India Air Conditioner Market By Product Type (Splits, Windows, VRF, Chillers, and Other includes Cassette, Ductable Splits, etc.), By End Use Sector (Residential, Commercial, and Industrial), By Region, Competition, Forecast & Opportunities, 2017 – 2027

India air conditioner market is expected to reach USD6,054.96 million by 2027F, growing at a CAGR of 6.08% during the forecast period. The India air conditioner market is mainly driven by increasing demand from the industrial sector, rising GDP, growing per capita income, the surge in sales through e-commerce, etc.

Due to the strengthening of the increasing household sector, the rising construction of new housing societies, and the establishment of SMEs, residential air conditioners dominate the AC market share across all segments. Furthermore, an increase in the number of construction projects across metro and tier-2 cities will drive up demand for air conditioners in the coming years.

In terms of market segmentation by residential type, split ACs held the largest share of the room air conditioner market in terms of revenue and volume share in 2021, owing to changing consumer preferences toward adopting energy-efficient products and their rising adoption in residential and SME segments.

The market's expected growth can be attributed to the strong growth from the residential sector, which is the primary end-user of air conditioners. Due to improved livelihoods among Indian consumers, air conditioners are highly demanded in the residential industry. In addition, the rising commercial sector, another major end-user of air conditioners, has seen strong growth in the last decade.

During the COVID-19 pandemic, the production and manufacturing of air conditioners were affected. As a result of the lockdown, both demand and supply in the air-conditioners market declined significantly with the halt in the production activity, negatively impacting market growth for a short period.

Smaller Cities Drives the Market Growth

Increasing demand from small cities, particularly those with a population of less than one million people, contributes to a significant share of air conditioner sales in India. Air conditioners are in high demand in Patna, Lucknow, Kanpur, Indore, Mangalore, and Visakhapatnam.

Daikin and Voltas, two central air conditioning companies, have begun to invest in these cities. Furthermore, LG and Voltas may see increased sales of air conditioners in tier II and III cities in the coming years.

Rising Standards of Livelihoods is Fueling the Market Growth

With the growing income level, India's improving living standards and increasing variety of offers and discounts influence the demand for air conditioners within the Indian market. To cater to the national need, companies such as Daikin, Panasonic, Hitachi, Voltas, Blue Star, Havells, and Syska are among the companies that have applied to manufacture key air conditioner components.

Furthermore, companies are also offering their products on equated monthly installments (EMI) to make them more affordable for customers of all income levels. Such factors are expected to influence the increase in air conditioner sales in India.

Increasing Innovations in Air Conditioner Market Growth

Manufacturers are working on product innovation to meet the demand for energy savings. Companies such as LG have introduced window inverter air conditioners that use Dual Inverter technology and consume significantly less energy than traditional air conditioners.

Furthermore, due to the highly competitive market environment, manufacturers are working to provide features such as seamless Wi-Fi connectivity and inverter-based air conditioners, which are expected to drive growth in the India air conditioners market in the coming years.

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Market Segmentation

The India air condition market is segmented based on product type, end user, region, and competitional landscape.

Based on product type, the market is categorized by Split, Window, VRF, Chillers and others, including Cassette, Ductable Splits, etc.

Based on end user, the market is segmented into residential, commercial, and industrial. The market analysis also studies the regional segmentation to devise regional market segmentation, divided among north, west, south, and east regions.

Company Profiles

Voltas Limited, Daikin Airconditioning India Pvt. Ltd., LG Electronics India Pvt. Ltd., Blue Star Limited, Johnson Controls-Hitachi Air Conditioning India Limited, Panasonic India Private Limited, Samsung India Electronics Private Limited, Haier Appliances India Pvt. Ltd, Havells India Pvt. Ltd, Carrier Midea India Private Limited, and others are among the major market players in the air conditioner industry that led the market growth of the India air conditioner market.

Report Scope:

In this report, India Air Conditioner market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

• India Air Conditioner Market, By Product Type:
• Split
• Window
• VRF
• Chillers
• Other includes Cassette, Ductable Splits, etc.
• India Air Conditioner Market, By End Use Sector:
• Residential
• Commercial
• Industrial
• India Air Conditioner Market, By Region:
• North
• West
• South
• East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in India air conditioner market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).