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.

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

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 Air Conditioner Market is anticipated to grow with the CAGR of more 14% by 2027. In the residential areas the AC segment will have the largest market value.

The India air conditioners 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.

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%.

The Indian track air conditioner market is poised for significant growth by 2029, driven by increasing disposable incomes, rising urbanization, and a growing preference for energy-efficient cooling solutions in both residential and commercial sectors. While precise figures for 2029 are unavailable, projecting from a hypothetical 2025 market size (let's assume ₹500 million for illustrative purposes, acknowledging this is an estimation), and a conservative Compound Annual Growth Rate (CAGR) of 10% (a reasonable estimate considering India's economic growth and infrastructure development), the market could reach approximately ₹800 million by 2029. This growth will be fueled by technological advancements leading to more efficient and affordable track air conditioners, as well as government initiatives promoting energy conservation. Segmentation within the market will likely see a strong preference for inverter technology and increased demand in sectors like hospitality and retail, owing to their unique features suited to these spaces. However, challenges remain. High initial investment costs for track air conditioners compared to conventional units could impede wider adoption, especially in price-sensitive segments. Furthermore, the market's growth will be influenced by factors like fluctuating energy prices and potential supply chain disruptions. Despite these constraints, the long-term outlook for the Indian track air conditioner market remains optimistic, driven by the inherent advantages of track systems in terms of space-saving design and targeted cooling. Strategic partnerships between manufacturers and installers, along with targeted marketing campaigns highlighting the benefits of track AC systems, could further boost market penetration.

In 2022, the demand for domestic air conditioners in India amounted to approximately *** 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 *** million units. However, it recovered quickly.

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Air Conditioner Market for Transportation Size 2024-2028

The air conditioner market for transportation size is forecast to increase by USD 8.45 billion at a CAGR of 6.46% between 2023 and 2028.

The market is witnessing significant growth due to the increasing emphasis on enhancing passenger comfort and experience. One of the key trends in this market is the adoption of alternative refrigerants for air conditioning systems, such as natural refrigerants, which offer better environmental sustainability and reduced greenhouse gas emissions. However, there are challenges associated with the implementation of these refrigerants, including the difficulty in achieving a balance between energy consumption and efficiency. As the transportation sector continues to evolve, it is crucial for market participants to stay abreast of these trends and challenges to remain competitive. The market analysis report provides an in-depth examination of these factors and more, offering valuable insights for stakeholders In the transportation industry.

What will be the Size of the Air Conditioner Market for Transportation During the Forecast Period?

Request Free SampleThe market, encompassing automotive HVAC systems and other industrial applications, continues to evolve, driven by the demand for thermal comfort and safety in various sectors. The market's size is substantial, with significant growth attributed to the increasing focus on environmentally optimized products and energy-efficient systems. Portable systems and unitary segment solutions, including rooftop ACs, are popular choices for their flexibility and adaptability. Two primary segments, the inverter and non-inverter segments, dominate the market, with the inverter segment gaining traction due to its energy savings and improved performance. The commercial and residential segments are key consumers, with the former prioritizing safety and eco-friendly refrigerants, while the latter emphasizes customer experience and interior comfort.Air pollution levels and technological improvements are crucial factors shaping the market's direction. Eco-friendly refrigerants and emerging service distinctions aim to enhance client loyalty and meet evolving regulatory requirements. The HVAC markets' overall activity remains robust, with a focus on enhancing thermal comfort and reducing compressor's power consumption.

How is this Air Conditioner for Transportation Industry segmented and which is the largest segment?

The air conditioner for transportation industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments. TechnologyAutomaticManualApplicationAutomotiveRailwayaerospaceGeographyAPACChinaIndiaJapanEuropeGermanyNorth AmericaUSSouth AmericaMiddle East and Africa

