AC Industry to Register 19% CAGR Growth Despite Compressor Shortage

The Indian air conditioner (AC) industry is projected to achieve a robust 19% CAGR growth over the next three years, driven by rising temperatures and increasing disposable income. However, this growth is threatened by a significant shortage of compressors, a critical component in AC manufacturing. The shortage is attributed to factors such as the expiration of BIS certification for a major Chinese compressor supplier and increased demand in China. Despite these challenges, AC sales are expected to surge, particularly during the peak summer months. Industry players are advised to address supply chain constraints to maintain growth momentum. The shortage may lead to production losses and higher prices for consumers, emphasizing the need for efficient inventory management and strategic supply chain planning.

Source: Financial Market Insights