India HVAC Market Research Report: By Offering (Equipment, Service), End-User (Commercial, Industrial, Residential) - Industry Analysis and Growth Forecast to 2030

India HVAC Market Overview

From $8,526.7 million in 2019, the Indian heating, ventilation, and air conditioning (HVAC) market size is expected to grow to $31,598.6 million by 2030, at a CAGR of 16.0% during the forecast period (2020–2030). The key factors propelling the industry are the increase in the disposable income of people and growth in the commercial, industrial, and residential infrastructure investments in the country.

The India HVAC market growth is being negatively affected by the COVID-19 scenario, both on the demand and supply sides. Due to the lockdowns imposed in several countries to curb the spread of the disease, the manufacturing and import of such equipment to India have been severely hit. Similarly, non-essential commercial and industrial operations in India have also ceased, which has put a deeper dent in the manufacturing and supply of HVAC equipment. On the demand side, people are facing unemployment and salary cuts, which is why they are hesitating in buying such non-essential stuff.

Segmentation Analysis

Cooling Equipment Accounts for Largest Size in Market

As per industry outlook, the cooling category, on the basis of equipment type, has dominated the India HVAC market during the historical period (2014–2019). Due to the subtropical climate of the country, all the sub-Himalayan regions of India witness hot and humid weather for most part of the year. In addition, urbanization has resulted in a rise in the disposable income, which has allowed people to spend freely on air conditioners.

Consulting To Be Fastest-Growing Service Type during Forecast Period

During the forecast period, the fastest advance in the India HVAC market will be witnessed by the consulting category, based on service type. Consulting services most often include an inspection by a trained professional, who identifies the issues and recommends maintenance or overhaul.

Commercial End Users Dominated Market in 2019

The commercial division, under segmentation by end user, held the largest share in the India HVAC market in 2019. The number of office complexes and shopping malls is rapidly rising in the nation, which is leading to the increasing installation of ventilation and air conditioning systems.

North India — Largest Market for HVAC Systems

Presently, the northern part of the country holds the largest Indian HVAC industry share, due to the varying climatic conditions here. While Rajasthan, Delhi, Haryana, Madhya Pradesh, Uttar Pradesh, and Punjab have a predominantly hot climate, Uttarakhand, Jammu and Kashmir, Ladakh, and Himachal Pradesh experience long and freezing winters. This is leading to the increasing installation of cooling, as well as heating equipment in North India. Moreover, the purchasing power of the people living in the northern part of the nation is helping them purchase a variety of HVAC equipment.

West India — Most Lucrative HVAC Market in Future

The India HVAC market is projected to witness the highest CAGR in the western part of the country during the forecast period. This is attributed to the presence of major manufacturing hubs, including Ahmedabad, Mumbai, Nagpur, and Pune, in the region. All these and many more tier-II cities in West India are home to the manufacturing plants of numerous automotive and pharmaceutical companies, which generate a high demand for HVAC equipment, both for providing a comfortable working environment and meeting the compliance requirements.

Trends & Drivers

Energy-Efficient HVAC Systems Trending in India

One of the most noticeable trends in the India HVAC market is energy-efficient equipment. Due to the growing environmental concerns in the country, the preference is shifting toward HVAC equipment which uses less fuel and electricity, but provides the same or better efficiency than conventional variants. Additionally, the national government introduced a new Energy Conservation Building Code (ECBC), ECO Niwas Samhita, in 2018, for residential units. The aim of this energy-efficiency measure is to cut down the annual electricity consumption by 125 billion units by 2030.

Growing Residential Construction Sector Boosting Market Size

One of the key drivers for the India HVAC market growth is the expansion in the country’s residential construction sector. The nation is witnessing an improvement in the real estate regulations, rise in the urbanization rate, and increase in government-initiated residential projects. Invest India says that by 2025, the construction sector of the country will become the world’s third-largest. In 2015, the government decided to build 100 smart cities, which would give the residential construction sector a boost. Apart from ACs, the demand for heat pumps and ventilation systems is rising, especially in newly constructed housing units.

Rising Commercial Construction Sector also Instrumental in Market Growth

Just like residential units, the construction of commercial and civic infrastructure is also driving the growth of the India HVAC market. For instance, in 2019, $57 million were sanctioned for the construction of Delhi Metro’s Ghaziabad and Noida sections. A year ago, the construction of the Andheri–Chhatrapati Shivaji Maharaj International Airport and Dahisar–Mira Bhayander lines of Mumbai Metro were approved with a budget of $925 million. Similarly, beginning 2017, 100 airports are to be built in the country in the next 15 years. As HVAC systems are an essential deployment at metro stations and airports, the demand for them is set to witness a massive surge in the nation in the coming years.

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Portfolio Expansion Key to Success in HVAC Market of India

Analysis has revealed the India HVAC market to be highly competitive, with several global companies active in the country, including Ingersoll-Rand plc, Carrier Corporation, Daikin Industries Ltd., Mitsubishi Electric Corporation, LG Electronics Inc., and Panasonic Corporation, apart from some major homegrown names, including Blue Star Limited, Havells India Limited, and Voltas Limited.

In recent years, these and many other organizations in the Indian HVAC industry have looked at product launches as an effective way to survive in this competitive space, which continues to grow in size.

• In April 2019, 75 new AC models were launched by Blue Star Limited, as part of its platinum jubilee celebrations. The newly launched products, which include 7-star air purifier-integrated ACs and 3–5-star energy-efficient ACs, come with heavy-duty compressors and a 10-year warranty.
• In February 2018, Voltas Limited introduced window ACs with direct current (DC) inverters, to be in a better position in the country’s HVAC domain.

Major Players Covered in India HVAC market Report Are:

India HVAC Market Size Breakdown by Segment

The India HVAC market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.

Based on Offering

• Equipment
  • Heating
    • Heat pump
      • Air-source
      • Water-source
      • Ground-source
    • Furnace
      • Gasoline
      • Propane
      • Electric
    • Boiler
      • Water-tube
      • Fire-tube
    • Unitary heater
  • Ventilation
    • Ventilation fan
      • Centrifugal fan
      • Axial fan
      • Domestic exhaust fan
      • Power roof fan
    • Air handling unit and fan coil unit
      • Air handling unit
        • Terminal units
        • Makeup air units
        • Rooftop units
      • Fan Coil Units
        • Two-pipe
        • Four-pipe
    • Humidifier/dehumidifier
    • Air cleaner
      • Type 1: HEPA + Carbon
      • Type 2: HEPA + Carbon + Ionizer
      • Type 3: HEPA + Carbon + ultraviolet (UV)
      • Type 4: HEPA + Carbon + Ionizer+ UV
      • Type 5: Other Technologies
  • Cooling
    • Room AC
      • Mini split
      • Window AC
    • Split unit
    • Ducted split/packaged unit
      • Packaged unit with water-cooled condenser
      • Packaged unit with air-cooled condenser
    • Variable refrigerant flow (VRF)
      • Heat pump system
      • Heat recovery system
    • Chiller
      • Centrifugal
      • Screw
      • Scroll
      • Absorption
      • Reciprocating
• Service
  • Upgradation/replacement
  • Maintenance and repair
  • Installation
  • Consulting

Based on End-User

• Commercial
  • Office and building
  • Hospitality
  • Transportation
  • Supermarket/hypermarket
  • Healthcare
  • Government
• Industrial
  • Food and beverage
  • Oil and gas
  • Automotive
  • Energy and utilities
• Residential

Geographical Analysis

• South India
• West India
• North India
• East India