Daikin sales steady despite heat pump slump
9th May 2025
BELGIUM: Daikin Europe NV has recorded a turnover of €5.03bn for the EMEA region for the year to the end of March, up around 2.5% on last year.
With residential heat pump sales below expectations, sales growth was driven by commercial and industrial business lines, turnkey services and solutions.
The Ostend-based subsidiary of the Japanese manufacturer reports that the European heat pump heating market continues to face significant challenges, blaming the high electricity-to-gas price ratio which puts pressure on the affordability of air-to-water heat pumps versus traditional gas boilers in the replacement market.
The company also blames regulatory uncertainties affecting consumer confidence. Although heat pump sales remained below expectations, Daikin claims it was able to realise a growth in market share.
The market for residential cooling declined across the EU due to mild summer conditions and “economic challenges”. However, its sales of air-to-air air conditioning heat pumps grew, With Daikin promoting them as a sustainable solution for all seasons.
Innovative product launches, such as the Multi+ domestic hot water range, which enables homeowners to heat up their domestic hot water with an air-to-air heat pump, is said to have further bolstered Daikin’s competitive position.
Sales of residential air conditioning equipment increased in Turkey, driven by summer heat waves and dealer support programmes.
Commercial and industrial
Commercial and industrial segments were strong in areas such as data centres, warehousing, hospitality, pharmaceuticals.
In the DX segment Daikin saw significant growth thanks to a strong R32 refrigerant heat pump lineup, while Daikin Applied Solutions’ chilled water business exceeded last year’s results.
In the EU, demand in the industrial markets of Germany and France remained stagnant, and several data centre projects in the Nordic countries were postponed.
Yet, Daikin claims its vertical market approach towards industrial and health-related applications enabled the company to secure important projects in multiple regions.
Daikin also secured large projects in the Middle East (UAE and Saudi Arabia), contributing to record-high sales figures in those regions.
The year also saw the company uniting its services and solutions offering, including turnkey, remote monitoring and rental solutions coming under under one single brand, Daikin 360. This business grew and contributed considerably to the vertical market results.
Cold chain business growth
Sales in Daikin’s cold chain business were also positive with the transition from HFC units to new generation propane refrigerant systems driving sales.
The hospitality sector and grocery segment experienced year-on-year growth, driven by sustained tourism in Spain, and sales actions in new channels like wholesalers in the UK, France, Italy and Germany.
