Sizzling Growth: India's Air Conditioner Market on the Rise

The Indian room air-conditioner industry is projected to soar with a 20-25% increase in sales by 2024-25, propelled by rising temperatures, urbanization, and favorable financing. Factors such as the PLI scheme have boosted local manufacturing, even as the market faces challenges like competition and input cost volatility.

The Indian room air-conditioner industry is set for remarkable expansion, with sales anticipated to surge 20-25% to 12-12.5 million units in 2024-25, as reported by ICRA.

Such growth is fueled by escalating temperatures, increased demand for units across households, urbanization, higher disposable incomes, and supportive consumer financing.

The government's production-linked incentive scheme has significantly enhanced localization, driving the domestic RAC industry's prospects amid increasing competition and cost challenges.