These days have been called the VUCA era. VUCA stands for volatility, uncertainty, complexity, and ambiguity. Accurately determining global needs that vary country-to-country and region-by-region and making a well-timed response to market demands requires development of a vast array of air conditioners.
Unfortunately, the traditional development method of fine-tuning (improving) existing products cannot keep pace. We believe that the only way to survive in this VUCA era is to use numerical simulations to compress development time and increase efficiency. In other words, we aim to "make things without actually making them."
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Importance of Numerical Simulations to Daikin: Why We Aim to be the World Leader in Both Air Conditioners and Air Conditioning Simulations
FEATURE
2025.11.17
Because airflow is invisible to the naked eye, the development of air conditioning systems depends on numerical simulations. Not only can numerical simulations be used to observe airflow, but they can also be used to indicate the flow of refrigerant, an essential component of air conditioners, and even the level of sound emitted by outdoor air conditioning units, thus playing a significant role in air conditioner development.
At Daikin Industries, the Digital Engineering Group is responsible for these numerical simulations. It is located inside Daikin's Technology and Innovation Center (TIC) and is tasked with establishing computational technology and incorporating that technology into designs for actual installation sites. To learn more about numerical simulations and their importance to Daikin's future, we spoke with its group leader and senior engineer Satoru Takanezawa.
Issues Related to Numerical Simulations
――Why are these intricate calculations necessary to the control of fluids?
The operation of air conditioners is extremely complex, and understanding the entire process numerically is far from easy, even with numerical simulations. For example, during cooling, liquid refrigerant in the outdoor unit absorbs heat from the external environment and transforms into a gas. The flow calculations involved with these types of phase changes (evaporation or compression) are extremely complex and often referred as the "final frontier of fluid mechanics." Likewise, calculating the status of frost formation and defrosting operation is similarly difficult. However, despite these pervasive issues, Daikin has capitalized on its many years of experience and know-how to optimally control air conditioners.
Ideally, predictive control could be performed through model-based control, which operates air conditioners based on flow simulations for refrigerant and air, but this differs considerably from the current control method. Tracking environmental changes using sensor information is also possible, but installing a network of sensors is unrealistic, especially when considering the costs, and would fail to achieve predictive control.
――What makes development of numerical simulations so important?
This bottom-up development approach that prioritizes products is not unique to Daikin but has been long practiced in Japan. Meanwhile, Western countries typically rely on deductive development in which a strategy is first established, and then the ideal product type derives from that strategy. I believe that the latter approach, which allows us to discern the essence of things, is what is needed in the VUCA era. Consequently, Daikin needs to also promote strategy-driven development based primarily on numerical simulations.
Tangible Advantages of Numerical Simulations in the VUCA Era
――What advantages do numerical simulations provide?
Advanced numerical simulations offer four major advantages:
● Improve manufacturing efficiency
● Visualize difficult-to-observe phenomena
● Automate design and decision making
● Create a storyline calculation for planning and design
The first advantage is improved manufacturing efficiency. Using numerical simulations eliminates the prototypes needed for verification and comparison. This enables greater verification in a shorter time frame than would be possible under prototype production, resulting in improved development efficiency.
The second advantage relates to the visualization of difficult-to-observe phenomena. For information that is difficult to obtain through sensors, such as air and refrigerant flow, visualization enables us to intuitively understand the phenomena that are occurring. This not only leads to a clarification of the principles of the phenomena, but it also helps us to explain the phenomena, both inside and outside the company. For customers who are not air conditioner experts, this is an extremely persuasive method of explaining airflow.However, the validity of simulations must also be confirmed through experiments. The recent surge in simulations involving a high degree of sophistication has made it necessary to simultaneously devise a verification method (experimental method).
The third advantage is the ability to perform automated design and decision making. In conventional design, the effectiveness of models created by designers (humans) is verified through numerical simulation. Conversely, automated design uses numerical simulations to create optimal designs and ideas. Designing a "good air conditioner," however, requires high-level balancing of numerous critical specifications. Automated decision making makes suggestions while clearly explaining the rationales behind them.
