Climate change has had an unrelenting effect on India. In 2019, in the northern regions of the country, temperatures passed the 50 degrees Celsius mark. Temperatures in the Indian summer over the last decade or so have repeatedly broken heat records, and there is no sign of respite from heat waves in the foreseeable future, making air conditioning an increasingly important fixture in Indian homes. Increasing demands and market leaders Increasing demand for home appliances, along with a fairly low penetration rate, has left the Indian air conditioner market with plenty of room to grow and reached ** million units in financial year 2024. The leading manufacturer of air conditioners in India was Voltas. Since October 2020, the Indian government has banned imports of ready-to-install air conditioners, providing a boost to manufactures in India. Energy consumption in India India was expected to become the world’s third-largest energy consumer by 2030, overtaking the European Union, contributed by rising incomes and improving standards of living. However, with increasing public and private investments in the renewable energy sector, the capacity of renewable energy has been on the rise. The capacity of solar energy approaching *** thousand megawatts in 2024. As of 2024, India ranked ****** in installed renewable energy capacity worldwide.

The India air conditioner market size reached USD 3.15 Billion in 2024. The market is expected to grow at a CAGR of 7.78% between 2025 and 2034, reaching USD 6.66 Billion by 2034.

Snapshot img

India HVAC Systems Market Size 2025-2029

The India HVAC systems market size is forecast to increase by USD 3.5 billion at a CAGR of 10.5% between 2024 and 2029.

The market is witnessing significant growth due to the increasing demand for temperature control solutions in various applications such as industrial facilities, warehouses, healthcare services, educational institutions, offices, airports, retail spaces, and shopping centers. The telecommunication sector is also driving the market's growth due to the need for reliable and efficient cooling systems for their data centers. Inverter HVAC systems are gaining popularity due to their energy efficiency and cost savings. 
Modern HVAC systems are being installed in constructions and retrofitted in existing ones to reduce energy consumption and greenhouse gas emissions. Smart HVAC systems with automatic temperature control are becoming increasingly preferred due to their ability to optimize energy usage and enhance indoor air quality. The need for high R&D investment to develop advanced and energy-efficient HVAC systems is also fueling market growth.

What will be the Size of the Market During the Forecast Period?

Request Free Sample

The market is witnessing significant growth due to various factors. Energy savings and efficiency are key priorities for building owners and managers in both residential and commercial sectors. Energy regulations are increasingly stringent in India, with a focus on energy-efficient buildings and sustainable practices. The Indian government's Energy Conservation Building Code (ECBC) sets minimum energy efficiency standards for new commercial buildings, driving demand for energy-efficient HVAC systems. 
Smart HVAC technologies are gaining popularity in the Indian market. These systems use AI-based automated solutions for temperature control, optimizing energy usage, and improving indoor air quality. The telecommunication sector is a significant adopter of these technologies due to the need for reliable climate control in data centers. Internet of Things (IoT) sensors are transforming sustainable buildings by enhancing the efficiency of both residential properties and indoor and outdoor areas through advanced Internet of Things technologies.
Warehouses and industrial facilities require heating systems to maintain optimal working conditions. The market is witnessing growth in sectors such as shopping centers, industrial facilities, and warehouses. Shopping centers require advanced cooling systems to maintain comfortable temperatures and high indoor air quality. Industrial facilities and warehouses need heating systems to maintain optimal working conditions and ensure productivity. 
In conclusion, the market is growing due to increasing energy regulations, a focus on energy efficiency, and the adoption of smart HVAC technologies. The market caters to various property types, including residential, commercial, and industrial properties, and is witnessing growth in sectors such as shopping centers, industrial facilities, and warehouses. Building owners and managers are prioritizing energy savings and efficiency, driving demand for energy-efficient HVAC systems.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Non-residential
  Residential


Type

  Centralized
  Decentralized


Installation Sites

  New installation
  Retrofit


Equipment

  Heat Pump
  Furnace
  Unitary Heaters
  Boilers
  Air Purifier
  Dehumidifier
  Air Handling Units
  Ventilation Fans
  Air Conditioning
  Chillers
  Cooling Towers
  Others


Distribution Channel

  Direct Sales
  Distributors
  Online Retail


Geography

  APAC

    India

By Application Insights

The non-residential segment is estimated to witness significant growth during the forecast period. The non-residential sector, comprising commercial and industrial HVAC systems, is the leading segment in the market, projected to expand at a consistent pace during the forecast period. The expansion of this market segment is mainly attributed to the burgeoning construction sector, increasing infrastructure investments, and rising demand for commercial office spaces. The demand for office spaces in India is on an upward trajectory and is anticipated to persist throughout the forecast period. Factors fueling this trend include India's rapid urbanization and the implementation of favorable policies to boost the commercial real estate sector. In commercial HVAC, there is a growing emphasis on energy-saving products, adherence to HVAC regulations, and energy efficiency, as represented by the SEER2 rating.

