India Air Conditioner Market is projected to grow at a CAGR of 13.6% in revenue and 12.5% in volume from 2025 to 2031

Room air conditioners (RAC) by Product Type held the highest revenue share in India Air Conditioner Market -6Wresearch

Room air conditioners (RAC) held the highest revenue size in India Air Conditioner Market as they cater directly to the large and growing residential segment, where rising disposable incomes and urbanization are boosting household adoption. Additionally, the surge in new housing, smaller living spaces, and consumer preference for energy-efficient inverter models further strengthen RAC’s dominance over other AC categories.

According to 6Wresearch, the India Air Conditioner Market is projected to grow at a CAGR of 13.6% in revenue and 12.5% in volume from 2025 to 2031. The India air conditioner market experienced growth during 2021–2024, driven by rising disposable income, increasing residential demand, and activity in premium housing, along with post-COVID recovery supported by government stimulus. Growth in the residential sector where in 2023 the residential property market witnessed substantial home sales, marking a robust YoY increase, alongside rising demand in mid-segment homes due to the expanding middle class that was low in 2025. Key technological factors driving India Air Conditioner Market growth in 2021–2024 included inverter technology, smart and connected ACs, energy-efficient BEE-rated units, advanced air filtration, and enhanced cooling performance, improving efficiency, convenience, and user experience. Government initiatives, including the PLI scheme, strengthened domestic manufacturing and reduced import dependence, enhancing market accessibility and growth prospects.

According to Bhawna, Assistant Manager at 6Wresearch, urban region generated the highest AC revenues, supported by dense commercial growth and premium housing. Expanding office complexes, malls, and hospitality spaces drove demand for both residential and light-commercial ACs. Urban consumers’ preference for branded, energy-efficient, and smart products increased average transaction values. Metro and Tier I cities saw strong replacement demand as users upgraded to modern systems.

India Air Conditioner Market (2025-2031) report provides an in-depth analysis with 25 figures and 11 tables, covered in 96 pages. The report thoroughly covers the market by product type and by region. The India Air Conditioner Market outlook report provides an unbiased and detailed analysis of the ongoing trends, opportunities/high growth areas, and market drivers, which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.