Climate change is a real threat to human civilization and has a drastic impact on the world. However, amidst the global warming people want to be cooled down and this is where the Air-Conditioners come in to play. The whole process of purchasing an AC is a vicious circle. The rising temperatures around compels one to purchase an AC. These appliances are known to be one of the major sources of greenhouse gas emission from a household. The appliance that cools you down causes the outside environment to heat up and this will result in more purchasing of ACs. This vicious circle is deadly for the world’s environment but it seems that the AC manufacturers are having a good time collecting the profits.
According to a research report published by Research and Markets this year, the AC market in India is about to grow at 12.2% CAGR during the 2018 – 2024 period. There are mainly two factors behind the growth in this market. The rising temperatures in the country and rising income and spending power of the Indian middle class.
Consumers of Air conditioning systems range from households to corporates to manufacturing industries and so on. However, the majority of the demand comes from the households. The order quantity per household is less compared to that of an office or a factory but the total volume of sales in the market is the highest.
Region wise distribution is also a crucial figure to look at. According to the report, the growth rate is the highest in the northern region followed by the South and West parts of India. As we have already discussed the changing climatic conditions, the growth in the north can be attributed to the heat in the Northern parts of India. It becomes extremely hot and humid in most of the places, especially in the Gangetic plains. The Sothern and the Western regions have good economic conditions and hence the growth is evident. However, the Eastern region is slacking because of the small economy and good weather conditions. As compared to the other regions, the Eastern region’s climate is comparatively better and adding to that the poor economy, the AC market has less scope there.
In India, the Korean giants, Samsung and LG dominate the market with some of the Indian companies such as Godrej, BlueStar, Onida and Tata Group’s Voltas. Japanese majors such as Daikin and Hitachi also performs pretty well in the AC market. However, it is seen that the Chinese companies are gaining a significant amount of market share rapidly.
The ReviewTech team took an interview of an owner of a large electronics store in Pune. The owner revealed that Haier is one of the new entrants to perform very well in India. This Chinese company has spread very fast in the market due to its affordability and quality products. The middle-class population in India looks for value for money products and they feel that companies such as LG and Samsung are too expensive for their product quality. The future looks bright for the Indian AC market, though the climatic conditions deteriorate each passing day.