India HVAC Market Overview
India HVAC Market is estimated to value $3.9 billion in 2018, and is expected to advance at a CAGR of 7.0% during the forecast period 2019–2024. Growing infrastructural developments, technological advancements, and rising tourism are the major factors contributing to the growth of India HVAC market.
Based on type, India HVAC market is categorized into heating, ventilation and cooling. Of these, cooling category is estimated to hold the largest revenue share in 2018, and is further projected to exhibit a strong growth rate during the forecast period as well. This can be mainly attributed to the expansion of SMEs, commercial hubs, and upcoming government projects, primarily smart city projects in the country.
Moreover, within the heating type, the market is bifurcated into heat pumps, furnaces, boilers, and unitary heaters. Out of these, heat pumps category is expected to register the fastest CAGR during the forecast period. This can be attributed to growing demand for energy efficient heat pumps from commercial and residential buildings in the country. However, boilers category is estimated to hold 17.6% revenue share in the market, in 2018. This is attributed to growing demand for boilers from thermal power sector and rising demand for electrical energy in the country.
Based on region, India HVAC market is divided into northern, southern, western, and eastern. Among these, northern India market is estimated to hold the largest revenue share in 2018, attributed to large consumer base of HVAC systems, predominantly cooling systems. Further, rising disposable income of the middle-class population exhibiting increased spending on consumer electronics and related products, especially HVAC systems, in the region.
India HVAC Market Dynamics
The key trend observed in the India HVAC Market is the adoption of energy efficient HVAC systems. Energy efficient HVAC systems are becoming popular as they consume less energy as compared to conventional systems, and use less fuel which reduces the greenhouse gas emission. Apart from this, the government is focusing more on developing energy efficiency programs to conserve energy. For instance, in 2018, the government of India introduced ‘ECO Niwas Samhita 2018’; a new Energy Conservation Building Code (ECBC) for residential buildings. Through this project, the government is expected to save around 125 billion units of electricity per year by 2030. Hence, with the government support, the adoption of energy efficient HVAC systems is expected to grow in the country.
Growing construction sector in India is supporting the growth of HVAC market in the country. Concerning the infrastructure in India, the present level is inadequate to meet the demand for the existing urban population. Thus, India’s population is demanding for more sophisticated modern facilities. As a result, Indian government is regenerating urban areas in existing cities and creating inclusive smart cities to meet the demand for increasing population and migration from rural to urban areas. It has been recorded that 100 smart cities to be developed by 2020 in the country, and would further push the residential sector.
A major opportunity for the growth of the players operating in India HVAC market is the growing preference of geothermal HVAC system. Geothermal HVAC system is one of the eco-friendly approaches to heat and cool homes. They do not produce any carbon monoxide or any other greenhouse gases that contribute both to increasing carbon footprint and air pollution.
Air pollution is a major environmental issue affecting individuals across India. According to the Central Pollution Control Board (CPCB) of India, around two-third of the country’s part has the air quality between poor and moderate, instead of satisfactory air quality. Thus, to reduce air pollution and need for ecofriendly and energy efficient, geothermal HVAC systems is expected to increase in the coming years, which would thereby support HVAC market growth.
India HVAC Market Competitive Landscape
In the recent past, players in the India HVAC market is particularly focused on product launches to expand their customer base. For instance, in December 2018, Havells India Limited launched ‘Grande Series’ of air conditioners under the brand name, Lloyd. This air conditioner is equipped with features to control indoor pollution and complies with Indian Seasonal Energy Efficiency Ratio (ISEER) rating.
Some of the key players operating in the India HVAC market include Johnson Controls International plc, Ingersoll-Rand plc, United Technologies Corporation, Daikin Industries Ltd., Mitsubishi Electric Corporation, LG Electronics Inc., Fujitsu Limited, Panasonic Corporation, Gree Electric Appliances, Inc. of Zhuhai, Blue Star Limited, Havells India Limited, Whirlpool Corporation, and Voltas Limited.