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India HVAC Market to Generate Revenue Worth $5.9 Billion by 2024

Published Date:   April 2019

The Indian heating, ventilation, and air conditioning (HVAC) market was valued at $3.9 billion in 2018 and is projected to reach $5.9 billion by 2024, exhibiting a CAGR of 7.0% during the forecast period (2019–2024). Based on the type of ventilation equipment, ventilation fans held the largest share in the market in 2018. This was due to the growing demand for ventilation fans from commercial buildings, owing to the guidelines provided for natural ventilation by National Building Code of India, 2005. However, the market for air cleaners is expected to witness the highest CAGR in the country, owing to the rising PM2.5 particle concentration in the country.

Inclination toward smart HVAC systems is a major market trend

One of the key trends being exhibited by the Indian HVAC market is the growing inclination toward smart HVAC systems. To reduce energy consumption and improve system efficiency, a large proportion of buyers are adopting smart HVAC systems. These systems offer better controls and advanced real-time performance monitoring. Smart HVAC systems also provide better temperature variability and remote access. Smart HVAC systems provide alerts regarding problems, to help with preventive maintenance, and improved efficiency and lifespan. In addition, smart systems produce less noise as compared to others. Due to the growing demand for energy-efficient systems, customers are increasingly becoming inclined toward smart HVAC systems.

Growing construction sector in India is driving the market growth

The construction sector in India has grown considerably over the past few years. This is attributed to the increase in the real estate regulatory reforms, rapid urbanization, and large government projects that offer significant up-side thrust. The Indian construction sector stood at $140 billion in FY2018 and registered a growth rate of around 4.3% during 2017–2018, as compared to 1.3% in 2016–2017. Further, as per Invest India, by 2025, the country is expected to emerge as the third largest construction market, globally.

Segmentation Analysis of India HVAC Market

India HVAC Market

  • On the basis of HVAC type, the cooling category held the largest share in the Indian HVAC market in 2018. The high temperature during summers in the northern region, increasing humidity levels in the western and southern parts of the country, and rapid surge in the disposable income are some of the key factors driving the air conditioning market in the country. The expansion of small and medium enterprises (SME), commercial hubs, and upcoming government projects, such as smart city projects, are some other factors supporting the air conditioning market growth.
  • Based on end user, the commercial category accounted for the largest share in the market, in 2018. This was due to the rise in the number of shopping complexes and office campuses in the country. For instance, around 34 new shopping malls are expected to be constructed in eight cities, by 2020. Among these, Hyderabad would witness the maximum number of shopping malls, followed by Delhi-NCRand Bangalore.
  • On the basis of commercial end users, offices and buildings held the largest revenue share (over 37%) in the market, in 2018. This is attributed to the increasing construction of new offices and buildings in the country. For instance, in 2018, NBCC (India) announced that it received $25 million from the Ministry of Skill Development and Entrepreneurship for the construction of office buildings in Delhi. With the increasing construction of offices, the demand for HVAC systems for cooling purposes is increasing in the country.

Geographical Analysis of India HVAC Market

The northern region held the largest revenue share in the Indian HVAC market, in 2018. This is attributed to the fact that the region has predominantly hot weather conditions in states such as Delhi, Haryana, Uttar Pradesh, and cold weather conditions in states such as Uttarakhand, Himachal Pradesh, and Jammu & Kashmir. Different climatic zones in the region lead to the rising demand for HVAC systems; for cold regions, heating equipment such as heat pumps is of utmost importance, for the most part of the year.

The southern region is also one of the prominent regions for Indian HVAC market players. This is due to the presence of a huge number of commercial offices in states such as Tamil Nadu, Karnataka, Telangana, Kerala, and Andhra Pradesh. For instance, in the end of June 2018, Tamil Nadu recorded the highest number of registered companies, about 136,650, in the Southern region, followed by Karnataka (107,424), Telangana (98,754), Kerala (48,253), and Andhra Pradesh (28,432).

