The agreement will leverage Copeland’s market leadership, industry expertise, and technical support alongside Daikin’s inverter swing rotary compressor technology and will provide U.S. residential HVAC customers with efficient solutions tailored to meet specific applications, the press release said. The collaboration will play a pivotal role in accelerating the shift to heat pumps, meeting both environmental goals and regulatory requirements, the companies said.

The agreement will establish a joint venture in the U.S. that will sell inverter swing rotary compressors in the U.S. residential market, with Copeland holding a majority share. In the initial phase, the agreement will provide test samples of inverter swing rotary compressors to Copeland’s U.S. customers to facilitate adoption and evaluation, the companies said. 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 compressors.

The agreement will enhance 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, Copeland CEO. “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.”

The agreement aligns with Daikin’s FUSION25 strategic plan, which is designed to grow the adoption of its technology in the U.S.

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, the companies said. 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.

“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 Daikin chairman and CEO Masanori Togawa.