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“Retrofit System” of Daikin Industries ~ Recommending Retrofit ~fenj shi・ikeda hirofumi

<Series 1 / complete>

2018.07.19

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From the left, Mr. Ikeda and Mr. Feng


Feng Shi, Manager of Business Strategy Division, Services Headquarters, and Hirofumi Ikeda of Sales Planning Group, Planning Department at Daikin Industries, were quick to focus on and commercialize “Retrofit”. We spoke to these two gentlemen about “Retrofit system” that has been developed for multi-split type air conditioners already installed in buildings and was awarded the Minister’s prize, Ministry of Economy, Trade and Industry of 2016 Energy Conservation Grand Prize (Product and Business Model Division).
*Department and designation as at the time of writing this article.


Realization of Comfort, Energy Saving, and Low Cost

Multi-split type air conditioners installed in office buildings etc. are used for 15 to 20 years and repaired when there is a breakdown without any additional maintenance. Since replacement of multi-split type air conditioners requires significant construction work which is expensive and time-consuming, air conditioners with outdated performance are used beyond their service life in many cases, and this causes problems even from the perspective of energy efficiency.

The “Retrofit system” developed by Daikin Industries started service in the spring of 2016. This system reduces the risk of breakdowns, improves comfort, and realizes energy saving of about 13% to 15% (*) per year, just by replacing the principal components with high-performance components, such as the compressor, which is the heart, and control board which is the brain of the multi-split type air conditioners already installed in buildings.
* Energy efficiency may vary depending on the usage environment and temperature and is not guaranteed.

 1. Improvement in energy efficiency
   Significant reduction in power consumption is realized by installing the latest refrigerant control boards that are energy efficient.

 2. Realization of long service life of air conditioners
   Long service life is realized by replacing the compressor and control board with latest products.

 3. Improvement of comfort
   The optimum temperature for comfort is reached faster with the introduction of the latest refrigerant control technology.
   After reaching the optimum temperature, variations in room temperature are also less, and improvement in comfort is realized.

Software and hardware technologies are combined to realize energy saving
 From the verification results of effectiveness in buildings where the system has been installed, it has been confirmed that approximately 19% energy saving was realized
Retrofit exhibits significant impact on environment and recycling rate

Though Daikin has consistently expanded its business with development and production of refrigerants, and design, manufacture, sales, installation, and maintenance of air conditioners, during upgradation of an existing air conditioner, customers pointed out issues such as upgradation cost and the need to stop air conditioning for a long time during the construction period.
Since the effectiveness of the “Retrofit system” lies in replacing the main components, namely, compressor and control board, the cost for customers is less than replacing air conditioners with new products, and there is no impact on business caused by the stoppage of air conditioners. The Retrofit system was thus born by careful management of requests from customers.
As new products are becoming saturated in the air conditioner market, looking at air conditioners that are already installed for a breakthrough created a significant business opportunity. The sales of “Retrofit system” have also started in Italy, France, and the Middle East from spring 2018. We also want to actively expand the sales to about 150 countries and regions where our company has expanded its business.

We think that the collection of the extensive hardware and software know-how and technologies that our company has developed over many years in this field, as well as the corporate culture that allows employees to express their opinions freely, have enabled us to take up the significant challenge of “Retrofit” before other manufacturers and get substantial results.

Since the founding of Daikin, our employees are brimming with the spirit of “Doing interesting things that other companies cannot do”. One of the “Interesting things that other companies cannot do” is “Retrofit” for the air conditioners already installed, which has now become a strength of our company. However, the road to commercialization was not always easy.

In the next part, we will introduce how we worked on the commercialization of “Retrofit” and the initiatives taken.


Series

“Retrofit System” of Daikin Industries ~ Recommending Retrofit ~

Approach to Retrofit - Learning from the Example of Daikin Industries ~ Recommending Retrofit ~


Daikin Industries, Ltd.

A global manufacturer of air conditioners and chemical products headquartered in Osaka, Japan with a presence in 38 countries across five continents around the world. Our company provides a one-stop service to users using an integrated system of manufacturer services covering the whole country with the motto “Speed”, “Accuracy” and “Politeness”. We also offer services such as maintenance and energy efficiency solutions.

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