The intense heatwaves sweeping through South and Eastern India have revolutionized the air conditioner market.
In April, temperatures surpassed 44°C in at least 10 cities, with Kolkata experiencing its hottest day in 50 years at 43°C.
Bangalore, typically known for its moderate climate, also broke previous temperature records, hitting 38.5°C, second only to the scorching peak of 39.2°C recorded in 2016.
With climate change worsening heatwaves and signs of El Niño exacerbating the situation, the tragic toll on human life has become apparent, claiming at least nine lives. Consequently, there has been an unprecedented surge in demand for cooling solutions. Despite concerns about carbon emissions, electricity shortages, and infrastructure limitations, air conditioning remains essential for safeguarding human health, especially for vulnerable groups like children, the elderly, and people with disabilities.
The Managing Director of Blue Star Limited recently predicted that India is on track to surpass China as the world’s largest consumer of air conditioners by 2040. This growth is not only due to the sheer size of the Indian market but also the rapid increase in demand in Tier-3, 4, and 5 cities, where first-time buyers constitute a significant 90%. Additionally, the availability of easy financing options has led to a surge in air conditioner purchases.
During this prosperous period for India’s room air conditioner sector, which is expected to achieve an impressive 10% compound annual growth rate, reaching a market value of $5 billion by 2027-28, government support has played a vital role.
Initiatives such as the Production Linked Incentive (PLI) schemes have provided crucial backing, further propelling the sector’s growth.
Undoubtedly, the air conditioning market in India is experiencing unprecedented growth, driven by a combination of climatic factors, demographic shifts, and supportive policies.
