Indian Air-Conditioning Industry: Refocus Investment or Face Irrelevance
A Trariti Consulting Group Study by Swapnil Roy
Global Market Overview
The global Heating, Ventilation, and Air Conditioning (HVAC) market is expected to grow at a CAGR of 5.5% between 2021 and 2026, reaching a market size of USD 160.1 billion by 2026. The market is highly competitive, with several global players contributing to its growth. In this report, we will discuss the contribution of different geographic regions in the HVAC industry.
The Asian HVAC market is dominated by Chinese and Japanese companies. China is the largest market for HVAC systems, followed by Japan, India, and South Korea. Companies like Gree Electric Appliances, Midea Group, Haier Group, and Mitsubishi Electric Corporation are the major players in this region. These companies have been developing advanced HVAC systems with high energy efficiency and innovative technologies, such as smart HVAC systems that can be controlled remotely.
Europe is a major market for HVAC systems, with countries like Germany, the UK, and France being the major contributors. Companies like Daikin Industries, Ltd., Carrier Global Corporation, and Johnson Controls International plc. are the major players in this region. European companies are focusing on developing sustainable HVAC systems that are energy-efficient and reduce the carbon footprint.
Japanese companies like Mitsubishi Electric Corporation, Hitachi, Ltd., and Fujitsu Limited are the major players in the global HVAC market. They have been developing innovative HVAC systems that are energy-efficient and environmentally friendly. Japanese companies have been investing heavily in research and development to develop advanced HVAC technologies.
Germany is one of the major contributors to the HVAC market in Europe. Companies like Viessmann Werke GmbH & Co. KG, Robert Bosch GmbH, and Siemens AG are the major players in this region. German companies have been developing high-performance HVAC systems that are energy-efficient and reduce carbon emissions.
The US is the largest market for HVAC systems in North America, followed by Canada and Mexico. Companies like Carrier Global Corporation, Johnson Controls International plc., and Lennox International Inc. are the major players in this region. American companies have been investing heavily in research and development to develop innovative HVAC systems with high energy efficiency and low carbon emissions.
South Korea is a major market for HVAC systems, with companies like LG Electronics, Samsung Electronics, and Daikin Industries, Ltd. being the major players in this region. Korean companies have been developing advanced HVAC systems with innovative technologies, such as smart HVAC systems that can be controlled remotely.
In conclusion, the global HVAC market is highly competitive, with several players contributing to its growth. Companies from different geographic regions are focusing on developing innovative HVAC technologies with high energy efficiency and low carbon emissions. The industry is expected to witness significant growth in the coming years, driven by factors such as rising temperatures, increasing demand for energy-efficient HVAC systems, and growing awareness about environmental issues.
The Indian air conditioning industry has undergone significant changes since the 1950s, with advancements in technology and growing demand for air conditioning systems. However, there is a growing need for the industry to refocus its investment to keep up with the changing trends or face irrelevance.
According to a report by TechSci Research, the Indian air conditioning market is projected to reach $10.9 billion by 2023, growing at a CAGR of 13.7% during the forecast period 2018-2023. This growth is fueled by factors such as rising temperatures, increasing disposable incomes, and growing infrastructure development.
In terms of technology, air conditioning systems have evolved significantly over the years. In the 1950s, the most common type of air conditioning system was the window air conditioner, which was bulky and noisy. However, in the 1960s, the introduction of split air conditioning systems revolutionized the industry. These systems were more efficient, quieter, and allowed for greater control over temperature and humidity levels.
In recent years, there has been a growing demand for energy-efficient air conditioning systems. In response, manufacturers have developed systems with higher energy efficiency ratings, such as the inverter air conditioner. These systems can reduce energy consumption by up to 50% compared to conventional air conditioning systems.
Other technological advancements include the development of smart air conditioning systems that can be controlled remotely using a smartphone or tablet. Systems can also adjust the temperature and humidity levels automatically based on the user's preferences and behavior.
In terms of market growth, China is currently the largest market for air conditioning systems, accounting for over 50% of global sales. India is the second-largest market, followed by the United States, Japan, and Europe. However, India is expected to become the largest market for air conditioning systems by 2050, driven by factors such as population growth and rising temperatures.
In conclusion, the Indian air conditioning industry has come a long way since the 1950s, with significant advancements in technology and growing demand. However, there is a need for the industry to refocus its investment on energy-efficient and smart systems to keep up with the changing trends and remain relevant.