BELGIUM: Daikin Industries has celebrated its 100th anniversary with best-ever global sales but the “challenging” heat pump market saw sales drop in Europe.

Latest figures from the Japanese parent company, Daikin Industries, report sales of JPY4395.3bn (€28bn) for the year to March 31, a 10% increase on the previous year. However, its European subsidiary, Daikin Europe NV, saw turnover fall by around 6% to €4.9bn, due to a decline in residential heat pump sales.

Daikin reports a contraction across all types of heat pumps in Europe. Although the year started promisingly, Daikin saw market demand for residential heat pumps fall sharply in the final quarter (January-March 2024). High inflation, rising interest rates and the decrease in gas prices during 2023 are blamed.

On the plus side, Daikin Europe saw growth in its commercial and industrial markets, as well as its turnkey service and solutions business. Sales in the company’s emerging regions Türkiye, Middle East and Africa grew as well.

While demand for large commercial DX projects in the hospitality and office sectors stagnated in several European regions, Daikin managed to surpass last year’s results thanks to its performance in large commercial VRV ranges and light commercial products in applications such as small data centres and warehousing.

Daikin Europe did well In the large commercial and industrial chilled water applied systems segment, tapping into the rising demand for water-based heating and cooling systems, driven by the EU’s carbon neutrality goals.

Although the residential market for single family homes was under pressure, Daikin reveals that it did grow sales in collective housing projects. In the Middle East the business was successful in securing several large projects.

Sales in the refrigeration sector are said to be benefiting from investments in the food retail market, while the recovery in tourism in Southern Europe has increased demand for refrigeration units in the restaurant and hotel sector. Daikin’s industrial refrigeration segment grew strongest in the Middle East and Africa.