Additionally, there is a growing concern for

The India HVAC Market Report is Segmented by Product Type (Heating Equipment [Heat Pumps (Air Source, Ground Source), Furnaces (Gas, Electric, Oil), Boilers (Condensing, Non-Condensing), Unit Heaters, and Others (Radiators & Baseboard Heaters, Solar Water Heating Systems)], Ventilation Equipment [Air Handling Units (AHUs), Energy Recovery Ventilators (ERVs)/Heat Recovery, Ventilators (HRVs), Exhaust and Supply Fans, Dehumidifiers/Humidifiers], Air Conditioning Equipment [Unitary Air Conditioners, Variable Refrigerant Flow (VRF) Systems, Chillers (Air-Cooled, Water-Cooled), Fan Coil Units (FCUs), and Others (Window and Portable Air Conditioners)]) and End-User Industry (Residential, Commercial, and Industrial). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

India Commercial Air Conditioner Market was valued at USD 2.68 Billion in 2024 and is expected to reach USD 5.52 Billion by 2030 with a CAGR of 12.8%.

Gain insights into the India AC Industry, size at USD 3 billion in 2023, featuring Market Forecasts & Outlook, industry trends, and growth opportunities.

In 2023, the India HVAC Systems Market reached a value of USD 15.69 billion, and it is projected to surge to USD 33.50 billion by 2030.

India HVAC Market was valued at USD 11.93 Billion in 2024 and is expected to reach USD 27.12 Billion by 2030 with a CAGR of 14.67% during the forecast period.

India Truck & Bus Air Conditioner Market size is estimated to grow at a CAGR of around 6.72% during the forecast period 2024-2030.

In 2022, the demand for domestic air conditioners in India amounted to approximately 7.4 million units, the highest of the past decade. Within the observed period, demand for air conditioning increased almost steadily, with one big exception in 2020 when the figure dropped momentarily to about 4.4 million units. However, it recovered quickly.

India hosts a wide range of climates, but the majority of the country could be regarded as tropical. With the impact of global climate change, extreme heat waves have become more and more frequent in the subcontinent. Temperatures passed the 50-degree Celsius mark in the northern regions of India in 2019, with seemingly no respite. The market size of air conditioners in India reached *** billion U.S. dollars in financial year 2024. And with a fairly low penetration rate, the air conditioner market was expected to grow at an increasing rate in the future. India’s energy consumption India was the world’s third-largest energy consumer as of 2024, contributed by rising incomes and improving standards of living. India’s electricity demand was expected to increase more rapidly than its overall energy demand, despite a decrease in financial year 2020 and 2021 due to the coronavirus (COVID-19) pandemic. Even with higher standards and newer technologies, by 2040, the demand for electricity generated by cooling was still projected to increase six-fold. Voltas - top player in the market The leading manufacturer of air conditioners in India was Voltas, owned by Tata Group and now a joint venture with Turkey’s household appliances manufacturer Arcelik since 2017. In the early 1990s, when the government lessened restrictions on Foreign Direct Investment, Voltas faced fierce competition from international brands like Carrier, LG, and Samsung. Since October 2020, the Indian government banned imports of ready-to-install air conditioners, providing a boost to OEMs and other leading manufacturers.

India automotive HVAC market size is projected to exhibit a growth rate (CAGR) of 10.93% during 2025-2033. The increasing technological advancements, such as smart climate control systems and integration with vehicle connectivity features, which contribute to the demand for sophisticated HVAC solutions, are driving the market.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on component, technology, and vehicle type.

Panel Air Conditioner Market Outlook

The global market size for panel air conditioners in 2023 is approximately USD 1.5 billion and is projected to reach around USD 3 billion by 2032, growing at a compound annual growth rate (CAGR) of 7.8%. This robust growth can be attributed to various factors including technological advancements, rising industrialization, and increasing demand for efficient cooling solutions in various sectors. The market is witnessing a significant boost from the rising awareness around energy efficiency and the growing trend of automation in industrial applications.

