0
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 plan Overseas sales 64% 64% 63% 63% 73% 76% 77% solve two problems. Well keep Agreement sign-
Residential share ing ceremony
challenging ourselves in this spirit, with Gree Elec-
Daikin has already incorporated inverters into all of its room air Sales in each region around the world have also grown steadily he adds with the pride of an engineer tric Appliances
conditioners sold in Japan. Market share has been expanding each year. In newly emerging markets, where income levels
who created the worlds best inverter.
steadily since the implementation of air conditioning business are still low, the widespread adoption of inverter technology
reform plan in 1994. In the same year, Daikin became the first will require the manufacture of inverters at a lower cost than His words also reflect his passion for
in the industry to acquire international quality certification ISO in Japan. cooperative creation in solving
Air conditioners from Gree Electric
9001 for all of its air conditioner production factories in Japan. multiple issues with one technol-
Appliances, with which Daikin has a 2011 Eco Inverter air conditioner for
production outsourcing agreement. ogy. D China market is launched with new, low-
was a natural reaction considering for office buildings and the entire energy saving performance was even cost inverter
that the technology immediately product spectrum. In 2003, reluctance higher than that of the AC inverter. 2012 Urusara 7 room air conditioner
with next-generation refrigerant HFC32
reduced energy loss by more than half DC technology was recognized by the Ohyama dubbed the new machine the
is launched (Minister Prize of Economic,
and delivered an annual electric bill National Commendation for Invention global low-cost inverter. Trade and Industry of Energy Conserva-

Difference Between Inverter and

savings of 21%. Daikin suddenly found in Japan. The impetus for the new design tion Grand Prize for excellent energy
itself the leading seller of energy While Daikin room air conditioners had come in 2000. Osamu Takahashi, conservation equipment); Eco Inverter
saving air conditioners, which until
then had seen competitors undercut-
now enjoy the top market share, the
business was once relegated to third
Professor at the Nagaoka University
of Technology, had urged Ohyama
Non-inverter Type Air Conditioners air conditioner wins Technical Achieve-
ment Award from the Japan Electrical
Manufacturers' Association
ting each other by 100 yen to gain an behind commercial air conditioning to collaborate on the development of
2013 Urusara 7 room air conditioner
edge amid heated competition. and fluorochemicals in terms of busi- a global standard inverter. Ohyama Low energy consumption
wins multiple awards, including Prime

30%
Two years after the commercial air ness priority for the company. Daikin thought such an inverter would be a Low noise
Minister's Award of the 5th Monodzu-
Temperature() Precise temperature control
conditioners hit the market, Daikin once trailed far behind major Japa- good match with Daikins reluctance Start energy saving kuri Nippon Grand Awards for excellent
debuted as its main commercial nese electronics brands, with seventh DC motor. At the start of the project, Temperature
Non-inverter type
engineering, Minister Prize of Economic,
series the Super Inverter 60, which or eighth place in sales rankings, and Takahashi has envisioned a Japanese Non-inverter Trade and Industry of Energy Conserva-
the company considered exiting the federation of companies to tackle the type Inverter tion Grand Prize for excellent energy
uses 60% less electricity. With this
Set
type conservation equipment, and the Red
achievement, Daikin-brand products market. It was only this reluctance new technology. He then changed Temperature
Dot Design Award. Eco Inverter wins
grabbed more than 40% share of the technology that saved it. tack and decided to work exclusively Progress Award from The Institute of
Inverter type
market. The technology was then The business turnaround became with Daikin. The project suffered a Electrical Engineers of Japan
installed in multi-split air conditioners an opportunity to gather the latest setback when Takahashi passed away
information from related industries. suddenly in 2003. Ohyamas resolve Temperature is adjusted

Compressor motor revolution speed

quickly by high motor speed Motor repeatedly turns OFF
Semiconductor advances, performance only increased, determining to fulfill
Inverter when set temperature is
Reporter for "Inverters" improvements in microcontrollers the professors last wishes by any reached and back ON
when temperature declines
and neodymium magnets, along with means possible. A decade after the
Technology Innovation Center
Group Leader enhanced production technologies for project started, Daikin commercial- Fixed speed OFF ON OFF ON
Senior Engineer electrical steel plates and wiring were ized a product for China.
Morimitsu Sekimoto all leveraged to continually innovate This newly developed air condi-
More time required to
reach set temperature due to Advertisement promoting Energy
Conservation Grand Prize and other
new air conditioners with ever-higher tioner became symbolic of the second- slow motor speed
honors for Urusara 7
energy saving. In 2011, the commer- stage collaborative development with
Motor speed is slowed to
He has focused cialization of the Eco Inverter product Chinas Gree Electric Appliances, maintain set temperature 2016 Flux control inverter wins
on inverter R&D once reached
marked a new phase in the history of with which Daikin formed an alliance Time Technical Achievement Award from
since entering Daikins inverter development. The in 2008. Today, Daikin and Gree Elec- Air conditioners without inverters cool or heat a room to a set the Japan Electrical Manufacturers'
the company. temperature, then turn OFF once the temperature is reached. They Association (JEMA)
new design eliminated the electrolytic tric Appliances are manufacturing a
turn back ON again when the temperature rises above or falls below
condenser and other parts, which also million units of these air conditioners the set temperature, repeating this process during operation. As a
helped lower the cost. And yet the annually. The technology is still being result, room temperature fluctuates and energy is wasted.

24 Challenge 2016 Vol. 01 25