Indian AC Market Sees 20-25% Growth Amid Rising Demand
As the mercury rises across India, the demand for air conditioners (ACs) has been witnessing a significant surge. The Indian Room Air Conditioner (RAC) market, which was already exhibiting robust growth, is expected to continue its upward trajectory in the coming months. According to industry analysts, the Indian AC market is poised to experience a growth of 20-25% in the fourth quarter of fiscal year 2025 (Q4FY25E), a remarkable feat considering the slowdown in other consumer durable sectors.
The Indian AC market has been witnessing a rapid expansion over the past few years, driven by several factors. One of the primary reasons behind this growth is the low penetration levels of ACs in the country. According to a report by Ken Research, the Indian AC market is still in the early stages of growth, with a penetration rate of around 15-20%. This presents a significant opportunity for manufacturers and retailers to tap into the vast potential of the market.
Another significant factor contributing to the growth of the Indian AC market is the increasing affordability of ACs. In the past few years, there has been a significant decline in the prices of ACs, making them more accessible to a wider range of consumers. This has led to a surge in demand, particularly among the middle and upper-middle-class segments of the population.
Escalating temperatures are also playing a crucial role in driving demand for ACs. India has been experiencing a rise in temperatures over the past few years, with many parts of the country recording record-breaking heatwaves. This has led to a significant increase in the demand for ACs, particularly in regions such as South India, which is prone to hot and humid weather conditions.
The growth of the Indian AC market is not limited to the residential segment alone. The commercial segment, including offices, hotels, and hospitals, is also witnessing significant demand for ACs. This is driven by the increasing need for comfortable working and living conditions, as well as the growing importance of air quality and hygiene.
Several AC manufacturers in India are poised to benefit from the growth of the market. Voltas and Blue Star, two of the leading AC manufacturers in the country, have been in the spotlight recently due to their strong performance in the market. According to a report by NewsKarnataka, the stocks of Voltas and Blue Star have been soaring in recent weeks, driven by the increasing demand for ACs.
Voltas, which is a subsidiary of the TATA Group, has been a market leader in the Indian AC market for several years. The company has a wide range of AC products, including split ACs, window ACs, and inverter ACs. Voltas has been focusing on innovation and technology to stay ahead of the competition, and its products are known for their energy efficiency and durability.
Blue Star, on the other hand, is a well-established player in the Indian AC market. The company has been in operation for over 75 years and has a strong presence in the country. Blue Star offers a wide range of AC products, including conventional and inverter ACs, and has a reputation for its high-quality products and excellent after-sales service.
The growth of the Indian AC market is not limited to these two manufacturers alone. Other players such as LG, Samsung, and Godrej are also expected to benefit from the increasing demand for ACs. The market is highly competitive, and manufacturers are focusing on innovation and customer service to stay ahead of the competition.
In conclusion, the Indian AC market is expected to experience a growth of 20-25% in Q4FY25E, driven by low penetration levels, increased affordability, and escalating temperatures. Voltas and Blue Star are expected to be among the key beneficiaries of this growth, and the market is expected to continue its upward trajectory in the coming months. As the demand for ACs continues to rise, it is essential for manufacturers and retailers to focus on innovation, customer service, and product quality to stay ahead of the competition.
