Daikin Industries
Basic Information
- Stock Code
- 6367
- Industry
- Machinery
- Category Detail
- Consumer Electronics
- Prefecture
- Osaka Prefecture
- Establishment Year
- October 1924
- Listing Year
- May 1949
- Official Website
- https://www.daikin.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Shin-Etsu Chemical, Fujifilm, Fujitsu General, Mitsubishi Heavy Industries
Overview
Daikin Industries is a machinery manufacturer founded in 1924 and a global leader in air conditioning equipment and chemical products fields, characterized by advanced technological capabilities and global expansion.
Current Situation
Daikin Industries achieved consolidated sales of approximately 4.3953 trillion yen and operating profit of approximately 392 billion yen for the fiscal year ended March 2024, as a global company with an overseas sales ratio of about 80%. In the air conditioning business, it boasts top-class global market share in both commercial and residential air conditioners, and deploys a diverse range of chemical products including fluorochemicals and raw material resins. Technologically, it promotes inverter technology and the普及 of energy-saving refrigerant R32 to reduce environmental impact, and also develops environmentally friendly products such as micro hydropower generation and water pipe-less dehumidifiers. In sustainability activities, it focuses on reducing greenhouse gas emissions and actively engages in community coexistence and CSR initiatives. In the medium to long term, it aims to expand growth drivers through increasing global air conditioning demand and utilization of new material technologies, targeting sustainable product offerings and market expansion toward 2030. Recently, it has initiated a capital alliance with Miura Industries to strengthen the machinery business and is working to enhance competitiveness under a new structure.
Trivia
Interesting Facts
- Overwhelming No.1 with 40% share in global commercial air conditioning market
- First in Japan to mass-produce fluorocarbon refrigerants in 1942
- First to develop and provide air conditioning equipment for submarines in the South Pacific
- Unique humidification and dehumidification functions in residential room air conditioners
- Established joint venture with Miura Industries to advance machinery business strengthening
- Hosts large-scale Daikin Bon Odori festivals annually at multiple locations nationwide
- Pi-chon-kun is the representative mascot character for air conditioning products
- Deploys advanced Japanese refrigeration equipment overseas with high evaluation
- Designated as Eco-First certified company by Ministry of the Environment
- Holds naming rights for Houston Astros' home stadium (Minute Maid Park)
- Operates air conditioning technology training schools in Tokyo and Osaka to develop technicians
- Implemented executive dismissals due to past inappropriate accounting issues
- Advancing measures such as cutoff walls against PFAS contamination issues
- Holds world's No.2 share in fluorochemical products
- Daikin Europe is a major player in the European refrigerated showcase market
Hidden Connections
- Sumitomo Mitsui Banking Corporation maintains ties to Sumitomo Group as a major shareholder
- Capital relationships with Panasonic and Toyota Motor Corporation, advancing technological exchanges
- Transactions and alliances with diverse major Japanese companies such as Toyobo and Mitsubishi Heavy Industries
- Daikin's environmental technologies are adopted in municipal water utilities
- Takarazuka Revue Moon Troupe male lead featured in residential air conditioner CM
- Acquisition of U.S. Guardman expands presence in North American air conditioning market
- Relocated Tokyo branch office to office floors in Tokyo Midtown Yaesu
- Long-term sponsor of Osaka Dome, strengthening ties with Hanshin Tigers
Future Outlook
Growth Drivers
- Increasing global air conditioning demand and energy-saving trends
- Acceleration of demand for high-efficiency equipment due to stricter environmental regulations
- Expansion of infrastructure development for housing and commercial facilities in emerging markets
- Progress in high-functionalization and new applications for chemical materials
- Spread of smart air conditioning systems via IoT and AI technologies
- Growing societal demand for sustainable products and services
- Growth in renewable energy markets such as hydropower generation
- Stable demand for special equipment in defense sector
- Expansion of machinery business through alliance with Miura Industries
- Strengthening of solutions proposals for health and comfortable spaces
- Growth in air conditioning business accompanying data center expansion
- Demand from electronics industry such as LED and semiconductors
Strategic Goals
- Achieve over 50% air conditioning share in global market
- Continue over 50% reduction in greenhouse gas emissions
- Improve sustainable product sales ratio to 80%
- Achieve over 70% sales ratio for IoT-equipped devices
- Expand new businesses through alliance with Miura Industries
- Establish as global leader in environmental technologies
- Minimize environmental impact across entire product lifecycles
- Standardize new refrigerants and energy-saving cooling technologies worldwide
- Realize sustainable growth across diverse market areas
- Continue deepening coexistence with local communities through social contributions
Business Segments
Commercial Air Conditioning Systems
- Overview
- Provides optimal energy-saving air conditioning systems for large facilities.