One of the key growth factors driving the panel air conditioner market is the increasing demand for efficient cooling solutions in industrial settings. As industries continue to modernize and expand, the need for reliable and effective cooling systems becomes paramount. Panel air conditioners help in maintaining optimal temperatures for electrical and electronic components, thereby preventing overheating and ensuring smooth operations. This is particularly crucial in industries such as manufacturing, where machinery and equipment operate continuously, generating significant heat that needs to be managed effectively.

Another significant growth factor is the technological advancements in air conditioning units. Innovations such as smart controls, energy-efficient models, and the integration of IoT (Internet of Things) are making panel air conditioners more efficient and user-friendly. These advancements are not only enhancing the performance of these units but also reducing their operational costs, making them more attractive to businesses looking to cut expenses while maintaining high operational standards. Additionally, the development of eco-friendly refrigerants is contributing to the market growth, aligning with global environmental regulations and consumer preferences for sustainable products.

The increasing focus on energy efficiency is also boosting the panel air conditioner market. Governments and regulatory bodies across the globe are implementing stringent energy efficiency standards and offering incentives for the adoption of energy-efficient appliances. This is encouraging industries and commercial sectors to invest in modern panel air conditioning systems that comply with these regulations, providing a significant push to the market. Furthermore, the rising electricity costs are prompting businesses to seek energy-efficient solutions to minimize their operational expenditures.

Regionally, the Asia Pacific is expected to dominate the panel air conditioner market, driven by rapid industrialization, urbanization, and infrastructural developments in countries like China, India, and Japan. The presence of numerous manufacturing plants and the continuous expansion of industrial sectors in these countries are creating a high demand for efficient cooling solutions. North America and Europe are also significant markets, owing to the stringent energy efficiency regulations and the high adoption of advanced technologies in these regions. The Middle East & Africa and Latin America are witnessing moderate growth, fueled by the expanding industrial base and rising investments in infrastructural projects.

Type Analysis

The panel air conditioner market can be segmented by type into thermoelectric, vapor compression, and others. The thermoelectric segment is gaining traction due to its compact size, reliability, and ability to provide precise temperature control. These units are particularly useful in applications where space is limited and precise temperature management is crucial. The growing adoption of thermoelectric cooling units in industrial and commercial applications is driving the growth of this segment. Moreover, advancements in thermoelectric materials and technologies are further enhancing the efficiency and performance of these units, making them a preferred choice in various sectors.

Vapor compression is another significant segment in the panel air conditioner market. This traditional cooling technology is widely used due to its high efficiency and ability to provide powerful cooling. Vapor compression units are commonly employed in large industrial and commercial settings where substantial heat loads need to be managed. The continuous improvements in compressor technologies and refrigerants are contributing to the growth of this segment. Additionally, the development of energy-efficient vapor compression systems is aligning with the global emphasis on reducing energy consumption, further propelling the market growth.

The &qu

The Residential HVAC Market report segments the industry into By Equipment (Air Conditioning/Ventilation Equipment, Heating Equipment) and By Geography (North America, Europe, Asia Pacific, Latin America, Middle East and Africa). Five-year historical data and five-year forecasts are covered.

In 2022, the demand for split-type air conditioning devices in India amounted to approximately 6.5 million units, the highest number in the past eight years. Within the observed period, demand for split-type air conditioning increased steadily, with the most significant exception to this upward trend being in 2020 when demand dropped to around 3.8 million units.

According to Cognitive Market Research, the global Window Air Conditioner market size will be USD 36142.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 6.00% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 14457.00 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 10842.75 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 8312.78 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.0% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 1807.13 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 722.85 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031.
The Hydraulic Power held the highest Window Air Conditioner market revenue share in 2024.

Market Dynamics of Window Air Conditioner Market

Key Drivers for Window Air Conditioner Market

Rapid urbanization and construction activities lead to boost in the demand for air conditioners