The final advantage is the ability to perform storyline calculations in planning and design. For example, there are many air conditioner refrigerants, and each has its own advantages and disadvantages.
Because the operating system differs according to the refrigerant, it is necessary to verify and role play (calculate) numerous storylines to determine the strengths and weaknesses of each refrigerant. Using numerical simulations, storyline calculations can be performed in a shorter amount of time.
――What are some possible added benefits and survival strategies in the VUCA era?
One of the added benefits of advanced numerical simulations is that surplus resources gained by increased efficiency can be reallocated to focus on advanced development. While rapid and effective product development is necessary for short-term profits, we must also pursue long-term possibilities for the next three to five years. This requires advanced development. In the VUCA era, it is necessary to have the dual ability to ascertain the precise needs of current customers and be one step ahead in predicting their future needs.
Also, no matter the environment, there are some fundamental principles of air conditioners that remain unchanged, and these are technologies that must be protected. Numerical simulations, which allow for a deep understanding of fundamental principles, are effective in advancing such technologies.
Daikin Computational Technology Strategy
――Why does Daikin have air conditioning computational technology that leads the industry?
A digital investment of 180 billion yen is planned over a three-year period (part of which will be in computational technology)
There are several reasons why Daikin possesses computational technology that other companies struggle to emulate, including refrigerant heat transfer calculations.
First, Daikin is a manufacturer specializing in air conditioners. Because 90% of our business is air conditioning, we can devote our numerical simulation development resources (human resources) to developing computational technology specialized for air conditioning.
Furthermore, simply using general numerical simulation software (commercial software) is often inadequate for the necessary calculations related to the air conditioning business. While other companies can perform calculations using commercial software, Daikin leverages its unique computational technology to achieve superior predictive capabilities. Because our business is centered on air conditioning, we have cultivated a deep understanding of the fundamental principles of air and refrigerants through many years of experience and are able to develop original calculation algorithms for phenomena that cannot be calculated using commercial software. We aim to have premium computational technology, if only in the field of air conditioning calculations.
――Tell us about specialized HR that form the nucleus of your work.
Talented human resources with specialized skills support our computational technology. These include "mathematical specialists" with mathematical expertise and "business transformation specialists" who implement on-site reforms through digital technology. In Japan, there tends to be a high concentration of similarly skilled generalists who can handle a wide range of tasks. However, this work necessitates the recruitment and management of personnel with outstanding expertise and bringing them together as a team.
All of these individuals must be able to think in terms of certain rules and guidelines while having an excellent theoretical mind in order to support our computational technology.
A Digital Development Structure Befitting the DX Era
――What expectations do you have for the talented human resources regarding digital development?
At Daikin, simulation is currently so widespread that virtually no development department remains untouched by it. However, the development of simulation technologies is implemented by dedicated, specialized engineers. Approximately half of these engineers are graduates of the Daikin Information and Communications Technology College (DICT), which offers a two-year program to study information technologies such as AI. The remaining half have mechanical engineering backgrounds. In the future, we will increase the number of people with a mathematical background and engineering talent who will transform the workplace.
In our strategic management plan, "FUSION 25," we forecast a cumulative total of 180 billion yen in "digital investments," including simulation technologies, from fiscal year 2023 to fiscal year 2025, demonstrating the company's emphasis on digital transformation (DX) as a key management strategy.
A digital investment of 180 billion yen is planned over a three-year period (part of which will be in computational technology)Application of Numerical Simulations
――Daikin is said to have numerical simulations that are unique to the industry. Is that true?
While Daikin is a manufacturer with a high percentage of its business involving air conditioning, we also develop fluoropolymer products. One of those products is fluoropolymer film, which is a fluoropolymer sheet that can be stretched ten times larger than its original size. It has excellent dielectric properties (low dielectric constant and low dielectric dissipation factor) and is widely used in automobiles and other applications.
Because stretching polymers more than 10 times their original size is no easy task, we use simulations in designing our manufacturing processes. This type of numerical simulation that stretches fluoropolymers more than 10 times their size is a calculation that only Daikin can perform.