By Technology Insights

The automatic segment is estimated to witness significant growth during the forecast period. Air conditioning systems in passenger and commercial vehicles have become essential comfort features, enhancing the driving experience through automatic climate control. Advanced technologies, including sensors, electronic controls, and algorithms, enable these systems to regulate temperature, airflow, and humidity. Real-time monitoring of internal and external conditions allows for instant adjustments, while dual-zone and multi-zone control cater to individual passenger preferences. Climate mapping technology considers external factors like sunlight and vehicle speed for optimal air distribution. Energy-efficient systems and environmentally optimized products are crucial considerations In the market, with the Inverter and Unitary segments leading the way. The Middle East, particularly Gulf countries, have significant demand due to urbanization, climate change, and increasing consumer income levels.The Automotive HVAC market is expected to grow due to safety concerns, vehicle electrification, and the use of eco-friendly refrigerants. Major manufacturers focus on technological improvements, such as compressor design, evaporator, receiver, and condenser innovations, to meet customer expectations. Competition is intense, with emerging service distinctions and client loyalty becoming key differentiators. Rapid industrialization, air pollution levels, and increasing commuting populations drive market growth. Auto windows, wind resistance, vehicle efficiency, and fuel savings are essential factors In the market. Vehicle type, passenger car and commercial vehicle, and automobile models influence HVAC markets, with passenger car sales and global economic activities impacting the market significantly.Carbon dioxide emissions and the environment are major concerns, leading to a focus on fuel savings and energy efficiency.

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The India HVAC market report segments the industry into Product Type (Heating Equipment (Heat Pumps, Furnaces, Boilers, and more.), Ventilation Equipment (Air Handling Units, ERVs/HRVs, Exhaust and Supply Fans, and more.), Air Conditioning Equipment (Unitary Air Conditioners, VRF Systems, Chillers, and more.)), By End-user Industry (Residential, Commercial, and more.).

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Air Conditioning (AC) Market Size 2025-2029

The air conditioning (AC) market size is valued to increase by USD 14.12 billion, at a CAGR of 2% from 2024 to 2029. Rise in residential construction activity will drive the air conditioning (AC) market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 52% growth during the forecast period.
By Product - Split segment was valued at USD 98.98 billion in 2023
By Distribution Channel - Offline segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 17.29 billion
Market Future Opportunities: USD 14119.20 billion
CAGR from 2024 to 2029 : 2%

Market Summary

The market is experiencing significant growth, driven by the rising residential construction activity and increasing demand for energy-efficient cooling solutions. One of the key trends shaping the market is the shift towards the use of R32 refrigerant in split AC systems. This refrigerant, which has a lower global warming potential than the previously used R22, is becoming increasingly popular due to its environmental benefits.
However, the market is not without challenges. Operating costs and raw material prices remain volatile, posing significant risks for businesses in the sector. For instance, a leading HVAC manufacturer in the US has implemented supply chain optimization strategies to mitigate the impact of raw material price fluctuations on its bottom line. By closely monitoring market trends, investing in research and development, and adopting sustainable business practices, companies in the AC market can navigate these challenges and continue to deliver innovative cooling solutions to their customers.

What will be the Size of the Air Conditioning (AC) Market during the forecast period?

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How is the Air Conditioning (AC) Market Segmented ?

The air conditioning (AC) industry 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.

Product

  Split
  Chillers
  Airside
  Others


Distribution Channel

  Offline
  Online


End-user

  Residential
  Commercial
  Industrial


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    Australia
    China
    India
    Japan
    South Korea


  Rest of World (ROW)

By Product Insights

The split segment is estimated to witness significant growth during the forecast period.

The market continues to evolve, with a significant shift from traditional window units to energy-efficient split systems. Samsung is among the companies leading this trend, having ceased production of window air conditioners in favor of sleek, modern split models. Inverter-based split air conditioners are gaining popularity due to their improved energy efficiency. The market has seen a decline in demand for ducted standard split air conditioners, as Japanese-style mini-splits become increasingly preferred. Refurbished products are also driving demand, as LEED certifications push for better energy efficiency and customers seek to replace outdated systems. Key technological advancements include the integration of smart thermostats, remote monitoring systems, and refrigerant leak detection.

Air filtration technology and thermal comfort modeling are also essential components of modern HVAC system design. The market is further characterized by the use of energy modeling software, variable refrigerant flow, and chilled water systems. A recent study reveals that energy consumption from HVAC systems accounts for nearly 40% of total energy usage in commercial buildings. This underscores the importance of optimizing air handling units, fan performance curves, and compressor technology for enhanced energy efficiency.

