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Expanding Markets in China and Europe. Further Growth in Global Demand for Air Conditioners.

Recent global demand for air conditioners is equivalent to approximately ¥3.8 trillion (our forecast for 2003). Recent growth in the European and Chinese markets has been outstanding, and we expect further growth and expansion of demand, especially in these two markets.

As an industry leader, Daikin Industries will continue to contribute to the development of the air conditioning industry. Toward this end, we remain committed to improving our products as well as our global sales network and supply chain.

Forecast for Global Air Conditioner Demand (¥ billions)
Market
2004
2007
Japan 700 700
Europe 620 840
China 540 710
North America 1,120 1,230
Asia/Oceania 200 295
India/Middle and Near East 220 260
South and Central America/ Africa/Others 420 510
Total ¥3.8 trillion ¥4.5 trillion


Air Conditioner Demand in Major Markets

Japan
In this fully matured and highly competitive market, we expect stable sales growth for both our industrial and residential products as the economic recovery remains steady.


Europe
In northern Europe, air conditioner demand has remained stable as the growing adoption of IT systems has popularized office air conditioning systems. In southern Europe, demand for residential air conditioners has been increasing rapidly since the exceptionally hot summer of 2003.


China
Rapid economic development has improved the social infrastructure and raised the living standard. Accordingly, every category of the air conditioner market (buildings, factories, shops, offices and residences) has registered significant growth.


North America
In this, the world's largest air conditioner market, the mainstream product is the integrated-type air conditioner (duct type) comprising a main body and an integrated outdoor unit (heat discharger). In the future, we predict growth in the quieter and more efficient split-type air conditioner, which is more popular in Japan.


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