Commercial air-conditioning (AC) market holds “significant promise” and is witnessing growth, driven by rapid urbanisation, infrastructural development and growing emphasis on comfort in commercial spaces, said Sunil Vachani, president of electronics and appliances manufacturers’ body CEAMA.
The commercial HVAC (Heating, Ventilation, and Air Conditioning) segment is witnessing a shift with its wide array of applications, with infrastructure growth including offices, retail spaces, healthcare facilities, hospitality establishments, and educational institutions, said the president of Consumer Electronics and Appliances Manufacturers Association (CEAMA).
Moreover, factors such as increasing awareness of indoor air quality, sustainability mandates, and the integration of IoT (internet of things) and building automation systems are also reshaping the commercial HVAC landscape, offering avenues for innovation and market expansion, he said.
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“In terms of growth potential, the commercial HVAC segment holds significant promise, with opportunities for both traditional HVAC systems and emerging technologies like variable refrigerant flow (VRF) systems and chilled beams,” Vachani told PTI.
Over the market size of the commercial HVAC segment, Vachani said it varies across regions and sub-segments but is generally substantial, reflecting the scale of commercial infrastructure and the need for effective climate control solutions.
“Overall, the commercial air-conditioning market represents a dynamic and evolving segment with considerable growth potential, driven by ongoing urbanisation trends and the imperative for energy-efficient, smart, and customisable HVAC solutions,” Vachani said.
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According to reports, the Indian HVAC industry is projected to reach a market size of approximately $30 billion.
When asked about the room air-conditioner segment, Vachani said he also anticipates a “steady growth” for the segment.
However, he added that this segment could face “some nuances” due to Quality Control Orders (QCOs) issued by the government.
Over growth expectations for the residential AC for this season, Vachani said the industry is “cautiously optimistic” and a “moderate to healthy uptick” is anticipated.
“Factors such as pent-up demand post-pandemic, technological advancements driving energy efficiency and smart connectivity, regulatory support for sustainability, and changing climate patterns are key growth drivers,” said Vachani, who is also Executive Chairman of Dixon Technologies.
According to industry leaders, the Indian residential air-conditioner market is estimated to be around 10 million units and expected to touch around 11.5 units this fiscal.
Premium energy-efficient models are gaining momentum, however, entry-level units may still maintain a significant market share, especially in emerging markets where affordability remains a key consideration for consumers, Vachani said.
“However, the momentum towards energy efficiency is unmistakable, driven by regulatory initiatives promoting sustainable practices and consumer awareness regarding long-term cost savings. As a result, we anticipate a gradual but discernible shift towards energy-efficient inverter AC units,” he said.