Japanese manufacturers are developing outdoor cooling systems to combat record-breaking temperatures, with major companies testing air conditioning solutions for public spaces as the global market for outdoor air conditioners is projected to reach $8.9 billion by 2032.

Daikin Industries, the world’s leading air conditioner manufacturer, launched a field test in Tokyo’s Shibuya district in July using its Outer Tower cooling system.

The rectangular unit delivers chilled air in four directions, creating a cool zone extending approximately three meters from the device.

The test at Tokyu Group’s Shibuya Sakura Stage runs through October and monitors ambient temperatures, pedestrian flow, and nearby food truck sales to assess commercial viability.

By demonstrating that outdoor air conditioning increases foot traffic and business opportunities, Daikin aims to attract customers, including municipalities and real estate developers.

Satoru Matsuda, deputy general manager of Daikin’s air conditioning division, said the potential market for outdoor cooling could be far larger than indoor cooling.

The company has also installed Outer Tower units at restaurant terraces in Yoyogi Park and other locations throughout Shibuya.

Japan’s limited outdoor dining culture stems partly from narrow sidewalks and oppressive summer humidity.

A 2023 Recruit Hot Pepper Gourmet Research survey found that 80.8% of respondents preferred indoor seating during summer months, highlighting the barrier outdoor cooling technology could address.

Panasonic has been testing its outdoor cooling system since February on an Osaka Metro train platform at Asashiobashi Station, providing access to the Expo 2025 site.

The air-conditioned waiting area uses controlled airflow to direct cool air at passengers’ upper bodies in summer and warm air from below in winter.

Early results show the system reduced perceived head temperature by around 4°C compared to enclosed booths while occupying roughly half the space. Panasonic sees applications for bus stops and park rest areas.

Ito Yogyo, a concrete infrastructure manufacturer, plans to launch ground-embedded air conditioning systems in spring 2026 that cool people from the feet up.

The company will use thin solar panels built into concrete slabs to generate electricity stored in batteries for powering the units.

CEO Yusuke Hatanaka described heatstroke prevention as “a growing business frontier” as Japan faces increasingly severe summer temperatures.

Research company Dataintelo projects the global outdoor air conditioner market will surge 80% from 2023 levels, reaching $8.9 billion by 2032.

Daikin’s Matsuda emphasised the economic benefits, stating that when people venture outside instead of staying indoors, “the economy thrives.”