India Air Conditioning Market Size, Growth & Forecast 2033

India Air Conditioning Market Size, Share, Trends and Forecast by Type, Application, and Region, 2025-2033

Report Format: PDF+Excel | Report ID: SR112025A29633

Buy Now Discount
Offer

India Air Conditioning Market Overview:

The India air conditioning market size reached USD 5.32 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 19.61 Billion by 2033, exhibiting a growth rate (CAGR) of 15.60% during 2025-2033. The market is growing with increasing temperature, urbanization, and escalating middle-class purchasing power. With growing demand for energy-efficient and intelligent ACs, coupled with strong growth across residential and commercial segments, development of the market is being supplemented by government moves towards energy efficiency.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 5.32 Billion
Market Forecast in 2033	USD 19.61 Billion
Market Growth Rate (2025-2033)	15.60%

India Air Conditioning Market Trends:

Increasing Focus on Energy-Efficient Air Conditioners

With intensifying electricity prices and heightened focus on ecofriendly sustainability, energy-efficient air conditioners are high on the priority list in India. Buyers are highly choosing units with higher energy efficiency ratings due to awareness and regulatory efforts towards minimizing carbon footprints. Inverter technology, which varies the compressor speed in accordance with cooling requirements, is also becoming popular for its power-saving capabilities. Moreover, the Indian government's initiative for energy-efficient appliances, including tighter BEE star ratings, is pushing consumers towards more efficient devices. The accelerating requirement of improved balance between comfort and affordability has sped up the uptake of these high-efficiency systems. Additionally, customers are adding smart technologies, including smartphone-based remote control, to enhance control over energy consumption. For example, in March 2024, Whirlpool of India has introduced its newer AC range featuring 6th Sense IntelliCool Technology, delivering customized cooling, intelligent sensors, and energy conservation, creating new standards in the air conditioning industry in India. Consequently, energy-efficient air conditioner demand is anticipated to increase not just in metropolitan cities but even in small towns and semi-urban areas.

India Air Conditioning Market Size

Rise in Residential and Commercial Applications

The Indian market for air conditioners is witnessing strong growth in both residential and commercial segments. Urbanization, increasing temperatures, and an expanding middle class are fueling the growth in residential AC installations. What was once considered a luxury product, air conditioners are now becoming a necessity in several households, particularly in tier-1 and tier-2 cities. At the commercial level, rising investments in infrastructure such as office spaces, malls, and hospitality industries have created a greater demand for HVAC solutions. Air conditioning in educational institutions, hospitals, and shopping areas is also on the rise at a great pace, amplifying the market. Climate change also fuels the demand for efficient cooling systems in both sectors. This growing dependence on air conditioning units for comfort as well as productivity is expected to keep driving the market's expansion in the next few years.

Technological Advancements and Smart Features

Technological innovation is transforming the India air conditioning industry, with companies launching new features that improve user experience, efficiency, and comfort. AI and IoT-enabled smart air conditioners are becoming increasingly popular as customers seek more convenient and personalized solutions. These air conditioners can be remotely controlled via smartphone applications, provide voice command capabilities using virtual assistants such as Amazon Alexa or Google Assistant, and adjust cooling based on usage patterns and weather conditions. For instance, in February 2024, Voltas introduced the SmartAir AC series, featuring IoT-enabled inverter split ACs with low noise, smart controls, Alexa and Google Home compatibility, and energy consumption tracking via a mobile app. Moreover, energy-efficient technologies like variable refrigerant flow (VRF) systems are also finding popularity in commercial uses, providing better performance with less energy use. In addition, air cleaning technologies combined with air conditioners, such as HEPA filters and UV light systems, are gaining popularity amid escalating air quality concerns. Such innovations are putting the market on a path to further growth as they offer users greater comfort and efficiency throughout India.

India Air Conditioning Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on type and application.

Type Insights:

Room Air Conditioner
Ducted Air Conditioner
Ductless Air Conditioner
Centralized Air Conditioner

The report has provided a detailed breakup and analysis of the market based on the type. This includes room air conditioner, ducted air conditioner, ductless air conditioner, and centralized air conditioner.

Application Insights:

Residential
Healthcare
Commercial and Retail
Hospitality
Others

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes residential, healthcare, commercial and retail, hospitality, and others.

Regional Insights:

North India
South India
East India
West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North, South, East, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Air Conditioning Market News:

In April 2024, LG Electronics India introduced India's first Energy Manager AC with AI-based energy optimization. With the introduction of 77 new models of energy-saving air conditioners, such as the ArtCool series, LG established new milestones in sustainability, performance, and smart technology and reaffirmed its focus on innovation in India's air conditioning business.
In February 2024, Panasonic introduced 60 new air conditioners in India, including the nation's first Matter-enabled Room ACs. With smart connectivity through Miraie, efficiency, and comprehensive air purification, the series encompasses AI-driven True AI cooling and ECONAVI for minimum energy usage for a new range of smart home experiences.

India Air Conditioning Market Report Coverage:

Report Features	Details
Base Year of the Analysis	2024
Historical Period	2019-2024
Forecast Period	2025-2033
Units	Billion USD
Scope of the Report	Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment: Type Application Region
Types Covered	Room Air Conditioner, Ducted Air Conditioner, Ductless Air Conditioner, Centralized Air Conditioner
Applications Covered	Residential, Healthcare, Commercial and Retail, Hospitality, Others
Regions Covered	North India, South India, East India, West India
Customization Scope	10% Free Customization
Post-Sale Analyst Support	10-12 Weeks
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Key Questions Answered in This Report:

How has the India air conditioning market performed so far and how will it perform in the coming years?
What is the breakup of the India air conditioning market on the basis of type?
What is the breakup of the India air conditioning market on the basis of application?
What is the breakup of the India air conditioning market on the basis of region?
What are the various stages in the value chain of the India air conditioning market?
What are the key driving factors and challenges in the India air conditioning?
What is the structure of the India air conditioning market and who are the key players?
What is the degree of competition in the India air conditioning market?

