Increasing disposable income, growing number of middle-class households along with increasing construction projects in the residential and commercial sectors are expected to boost the growth of room air conditioner market in India over the coming years. Currently, the penetration of room air conditioners in India is around 5-7%, which accounts for a major portion of untapped market. Further, rigorous development of new residential units in cities such as Mumbai, Delhi and Bengaluru would contribute towards the healthy growth of room air conditioners across the country during 2019-25.
According to 6Wresearch, India room air conditioner market revenues are projected to grow at a CAGR of 13.7% during 2019-25. Under the new government tax regime, the Goods and Service Tax (GST) coupled with implementation of revised energy efficiency ratings by the Bureau of Energy Efficiency in India in 2018, the room air conditioners were placed in highest tax bracket, which resulted in an increase in the prices, thereby affecting sales in 2017-18. However, the room air conditioner market is expected to recover from the sales slowdown owing to surging construction activities across the residential sector, expansion of SMEs, and upcoming government projects, including the smart cities project in India during the forecast period.
According to Akshay Thakur, Research Analyst, 6Wresearch, "The residential sector accounted for the largest revenue share in the room air conditioner market owing to burgeoning middle-class population and increasing construction of apartments and housing units across the country. Further, due to factors such as increasing temperature, revised electricity rates, the room air conditioner has become a necessary item for consumers across the country, which would also act as a key driver for the increase in demand of ACs in the residential domain in Tier II and Tier III cities as well.
Further by Capacity, in 2018, 1 to 2-ton room air conditioners held the largest market revenue share in the overall room AC market as the average size of the typical room in an Indian household makes them best suited to install air conditioners in the 1.5 to 2-ton segment."
According to Shivani Gupta, Research Associate, 6Wresearch, "In the room AC segment, shift towards the smart & inverter ACs has led the split air conditioners to occupy majority of the volume share in the overall room air conditioner market. Further, window air conditioners continued to lose popularity due to multiple factors such as technological advancements, changing consumer preferences, lower energy efficiency and decreasing price gap as compared to that of split AC," Shivani further added.
Some of the major companies in India room air conditioner market include Voltas, Daikin, Blue Star, LG, Panasonic, Mitsubishi and Lloyd.
"India Room Air Conditioner Market (2019-2025)" report provides an in-depth analysis with more than 83 figures and 33 tables covered in over 100 pages. The report estimates and forecast the overall India air conditioner market by revenue, volume, types, applications and regions. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas and market drivers which would help the stakeholders to device and align their market strategies according to the current and future market dynamics.