India Air Conditioner Market Report 2023: Increasing Demand from the Residential Sector Bolsters Growth
Indian Air Conditioner Market
Dublin, March 30, 2023 (GLOBE NEWSWIRE) -- The "India Air Conditioner Market, Size, Forecast 2023-2028, Industry Trends, Growth, Impact of Inflation, Opportunity Company Analysis" report has been added to ResearchAndMarkets.com's offering.
India Air Conditioner Market is projected to reach US$ 399.88 Billion by 2028 growing with CAGR of 7.76% from 2022 to 2028.
As India's population continues to grow and its economy undergoes a transformation, the air conditioning industry has emerged as one of the fastest-growing industries in the country.
The changing lifestyles of Indian consumers, including the rise of nuclear families, single-person households, and job migration, have created a growing need for accessible and convenient products that reduce the time and effort spent on everyday chores. Increased affordability, a focus on energy efficiency, digital penetration, and rising aspirations are driving the industry's growth.
India's regulatory and business environment has undergone significant changes, including the introduction of the Goods and Services Tax (GST) and upcoming policies such as the national policy for electronics (NPE), which could bring about further policy changes for the industry. The burgeoning middle class in urban areas and aspirational demand from rural India, coupled with increasing electrification of rural areas and the popularity of online sales, are likely to fuel demand and drive exponential growth.
The growth in India's consumer market demand is driven primarily by rising disposable incomes and easy access to credit, which in turn has increased purchasing power. While two-thirds of the total revenue is generated from urban inhabitants, rural inhabitants are also contributing to the growth of the industry. According to this research report The Indian Air Conditioner Market was valued at US$ 255.31 Billion in 2022.
Increasing demand from the Residential Sector will drive the Room AC Market
By Type, India's AC Market has divided into Room Air Conditioner, Ducted Air Conditioner, Ductless Air Conditioner and Centralized Air Conditioner. The Indian market for room air conditioners is among the world's largest and has witnessed rapid growth in recent times. The surge in demand for residential air conditioners has been a key driver of this growth, owing to an increasing number of middle-class households with higher disposable incomes seeking home appliances like air conditioners. Besides, the trend of urbanization has led to more people living in compact apartments and homes, leading to a need for smaller and efficient air conditioning solutions.
Meanwhile, the centralized air conditioning sector in India has also experienced steady growth in recent years, primarily due to rising demand from various sectors such as commercial buildings, hospitals, and industries.
The growth of the industry can be attributed to factors such as increasing disposable incomes, evolving lifestyles, and rising temperatures as a result of climate change. Additionally, the government's focus on infrastructure development, including the construction of smart cities, presents significant growth opportunities for the industry. The adoption of energy-efficient technologies and eco-friendly refrigerants is expected to further drive the industry's growth in the future.
Increasing Urbanization and Rising Disposable Incomes Surge the Demand of Split AC
Indian Air Conditioner market is divided into three categories based on product type: Windows Air Conditioner (AC), Split Air Conditioner (AC), and Other Air Conditioner (AC). India's split air conditioner (AC) industry is expected to sustain its growth trajectory in the coming years, driven by factors such as rising urbanization, growing disposable incomes, and heightened awareness of air quality and energy efficiency. The adoption of inverter technology is one of the industry's significant trends, offering superior energy efficiency and reduced electricity bills. The Indian government's initiatives to promote energy-efficient appliances, such as the Bureau of Energy Efficiency's (BEE) star rating system for ACs, have also contributed to the industry's expansion by boosting demand for higher-rated split ACs.
Meanwhile, the window AC industry in India has experienced a slower growth rate than split ACs in recent years. Nonetheless, the industry remains a crucial segment of the Indian AC market in terms of volume. It has faced challenges due to competition from split ACs and the need for regular maintenance.
By Size: 1.5 Ton AC will Capture more Revenue in India
Based on Size, Indian AC Market has been Sub-divided into 1 Ton, 1.5 Ton, 2 Ton and More Than 2 Ton. The Indian AC industry has a significant portion devoted to 1.5 ton AC units, which command a substantial share of the market. The industry's growth is driven by a balance between cooling capacity and energy efficiency, making it a preferred choice for households and small offices.
The adoption of inverter technology is expected to further boost the industry, providing greater energy efficiency and lower electricity bills. Moreover, the industry is poised to capitalize on the growing trend of smart homes, where air conditioning systems can be controlled remotely using smartphones or other smart devices.
In India, Consumers favor the compact size of 1 ton & 1.5 ton AC units, making them an ideal choice for smaller rooms or apartments. The industry is also expected to benefit from advancements in inverter technology, which will enhance energy efficiency and reduce electricity costs.
