As Samsung Electronics and LG Electronics accelerate their entry into the heat pump market, Otech Carrier is leveraging its technological expertise in the commercial and industrial sectors to expand its business. The company plans to broaden its scope to include residential heat pump boilers, based on verified heating and cooling technologies used in smart farms. Otech Carrier also aims to enhance its artificial intelligence (AI) data center cooling business, projecting that these two sectors will account for more than half of its total revenue next year.
On October 22, Otech Carrier held a press conference at the 2026 Korea International Heating, Ventilation, Air Conditioning Exhibition (HARFKO 2026) in Goyang, Gyeonggi Province, where it showcased its competitive heat pump technology, applications in smart farms, and strategies for data center cooling. The exhibition featured residential heat pump boilers, commercial eco heat pumps, and cooling distribution units (CDUs) for data centers.
Otech Carrier CEO Kang Shin-wook stated, "The heating, ventilation, and air conditioning industry is evolving beyond just providing cooling and heating; it is becoming a key sector for enhancing energy efficiency and achieving carbon neutrality. We will nurture heat pumps as a core growth business and expand into residential, commercial, and industrial markets."
Kang emphasized, "We aim to evolve from merely manufacturing and selling heating and cooling devices to becoming a comprehensive energy solutions provider that addresses customers' energy efficiency and carbon neutrality challenges."
Commercially Established Heat Pump Company Expands into Residential Market Targeted by Samsung and LG
Otech Carrier's competitive advantage lies in the technological expertise and business experience it has gained in the commercial heat pump market. The company developed its inverter hybrid boiler in 2011 and commercialized it in 2014, subsequently supplying heat pumps to smart farms and commercial facilities. As Samsung and LG expand into the residential heat pump market, Otech Carrier plans to leverage its existing commercial business foundation to enter the residential sector.
In South Korea, the high proportion of multi-family housing, such as apartments, presents challenges for the installation of residential heat pumps due to space and regulatory constraints. In contrast, smart farms and large industrial buildings have higher energy consumption for heating and cooling, making them more suitable for the introduction of high-efficiency systems that can yield cost savings.
The commercial 'EHS Optimum' heat pump introduced at the event is designed to maintain stable heating performance even in low-temperature environments. It achieves a coefficient of performance (COP) of 3.71 under rated heating conditions and can maintain about 80% of its heating capacity even when external temperatures drop to minus 15 degrees Celsius, according to the company.
Otech Carrier Executive Director Kim Jae-hyun noted, "Smart farms need to maintain a consistent temperature for crop growth even in winter. Our ability to provide stable heating in low-temperature environments is a competitive advantage."
Real-world examples of smart farm operations were also shared. Kim Guk-hwan, who operates a lettuce cultivation facility covering approximately 5,000 pyeong, reported that after introducing 14 Otech Carrier heat pumps, the heating and cooling environment stabilized. Although the initial investment is about 1.8 times higher than conventional systems, he explained that considering energy cost savings, the investment can be recouped within 18 months to two years.
Otech Carrier plans to expand its commercial technology into the residential sector. While the residential market is still in its early stages, it holds significant growth potential with government support. The company began mass production of residential heat pump boilers at its Gwangju factory in July, and its 14kW and 16kW products were selected for the government's heating electrification support program this year. These products are designed to supply hot water up to 65 degrees Celsius, replacing the floor heating and hot water functions of existing boilers.
However, expanding into multi-family housing will require regulatory adjustments. Executive Director Kim stated, "To expand into multi-family housing, relevant laws need to be revised. We will continue to promote the adoption of heat pumps from residential to commercial and industrial applications."
Major Companies Face Challenges in AIDC Cooling Technology as Domestic Contracts Increase
Otech Carrier is also cultivating its AI data center cooling business as a key growth driver. At the exhibition, the company showcased Carrier's integrated cooling solution 'Quantum Leap' and the liquid cooling CDU '65LL'. With the increasing heat generation from AI servers, there is a growing demand for technologies that support cooling efficiency and stable operations in data centers.
Kang expressed confidence in Otech Carrier's technological competitiveness in the AIDC cooling sector. He remarked, "The systems and equipment used in data centers are challenging even for large domestic companies. We are currently developing systems and technologies in collaboration with global Carrier and are continuously building our own capabilities in this area." The company aims to strengthen its competitiveness in the domestic data center cooling market based on its technological collaboration with global Carrier.
Recent contract achievements have also been notable. In September, Otech Carrier secured a contract for the first phase of cooling equipment for a 48-megawatt data center in the metropolitan area and was selected as the preferred bidder for the cooling equipment supply for a 200MW AI cluster data center in Gumi on October 8. The Gumi project has a total scale of 300MW, and the company is pursuing additional contracts for the remaining 100MW.
According to the company, it is currently pursuing four data center projects in downtown Seoul, having secured contracts for two of them. Executive Director Kim Sung-hoon stated, "Data center revenue is expected to begin in earnest next year, and we anticipate that the heat pump and data center businesses will account for more than half of the company's total revenue next year."
* This article has been translated by AI.
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