North American Sales Account for Over 60% of Total Revenue
Full-Scale Expansion into the Main Heating Sector Planned for This Year
Kyungdong Navien is set to actively expand its market presence in the main heating sector in North America. Kyungdong Navien has already secured the number one position in the North American market for condensing boilers and water heaters, with North American sales accounting for over 60% of its total revenue. This year, the company plans to expand its sales network for 'Furnace' products, the most commonly used heating method in North America, and aims to establish itself as an integrated HVAC (Heating, Ventilation, and Air Conditioning) company providing comprehensive services linked to these products.
On the 12th, Kyungdong Navien announced that its North American sales accounted for 61% of its total revenue last year. This figure represents the proportion of North American market sales in cumulative sales up to the third quarter of last year. Considering that North American sales accounted for 44.8% of total sales in 2020, this marks an increase of more than 16 percentage points over four years. According to the provisional full-year results disclosed recently, consolidated sales reached 1.3539 trillion KRW, a 12.4% increase compared to the previous year. In the fourth quarter alone, sales were 400.372 billion KRW, up 24.1% from the previous quarter. The industry expects that the proportion of North American sales in total revenue likely increased further last year, reflecting the company’s growth driven by its success in North America.
This success is the result of Kyungdong Navien’s early focus on the North American market with condensing boilers and water heaters. In 2008, Kyungdong Navien introduced the 'condensing instantaneous water heater' to North America, where tank-type water heaters were predominant, shifting the market paradigm toward eco-friendly solutions. The condensing water heater market, which was about 20,000 units annually at that time, has grown to approximately 800,000 units last year. Kyungdong Navien holds about half of this market share.
However, this is not the main heating market in North America. The most widely used heating method in North America is the 'Furnace,' which heats air with thermal energy and supplies it indoors. Kyungdong Navien has targeted this market by launching a new 'condensing hydro furnace' and began full-scale marketing last year. This year, the company plans to accelerate sales by expanding its sales network and introducing related products. Notably, Kyungdong Navien’s products have attracted attention because, unlike conventional methods, they do not dry out the air and precisely control indoor temperature by adjusting water temperature, providing stable heating.
Alongside this, Kyungdong Navien plans to establish an HVAC system by introducing a 'heat pump' that uses electricity to absorb heat from air, ground, and water for heating and cooling. The heat pump is scheduled for release within the year. When combined with the condensing hydro furnace, it will enable the provision of integrated heating and cooling services. At the recent 'AHR EXPO 2025,' the largest HVAC exhibition in North America, Kyungdong Navien showcased condensing boilers and water heaters, as well as heat pumps, condensing air conditioners, and water treatment systems aimed at the North American market.
The condensing air conditioner to be launched in North America within the year is an eco-friendly, high-efficiency product that utilizes the principle of spraying water onto the heat exchanger to absorb heat during evaporation. It is said to offer superior energy savings and reduced electricity consumption compared to existing systems. The water treatment system targets the North American region, where water contains minerals and water softeners are used to remove them. While existing products are cumbersome to use and generate high-salinity wastewater, Kyungdong Navien has solved these issues with proprietary technology that uses electricity.
Kim Taek-hyun, head of Kyungdong Navien’s U.S. branch, stated, "In addition to condensing water heaters and boilers, we will transform into a global HVAC company that provides optimized living environments to customers through products such as heat pumps and condensing air conditioners."
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