Increasing Understanding of the Value of Residential Air Conditioning for Comfort and Health
By Application, India AC Industry was segmented into Residential, Commercial & Retail Application, Hospitality, Transportation & Infrastructure, Healthcare and Others Applications. The residential air conditioner (AC) market is an essential and expanding segment of the overall AC market in India. Its growth is driven by several factors, such as increasing urbanization, rising temperatures caused by climate change, rising disposable incomes, and growing awareness of the significance of air conditioning for health and comfort. The residential AC market includes various types of ACs, such as window ACs, split ACs, and portable ACs.
India's commercial and retail air conditioning (AC) industry is poised to grow in the upcoming years, owing to various factors. The market's expansion is driven by the increasing demand for air conditioning in commercial and retail spaces, the growth of urban areas, and the expansion of the retail and hospitality sectors. The Indian commercial and retail AC industry is expected to experience substantial growth in the near future, propelled by the adoption of energy-efficient and environment friendly cooling systems and the surging demand for air conditioning in commercial and retail spaces.
Increasing adoption of E-Commerce Platforms and the Growing Preference for Online Shopping is driving the Online Sales
Based on Sales Channel, Indian AC Market divided into Small Retailers, Modern Retail/ MBO, and Online (E-Commerce). In recent years, the online air conditioning (AC) industry in India has experienced substantial growth due to the rising adoption of e-commerce platforms and the increasing preference for online shopping. The availability of a vast array of AC brands and models, competitive pricing, and the convenience of doorstep delivery and installation services has all contributed to the industry's growth in India.
Small AC retailers in India have a crucial role in the air conditioning industry, especially in tier 2 and tier 3 cities where they cater to the local demand for ACs. These retailers typically operate small shops or showrooms that offer a range of AC brands and models, along with installation and after-sales services. Despite the growth of online sales, small retailers continue to play a vital role in the air conditioning industry, particularly in smaller cities and towns, by providing personalized services and meeting the specific needs of their local customers.
Western part of India will have Larger Market Share due to high demand in Upcoming Years
By Regions, India AC Sector segmented into South, West, North and East. The western region, consisting of states like Maharashtra, Gujarat, and Rajasthan, is a significant market for air conditioning (AC) in India, due to high temperatures and humidity levels that drive demand in residential, commercial, and industrial spaces.
Similarly, the North India AC market, which comprises states like Delhi, Punjab, Haryana, Uttar Pradesh, and Uttarakhand, is also substantial, with extreme temperatures driving demand for ACs in residential and commercial spaces. The split AC dominates the North India market, followed by window ACs and portable ACs. Additionally, the commercial and industrial sectors, particularly in cities like Delhi, Noida, and Gurgaon, have a high demand for ACs, while the hospitality industry, including hotels, resorts, and restaurants, is also driving the demand for ACs.
1. Room Air Conditioner
2. Ducted Air Conditioner
3. Ductless Air Conditioner
4. Centralized Air Conditioner
By Product Type
1. Windows AC
2. Split AC
3. Other AC
1. 1 Ton
2. 1.5 Ton
3. 2 Ton
4. More Than 2 Ton
2. Commercial & Retail Application
4. Transportation & Infrastructure
6. Others Applications
By Sales Channels
1. Small Retailers
2. Modern Retail/ MBO
By Company Analysis
1. Voltas Industries
2. Blue Star Industries
3. Havells India Limited
4. Whirlpool of India Limited
5. Godrej and Boyce Manufacturing Company Limited
6. MIRC Electronics Limited
7. Johnson Controls-Hitachi Air Conditioning India Limited
No. of Pages
2022 - 2028
Estimated Market Value (USD) in 2022
Forecasted Market Value (USD) by 2028
Compound Annual Growth Rate
Key Topics Covered:
2. Research & Methodology
3. Executive Summary
4. Market Dynamics
5. PESTLE Analysis
6. India Air Conditioner Market
7. Share Analysis - India Air Conditioner Market
8. Types - India Air Conditioner Market
9. Products Types - India Air Conditioner Market
10. Size - India Air Conditioner Market
11. Applications - India Air Conditioner Market
12. Sales Channels - India Air Conditioner Market
13. Regions - India Air Conditioner Market
14. Company Analysis
Blue Star Industries
Havells India Limited
Whirlpool of India Limited
Godrej and Boyce Manufacturing Company Limited
MIRC Electronics Limited
Johnson Controls-Hitachi Air Conditioning India Limited
For more information about this report visit https://www.researchandmarkets.com/r/96t0mq
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