Daikin Accelerates Growth in Europe, Middle East, and Africa — Heat Pumps at the Core of Expansion

From residential to commercial sectors, leveraging EU environmental policies and subsidy programs for market growth

The HVAC market in Europe, the Middle East, and Africa continues to expand despite challenges such as inflation and economic slowdown. Growth is supported by stricter environmental regulations and rising demand for energy efficiency. In Europe in particular, government subsidies and the Green Deal policy are driving rapid adoption of heat pumps, creating significant opportunities for Daikin.

In the fiscal year ending March 2025, residential sales expanded in Italy and Central Europe, while commercial demand increased in hotels, restaurants, and office buildings with strong energy-saving needs. The company’s VRV series maintained solid performance, and environmentally friendly products such as heat pump heating systems using natural refrigerant R290 and VRV units with CO₂ refrigerant gained traction.

In the European heat pump heating and hot water business, rising gas prices and subsidy programs have accelerated the shift from traditional gas boilers to heat pumps. Daikin’s flagship “Altherma” series recorded strong growth thanks to its high efficiency and user-friendly design, spreading rapidly across the region. Beyond sales expansion, Daikin is also collaborating with research institutions and universities to conduct field tests, building a foundation for future technological innovation.

Looking ahead to the fiscal year ending March 2026, Daikin aims to further expand its market share in both residential and commercial sectors, while also targeting growth in data centers and emerging markets. With regulatory tightening and the continued spread of environmentally friendly products, Daikin is expected to further strengthen its global competitiveness, with Europe serving as a key driver.

Key Terms Explained

VRV Series: An inverter-driven HVAC system designed for large commercial facilities. Known for high energy efficiency and flexible installation, it has been well received in the European market.

Natural Refrigerant R290: An environmentally friendly refrigerant with significantly lower global warming potential compared to conventional refrigerants. Increasingly adopted in heat pumps and HVAC systems.

Altherma Series: Daikin’s flagship heat pump heating and hot water system in Europe. Widely adopted for its high efficiency, energy savings, and ease of use.

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