The Indian HVAC market is predicted to reach $29,282.7 million by 2030, growing at a CAGR of 15.8% between 2021 and 2030. This growth is majorly attributed to the booming construction industry, ballooning spending on infrastructure, and increasing disposable income across the country.
HVAC systems are increasingly being integrated with advanced technologies, such as the internet of things (IoT) and artificial intelligence (AI), which is allowing consumers to attain maximum operational and energy efficiency. Through these sensors, the HVAC system can communicate and share data, as well as processing it, to operate more efficiently in terms of temperature control and electricity usage. This is predicted to offer lucrative growth opportunities to the Indian HVAC industry in the coming years.
West India accounted for a significant market share, of around 25%, in 2021. The market growth in the region is driven by the presence of large manufacturing, automotive, and pharmaceutical companies in Pune, Mumbai, Nagpur, and Ahmedabad. Due to this, energy-efficient HVAC systems, including room ACs and ventilation fans, are highly preferred in the hot, dry climate of Rajasthan, Gujarat, and Maharashtra. Along with the aforementioned factors, the development of commercial spaces, such as metro stations, and the implementation of real estate reforms are driving product sales in western India.
The growing aviation industry in India is also supporting the growth of the HVAC market in the country. The International Air Transport Association (IATA) has estimated that around 500 million passengers would fly to and from India each year by 2037. In the next 10 years, India is also expected to surpass Spain, Germany, Japan, and the U.K. to become the world's third-largest civil aviation industry. This would be accompanied by the purchase of new aircraft by airlines, as well as the construction of new airports and expansion of the existing ones.
The increasing deployment of VRF systems in high-rise buildings is expected to offer lucrative opportunities to the players operating in the market. The deployment of these systems in high-rise buildings is increasing on account of the flexibility and low-utility-cost benefits they offer. With multiple tenants, an inefficiently designed traditional HVAC system may result in a poor air quality, high costs, and inconsistent airflow. To fulfill the varied needs of multiple tenants, such as personalized control and installation flexibility, in addition to eliminating the need for water piping, VRF systems are being increasingly adopted.
HVAC systems based on the VRF technology also provide a solution to the issue of the less mechanical space in high-rise buildings, by providing a single condenser unit, which multiple users can deploy, thereby working like an efficient ductless multi-split system. Moreover, the deployment of these systems in skyscrapers results in energy savings.
Some of the major players operating in the Indian HVAC market 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, and Johnson Controls-Hitachi Air Conditioning India Ltd.