The Indian heating, ventilation, air-conditioning (HVAC) industry is projected to grow at about 16% year-on-year, reaching $30 billion in size by 2030, a top industry executive said.
“The Indian HVAC industry is projected to reach $30 billion by 2030, with a CAGR growth of 15.8% from 2021, fueled by progressive policies, infrastructure development, and rising disposable income,” said K. J. Jawa, Chairman & MD, Daikin India at the ACREX India 2024 exhibition of heating, ventilation, air-conditioning, and intelligent buildings.
He said the government’s investments in construction would boost market demand, aligning with focus on carbon emissions reduction and energy efficiency.
“The shift towards smart HVAC systems is notable, driven by the rising energy consumption and improving system efficiency. Buyers are prioritising intelligent solutions offering enhanced controls, real-time monitoring, and IoT integration,” he added.
According to Yogesh Thakkar, President, Indian Society of Heating, Refrigerating and Air-Conditioning Engineers (ISHARE) the HVAC segment was observing high growth trajectory through initiatives like the Atal Community Innovation Centre (ACIC) programme.
“With the substantial government investment of $1.45 trillion in infrastructure projects over the next 5 years, we stand on the brink of an era marked by unprecedented advancement,” he added.
He further said that advancements in HVAC technology, such as variable refrigerant flow systems and predictive maintenance using machine learning algorithms, were revolutionising energy efficiency, cost reduction, and sustainability in both residential and commercial segments.
Yogesh Mudras, Managing Director, Informa Markets in India, the organisers of the show said, “ACREX India serves as a catalyst for driving the adoption of environmentally conscious practices within the HVAC&R sector, aligning with India’s ambitious goal of achieving Carbon Neutrality by 2070.”
Sanjay Sharma, Marketing Director, Carrier India, said “Projections indicate that by 2030, the number of Indian cities with populations exceeding one million will increase from 42 to 68, driving the demand for HVAC systems. Additionally, with over 50% of the country’s buildings expected to be constructed in the next two decades, the market holds vast potential.”
According to Mukundan Menon, Executive Director & Head RAC Business, Voltas Ltd the focus was on promoting local manufacturing, reducing reliance on imports, and striving towards achieving net-zero emissions by 2070. “This initiative aligns with India’s projected surge in cooling electricity consumption, expected to exceed that of entire African countries by 2025,” he said.
The growth in the segment is attributed to various factors, including the escalating demand for inverter HVAC systems, increased office space absorption, and preference for rental HVAC solutions.
The market’s upward trajectory is supported by the growth in high-rise buildings, proliferation of hypermarkets in Tier-II cities, and establishment of shopping complexes and malls, where HVAC systems are indispensable, industry officials said.
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