Domestic AC market seen exploding in coming years

According to latest update from www.quadintel.com,highlights some key elements of the India Air Conditioner or AC, such as market definition, market segmentation, opposition analysis, and search for methodology. It also offers data about market forces and constraints that aid organizations make educated guesses about whether or not or no longer to enlarge or decrease the manufacturing of a superb product. The Indian AC market was valued at INR 293.37 Billion in FY 2021. It is expected to reach INR 991.57 Billion in FY 2027, expanding at a CAGR of around 24.30% during the FY 2022 FY 2027 period. Key Companies Covered in the India Air Conditioner Market Research are Voltas Limited, Havells India Limited, and Blue Star Limited and other key market players. Technical advancements such as cost-effective equipment and decrease in prices of components have fueled the growth of the air conditioner (AC) market. High energy consumption and fall in electricity prices are the major challenges.

The market is categorized into four segments split-type (wall mounted), window-type, cassette (ceiling-mounted), and tower (floor-mounted) air conditioners. The split-type AC segment was valued at INR 124.24 Billion in FY 2021. It is anticipated to reach INR 473.47 Billion in FY 2027, expanding at a CAGR of around 26.79% during the FY 2022 FY 2027 period. Owing to increased income and rapid urbanization, the demand for split ACs has picked up. In FY 2021, the window-type AC segment was valued at INR 112.51 Billion. It is expected to reach INR 142.79 Billion in FY 2027, expanding at a CAGR of around 4.43% during the forecast period. Following the second wave, the preference for window AC increased among the middle class because of its affordability.

In FY 2021, the ceiling-mounted AC segment was valued at INR 18.34 Billion. It is estimated to reach INR 154.19 Billion in FY 2027, expanding at a CAGR of nearly 43% during the forecast period. Although these ACs are energy- and space-efficient, they are not ideal for multi-storey households. The tower AC segment held revenue of INR 38.29 Billion in FY 2021. It is expected to reach INR 221.12 Bn FY 2027, expanding at a CAGR of around 35.38% during the forecast period. The demand for tower ACs from the household sector is limited. They sell in the commercial sector because of their portability and also large area is required for its installation.

Due to the global outbreak of COVID-19 in 2020 followed by nationwide lockdown, the air conditioner market was highly affected. Travel restrictions, workforce shortages, disruptions in world trade, and bottleneck in logistics impacted the supply chains of companies. Almost 70% of sales take place between March and June. This year, sales plummeted because nearly all stores were closed due to lockdowns imposed across states in view of the second wave. The market gained momentum in October during the festive season because of market players collaborations with major online and offline retail partners such as Amazon and Reliance Digital. They helped to attracts customers through attractive offers.Owing to evolving customer preferences, major players such as Voltas Limited, Havells India Limited, and Blue Star Limited made huge strides in technological advancements. Innovations such as ubiquitous sensor networks and copper condensers with anti-corrosive hydrophilic blue fins will improve the efficiency of ACs.

Outlook:

The long term outlook for the domestic consumer durables market is steady given the sustained focus on infrastructure development and rising incomes. This can lead to higher demand for all appliances and white goods. The recent drop in major industrial metal prices is expected to reduce the input costs for the consumer durable makers, thereby limiting the trajectory of prices in coming months.