Air conditioner market size in India FY 2010-2023

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 is estimated to reach 9.7 million units in financial year 2023. The leading manufacturer of air conditioners in India was Voltas with 21 percent of the market share. 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 in the rise. The capacity of solar energy reached over 39 thousand megawatts in 2020. As of 2020, India ranked fourth in installed renewable energy capacity worldwide.