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The Split segment was valued at USD 98.98 billion in 2019 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 52% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Air conditioning markets continue to evolve, driven by increasing affordability and demand for comfort in countries like India, China, and Vietnam. The residential market, in particular, is experiencing growth as air conditioners expand beyond bedrooms to living spaces. China and Japan dominate the APAC market, accounting for approximately 80% of the total share. India, fueled by urbanization and rising disposable incomes, is poi

Split Air Conditioner Market Outlook

The global split air conditioner market size is poised to experience significant growth, projected to expand from USD 105 billion in 2023 to an impressive USD 175 billion by 2032, reflecting a robust compound annual growth rate (CAGR) of 6.2%. The market's growth trajectory is primarily driven by increasing urbanization, rising disposable incomes, and the escalating demand for energy-efficient cooling solutions. As climatic changes continue to induce warmer weather patterns globally, the necessity for efficient cooling systems has become more critical, further propelling the market's expansion.

One of the pivotal growth factors propelling the split air conditioner market is the intensifying focus on energy efficiency and sustainable living. Governments worldwide are implementing stringent regulations to curb energy consumption and reduce carbon footprints, prompting manufacturers to innovate and produce more energy-efficient air conditioning systems. The introduction of inverter-based systems and smart AC units with enhanced energy-saving capabilities is a testament to this trend. Moreover, the emphasis on sustainability has led to increased adoption of air conditioners that use eco-friendly refrigerants, significantly contributing to market growth.

Technological advancements have also played a crucial role in driving the growth of the split air conditioner market. The integration of IoT and smart technology into air conditioning systems has revolutionized the user experience by offering features such as remote monitoring and control, energy usage tracking, and predictive maintenance alerts. These innovations not only enhance the convenience and efficiency of air conditioning systems but also cater to the growing consumer demand for smart home solutions. The proliferation of smart homes and connected devices is, therefore, a significant accelerator for market expansion.

Another significant growth factor is the rising consumer preference for personalized comfort and improved indoor air quality. Modern split air conditioners come equipped with features like multi-stage filtration systems and humidity control, which not only maintain optimal temperatures but also improve air quality by filtering out pollutants and allergens. This shift towards healthier indoor environments is driving consumer adoption across residential, commercial, and industrial applications. As consumers become increasingly health-conscious, the demand for air conditioning systems that offer enhanced air purification features is expected to rise, driving further market growth.

In contrast to split air conditioners, Window Air Conditioner Units offer a compact and often more affordable cooling solution, particularly suitable for smaller spaces and budget-conscious consumers. These units are designed to fit into a window or a specially designed aperture in a room, providing efficient cooling without the need for complex installation processes. The simplicity and ease of use make window units a popular choice for renters and those who require a temporary cooling solution. Despite their smaller size, modern window air conditioners come equipped with features such as remote control, energy-saving modes, and digital displays, enhancing user convenience and efficiency. As energy efficiency standards continue to evolve, manufacturers are focusing on improving the performance of window units to meet consumer expectations and regulatory requirements.

Regionally, Asia Pacific holds a dominant position in the split air conditioner market, fueled by rapid urbanization, a burgeoning middle class, and increasing disposable incomes in countries like China and India. North America and Europe also contribute significantly to the market, supported by high living standards and the adoption of smart home technologies. The Middle East & Africa and Latin America, while currently smaller markets, are poised for substantial growth due to rising temperatures and improving economic conditions, presenting lucrative opportunities for market expansion.

Product Type Analysis

The split air conditioner market is categorized into several product types, including wall-mounted, floor-standing, cassette, ceiling suspended, and others, each offering distinct benefits and catering to diverse consumer needs. Wall-mounted split air conditioners are among the most popular types due to their versatility and ease of installation. These units are favored in r

The air conditioner market grew with CAGR of more than 9% for 2016-2021, registering more than INR 26000 Crore in 2021-22. This report consist industry trends.

In India Commercial Air Conditioner Market, offering valuable insights, key market trends, competitive landscape, and future outlook to support strategic decision.

Snapshot img { margin: 10px !important; } The portable air-conditioner market size has the potential to grow by USD 241.99 million during 2020-2024, and the market’s growth momentum will accelerate during the forecast period.