- Competitiveness
- Energy-saving technology and global support network
- Customers
-
- Office building management companies
- Commercial facility operators
- Hospital and school facility managers
- Factory and clean room operators
- Hotels and accommodations
- Products
-
- VRV multi air conditioners
- Building package air conditioners
- Heat pump systems
- Ventilation and air purification units
- Remote management systems
Chemical Materials and Fluorine Products
- Overview
- Supplies advanced functional materials to diverse industrial sectors.
- Competitiveness
- High technological capabilities and quality control
- Customers
-
- Electronic component manufacturers
- Automotive industry
- Building materials manufacturers
- Medical equipment manufacturers
- Semiconductor manufacturers
- Products
-
- Fluororesins
- High-purity hydrofluoric acid
- Fluororubber
- Water- and oil-repellent agents
- Coating materials for electronic components
Hydraulic Equipment
- Overview
- Provides high-performance hydraulic equipment for diverse applications.
- Competitiveness
- Energy-saving design and reliability
- Customers
-
- Construction machinery manufacturers
- Industrial machinery manufacturers
- Automotive manufacturers
- Agricultural machinery manufacturers
- Products
-
- Hybrid hydraulic pumps
- Hydraulic cylinders
- Solenoid pilot valves
- Hydraulic motors
Special Machinery Products
- Overview
- Provides high-function special equipment for various uses.
- Competitiveness
- Diversified product technologies and high quality
- Customers
-
- Residential equipment manufacturers
- Ministry of Defense
- Medical equipment sales companies
- Products
-
- Heat pump water heaters
- Guided warheads and shells
- Oxygen concentrators
- Pulse oximeters
Refrigeration and Freezing Equipment
- Overview
- Provides energy-saving refrigeration equipment supporting food distribution.
- Competitiveness
- High-efficiency refrigeration technology and global network
- Customers
-
- Transportation refrigeration companies
- Food distribution companies
- Commercial facility operators
- Products
-
- Maritime container refrigeration units
- Commercial refrigerated showcases
- Food storage freezers
Air Purification Equipment
- Overview
- Air purifiers aimed at improving indoor environments.
- Competitiveness
- Advanced Streamer technology
- Customers
-
- Commercial facilities
- Medical institutions
- Residential construction companies
- Products
-
- Streamer air purifiers
- Anti-virus function products
Water Treatment and Environmental Equipment
- Overview
- Deploys equipment contributing to local environmental conservation.
- Competitiveness
- Energy-saving and environmental response technologies
- Customers
-
- Municipalities
- Industrial parks
- Water utilities
- Products
-
- Micro hydropower generation equipment
- Environmental purification systems
Telecommunications Air Conditioning Systems
- Overview
- Supports data center operations with advanced air conditioning management.
- Competitiveness
- Advanced control technology and energy-saving performance
- Customers
-
- Data centers
- Telecommunications carriers
- Products
-
- Data center air conditioning systems
- IoT-compatible air conditioning management solutions
Residential Equipment
- Overview
- Provides heating equipment to realize comfortable living environments.
- Competitiveness
- High-efficiency energy utilization
- Customers
-
- Residential builders
- Renovation contractors
- Products
-
- Floor heating systems
- Far-infrared heaters
Security Equipment
- Overview
- Manufactures high-performance shells for defense.
- Competitiveness
- High-precision machining technology and reliability
- Customers
-
- Ministry of Defense
- Defense-related companies
- Products
-
- Various shells
- Guided warheads
Electronic Systems
- Overview
- Deploys systems for IT and video fields.
- Competitiveness
- Advanced digital technologies
- Customers
-
- Software development companies
- Video production companies
- Products
-
- Materials Informatics
- Animation software
Air Conditioning Related Services
- Overview
- Supports air conditioning equipment maintenance and environmental compliance.