Browse report overview with 82 tables and 60 figures spread through 169 pages and detailed TOC on "India HVAC Market by HVAC Type (Heating [Heat Pumps {Air Source, Water Source, Ground Source}, Furnaces{Gasoline, Propane, Electric}, Boilers {Fire-tube, Water-tube} Unitary Heaters], Ventilation [Ventilation Fans {Centrifugal Fans, Axial Fans, Domestic Exhaust Fans, Power Roof Fans}, Air Handling Units {Terminal Units, Makeup Air Units, Rooftop Units} and Fan Coil Units {Two-pipe, Four-pipe}, Humidifiers/Dehumidifiers, Air Cleaners {Type 1, Type 2, Type 3, Type 4, Type 5}], Air Conditioning [Room ACs {Mini Splits, Window ACs}, Split Units, Ducted Split/Packaged Unit {Packaged Unit With Water Cooled Condenser, Packaged Units With Air Cooled Condenser}, Variable Refrigerant Flow {Heat Pump Systems, Heat Recovery Systems}, Chillers {Centrifugal, Screw, Scroll, Absorption, Reciprocating}]), by End-User (Commercial [Offices and Buildings, Supermarkets/Hypermarkets, Government, Healthcare, Hospitality, Transportation], Industrial [Oil and Gas, Food and Beverage, Automotive, Energy and Utilities], Residential), By region (Northern, Southern, Western, Eastern) – Market Size, Share, Development, Growth and Demand Forecast, 2014–2024" at:https://www.psmarketresearch.com/market-analysis/india-hvac-market

Competitive Landscape of India HVAC Market

The Indian HVAC market is highly competitive, wherein the competition is primarily based on price, energy efficiency, reputation, quality, and technical know-how. Rapid urbanization, growing construction industry, climatic changes, and rising disposable income in the country, is projected to propel the HVAC market over the forecast period. Some of the important players in the 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, Blue Star Limited, Havells India Limited, Whirlpool Corporation, Voltas Limited, Johnson Controls-Hitachi Air Conditioning India Limited.

In April 2019, Blue Star Limited launched 75 new models of air conditioners which also includes 7-star air purifier integrated air conditioners on its platinum jubilee year. The range of ACs include 3–5 star super energy efficient ACs that could deliver about 18% extra energy efficiency than standard ACs. These ACs would come with a heavy-duty compressor with a warranty of 10 years.

India HVAC Market Segmentation

Market Segmentation by HVAC Type

  • Heating
    • Heat Pumps
      • Air source
      • Water source
      • Ground source
    • Furnaces
      • Gasoline
      • Propane
      • Electric
    • Boilers
      • Water-tube
      • Fire-tube
    • Unitary Heaters
  • Ventilation
    • Ventilation Fans
      • Centrifugal fans
      • Axial fans
      • Domestic exhaust fans
      • Power roof fans
    • Air Handling Units
      • Terminal units
      • Makeup air units
      • Rooftop units
    • Fan Coil Units
      • Two-pipe
      • Four-pipe
    • Humidifiers/Dehumidifiers
    • Air Cleaners
      • Type 1: HEPA + Carbon,
      • Type 2: HEPA + Carbon + Ionizer,
      • Type 3 : HEPA + Carbon+ UV,
      • Type 4: HEPA + Carbon + Ionizer+ UV
      • Type 5: Other Technologies
  • Cooling
    • Room ACs
      • Mini splits
      • Window ACs
    • Split Units
    • Ducted Split/Packaged Unit
      • Packaged unit with water cooled condenser
      • Packaged units with air cooled condenser
    • Variable Refrigerant Flow
      • Heat pump systems
      • Heat recovery systems
    • Chillers
      • Centrifugal
      • Screw
      • Scroll
      • Absorption
      • Reciprocating

Market Segmentation by End-User

  • Commercial
    • Commercial Offices/Buildings
    • Hospitality
    • Transportation
    • Supermarkets/Hypermarkets
    • Healthcare
    • Government
    • Others (include educational institutions, cold storage facilities, data centers, banks, departmental stores, convenience stores, and stadiums)
  • Industrial
    • Food and Beverage
    • Oil and Gas
    • Automotive
    • Energy and Utilities
    • Others (include electronics, textile, pharmaceutical, manufacturing, glass, pulp and paper, shipbuilding, machinery, steel, cosmetic, rubber, tobacco, nuclear, toy, and, arms and ammunition, chemical and cement industries)
  • Residential

Market Segmentation by Region

  • Northern
  • Southern
  • Western
  • Eastern