Press Release

India Commercial Air Conditioner Market to Grow with a CAGR of 12.8% through 2030

The India commercial air conditioner market is driven by rising demand for energy-efficient systems, rapid expansion in commercial real estate and hospitality sectors, and technological advancements in smart and sustainable HVAC solutions, fostering robust growth.

 

According to TechSci Research report, “India Commercial Air Conditioner Market – By Region, Competition Forecast & Opportunities, 2030F”, India Commercial Air Conditioner Market was valued at USD 2.68 Billion in 2024 and is expected to reach USD 5.52 Billion by 2030 with a CAGR of 12.8% during the forecast period. The India commercial air conditioner market is poised for significant growth, driven by the country's booming commercial real estate sector, rising demand for energy-efficient cooling solutions, and increasing adoption of smart HVAC technologies. The expansion of IT parks, shopping malls, hospitals, and hospitality infrastructure is fueling demand for high-capacity air conditioning systems, particularly VRF and centralized systems known for their scalability and energy savings. Government initiatives promoting green buildings and energy efficiency, such as the Energy Conservation Building Code (ECBC) and subsidies for inverter-based systems, are further accelerating market growth. Additionally, the rapid digital transformation in the commercial sector has led to a surge in demand for IoT-enabled and connected AC systems, allowing businesses to optimize energy consumption through remote monitoring and automation.

However, the market faces challenges, including high upfront costs of advanced cooling systems, which deter small and medium enterprises from adopting premium solutions. Fluctuating raw material prices and supply chain disruptions also impact manufacturing costs, leading to price volatility. Another key challenge is the lack of skilled technicians for installation and maintenance of sophisticated HVAC systems, which can hinder after-sales service efficiency. Despite these hurdles, technological advancements, increasing investments in sustainable cooling solutions, and the growing emphasis on workplace comfort are expected to sustain the market's upward trajectory in the coming years.

 

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The India Commercial Air Conditioner market is segmented into type, capacity, distribution channel, and region.

The distribution channels for commercial air conditioners in India include online platforms, brand stores, multi-brand outlets, and others (direct sales, institutional procurement). Online sales are growing steadily due to the convenience of comparison shopping, competitive pricing, and the availability of detailed product specifications. However, commercial buyers often prefer physical verification before purchasing high-value cooling systems. Brand stores (exclusive showrooms) provide customers with expert consultations, customized solutions, and after-sales service, making them a preferred choice for premium and large-scale installations. Multi-brand outlets (dealerships and distributors) dominate the market as they offer a wide range of brands, competitive pricing, and localized support, making them ideal for small and medium businesses. Other channels include direct sales by manufacturers to large enterprises and government contracts for institutional installations like hospitals and educational institutions.

The Southern region, comprising states like Karnataka, Tamil Nadu, Telangana, and Kerala, is the fastest-growing market for commercial air conditioners in India. Cities such as Bengaluru, Hyderabad, and Chennai are witnessing rapid growth in IT parks, co-working spaces, healthcare facilities, and retail outlets, all of which require advanced cooling solutions. The region’s tropical climate, with prolonged summers and high humidity, further drives demand. Additionally, Southern states have been early adopters of energy-efficient and eco-friendly systems due to stricter enforcement of green building norms. The growth of data centers in Bengaluru and Hyderabad has also contributed to the rising demand for precision cooling solutions. Government initiatives promoting industrial and commercial development, along with increasing FDI inflows, are accelerating market expansion. Unlike the North, where demand is somewhat saturated in major cities, the South offers untapped potential in emerging tier-2 cities like Coimbatore and Kochi, making it the fastest-growing region in the commercial AC market.

 

Major companies operating in India Commercial Air Conditioner market are:

  • Daikin Industries Ltd.
  • Hitachi, Ltd.
  • Voltas Limited
  • Blue Star Ltd.
  • Mitsubishi Electric Corporation
  • Carrier Global Corporation
  • Samsung India Electronics Private Limited
  • Haier Appliances India Pvt. Ltd
  • Havells India Limited
  • Fujitsu General Limited

 

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“In recent years, another emerging trend is the increasing demand for modular and portable commercial air conditioning units, especially in sectors such as healthcare, data centers, and event management. Unlike traditional centralized systems, modular chillers and Ductless Mini-Split ACs offer quick installation, scalability, and flexibility, making them ideal for temporary setups or spaces with fluctuating cooling needs. The post-pandemic era has also seen a rise in demand for UV-C and air purification-integrated ACs in hospitals and commercial spaces to ensure better indoor air quality (IAQ). Furthermore, containerized cooling solutions are gaining traction in industrial and IT infrastructure due to their plug-and-play functionality. As businesses seek adaptable and cost-effective cooling options, the market for modular and portable commercial ACs is expected to grow significantly", said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"India Commercial Air Conditioner Market, By Type (Centralized, Packaged, Ductless, Multi-Split, VRF, Others), By Capacity (Less than 10 kW, 10kW- 20kW, 20kW-30kW, More than 30kW), By Distribution Channel (Online, Brand Stores, Multi-Brand Outlets, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of India Commercial Air Conditioner market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the India Commercial Air Conditioner market.

 

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India Commercial Air Conditioner Market, By Type (Centralized, Packaged, Ductless, Multi-Split, VRF, Others), By Capacity (Less than 10 kW, 10kW- 20kW, 20kW-30kW, More than 30kW), By Distribution Channel (Online, Brand Stores, Multi-Brand Outlets, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F

Consumer Goods and Retail | Apr, 2025

The India commercial air conditioner market is driven by rising demand for energy-efficient systems, rapid expansion in commercial real estate and hospitality sectors, and technological advancements in smart and sustainable HVAC solutions, fostering robust growth.

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