In an age where comfort has slipped into our life more as a need than a luxury, the invention of Air-conditioners has indeed given a big boast to the comfort to the people of today’s world of global warming. Generally speaking, air conditioning could be any technology which changes the two major attributes of air - temperature and humidity. In warm countries like India, the need is majorly for cooling of air.
Air conditioning systems or air conditioners are used to control hot temperature and humidity efficiently and effectively. These systems are generally deployed in cars, office buildings, theatres, hotels, restaurants, manufacturing industries, banking industries, retail outlets, and residential buildings for enhanced lifestyle comfort. The hardware machines and servers in the data centres of IT companies cannot survive without the air-conditioners.
TechNavio's analysts forecast the Air Conditioning market in India will grow at a CAGR of 12.23 percent over the period 2013 - 2018.
On the basis of product differentiation, the Air Conditioning market in India can be divided into two segments: Window Air Conditioners and Split Air Conditioners.
Some of the top Brands in India are:
As of today, India has a relatively much lower usage of air conditioning, while the First World Countries are much more saturated market. The latest data from EIA's Residential Energy Consumption Survey (RECS) show that 87% of houses in United States contain air-conditioning appliances. However, the same research in India shows just 2% of Indian households have air conditioning.
Nevertheless, air conditioners stay among one of the most prominent needs for the fast growing Indian middle class, with air conditioner sales increasing by 20% annually in recent years. About 5 million air conditioners were sold in India during the 2014-15 fiscal year, adding to the 40 million total units in the country already.
AC sales in India over the coming years are likely to increase manifolds. Major drivers for the increase in sales include:
Faster improving economic and social factors like significant increase in disposable incomes, higher standard of middle class segment and urbanisation. This has rightly altered the concept of air conditioners from earlier a luxury commodity to now a dire necessity
In tier1 and tier2 cities, most of the Indian house-holds have multiple ACs deployed.
ACs today can offer both heating and cooling. The extreme climate especially in the Northern region of India can now be addressed by these AC appliances providing both options of heating and cooling, thereby making them used for the entire year. Prices of ACs have reduced due to heavy competition, as this industry has started getting the attention. Long term demand from Indian households has helped the leading players in the market making beeline to set up base in India. There is a growing trend of energy efficient ACs with 4-5 star ratings to address the generic Indian consumer’s mind set on high electricity bills.
Thus it can be safely concluded that AC Industry in India is a booming industry, likely to penetrate deeper from cities to small towns to even villages in the years to come.