Key Benefits for Stakeholders:

IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India air conditioning market from 2019-2033.
The research report provides the latest information on the market drivers, challenges, and opportunities in the India air conditioning market.
Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India air conditioning industry and its attractiveness.
Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.

Need more help?

Speak to our experienced analysts for insights on the current market scenarios.
Include additional segments and countries to customize the report as per your requirement.
Gain an unparalleled competitive advantage in your domain by understanding how to utilize the report and positively impacting your operations and revenue.
For further assistance, please connect with our analysts.

Purchase Options Discount
Offer

Inquire Before Buying

Speak to an Analyst

Request Brochure

Request Customization

Benefits of Customization

Personalize this research
Triangulate with your data
Get data as per your format and definition
Gain a deeper dive into a specific application, geography, customer, or competitor
Any level of personalization

Get in Touch With Us

UNITED STATES

Phone: +1-631-791-1145

INDIA

Phone: +91-120-433-0800

UNITED KINGDOM

Phone: +44-753-714-6104

Email: sales@imarcgroup.com

Client Testimonials

IMARC made the whole process easy. Everyone I spoke with via email was polite, easy to deal with, kept their promises regarding delivery timelines and were solutions focused. From my first contact, I was grateful for the professionalism shown by the whole IMARC team. I recommend IMARC to all that need timely, affordable information and advice. My experience with IMARC was excellent and I can not fault it.

The IMARC team was very reactive and flexible with regard to our requests. A very good overall experience. We are happy with the work that IMARC has provided, very complete and detailed. It has contributed to our business needs and provided the market visibility that we required

We were very happy with the collaboration between IMARC and Colruyt. Not only were your prices competitive, IMARC was also pretty fast in understanding the scope and our needs for this project. Even though it was not an easy task, performing a market research during the COVID-19 pandemic, you were able to get us the necessary information we needed. The IMARC team was very easy to work with and they showed us that it would go the extra mile if we needed anything extra

Last project executed by your team was as per our expectations. We also would like to associate for more assignments this year. Kudos to your team.

We would be happy to reach out to IMARC again, if we need Market Research/Consulting/Consumer Research or any associated service. Overall experience was good, and the data points were quite helpful.

Arabian Plastic Manufacturing Company Ltd.

The figures of market study were very close to our assumed figures. The presentation of the study was neat and easy to analyse. The requested details of the study were fulfilled. My overall experience with the IMARC Team was satisfactory.

The overall cost of the services were within our expectations. I was happy to have good communications in a timely manner. It was a great and quick way to have the information I needed.

My questions and concerns were answered in a satisfied way. The costs of the services were within our expectations. My overall experience with the IMARC Team was very good.

I agree the report was timely delivered, meeting the key objectives of the engagement. We had some discussion on the contents, adjustments were made fast and accurate. The response time was minimum in each case. Very good. You have a satisfied customer.

We would be happy to reach out to IMARC for more market reports in the future. The response from the account sales manager was very good. I appreciate the timely follow ups and post purchase support from the team. My overall experience with IMARC was good.

IMARC was a good solution for the data points that we really needed and couldn't find elsewhere. The team was easy to work, quick to respond, and flexible to our customization requests.

IMARC did an outstanding job in preparing our study. They were punctual and precise, delivering all the data we required in a clear and well-organized format. Their attention to detail and ability to meet deadlines was impressive, making them a reliable partner for our project.

I wanted to express my sincere appreciation for your efforts in handling this matter. Your dedication and commitment have truly been commendable. It is evident that you have put in a tremendous amount of hard work and expertise into resolving the issues at hand. I would also like to take this opportunity to inform you that we are greatly interested

Overall, the deliverable was well organized and my experience with the project team was good. In particular, I appreciated how they responded when I requested additional information and the Japanese version.

The IMARC team were extremely professional and very cooperative. The team were also extremely flexible in making changes and modifications wherever required. The entire experience right from project kick-off to after sales support was fruitful and smooth.

I’d like to express my gratitude for the work you accomplished with the industry report. The way you responded to the requirements and delivered under tight timelines shows your expertise, exceptional work ethic and commitment to your customer’s success. The entire team and company are incredibly thankful for your dedication. Once again, thank you

The market reports from IMARC have been instrumental in guiding our business strategies. We found the reports comprehensive and data-driven, which helped us make informed decisions. The detailed insights and actionable data have consistently provided us with a competitive edge in a rapidly changing alcohol market.

One of the best things about IMARC is their flexibility and predisposition to tailor the reports and adapt to our needs. They are not just great in their researching and consulting solutions, but their service is unparallelled. We’ve worked with them a couple of times and we will keep working with them in future projects.

We recently commissioned multiple market research reports from IMARC, and the insights we received were invaluable. The depth of analysis, accuracy of data, and actionable recommendations have greatly enhanced our strategic decision-making.

The market estimates provided by your team were pretty much in line with what we were theorizing internally. Really appreciate the work on this.

The sale account manager and the service was excellent. The data and market trends gathered from the report was insightful and really assisted while planning future product and growth strategies.

The report is excellent and has good amount of data and our team is extremely happy with the information provided.

Thank you very much for your cooperation and post purchase support. We were really happy with the final deliverable, and the takeaways from the report.