Growing urbanization leads to the building of residential and commercial buildings and spaces, ranging from offices, and homes to shopping centres to entertainment centres increasing the demand for air conditioners and it is projected to positively impact the industry in the future as well. The construction sector is one of the significant driving forces in the growth of air conditioning systems. The necessity of overcoming the global infrastructure and development gaps is what contributes to the construction industry's expansion. For instance, according to IBEF, India's infrastructure sector is set for robust growth, with planned investments of US$ 1.4 trillion by 2025. https://www.ibef.org/industry/infrastructure-sector-india More area is needed for housing due to population growth, particularly in Tier 1 cities. Government agencies and businesses in the private sector have both stepped up their construction efforts to meet the demand. The development of rural areas is a priority for the Indian government as well. These are the main elements driving the construction industry's expansion. Thus, widespread urbanization, population growth, and industrialization are the driving forces for the growth in the construction sector and spending. The need for air conditioning systems in the residential sector has increased due to the building of new houses and flats in response to the growing demand for housing units. Since most individuals spend most of their time indoors, installing air conditioning systems can help preserve indoor air quality. Additionally, AC systems offer cooling and heating options that raise occupant comfort levels. Growing Ease of Installation to Increase the Demand Globally

The growing ease of installation is driving the Window Air Conditioner (AC) market because these units offer a straightforward, hassle-free installation process compared to more complex systems like central air conditioners. Window AC units can be installed in standard windows with minimal modifications, making them accessible for both DIY enthusiasts and professional installers. This simplicity appeals to consumers seeking a cost-effective and convenient cooling solution. Additionally, the ease of installation reduces the need for extensive professional services, further lowering the overall cost. As more people seek quick and affordable ways to cool their spaces, the demand for window air conditioners increases, driving market growth.

Growing Urbanization and Smaller Living Spaces to Propel Market Growth

Growing urbanization and smaller living spaces are driving the Window Air Conditioner (AC) market as more people move into densely populated urban areas where space is limited. In these settings, window AC units offer an ideal cooling solution due to their compact size and ability to cool individual rooms efficiently. As apartment and condo living become more common, residents seek cost-effective, space-saving cooling options. ...

Energy Saving Air Conditioner Market Outlook

The global energy-saving air conditioner market size was valued at $42.5 billion in 2023 and is projected to reach $78.2 billion by 2032, growing at a compound annual growth rate (CAGR) of 7.2% during the forecast period. The increasing awareness about energy efficiency and the rising demand for environmentally friendly cooling solutions are major growth factors propelling the market forward.

One of the primary growth factors for the energy-saving air conditioner market is the rising awareness regarding energy conservation and the subsequent demand for energy-efficient appliances. Governments worldwide are encouraging the use of energy-efficient products through regulations and incentives, which is driving the adoption of energy-saving air conditioners. Alongside, consumers are becoming more conscious of their carbon footprints and are inclined towards purchasing products that contribute to lower energy consumption and reduced greenhouse gas emissions.

Technological advancements have significantly contributed to the growth of this market. The advent of inverter technology in air conditioners, which provides variable speed operation instead of the traditional on-off cycles, has revolutionized the industry. Inverter air conditioners are known to consume significantly less energy, leading to substantial cost savings on electricity bills over time. Moreover, smart air conditioners equipped with IoT capabilities allow users to control their appliances remotely, optimizing energy use and enhancing user convenience.

Urbanization and rising disposable incomes in developing countries are also key drivers of market growth. As more people move into urban areas and their purchasing power increases, the demand for modern, energy-efficient air conditioning systems is expected to rise. Moreover, the construction of new residential and commercial buildings has led to an increased need for air conditioning solutions, further bolstering market growth. This is particularly evident in rapidly developing regions such as Asia-Pacific and Latin America.

Energy Saving Solutions are becoming increasingly vital in today's world, where the need for sustainable and efficient energy use is paramount. These solutions encompass a range of technologies and practices aimed at reducing energy consumption while maintaining or enhancing the quality of life. In the context of air conditioning, energy-saving solutions involve the use of advanced technologies like inverter compressors and smart systems that optimize energy use. By integrating these solutions, consumers can significantly lower their energy bills and contribute to environmental conservation. The growing emphasis on energy saving is not only driven by cost considerations but also by a global commitment to reducing carbon emissions and promoting sustainable development.

The regional outlook for the energy-saving air conditioner market shows significant growth potential in Asia-Pacific. Countries like China, India, and Japan are experiencing rapid economic growth and urbanization, which are driving the demand for energy-efficient air conditioning systems. North America and Europe are also important markets, primarily due to the stringent energy efficiency regulations and high consumer awareness. These regions are anticipated to witness steady growth during the forecast period.

Product Type Analysis

Product type is a critical segment in the energy-saving air conditioner market, including split air conditioners, window air conditioners, portable air conditioners, and others. Split air conditioners dominate the market due to their superior energy efficiency and cooling performance. These systems are ideal for larger spaces and offer more flexibility in installation compared to window units. The increasing adoption of split air conditioners is driven by their ability to provide consistent cooling while consuming less energy.

