Two of the HVAC industry’s global leaders, Copeland and Daikin, have announced a joint venture for Copeland to bring Daikin’s inverter swing rotary compressor technology to the U.S. residential segment. Daikin’s innovative inverter swing rotary technology complements Copeland’s portfolio and delivers substantial benefits including reduced energy usage, cost savings and enhanced reliability. The joint venture is expected to become operational by the first half of 2025 following receipt of customary regulatory approvals.
This agreement leverages Copeland’s market leadership, deep industry expertise, and robust technical support alongside Daikin’s proven inverter swing rotary compressor technology. Together, they will provide U.S. residential HVAC customers with the most efficient solutions tailored to meet specific application needs. This collaboration plays a pivotal role in accelerating the shift to energy-efficient heat pumps, meeting both environmental goals and regulatory requirements.
Under this agreement, a joint venture will be established in the United States, which will be specific to sales of inverter swing rotary compressors into the U.S. residential market, with Copeland holding a majority share. In the initial phase, this agreement will focus on providing test samples of Daikin’s inverter swing rotary compressors to Copeland’s U.S. customers to facilitate swift adoption and evaluation. Copeland will provide the sales and technical support. In the future, the companies plan to explore establishing a dedicated manufacturing facility in North America to ensure a stable supply of the high-performance compressors.
Expanding Copeland’s Product Portfolio with Inverter-Based Solutions
This agreement also enhances Copeland’s compressor offerings for the U.S. residential HVAC market, allowing the company to address a wider range of customer needs as the industry shifts toward electrification and decarbonization.
“This joint venture will further expand and complement the Copeland portfolio, allowing us to offer an extended range of compressor technology for residential HVAC applications in order to meet a broader range of customer needs as the market moves towards higher levels of efficiency, lower-GWP refrigerants, and the electrification of heating,” said Ross B. Shuster, CEO for Copeland. “Our established sales network, proximity to customers, and high-quality service, along with Daikin’s inverter swing rotary compressor technology, will help our customers to design and deliver highly efficient HVAC systems that address both energy and sustainability challenges.”
Advancing Daikin’s U.S. Business Strategy
The agreement with Copeland aligns with Daikin’s FUSION25 strategic management plan, designed to grow adoption of its technology in the U.S. market.
With federal and state governments increasingly promoting environmental policies and more stringent energy-saving regulations anticipated by 2031, the need for efficient and cost-effective HVAC systems is greater than ever. Additionally, the shift from fossil-fuel heating to heat pumps is gaining momentum, further driving demand for energy-efficient solutions.
By precisely controlling motor speed based on operating conditions, inverter technology can minimize power consumption and allow for fine-tuned temperature control, meeting both environmental and regulatory demands.
Inverter compressors are a key technology to driving this energy transition as they provide increased energy savings and heat exchange properties. By leveraging stricter environmental regulations as a catalyst and joining forces with Copeland, Daikin will bring its core strength — advanced inverter compressor technology — to a broader audience.
“In this joint venture, Daikin will play a pivotal role in the design and production of inverter swing rotary compressors. By combining Copeland’s sales and service capabilities, we aim to supply inverter swing rotary compressors to the U.S. residential HVAC market, striving to make inverters widely available across the entire market,” said Masanori Togawa, Chairman and CEO for Daikin Industries, Ltd.
Key advantages of this joint venture:
- Value-based Sustainable Solutions: As trends toward decarbonization and sustainability accelerate, this agreement will provide customers with reliable, high-performance products to meet those needs. Both companies are committed to driving energy efficiency and carbon reduction, helping to meet regulatory changes and market demand for more sustainable heating solutions.
- Expanded Product Range: The collaboration will provide high efficiency inverter-based swing rotary product offerings for residential HVAC applications, meeting the diverse needs of customers in the U.S., especially as the demand for inverter-based, energy-efficient technology grows.
- Future Expansion Potential: The joint venture includes plans to explore building a new manufacturing plant in the region, ensuring the new business can meet growing customer demand and scale for future market shifts.
Driving Energy Efficiency and Decarbonization:
With the HVAC industry increasingly focused on energy efficiency, decarbonization, and sustainable solutions, the collaboration between Copeland and Daikin is timely. As reliance on fossil-fuel-based heating systems declines, the demand for advanced heat pumps is on the rise. Swing rotary technology is known for its reliability, robust application potential, and superior efficiency. It’s well-suited to the growing segments of the heat pump market, particularly residential applications where decarbonization and energy efficiency are top priorities.