This report provides a detailed analysis of the market by end-user (residential and non-residential), distribution channel (offline and online), and geography (APAC, Europe, MEA, North America, and South America). Also, the report analyzes the market’s competitive landscape and offers information on several market vendors, including Daikin Industries Ltd., DeLonghi Group, Electrolux Group, Qingdao Haier Co. Ltd., Honeywell International Inc., LG Electronics Inc., Midea Group Co. Ltd., Olimpia Splendid Spa, United Technologies Corp., and Whirlpool Corp.

Market Overview

Market Competitive Analysis

The market is fragmented due to the presence of various regional and global players. The vendors operating in the market compete in terms of new product launches and business expansions. LG Electronics Inc., Midea Group Co. Ltd., Olimpia Splendid Spa, United Technologies Corp., and Whirlpool Corp are some of the major market participants. Although the rising awareness about environment-friendly and energy-efficient devices will offer immense growth opportunities, the increased availability of portable rental ACs will challenge the growth of the market participants. To make the most of the opportunities, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

To help clients improve their market position, this portable air-conditioner market forecast report provides a detailed analysis of the market leaders and offers information on the competencies and capacities of these companies. The report also covers details on the market’s competitive landscape and offers information on the products offered by various companies. Moreover, this portable air-conditioner market analysis report also provides information on the upcoming trends and challenges that will influence market growth. This will help companies create strategies to make the most of future growth opportunities.

This report provides information on the production, sustainability, and prospects of several leading companies, including:

Daikin Industries Ltd.
DeLonghi Group
Electrolux Group
Qingdao Haier Co. Ltd.
Honeywell International Inc.
LG Electronics, Inc.
Midea Group Co. Ltd.
Olimpia Splendid Spa
United Technologies Corp.
Whirlpool Corp

Portable Air-Conditioner Market: Segmentation by Region

APAC accounted for the largest portable air-conditioner market share in 2019, and the region will offer several growth opportunities to market vendors during the forecast period. The growing housing needs of the population, increasing number of construction activities in both residential and commercial sectors, and the emerging tourism industry will significantly influence portable air-conditioner market growth in this region.

59% of the market’s growth will originate from APAC during the forecast period. China, Japan, and India are the key markets for portable air-conditioners in APAC. Market growth in this region will be faster than the growth of the market in other regions.

Portable Air-Conditioner Market: Segmentation by End-user

Factors such as favorable economic situations and the growing emphasis of governments on investing in developing infrastructure have resulted in an increase in the number of construction activities globally. This growth in the number of construction activities is likely to create significant demand for portable ACs during the forecast period.

Market growth in this segment will be slower than the growth of the market in the non-residential segment. This report provides an accurate prediction of the contribution of all the segments to the growth of the portable air-conditioner market size.

Portable Air-Conditioner Market: Key Drivers and Trends

The rising awareness about environment-friendly and energy-efficient devices is driving the global portable air-conditioner market. Governments across the globe are encouraging the development of innovative energy-efficient products for minimizing and controlling energy consumption. This has increased the demand for portable air-conditioner, because it is an ENERGY STAR-certified product, which provides better functionalities, saves energy and cost, and lowers energy consumption. The rising awareness about environment-friendly and energy-efficient devices increases the demand for portable air-conditioners, driving market growth.

The advent of smart portable air conditioners is one of the key portable air-conditioner market trends. There is a growing popularity of smart and wireless operable air conditioners as they can be operated through smartphones to change the temperature and adjust control modes. Smart portable air conditioners offer remote contr

This statistic illustrates the market share of air conditioners based on sales across India in 2017, by star rating. During the measured time period, 3-star air conditioners had the share in the market across the country of ** percent.

In 2022, the demand for window-type air conditioning devices in India amounted to approximately *** thousand units, the highest number of the past seven years and an unusual spike. Within the observed period, demand for window-type air conditioning has been fluctuating.

India Air Conditioner Market Size, Share, Trend & Market Analysis By Type, By Distribution Channel, By End User, Competition Forecast & Opportunities.

The global air conditioners market size reached a value of nearly USD 149.51 Billion in 2024. During the forecast period of 2025-2034, the market is likely to expand at a CAGR of 6.80%, reaching a value of USD 288.66 Billion by 2034.

India Packaged Air Conditioners Market was valued at USD 391.84 Million in 2025 and is expected to reach USD 620.41 Million by 2031 with a CAGR of 7.96%.