The Cooling Market in India: ACs, Coolers, and AHUs

India's diverse climate, characterized by scorching summers, has fueled a robust demand for cooling solutions. The market encompasses a range of products, including air conditioners (ACs), air coolers, and air handling units (AHUs), each catering to specific needs and segments.

 

Air Conditioners (ACs)

 

ACs have become an indispensable part of urban households and commercial spaces in India. The market is driven by increasing disposable incomes, urbanization, and rising temperatures.

Market Overview: The Indian AC market is witnessing substantial growth, with a projected CAGR of 7.76% from 2022 to 2028. Factors such as changing lifestyles, increased affordability, and the growing popularity of online sales contribute to this expansion.

Key Players:

Daikin: A global leader in air conditioning,  Daikin holds a significant market share in India. The company is known for its energy-efficient and innovative AC solutions.

Voltas: A major Indian brand, Voltas has a strong presence in the residential and commercial AC segments.

LG: LG offers a wide range of ACs with advanced features and energy-saving technologies. The brand has seen robust growth in the Indian market.

Blue Star: Another prominent Indian player, Blue Star caters to both residential and commercial cooling needs.

Carrier: A well-known global brand, Carrier provides a comprehensive range of ACs for various applications.

Other notable brands: Hitachi, Samsung,Godrej

 

Air Coolers

 

Air coolers offer an affordable and energy-efficient cooling solution, particularly in regions with dry climates. The market is driven by price sensitivity and the need for economical cooling options.

Market Overview: The air cooler segment is divided into organized and unorganized sectors. While the organized sector is witnessing growth, the unorganized sector still holds a significant share.

Key Players:

Bajaj Electricals: A leading player in the Indian air cooler market,  Bajaj offers a wide variety of coolers for different needs.

Crompton Greaves: Another major player, Crompton Greaves, is known for its reliable and durable air coolers.

Symphony: Symphony focuses exclusively on air coolers and has a strong presence in the residential segment.

Orient Electric: A popular brand for electrical appliances, Orient Electric also offers a range of air coolers.

Local and unbranded players: A significant portion of the air cooler market comprises local manufacturers and unbranded products, particularly in smaller towns and rural areas.

 

Air Handling Units (AHUs)

 

AHUs are critical components of HVAC systems, used for regulating and circulating air in commercial and industrial buildings.

Market Overview: The Indian commercial HVAC market, which includes AHUs, is expected to grow at a CAGR of 8.6% from 2025 to 2032. This growth is driven by rapid urbanization, the expansion of commercial real estate, and the increasing need for energy-efficient climate control.

Key Players:

LG: LG offers a range of AHU solutions integrated with its VRF systems, catering to the commercial sector.

Daikin: Daikin provides a wide variety of AHUs and other HVAC products for commercial and industrial applications.

Carrier: Carrier is a significant player in the commercial HVAC segment, offering AHUs and other air management solutions.

Blue Star: Blue Star provides AHUs and customized HVAC solutions for various commercial and industrial needs.

Thermax:  Thermax  offers energy-efficient AHUs and other HVAC systems.

Vaayu Aircon:  Vaayu Aircon is an emerging brand steadily gaining market attention due to their robust cooling system and amazing feature of 80% energy efficiency.

 

Current Market Dynamics

 

The Indian cooling market is witnessing increasing demand for energy-efficient and eco-friendly products.

The rising adoption of inverter technology in ACs is driving energy savings.

Growing awareness of indoor air quality is boosting the demand for advanced filtration and air purification features in both ACs and AHUs.

The commercial HVAC segment is expanding due to the growth of IT parks, shopping malls, hospitals, and other commercial infrastructure.

 

In conclusion, the Indian cooling market presents significant opportunities for growth across all segments. While ACs cater to the evolving needs of residential and commercial consumers, air coolers remain a popular choice for budget-conscious buyers. AHUs are crucial for maintaining optimal indoor environments in commercial and industrial spaces. Brands that focus on energy efficiency, technological innovation, and sustainability are well-positioned to succeed in this dynamic market.