――What is the social significance of these numerical simulations and how are they applied?
One example involves our participation in a project to simulate the dispersion of droplets and aerosols (gases containing tiny liquid or solid particles), an area of serious concern during the COVID-19 pandemic.
In a joint project with the RIKEN Institute, the supercomputer Fugaku was used to conduct a dispersion simulation in a room with an air conditioner. Daikin was responsible for evaluating the impact of air conditioners upon dispersion, and we used numerical simulations to determine how dispersion would change according to the operation mode of the air conditioner.
This numerical simulation was later improved so that it could be performed within the TIC computing environment and enable calculations to be performed at low cost and in a short time without using Fugaku.
This technology has also been used in the development of other products, leading to the development of technologies that use numerical simulations to determine the "effective installation locations for air conditioners." These types of numerical simulations are particularly useful in the design of spaces such as hospitals where safe and reliable air is of extreme importance.
The Possibilities of Calculations Determine Company Survival
――What is the significance of numerical simulations to Daikin?
To survive as an air conditioning manufacturer in the future, you must determine the needs of the world, reflect them in your designs, receive parts supply at an optimal time matching production schedules, and take account of economic efficiency (costs). Not only that, but you must skillfully balance those actions with many other demands, including minimizing the environment impact as much as possible. These cannot be achieved without numerical simulations.
――What type of human resources are needed to promote numerical simulations?
Establishing computational technology requires people with a mathematical background and the ability to think theoretically. In Japan, the finance and insurance industries have been common destinations for such talent. However, as I've previously mentioned, Daikin also has positions where a mathematical background can be utilized.
On the other hand, a background in mathematics is not essential for those aiming to become business innovation specialists. After gaining experience in computational technology with our team, I hope that these individuals will continue to work on other tasks while maintaining a certain understanding of numerical simulations.
This is true for all employees, but after joining the company, these human resources must first thoroughly study the principles of air conditioning. At the same time, they will also learn about numerical simulations and develop into human talent capable of establishing and operating high-level air conditioning simulation technologies.
――How does Daikin visualize the future world of numerical simulation?
We believe that quantum computers will become practical within the next 20 years. They have the capability to perform complicated and extensive numerical simulations that are at least 1,000 times faster than current speeds, and potentially 1,000,000 times faster. Because these advances have the potential to fundamentally change the dynamics of determining success or failure for a business, it's vital for us to quickly keep up with the trends. What's more, until now, numerical simulations have reproduced complex physical phenomena by describing principles in differential equations. AI cannot do this, so AI and simulations have not been a good match.
While I don't think AI will ever replace differential equations, I do believe that generative AI, which has seen remarkable development in recent years, will allow computers to perform the design tasks that have previously been performed by humans. Simulations have traditionally focused on reproducing phenomena, but the role of computers will also change to generate ideas through generative AI. We are actively working to ensure that Daikin becomes number one in the field of "air conditioners x computing" and that our business remains successful because of it.
Until now, the use of numerical simulations has streamlined the design and development process, but in the future, these simulations will be essential for us in differentiating ourselves and providing solutions. Our group has a responsibility to keep our air conditioning business cutting edge and provide high value by using simulations at the forefront of computational technology trends, and this, I believe, will be one of the factors having a major impact on the survival of the company.
To those wanting to join our team, I would like to say that we are always looking for talented individuals who can use logical thinking to boldly take on unknown challenges.
※Content and profile are current as of the interview date.
Satoru Takanezawa
Senior Engineer, Technology and Innovation Center
Originally hailing from Saitama Prefecture, he joined the company in November 2007.
Takanezawa is in charge of numerical calculations for air conditioning and looks to contribute to the company by making numerical calculations an integral part of air conditioning to the extent that they are a game changer.
Senior Engineer, Technology and Innovation Center
Originally hailing from Saitama Prefecture, he joined the company in November 2007.
Takanezawa is in charge of numerical calculations for air conditioning and looks to contribute to the company by making numerical calculations an integral part of air conditioning to the extent that they are a game changer.
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