- Competitiveness
- Comprehensive support network
- Customers
-
- Building management companies
- Air conditioning maintenance contractors
- Products
-
- Air conditioning equipment maintenance
- Refrigerant recycling services
Competitive Advantage
Strengths
- World top-class air conditioning technology
- Global bases and sales network
- Advanced fluorochemical product development capabilities
- Technological innovation and environmental response
- Diverse business portfolio
- Strong R&D foundation
- High brand recognition
- Thorough quality control
- Active M&A strategy
- High-tech hydraulic equipment development
- Utilization of multinational talent
- Active commitment to sustainability
- Long-term customer relationship building
- Broad market adaptability
- Reliable product delivery
Competitive Advantages
- Overwhelming share in air conditioning market for both commercial and residential
- Global network with bases in 42 countries worldwide
- Early introduction and promotion of energy-saving refrigerant R32
- Market risk diversification through diverse product lineup
- Proprietary technologies and numerous patents in advanced chemical materials
- Active technological innovation toward reducing environmental impact
- Machinery sector reinforcement through capital and business alliance with Miura Industries
- Comprehensive proposal capabilities for large facility air conditioning systems
- Customization capabilities to meet diverse customer needs
- Comprehensive product warranties and maintenance systems
- Strong brand power and reliability
- Business operations emphasizing sustainability
- Improved production efficiency through substantial capital investment
- Early acquisition of advanced air conditioning technology for data centers
- Social trust through thorough compliance with environmental and safety standards
Threats
- Price pressure from intense international competition
- Risk of fluctuations in raw material prices
- Cost increases due to stricter environmental regulations
- Profit impact from exchange rate fluctuations
- Rise of local competitors in emerging markets
- Production constraints from global resource shortages
- Social impact of PFAS contamination issues and reputational risk
- Decline in market competitiveness due to delayed technological innovation
- Disruptions in global supply chains
- Challenges in talent acquisition and retention
- Reduced capital investment due to economic downturns
- Cybersecurity risks
Innovations
2024: Revenue Expansion in Data Center Air Conditioning
- Overview
- Deploys high-efficiency air conditioning systems for data centers to diversify revenue sources.
- Impact
- Business growth and profit increase in the global market
2024: Initiation of Capital and Business Alliance with Miura Industries
- Overview
- Establishes joint venture to scale up products and strengthen machinery business.
- Impact
- Synergistic enhancement of technology and sales capabilities
2023: Nationwide Deployment of Refrigerant Recycling Technology
- Overview
- Strengthens refrigerant recovery and recycling services to reduce environmental impact.
- Impact
- Compliance with environmental regulations and improved corporate image
2022: Promotion of Micro Hydropower Generation Equipment Adoption
- Overview
- Develops compact power generation systems utilizing water energy from water facilities.
- Impact
- Enhanced competitiveness in renewable energy market
2021: Expansion of Inverter-Equipped Air Conditioner Products
- Overview
- Adds inverter technology-equipped products with enhanced energy-saving performance to the lineup.
- Impact
- Electricity consumption reduction and market share maintenance
2021: Promotion of New Refrigerant R32 Adoption
- Overview
- Actively deploys R32-equipped products that are environmentally friendly to meet regulations.
- Impact
- Compliance with international standards and improved market competitiveness
2023: Development of Air Conditioning IoT Solutions
- Overview
- Develops remote control and energy-saving support systems for air conditioners using AI and IoT.
- Impact
- Improved customer management efficiency and reduced operational costs
2020: Development of New Fluororesin Materials
- Overview
- Introduces new high-function fluororesins with superior heat and corrosion resistance.
- Impact
- Enhanced competitiveness in chemical materials field
2022: Practical Application of Environmental Impact Reduction Technologies
- Overview
- Practicalizes CO2 emission reduction technologies in manufacturing processes to contribute to environmental goals.
- Impact
- Promotion of sustainable manufacturing activities
2023: Initiation of Cooling Technology Development for Electric Vehicles
- Overview
- Starts R&D activities on high-efficiency cooling systems for electric vehicles.
- Impact
- Creation of new entry opportunities in automotive sector
Sustainability
- Goal to achieve over 50% reduction in greenhouse gas emissions
- Promotion of refrigerant emission suppression and recycling technologies
- Implementation of product lifecycle assessments
- Support for local environmental conservation activities
- Operation of special subsidiary for disabled employment
- Certified as Eco-First Company by Ministry of the Environment
- Expansion of energy-saving inverter products
- Strengthening sustainability in supply chain
- Thorough chemical substance risk management
- Promotion of sustainable material adoption
- Employee environmental awareness initiatives
- Enhanced compliance with global environmental regulations