Air conditioning manufacturers are increasingly reliant on technology to differentiate their products in a highly competitive market.
Wikipedia founder, Jimmy Wales, said businesses need to innovate to thrive in a world where change is accelerating and competitive advantages are increasingly transient.
This view is supported by IBISWorld figures which show that while industry revenue in Australia has been rising, profit margins are tighter than ever.
“With wages growth across the industry exceeding revenue growth, low pricing growth is putting downward pressure on profit markets,” the research firm said in its latest 'Heating, Cooling and Ventilation Equipment Manufacturing' report which was released in July 2016.
The report found that Australia's heating and cooling industry is shrinking as larger companies acquire smaller firms to increase market share.
In 2021/22, IBISWorld expects the four largest firms to account for approximately 26 per cent of industry revenue.
“The ability to offer the most up-to-date, state-of-the-art and innovative heating and cooling equipment is the basis of competition for firms in the industry,” the report said.
“Technical requirements are becoming increasingly important in the industry due to the amount of focus put on energy efficiency and noise pollution in the past few years.”
A prime example of this trend is market leader, Daikin Australia. This is a company that is actually outperforming the wider industry and can attribute this success to technological advances that have set a new standard in performance.
In its report, IBISWorld refers to the introduction of Daikin's VRV systems which are delivering higher efficiencies in building performance, lower cost and a smaller carbon footprint.
“VRV systems are more flexible as they can be used in new or refurbished buildings of any size,” the IBISWorld said.
And while its VRV systems have given the company a technical advantage in the marketplace the introduction of Variable Refrigerant Temperature (VRT) technology in its VRV 4 range has taken building performance to a whole new level.
It's a move that has set Daikin apart from the rest of the market because Daikin's VRV 4 systems are better able to adapt to the varying conditions compared to conventional systems.
For example, when temperatures are mild, they will cycle on and off at full capacity, continuing to use as much energy during part-load operation as they do during full-load, hot and cold conditions.
However, the built-in VRT in the VRV 4 Series ensures year-round efficiencies and comfort because it automatically adjusts the operations of the system to provide optimal temperature control, performance and efficiency in part and full load conditions.
Daikin VRV manager, Simon Langstaff, said VRT technology, which is available in both the VRV 4 Heat Pump and Heat Recovery series, continually monitors the load on the system and adjusts its capacity output according to the load and the occupant requirements.
“This automatic adjustment means the system only uses the power required to meet the load resulting in greater energy efficiency; and less pressure on the compressor,” he said.
In Cooling mode operations, the VRT technology will adjust the evaporation temperature of the system to rise to 16 degrees or fall to 3 degrees as the load on the system changes. For example, in a low load situation, the ability to raise the evaporation temperature to 16 degrees reduces the risk of cold draughts and its impact on the occupant’s comfort level.
“A further benefit of the VRT technology is its ability to respond with a much faster pull down period when the system load is high. Through this ability, the time required to achieve the desired conditions in the space is reduced and occupancy comfort improved,” Langstaff said.
As pioneers of the VRV technology, Daikin continually seeks to introduce new and exciting, innovative technology that improve occupancy comfort levels, energy performance and design flexibility. The VRT technology is a further contribution to Daikin’s relentless drive to deliver state of the art air-conditioning solutions.