"Eco Cute" appeared to be a very attractive product amidst the situation where both government and industry do a lot for environmentally friendly products conducive to CO2 reductions responding to Kyoto Conference for Prevention of Global Warming.
Because of its high efficiency, government subsidy was introduced for "Eco Cute" from October 2002, so that its diffusion will be accelerated further from 2003 onwards.
Although the initial cost of "Eco Cute" is somewhat higher compared to conventional electric water heaters, the running cost is only about a fifth. Moreover, "Eco Cute" has attained high energy efficiency (COP above 3.0) by applying the heat pump principle, thus drawing attention as an appliance which can greatly contribute to the global environmental protection.
"Eco Cute" Business Being Expanded
The housing industry is paying attention to "Eco Cute" as a promising new energy solution business, taking positive steps towards its full-scale diffusion.
Since the introduction of government aid in October 2002, "Eco Cute" business has already been steadily expanding.
By employing the same principle as that of heat pump air conditioner (AC), CO2 heat pump water heater efficiently absorbs heat from the open air and efficiently heats water. CO2 refrigerant exhibits high performance, capable of heating water up to 90°C without affecting 0 20 40 60 80 100 120 140 1,000 Units (Trade source)
Forecast for Eco Cute Market '05 '04 '03 '02 2001 Prospect Forecast the environment much. "Eco Cute" has by far larger capacity than conventional heat pump water heater using fluorocarbon (capable of heating water up only to 60°C). Just like a heat pump AC, it has an outdoor unit (heat pump unit), and by compressing the refrigerant in the compressor, it absorbs heat in the open air efficiently, transfers heat to the hot water storage tank to heat water.
At present, there are three makers producing heat pump units: Denso, Daikin and Sanyo. Denso supplies most to other manufacturers on OEM basis.
Daikin is making all-out effort to expand own brand units, while partially supplying its units on OEM basis.
Similarly, Sanyo is trying to expand "Eco Cute" business by preparing a wide variety of units which will form the core product line over mid-/long-range perspectives.
These makers are endeavoring to strengthen "Eco Cute" business as part of so-called full electrification business.
When using low cost late-night electricity, the running cost can be reduced further.
The Market
As for the market size, although these makers estimate differently, it may roughly be predicted that the market will continue to expand from some 25,000 units in 2002 to some 100,000 units in 2005.
In the central water heater market (about 3.5 million units), there are oil, gas and electric systems depending on the type of heat source. At present, the share of gas water heaters is overwhelmingly large, and that of electric water heaters is only about 6%. This means that burning systems occupy large market share, while hot water storage systems have a very small share. At present, electric water heater market remains stable at about 200,000 units.
The total market of central water heater will not change considerably in near future. Therefore, manufacturers are quite concerned about the share of electric water heaters increases in the stable market. Especially, manufacturers are paying attention to favorable effects of Eco Cute. Electric appliance makers expect that the market size of these "Eco Cute" type water heaters will increase at least to some 100,000 units by 2005.
Manufacturers expect the total electric water heater market will increase to 300,000, including 100,000 of Eco Cute type water heater.
Recently, Hitachi Home & Life Solutions has developed an instantaneous heat pump water heater applying R410A refrigerant of AC technology. With the advent of these innovative new products, the size of Eco Cute market is expected to expand further.