Window air conditioners are another significant product type in the market, particularly popular in regions with smaller living spaces where installation options are limited. These units are typically more affordable and easier to install compared to split systems, making them a viable option for budget-conscious consumers. However, their market share is gradually being eroded by the rising popularity of split and portable air conditioners.

Portable air conditioner

India Passenger Car Air Conditioners Market size Market Share and Passenger Car Air Conditioners Market analysis & Forecast 2023 By Vehicle Type (Hatchback, MUV, Sedan & CUV), By Technology , By Compressor Type , Competition Forecast & Opportunities.

India Packaged Air Conditioners Market Size by Condenser Type, By End User, By Distribution Channel, By Region, Competition Forecast & Opportunities, 2018-2031F

Snapshot img

Data Center Precision Air Conditioning Market Size 2025-2029

The data center precision air conditioning market size is forecast to increase by USD 1.59 billion at a CAGR of 10% between 2024 and 2029.

The market is experiencing significant growth due to the increasing construction of data centers worldwide. With the digital transformation and the rise of cloud computing, there is a surging demand for advanced cooling solutions to maintain optimal operating temperatures and ensure data center efficiency. One such innovative cooling technology gaining traction is economizer-based precision cooling. This approach utilizes outside air when conditions permit, reducing energy consumption and costs. However, challenges remain in ensuring adaptability to varying climate conditions and maintaining consistent cooling performance. As businesses seek to capitalize on this market opportunity, it is crucial to address these challenges through technological advancements and strategic partnerships. Companies must also stay abreast of evolving regulations and industry trends to effectively navigate the competitive landscape and meet the growing demand for reliable and energy-efficient cooling solutions.

What will be the Size of the Data Center Precision Air Conditioning Market during the forecast period?

Request Free SampleThe market encompasses the supply and demand for advanced cooling solutions designed to maintain optimal temperatures and humidity levels in mission-critical facilities, including data centers, computer rooms, and telecommunications operators. With the increasing reliance on IT equipment and the expansion of fiber optic lines and satellite communications, the demand for precision cooling systems has d. Consumers seek to minimize network latency and ensure uninterrupted operations, particularly in remote areas. Operational expenses, including power usage effectiveness, have become a significant concern, driving the adoption of facility automation and energy-efficient cooling technologies. Traditional data centers and hyperscale facilities alike are exploring various cooling methods, such as artificial intelligence, machine learning, and cooling technologies like water-based, air-based, and immersion cooling, to optimize energy usage and reduce heat generation. Cooling systems play a pivotal role in ensuring the reliable operation of IT infrastructure and maintaining the performance of critical facilities.

How is this Data Center Precision Air Conditioning Industry segmented?

The data center precision air conditioning industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. DeploymentIn-row coolingIn-rack coolingCentralizedProductCRAC unitsCRAH unitsGeographyNorth AmericaUSCanadaAPACChinaIndiaJapanSouth KoreaEuropeFranceGermanyItalyUKMiddle East and AfricaSouth America

By Deployment Insights

The in-row cooling segment is estimated to witness significant growth during the forecast period.The market is experiencing growth due to the increasing demand for high-density IT environments in mission critical facilities and telecommunications operators. In-row cooling, a precision cooling solution, is gaining popularity as it allows for tailored cooling to specific rows, improving the efficiency of hot-aisle/cold-aisle rack layouts. This technology removes hot air from the hot aisle and supplies cold air in the cold aisle, ensuring top-to-bottom temperature uniformity. In-row cooling solutions are particularly beneficial in fiber optic lines, computer rooms, and server room environments, where minimal network latency is required. Operational expenses, such as Power Usage Effectiveness (PUE), are a significant concern for businesses, leading to the adoption of precision air conditioning systems in traditional data centers and hyperscale facilities. Cooling technologies, including in row cooling, in rack cooling, centralized cooling, and water based cooling, are being employed to reduce power consumption and IT administration costs. Furthermore, the integration of artificial intelligence (AI) and machine learning in cooling systems is expected to further optimize energy usage and reduce operational expenses. Precision air conditioners, such as outside unit, inside unit, CRAC units, and CRAH units, are essential components of these advanced cooling systems.

Get a glance at the market report of share of various segments Request Free Sample

The In-row cooling segment was valued at USD 990.40 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 40% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers