Demand for air-conditioners doubles in four years to 15 million units owing to climate-change, comfort

“With the impact of climate change and people looking for comforts, India’s Air-conditioner (AC) market has doubled in four years to 15 million units,” a top industry official said. 

“The Heating, Ventilation, Air Conditioning & Refrigeration (HVAC&R) industry in India is experiencing unprecedented growth, with the residential air conditioning segment witnessing a 35% increase in sales last year alone,” Mukundan Menon, Executive MD and RAC head, Voltas, said.

“Currently, around 15 million air-conditioners are installed annually, more than double from just seven million four years ago. As India continues to expand its infrastructure over the next two decades, the demand for air-conditioning, ventilation and air purification will only intensify,” he said while speaking at an industry event ACREX 2025 organised by ISHRAE in partnership with Informa Markets in India.

“Sustainability and self-reliance remain central to this growth, with the government implementing stringent energy efficiency standards and supporting domestic manufacturing through a ₹6,700 crore Production Linked Incentive (PLI) scheme,” he said. 

“Of this, ₹5,700 crore has already been disbursed to companies committed to reducing import dependency and strengthening India’s manufacturing capabilities,” he added. 

“With strong government backing, industry collaboration and a clear vision for self-sufficiency, India is poised to become a global leader in the HVAC&R space. The energy and commitment within the industry today reaffirm that the future is not only promising but also firmly aligned with India’s long-term sustainability and economic goals,” he further said. 

Mahesh Khaitan, Director, SATTVA Group, said “The commercial real estate sector in India continues to present significant opportunities, with an existing footprint of 900 million square feet and an annual addition of nearly 100 million square feet.”

“This rapid expansion fuels demand for cutting-edge HVAC solutions, energy-efficient innovations and enhanced indoor air quality to address climate challenges,” he said. 

“The focus on ‘Make-in-India’ remains essential, ensuring competitive, high-quality manufacturing that strengthens India’s position in the global market,” he said. 

“As the industry moves towards net-zero targets, collaboration between manufacturers, developers and policymakers will be instrumental in achieving sustainable and energy-efficient infrastructure across the nation,” he added.

Arun Awasthy, president & managing director, Johnson Controls, India, said “As the country moves toward its 2070 net-zero goals, sustainable building technologies must evolve to meet these demands. Technology, digital solutions, and real-time data analytics will play a crucial role in optimizing energy efficiency, predictive maintenance, and overall operational sustainability.”

Yogesh Mudras, Managing Director, Informa Markets in India said, “The HVAC industry in India is experiencing a transformative shift, fuelled by the increasing demand for smart, connected and sustainable climate control solutions.”

“The sector is poised for robust expansion, with a projected CAGR of 16%, driven by the rapid adoption of inverter ACs, ductless systems and advancements in cleanroom and ventilation technologies,” he said. 

“As urbanisation and infrastructure growth accelerate, the need for HVAC solutions that enhance occupant comfort while reducing environmental impact has never been greater,” he added.