With urbanization and government efforts, the residential real estate sector of India is growing. Similar expansion is being witnessed in the industrial and commercial sectors in the country, driven by the increasing population and rising disposable income. These are the primary factors that are projected to drive the Indian heating, ventilation, and air conditioning (HVAC) market at a robust CAGR, of 16.0%, during 2020–2030 (forecast period). At this pace, the market size would grow from $8,526.7 million in 2019 to more than $31,598.6 million by 2030.
The coronavirus pandemic is ill-affecting the India HVAC Market, as the measures taken to contain the virus spread in many countries have badly hit HVAC component supply and equipment manufacturing and trade activities. Even customers are apprehensive about spending on non-essential goods, as many have lost their jobs or are working at significantly lower wages than before. Therefore, the demand for HVAC equipment has reduced significantly in the country in the present scenario.
Services To Contribute Higher Revenue To Market
The India HVAC Market, under segmentation by offering, is bifurcated into equipment and service, of which the service bifurcation is predicted to dominate it in 2030. The country is witnessing a rising demand for HVAC installation and maintenance services, owing to the rising disposable income of consumers and growing industrial and construction real estate sector.
The various categories in the India HVAC Market, on the basis of end-user, are commercial, industrial, and residential. Among these, the residential category would experience the fastest industry growth, driven by the pouring investments in residential real estate. The Indian government will construct 100 smart cities by 2023 to accommodate the burgeoning population. Moreover, in 2018, the construction of more than 6 million urban houses was approved by the government; this would further push up the demand for HVAC systems, once the units are completed and leased out or bought.
Till 2019, the northern region held the largest share in the India HVAC Market. Apart from some of the most densely populated cities in the country, including Delhi, Gurgaon, Ghaziabad, and Noida, the region has a variable climate. While the Himalayan states are predominantly cool, those in the Indo-Gangetic plains are hot and humid; Rajasthan, in the northwest, is hot and dry. This results in a high installation rate of cooling, as well as heating equipment round the year.
Players Engaging in Facility Expansions to Edge Out Competition
In order to get a definitive edge over their competitors, players in the India HVAC Market are expanding their facilities.
For instance, in October 2019, Johnson Controls-Hitachi Air Conditioning inaugurated a $22.5-million global innovation center in Kadi, India. The company is utilizing this facility to manufacture residential ACs and commercial packaged ACs for the Indian and Southeast Asian markets.
In the same vein, in February 2019, Voltas Limited invested $70 million for a factory in Tirupati, Andhra Pradesh, where ACs and other cooling equipment will be manufactured and assembled.
The key players in the India HVAC Market include Carrier Corporation, Ingersoll-Rand plc, Mitsubishi Electric Corporation, Daikin Industries Ltd., Fujitsu Limited, LG Electronics Inc., Blue Star Limited, Panasonic Corporation, Whirlpool Corporation, Havells India Limited, Johnson Controls-Hitachi Air Conditioning India Limited, and Voltas Limited.