India Air Conditioner Market

Outlook to 2022 - Market Penetration of Air Conditioners is Still Very Low

DUBLIN, Jan. 17, 2018 /PRNewswire/ --

The "India Air Conditioner Market Outlook, 2022" report has been added to ResearchAndMarkets.com's offering.

According to the report, air conditioner sales are expected to grow with a CAGR of more than 10% over next four years.

Consumer durables is one of the fastest growing industry segments in India. Air conditioners are basically used to manage temperature and humidity efficiently. These systems are installed in commercial buildings, IT parks, hotels, restaurants, manufacturing industries, retail outlets and residential buildings for enhanced lifestyle comfort.

With the continuous inflow of disposable income and the advancement of technology, the need for the varied consumer durable goods are on a rise. This in turn has led to a strong competition between different consumer durable brands as well as the price gap between the same consumer goods of different companies are also narrowing down.

India is one of the major developing countries with huge middle class population base and rising per capita income. In comparison to other developing countries, the market penetration of air conditioners is still very low in India, which in turn provides a huge opportunity to players.

The air conditioner market is divided into two segments i.e. residential and commercial. Residential or room air conditioners are further sub-divided into window air conditioners and split air conditioners. Window air conditioners are comparatively cheaper than split air conditioners; however their market is on a decline with the popularity of spilt ACs in the country. Some companies like LG, Panasonic and Samsung have even stopped making window ACs because of its inflection point where there is no innovation possible and the entire market is shifting towards split segment. On the other hand, split AC is high on demand as it is very easy to install and the price gap between window and split ACs have also become very less. Consumers nowadays prefer energy-efficient smart appliances due to rising energy prices.

The commercial segment is also catching up with the increase in demand of commercial plots, offices, stores, factories and business apartments. This segment is subdivided into light commercial, ducted & packaged, VRF and chillers. High wall splits, cassettes, window, and concealed ductable splits are some of the types of light commercial air conditioners.