India HVAC Market Share Analysis by Market Segmentation by Offering (Equipment, Service), End-User (Commercial, Industrial, Residential) - Industry Trends and Growth Forecast to 2030

Market Overview

The Indian HVAC market size was $7,820.5 million in 2021, and it is projected to reach $29,282.7 million by 2030, growing at a CAGR of 15.8% between 2021 and 2030. The growth is ascribed to the rampant infrastructure development, technological advancements, and the rising tourism activities across the country.

Moreover, the rising disposable income and various government initiatives focusing on improving the energy efficiency of appliances are contributing to the market growth. Government campaigns, such as Atithi Devo Bhava and Digital India, are resulting in a high inflow of tourists, thus leading to growth in the hospitality and tourism-related businesses.

Additionally, the growing middle-class population and increasing ventilation requirements are resulting in the sale of such systems. Furthermore, the Make in India initiative is resulting in global players setting up factories in India, to cater to the local population, thereby propelling the market growth.

Equipment Is Prime Revenue Contributor

The equipment category accounted for the larger market share in 2021 due to the rise in the system demand from the residential sector. This is itself due to the extreme climate of the country, which results in scorching summers and freezing winters. Furthermore, the integration of advanced technologies is propelling the demand for HVAC equipment.

Based on equipment, the cooling category held the largest share, of more than 80%, in 2021, owing to the subtropical climate in most parts of the country. The high temperatures during summers in the northern region, increasing humidity levels in the western and southern parts of the country, and rapidly increasing disposable income are the key factors driving the air conditioning market in the country. Moreover, the expansion of small and medium enterprises (SMEs) and commercial hubs and government projects, such as the Smart Cities Mission, are fueling the product demand.

By end user, the commercial category accounted for the largest revenue share, of around 52.1%, in 2021, and it is expected to grow significantly during the forecast period. This will be due to a rise in the number of shopping complexes and corporate offices in the country. The increasing number of high-rise buildings, as well as shopping complexes, malls, and hypermarkets, in tier-II cities is a key driving factor for the market growth in India.

The northern region of the country has hot weather for eight to nine months, with about two months of extreme humidity, which drives the demand for air conditioning systems. In addition, the construction sector is proliferating, with thousands of kilometers of roads and highways under construction, which will, in turn, give a boost to residential and hospitality construction. Similarly, the railways, ports, and airports sectors are witnessing significant development and renovation, thereby leading to the augmentation of the HVAC industry in India.

Rising Inclination toward Smart HVAC Systems

The shifting inclination toward smart HVAC systems is one of the key trends in India presently. To reduce energy consumption and improve system efficiency, a large number of buyers are adopting smart HVAC systems, which offer better controls, building automation, advanced real-time performance monitoring, and internet of things (IoT)-based controls. These appliances also provide better temperature variability and remote access, along with preventive maintenance reminders, all of which lead to an improved system efficiency and lifespan. In addition, smart systems produce less noise as compared to others. Moreover, due to the growing demand for automation in HVAC systems, customers are inclining toward smart variants.

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Growing Residential Construction Activities in India Drive Industry Growth

The construction sector in India has grown considerably over the past few years. This is attributed to the advent of real estate regulatory reforms, rapid urbanization, and large-scale government projects. As per Invest India, the Indian construction industry is expected to reach $1.4 trillion by 2025. Further, as per Invest India, by 2025, India is expected to emerge as the third-largest construction sector globally.

More smart cities will be developed in the country over the next few years, which would drive the residential construction sector. This would propel the demand for HVAC systems, which are now an important requirement in residential buildings. Like room ACs have become necessary in every residential building, for cooling, heating appliances, including heat pumps, are now witnessing a growing demand, predominantly from the newly constructed apartments, to better cope with the cold winters in the Himalayan and sub-Himalayan parts of the country.

North India held the largest revenue share, of around 29%, in 2021. This is attributed to the extremely hot weather conditions in states such as Delhi, Haryana, and Uttar Pradesh, and cold weather conditions in the mountainous states, such as Uttarakhand, Himachal Pradesh, and Jammu & Kashmir. Different climatic zones in the region demand different HVAC systems; for cold areas, heating equipment, such as heat pumps, is of the utmost importance for the much of the year. Similarly, for hot and humid areas, cooling equipment, such as room ACs, is important.

Further, due to the rising disposable income in the region, the standard of living of the middle-class population is improving. On account of this, the spending on consumer goods, especially HVAC systems, is also increasing.

Top Players in India HVAC Industry Are:

• Carrier Midea India Private Limited
• Daikin Industries Ltd.
• Havells India Limited
• Mitsubishi Electric Corporation
• LG Electronics Inc.
• Fujitsu Limited
• Panasonic Corporation
• Blue Star Limited
• Voltas Limited
• Johnson Controls-Hitachi Air Conditioning India Ltd.

Global India HVAC Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

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 & 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 & 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

Regional Analysis

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