India Commercial Air Conditioner Market Assessment, By Type [Centralised, Packaged, Ductless Air Conditioner, Multi-Split, VRF, Others], By Capacity [Less than 10 kW, 10kW- 20kW, 20kW-30kW, More than 30kW], By End-user [Retail, Offices, Hospitality, Hospitals, Food Service, Educational Institutes, Others], By Distribution Channel [Online, Offline- Brand Stores, Multi-Brand Outlets, Distributors, Others], By Region, Opportunities, and Forecast, 2017-2031F

The India Commercial Air Conditioner Market was estimated at USD 2.12 billion in FY2023 and is forecast to reach USD 4.87 billion by FY2031, growing at a CAGR of 12.62% between FY2024-FY2031. The market is highly driven by the rising commercial construction in the country mainly for business spaces and co-working spaces owing to a rapidly growing IT sector mainly in tier 2 cities.

Despite the obstacles and interruptions to supply lines and manufacturing brought in by COVID-19 pandemic, the demand for new buildings and construction activities has not slowed down. Rather, there has been a boom in construction sector especially for the bigger office spaces considering the social distancing notions which have become a common practice now. Multifamily, warehouse, education centres, and office projects are all part of this construction boom.

Schools have been a major driving force resulting in a higher demand on air conditioners as major educational institutes including schools, universities, academic centres, along with their transportation facilities are turning into fully air-conditioned premises.

Uncertain climate conditions in India results in severe heat waves and thus demands for a sustainable cooling strategy. Due to improved economic conditions, urbanization, and rising pollution levels, extreme climatic conditions in states like Hyderabad, Gujarat, Delhi, Mumbai, India’s commercial air conditioner market is anticipated to expand considerably. Key manufactures are also concentrating on creating efficient refrigerants with low emission levels. Additionally, the market has seen rise due to the country's increasing temperature. On the flip side, rising energy bills, high installation system costs, climate change, and increased maintenance expenses are various challenges faced by the market which is driving the sales of innovative and technologically advanced air conditioners that are cost efficient and low on maintenance. According to the World Bank, a sustainable cooling strategy may open an investment opportunity of $1.6 trillion by 2040.

Rise in Commercial Spaces Drives the Market

Due to rising employment and corporate activities, the demand for coworking spaces is growing as more businesses restructure their operations to accommodate emerging technology. This trend is seen mostly in metropolitan cities of India, thereby, increasing the demand for commercial air conditioners. Additionally, due to change in lifestyle, consumers prefer to spend their leisure time in HoReCa (hotels, restaurants, and cafes), theatres and sport facilities that are fully air-conditioned. Furthermore, after the COVID-19, there is increase in the precautions level among Indian population, which has increased the demand for healthcare spaces such as medical centres, hospitals and nursing homes. Therefore, offices, retail, leisure and healthcare sectors are contributing to the growth of India air conditioner market.

Manufactures Focus on Smart Technology and Sustainability

Smart technologies are widely used in commercial air conditioners. Some appliances have sensors that allow them to modify their cooling output based on the number of people present in any location, like in theatres and metros. Moreover, manufacturers of commercial air conditioners focus on energy efficiency and sustainability. With the same or superior cooling performance, newer versions are engineered to utilise less energy. Furthermore, commercial air conditioners are created with recyclable components and are manufactured for easy recycling and disassembly. Manufacturers provide products that rely on alternative energy sources, including solar electricity.

Impact of COVID-19 on India Commercial Air Conditioner Market

The halt of production in China has led other air conditioner manufacturers based in India to temporarily hold the creation of final goods. This led to a rise in the supply and demand disparity in the market. The Indian market was affected by labour and war material shortage along with the disruptions in international trade. Now that Indian government has uplifted the restrictions, the supply chains are coming on the track. The growth of the market is regained through factors such as the opening of educational institutions and offices, residential constructions, transport, and entertainment locations.

Impact of Russia-Ukraine War on India Commercial Air Conditioner Market

The price of raw materials, energy, logistics, and technical services continued to rise due to the situation in Russia and Ukraine. Due to the heavy reliance on imports, particularly those from Russia, the price of oil and gas has already risen around the world which hampered the India commercial air conditioner market. Additionally, commercial air conditioner manufactures have also banned their operations in Russia, for instance, Daikin Industries Ltd. have suspended its business due to the negative situations with logistics and economy.

Report Scope

“India Commercial Air Conditioner Market Overview, FY2017-FY2031F”, a comprehensive report by Markets and Data, provides an analytical and statistical guide of the size, share, growth trends, COVID-19 impact, opportunities, and forecasts (FY2024-FY2031). Additionally, the research scope profiles the top players in the industry mentioning their respective market share, business model, competitive intelligence, etc.

Report Attribute	Details
Base Year of the Analysis	FY2023
Historical Period	FY2017-FY2022
Forecast Period	FY2024-FY2031
Market Size in FY2023	USD 2.12 billion
Projected Growth Rate	CAGR of 12.62% from FY2024-FY2031
Revenue Forecast in FY2031	USD 4.87 billion
Units	Revenue in USD and Volume in Units
Segments Covered	Type, Capacity, End-user, Distribution Channel, and Region
Regions Covered	East, West and Central, North, and South
Key Companies Profiled	Daikin Industries Ltd., Hitachi, Ltd., Voltas Limited, Blue Star Ltd., Mitsubishi Electric Corporation, Carrier Global Corporation, Samsung India Electronics Private Limited, Haier Appliances India Pvt. Ltd, Havells India Limited, and Fujitsu General Limited
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfil your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

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In this report, India Commercial Air Conditioner Market has been segmented into the following categories: 

1.       India Commercial Air Conditioner Market, By Type

1.1.    Centralised

1.2.    Packaged

1.3.    Ductless

1.4.    Multi-Split

1.5.    VRF

1.6.    Others

2.       India Commercial Air Conditioner Market, By Capacity

2.1.    Less than 10 kW

2.2.    10kW- 20kW

2.3.    20kW-30kW

2.4.    More than 30kW

3.       India Commercial Air Conditioner Market, By End-user

3.1.    Retail

3.2.    Offices

3.3.    Hospitality

3.4.    Hospitals

3.5.    Food Service

3.6.    Educational Institutes

3.7.    Others

4.       India Commercial Air Conditioner Market, By Distribution Channel

4.1.    Online

4.2.    Offline

4.2.1.Brand Stores

4.2.2.Multi-Brand Outlets

4.2.3.Distributors

4.2.4.Others

5.       India Commercial Air Conditioner Market, By Region

5.1.    East

5.2.    West & Central

5.3.    North

5.4.    South

Key Players Landscape and Outlook

Factors such as intensified competition, rising demand for new technology air conditioners, environmental sustainability, and globalization result in major challenges for the manufacturers to sustain in the industry. To stay ahead of the competition, players make significant investments in R&D projects to introduce new products and increase production capabilities.

In September 2022, Daikin Industries Ltd. disclosed that it is building its third factory in India that will be able to produce 3 million units annually.

Key Players Operating in India Commercial Air Conditioner Market

·         Daikin Industries Ltd.

·         Hitachi, Ltd.

·         Voltas Limited

·         Blue Star Ltd.

·         Mitsubishi Electric Corporation

·         Carrier Global Corporation

·         Samsung India Electronics Private Limited

·         Haier Appliances India Pvt. Ltd

·         Havells India Limited

·         Fujitsu General Limited

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